This document provides an overview of conflict and negotiation in business organizations. It defines conflict, discusses the stages and types of conflict including relationship, data, interest, structural, and value conflicts. It also examines the importance of conflict management, different conflict management styles and their consequences, including competing, accommodating, avoiding, compromising, and collaborating. The document then provides examples of conflict situations and a six step process to manage potential conflicts. Finally, it analyzes a specific example of a conflict between garment laborers and owners in Bangladesh in 2010 over poor wages.

1. Assignment
On
Importance of Conflict and negotiation in business organization
Course code:
Course title: Organizational Behavior
Submit to:
Md. Momtazul hoque Azad
Lecturer , OB,
Department of Business Administration , BIU
Submited By:
Name ID
Fokhrul Islam BBARM23132013
Nazmus sakib BBARM23132015
Md. Mehedi Hasan BBARM23132033
Nazrul Islam BBARM23132044
Md. Rakib Hosen BBARM22131168
Batch : 23rd (A)
Program : BBA
Department of Business Administration
BangladeshIslami University
Date of submission : 10 April 7, 2016

2. What is Conflict?
We define conflict as a disagreement through which the parties involved perceive a threat to their
needs, interests or concerns. It’s human nature to have conflicts and it arises for any number of
reasons, including:
1. Misunderstandings
2. Personality clashes
3. Disagreements about the right way to approach a problem
4. Egos
During our daily lives, we are all involved in a number of conflicts. Sometimes, the conflicts may
be small, for example, a person may ignore us while we are talking. Sometimes, the conflict may
be more serious, for example, two persons behaving violently toward each other.
Whether big or small, conflict is not confined only to a person and the people around her/him. It
can be between people one is not even associated with. A conflict can, for example, be between
people and the prevailing laws. Conflict does not only occur at the personal level but also at the
national, and even international level. Apart from external conflicts between individuals or groups,
there can also be internal conflicts within an individual.
Stages of conflict
There is general agreement on four basic stages of conflict. These stages are not mutually
exclusive and therefore, an individual may be involved in more than one at a time.
• Intrapersonal: conflict within the individual (for example, a person
who cannot make decisions).
• Interpersonal: conflict among two or more individuals (for example, an argument between a
boyfriend and girlfriend, or between a student and her/his teacher, or child and parent, or
between friends/colleagues).
• Intragroup: conflict within a group (for example, between members of the same work or football
team).
• Intergroup: conflict between two or more groups (for example, between two different youth
gangs, or between students and the school faculty).
Types of Conflict:
By evaluating a conflict according to the five categories below — relationship, data, interest,
structural and value — we can begin to determine the causes of a conflict and design resolution
strategies that will have a higher probability of success.
Relationship Conflicts
Relationship conflicts occur because of the presence of strong negative emotions,
misperceptions or stereotypes, poor communication or miscommunication, or repetitive negative

3. behaviors. Relationship problems often fuel disputes and lead to an unnecessary escalating
spiral of destructive conflict. Supporting the safe and balanced expression of perspectives and
emotions for acknowledgment (not agreement) is one effective approach to managing relational
conflict.
Data Conflicts
Data conflicts occur when people lack information necessary to make wise decisions, are
misinformed, disagree on which data is relevant, interpret information differently, or have
competing assessment procedures. Some data conflicts may be unnecessary since they are
caused by poor communication between the people in conflict. Other data conflicts may be
genuine incompatibilities associated with data collection, interpretation or communication. Most
data conflicts will have “data solutions.”
Interest Conflicts
Interest conflicts are caused by competition over perceived incompatible needs. Conflicts of
interest result when one or more of the parties believe that in order to satisfy his or her needs, the
needs and interests of an opponent must be sacrificed. Interest-based conflict will commonly be
expressed in positional terms. A variety of interests and intentions underlie and motivate positions
in negotiation and must be addressed for maximized resolution. Interest-based conflicts may
occur over substantive issues (such as money, physical resources, time, etc.); procedural issues
(the way the dispute is to be resolved); and psychological issues (perceptions of trust, fairness,
desire for participation, respect, etc.). For an interest-based dispute to be resolved, parties must
be assisted to define and express their individual interests so that all of these interests may be
jointly addressed. Interest-based conflict is best resolved through the maximizing integration of
the parties’ respective interests, positive intentions and desired experiential outcomes.
Structural Conflicts
Structural conflicts are caused by forces external to the people in dispute. Limited physical
resources or authority, geographic constraints (distance or proximity), time (too little or too much),
organizational changes, and so forth can make structural conflict seem like a crisis. It can be
helpful to assist parties in conflict to appreciate the external forces and constraints bearing upon
them. Structural conflicts will often have structural solutions. Parties’ appreciation that a conflict
has an external source can have the effect of them coming to jointly address the imposed
difficulties.
Value Conflicts
Value conflicts are caused by perceived or actual incompatible belief systems. Values are beliefs
that people use to give meaning to their lives. Values explain what is “good” or “bad,” “right” or

