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CONFLICT AND NEGOTATIONS
- 1. Organizational Behavior V2.0 By Talya Bauer and Berrin Erdogan
- 2. 13-1 Published by: Flat World Knowledge, Inc. © 2015 by Flat World Knowledge, Inc. All rights reserved. Your use of this work is subject to the License Agreement available here http://www.flatworldknowledge.com/legal. No part of this work may be used, modified, or reproduced in any form or by any means except as expressly permitted under the License Agreement.
- 4. Learning Objectives 1-3 1. Understand the different types of conflict 2. Understand the causes of conflict 3. Understand the consequences of conflict 4. Understand how to manage conflict effectively 5. Understand the stages of the negotiation process 6. Understand how to avoid common negotiation mistakes 7. Engage in conflict management and negotiation ethically 8. Understand cross-cultural differences in conflict and negotiation
- 5. Case Study: PointCast Source: shutterstock.com
- 6. Case Discussion Questions 1. Considering the amount of buzz surrounding Hassett’s new technology and the impact previous, similar advancements have made, was Hassett necessarily foolish for not taking a quick offer? 2. Is the PointCast situation a case of pride clouding someone’s judgment or more accurately a representation of the rapidly changing nature of computer-related business? In other words, if Hassett’s advancement had been in an industry that is not known for such rapid changes, would he have been considered foolish if he hadn’t held out for more money? 3. This case focuses on how foolish Hassett was for not accepting Rupert Murdoch’s first or second offer. However, think of the buyout offer from the perspective of Rupert Murdoch. If the buyout had gone through, News Corporation would likely have lost hundreds of millions of dollars on the deal, and the company was effectively spared massive losses by the merger falling through. What could Murdoch have done differently to protect against such risky mergers in the future?
- 7. Negotiation Failure: PointCast 1-6 © 2010 Jupiterimages Corporation Many “dotcoms” startups of the 1990s consisted of little more than a few employees and a room full of servers. Stalled negotiations cost PointCast $443 million, ultimately being acquired by Idealab for a mere $7 million.
- 8. Conflict Intrapersonal Conflict within a person. It arises when a person is uncertain about what is expected or wanted, or has a sense of being inadequate to the task. Interpersonal Conflict between two people. Intergroup Conflict that takes place among different groups, between a union and management, or between companies, such as companies that supply the same customer.
- 9. Is Conflict Always Bad? Low High Conflict Low High Performance The inverted U relationship between performance and conflict.
- 10. Discussion • What are the types of conflicts that individuals may have at work? Which type have you experienced the most? • What are some primary causes of conflict at work? • Explain how miscommunication might be related to a conflict at work.
- 12. Outcomes of Conflict Negative • Increased stress and anxiety among individuals, which decreases productivity and creativity • Feelings of being defeated and demeaned, which lowers individuals’ morale and may increase turnover • A climate of mistrust, which hinders the teamwork and cooperation necessary to get work done Positive • Consideration of a broader range of ideas, resulting in a better, stronger idea • Surfacing of assumptions that may be inaccurate • Increased participation and creativity • Clarification of individual views that build learning
- 13. Is Your Job at Risk for Workplace Violence? Job Characteristic Example Caring for others either emotionally or physically nursing home Interacting with frustrated customers retail sales Supervising others manager Denying requests others make of you customer service
- 14. Is Your Job at Risk for Workplace Violence? Job Characteristic Example Dealing with valuables or exchanging money banking Handling weapons law enforcement Working with drugs, alcohol, or those under the influence of them bartending Working nights or weekends gas station attendants
- 15. Discussion • What are some primary causes of conflict at work? • What are the outcomes of workplace conflict? Which types of jobs are the most at risk for workplace violence? Why do you think that is? • What outcomes have you observed from conflict?
- 16. Ways to Manage Conflict 1-15 Change the Structure Change the Composition of the Team Create a Common Opposing Force Consider Majority Rule Problem Solve
- 17. Conflict Handling Styles Low High Level of Competitiveness Low High Level of Cooperation Avoidance Accommodation Collaboration Competition Compromise
- 18. Conflict Handling Styles • “I don’t think there’s any problem. I feel fine about how things are.” Avoiding • “If it’s important to you, I can go along with it.” Accommodating • “Maybe we can both agree to give a little.” Compromise • “This is what I want, and I am going to fight for it.” Competition • “Let’s look at the bigger picture and find out how we can both get what we want.” Collaboration
- 19. Which Style is Best? There is no single “right way” to deal with conflict. Although many people have a single method they use most frequently, the best conflict handlers will adapt their style to the situation.
- 20. OB Toolbox: How Can You Stimulate Healthy Conflict? Encourage people to raise issues and disagree with you or the status quo without fear of reprisal Assign a devil’s advocate to stimulate alternative viewpoints Create a competition among teams, offering a bonus to the team that comes up with the best solution to a problem Build some ambiguity into the process
- 21. Discussion • List three ways to decrease a conflict situation. What are some pros and cons of each of these approaches? • Do you deal with conflict differently with friends and family than you do at work? If so, why do you think that is? • What is you usual conflict-handling style at work? Do you see it as effective or ineffective? • Describe a situation in which not having enough conflict can be a problem.
- 22. The Five Phases of Negotiation Closure Bargaining Presentation Determine your BATNA Investigation
- 23. The Five Phases of Negotiation All phases of the negotiation process are important. The presentation is the one that normally receives the most attention but the work done before that point is equally important. © 2010 Jupiterimages Corporation
- 24. Determining Your BATNA B est A lternative T o a N egotiated A greement
- 25. OB Toolbox: BATNA Best Practices 1 Brainstorm a list of alternatives 2 Improve upon more promising ideas and convert them 3 Identify the most beneficial alternative 4 Remember that your BATNA may evolve over time 5 Don’t reveal your BATNA to the other party
- 26. Negotiation Strategies Distributive Approach • The traditional fixed- pie approach in which negotiators see the situation as a pie that they have to divide between them. Integrative Approach • An approach to negotiation in which both parties look for ways to integrate their goals under a large umbrella.
- 27. OB Toolbox: Seven Steps to Negotiating a Higher Salary • Overcome your fear Step 1: • Get the facts Step 2: • Build your case Step 3: • Know what you want Step 4: • Begin assertively Step 5: • Don’t make the first offer Step 6: • Listen more than talk Step 7:
- 28. Avoiding Common Mistake in Negotiations Failing to negotiate/accepti ng the first offer Letting your ego get in the way Having unrealistic expectations Getting overly emotional Letting past negative outcomes affect the present ones
- 29. Tips for Negotiation Success Focus on agreement first Be patient Whose reality? Deadlines Be comfortable with silence
- 30. When All Else Fails: Third Party Negotiations Mediation Other Resolution Methods Arbitration Third party negotiations are intended to help avoid a formal trial or hearing.
- 31. When All Else Fails: Third Party Negotiations Mediation • An outside third party (the mediator) enters the situation with the goal of assisting the parties to reach an agreement. Arbitration • A process that involves bringing in a third party, the arbitrator, who has the authority to act as a judge and make a binding decision to which both parties must adhere. Arbitration- Mediation • An arbitrator makes a decision and places it in a sealed envelope. Both parties then work through mediation. If they cannot reach an agreement, the arbitrator’s decision becomes binding.
- 32. You Know It’s Time for a Mediator When… The parties are unable to find a solution themselves Personal differences are standing in the way of a successful solution The parties have stopped talking with one another Obtaining a quick resolution is important
- 33. Ethics and Negotiations Be honest Keep your promises Follow the Platinum Rule. Most people know the Golden Rule…the Platinum Rule takes it one step further by, “Treating others the way they want to be treated.”
- 34. Case Study: WorldCom Source: U.S. National Communications System.
- 35. Case Discussion Questions 1. What potential causes of conflict existed at WorldCom during Bernard Ebbers’ administration? 2. What might have happened if Ebbers had been prone to a different conflict- handling style, such as compromise or collaboration? 3. How did having a small “inner circle” of leadership affect the corporate culture at WorldCom? 4. If you were Cynthia Cooper, how might you have dealt with being ignored? What options did Cooper have to deal with the company conflict? 5. What responsibility did the board of directors have to detect and confront the problems at WorldCom?
- 36. Negotiations Around the Globe Low Threshold (prefer harmony) Higher Threshold (conflict is acceptable) Japan America Korea Germany Various other differences exist among cultures, such as levels of trust (e.g., Pakistan), negotiation “rituals” (e.g., China), how information exchanges are handled (e.g., Japan vs. United States), and how negotiations are viewed (e.g., Western vs. other cultures). Countries have different thresholds for conflict.
- 37. Discussion • Is the goal of negotiation to maximize your economic outcome at all costs? Why or why not? Is it ethical to do so? • What are some similarities and differences in conflict management preference and negotiation practices among different countries around the globe? Have you had any negotiating experiences with individuals from other cultures? If so, how did it go? How might it have gone better?
Editor's Notes
- Understanding the concepts of leadership and management requires readers to first understand their leadership and management experience and place it into the context of academic or scholarly theories and concepts. Doing this provides the developing leader with a baseline of identified experience to work from. The next step of leadership development is to understand the professional cognate or language used in academia or scholarly work on leadership. Having this understanding allows the developing leader to better grasp the theories and concepts that frame the hard-earned experiences into lessons learned. The last part of leadership development involves the study of historical and even contemporary leaders. Using leadership or management experience, and framing this with academic or scholarly work, provides the reader with the tools necessary to evaluate and assess the effectiveness of historical or contemporary leaders. The beginning of your leadership development journey is to first understand your leadership and management experience. To accomplish this undertaking is to define your experience into the context of academic and scholarly work, and this is where we begin the study of leadership.
- Academic and Scholarly Studies: Leadership development is really a study of Behavioral and Leadership Sciences. You will first learn about your individual behaviors and cognition and how you apply them to leadership and management situations. This is where you are now, learning about who you are as a leader and follower. You will be exposed to many theories and concepts of leadership as represented in the Yukl 8e text, the Lencioni book on The Five Dysfunctions of a Team, and any additional readings you undertake as the course progresses. You will read about theories and concepts and be able to match your baseline personal experience to them, as doing this allows you to better understand what and why you did things in the past and now frame them terms of the professional language of psychology and leadership.
- Understanding the concepts of leadership and management requires readers to first understand their leadership and management experience and place it into the context of academic or scholarly theories and concepts. Doing this provides the developing leader with a baseline of identified experience to work from. The next step of leadership development is to understand the professional cognate or language used in academia or scholarly work on leadership. Having this understanding allows the developing leader to better grasp the theories and concepts that frame the hard-earned experiences into lessons learned. The last part of leadership development involves the study of historical and even contemporary leaders. Using leadership or management experience, and framing this with academic or scholarly work, provides the reader with the tools necessary to evaluate and assess the effectiveness of historical or contemporary leaders. The beginning of your leadership development journey is to first understand your leadership and management experience. To accomplish this undertaking is to define your experience into the context of academic and scholarly work, and this is where we begin the study of leadership.
- Understanding these questions is the beginning of a very personal journey to explore your continued leadership development requirements. For example, how you define your personality in terms of the leadership connection to behavioral sciences, as well as the professional skills necessary to be an effective manager—which are then added to your understanding and development as a leader—are all part of the leadership development journey discussed in this and other chapters.
- Understanding the concepts of leadership and management requires readers to first understand their leadership and management experience and place it into the context of academic or scholarly theories and concepts. Doing this provides the developing leader with a baseline of identified experience to work from. The next step of leadership development is to understand the professional cognate or language used in academia or scholarly work on leadership. Having this understanding allows the developing leader to better grasp the theories and concepts that frame the hard-earned experiences into lessons learned. The last part of leadership development involves the study of historical and even contemporary leaders. Using leadership or management experience, and framing this with academic or scholarly work, provides the reader with the tools necessary to evaluate and assess the effectiveness of historical or contemporary leaders. The beginning of your leadership development journey is to first understand your leadership and management experience. To accomplish this undertaking is to define your experience into the context of academic and scholarly work, and this is where we begin the study of leadership.
- Understanding the concepts of leadership and management requires readers to first understand their leadership and management experience and place it into the context of academic or scholarly theories and concepts. Doing this provides the developing leader with a baseline of identified experience to work from. The next step of leadership development is to understand the professional cognate or language used in academia or scholarly work on leadership. Having this understanding allows the developing leader to better grasp the theories and concepts that frame the hard-earned experiences into lessons learned. The last part of leadership development involves the study of historical and even contemporary leaders. Using leadership or management experience, and framing this with academic or scholarly work, provides the reader with the tools necessary to evaluate and assess the effectiveness of historical or contemporary leaders. The beginning of your leadership development journey is to first understand your leadership and management experience. To accomplish this undertaking is to define your experience into the context of academic and scholarly work, and this is where we begin the study of leadership.
- Understanding the concepts of leadership and management requires readers to first understand their leadership and management experience and place it into the context of academic or scholarly theories and concepts. Doing this provides the developing leader with a baseline of identified experience to work from. The next step of leadership development is to understand the professional cognate or language used in academia or scholarly work on leadership. Having this understanding allows the developing leader to better grasp the theories and concepts that frame the hard-earned experiences into lessons learned. The last part of leadership development involves the study of historical and even contemporary leaders. Using leadership or management experience, and framing this with academic or scholarly work, provides the reader with the tools necessary to evaluate and assess the effectiveness of historical or contemporary leaders. The beginning of your leadership development journey is to first understand your leadership and management experience. To accomplish this undertaking is to define your experience into the context of academic and scholarly work, and this is where we begin the study of leadership.
- Understanding the concepts of leadership and management requires readers to first understand their leadership and management experience and place it into the context of academic or scholarly theories and concepts. Doing this provides the developing leader with a baseline of identified experience to work from. The next step of leadership development is to understand the professional cognate or language used in academia or scholarly work on leadership. Having this understanding allows the developing leader to better grasp the theories and concepts that frame the hard-earned experiences into lessons learned. The last part of leadership development involves the study of historical and even contemporary leaders. Using leadership or management experience, and framing this with academic or scholarly work, provides the reader with the tools necessary to evaluate and assess the effectiveness of historical or contemporary leaders. The beginning of your leadership development journey is to first understand your leadership and management experience. To accomplish this undertaking is to define your experience into the context of academic and scholarly work, and this is where we begin the study of leadership.
- Understanding the concepts of leadership and management requires readers to first understand their leadership and management experience and place it into the context of academic or scholarly theories and concepts. Doing this provides the developing leader with a baseline of identified experience to work from. The next step of leadership development is to understand the professional cognate or language used in academia or scholarly work on leadership. Having this understanding allows the developing leader to better grasp the theories and concepts that frame the hard-earned experiences into lessons learned. The last part of leadership development involves the study of historical and even contemporary leaders. Using leadership or management experience, and framing this with academic or scholarly work, provides the reader with the tools necessary to evaluate and assess the effectiveness of historical or contemporary leaders. The beginning of your leadership development journey is to first understand your leadership and management experience. To accomplish this undertaking is to define your experience into the context of academic and scholarly work, and this is where we begin the study of leadership.