4. “wrong,” “just” or “unjust.” Differing values need not cause conflict. People can live together in
harmony with different value systems. Value disputes arise only when people attempt to force
one set of values on others or lay claim to exclusive value systems that do not allow for divergent
beliefs. It is of no use to try to change value and belief systems during relatively short and
strategic mediation interventions. It can, however, be helpful to support each participant’s
expression of their values and beliefs for acknowledgment by the other party.
Life cycle of conflict:
Why conflict Management is important?
Social conflicts begin with one party wanting something that another party resists doing or
providing. Conflicts cover a myriad of different circumstances that range from mundane tests of
wills between parents and children, to conflicts between legal adversaries, to negotiations
between sales agents and customers. Conflict management can be used to achieve consensus
among individuals and groups and it can increase your understanding of differing points of views.
You can learn to identify positive and negative effects of conflict, which can help you optimize
your actions and understand difficult situations. Below are some poten- tially positive and
negative aspects of conflict and how they can affect you and others.
Who can use conflict Management Techniques?
Anyone in The Conservation Partnership is potentially capable of learning how to constructively
deal with conflict. You have to keep in mind that conflict situations should not be taken lightly.
Resolving conflict is not a mechanical process in which applying steps “A” through “Z” guarantees
a happy ending. Conflicts that are based on personalities or value systems may never be
resolved but they could be minimized using conflict management approach.
Conflict management Styles and their Consequences:
Conflict is often best understood by examining the consequences of various behaviors at
moments in time. These behaviors are usefully categorized according to conflict styles. Each
style is a way to meet one’s needs in a dispute but may impact other people in different ways.
 Competing is a style in which one’s own needs are advocated over the needs of others. It relies
on an aggressive style of communication, low regard for future relationships, and the exercise of
coercive power. Those using a competitive style tend to seek control over a discussion, in both
substance and ground rules. They fear that loss of such control will result in solutions that fail to
meet their needs. Competing tends to result in responses that increase the level of threat.
 Accommodating, also known as smoothing, is the opposite of competing. Persons using this style
yield their needs to those of others, trying to be diplomatic. They tend to allow the needs of the
group to overwhelm their own, which may not ever be stated, as preserving the relationship is seen
as most important.

5.  Avoiding is a common response to the negative perception of conflict. “Perhaps if we don’t bring it
up, it will blow over,” we say to ourselves. But, generally, all that happens is that feelings get pent
up, views go unexpressed, and the conflict festers until it becomes too big to ignore. Like a cancer
that may well have been cured if treated early, the conflict grows and spreads until it kills the
relationship. Because needs and concerns go unexpressed, people are often confused, wondering
what went wrong in a relationship.
 Compromising is an approach to conflict in which people gain and give in a series of tradeoffs.
While satisfactory, compromise is generally not satisfying. We each remain shaped by our
individual perceptions of our needs and don’t necessarily understand the other side very well. We
often retain a lack of trust and avoid risk-taking involved in more collaborative behaviors.
 Collaborating is the pooling of individual needs and goals toward a common goal. Often called
“win-win problem-solving,” collaboration requires assertive communication and cooperation in
order to achieve a better solution than either individual could have achieved alone. It offers the
chance for consensus, the integration of needs, and the potential to exceed the “budget of
possibilities” that previously limited our views of the conflict. It brings new time, energy, and ideas
to resolve the dispute meaningfully.
By understanding each style and its consequences, we may normalize the results of our
behaviors in various situations. This is not to say, “Thou shalt collaborate” in a moralizing way,
but to indicate the expected consequences of each approach: If we use a competing style, we
might force the others to accept ‘our’ solution, but this acceptance may be accompanied by fear
and resentment. If we accommodate, the relationship may proceed smoothly, but we may build
up frustrations that our needs are going unmet. If we compromise, we may feel OK about the
outcome, but still harbor resentments in the future. If we collaborate, we may not gain a better
solution than a compromise might have yielded, but we are more likely to feel better about our
chances for future understanding and goodwill. And if we avoid discussing the conflict at all, both
parties may remain clueless about the real underlying issues and concerns, only to be dealing
with them in the future.
Six Steps to Manage APotential Conflict
Step 1 — Diagnose the situation. Determine the conflict’s content and history. Evaluate
personalities and positions.
Step 2 — Involve all parties. Be a skillful questioner by asking open-ended questions. Use
processes that solicit discussion, opinions, information, priorities, etc. from all people.
Step 3 — Collect all information. There are many ways to gather information; e.g., use facts,
historical records, data, maps, ideas from around the table, unbiased experts, and interviews.
Remember, people’s feelings are just as real to them as facts.

6. Step 4 — Reinforce agreements. People who disagree often share some common goals and
common values. Discover these common concerns and reinforce agreements. Write these
agreements so that everyone can see them.
Step 5 — Negotiate disagreements. Disagreements are not negotiated until everyone
understands the facts and feelings that caused the conflict. Review steps 1 through 4; list
important disagreements; have everyone rank order their disagreements; begin with the smallest
issue and work toward the largest.
Step 6 – Solidify agreements. Identify agreed upon solutions and offer compromises for
unresolved issues. If a compromise cannot be reached, table the issue and move to the next
issue; review any proposed agreements carefully so you are sure that everyone understands
them.
Problem solving model
various models have been developed to provide a framework within which conflict negotiation can
take place. One such model is the “Mountain Model”, where conflict negotiation is described as a
high mountain that has to be climbed.
In this model, the conflict negotiation process starts at the bottom of the mountain and reaches
the top only after the conflict has been handled and a solution developed in an “inclusive” way
(for example, by taking the views and needs of both people in conflict into consideration, to find a
solution that everyone feels comfortable with). A lot of analysis, creative thinking, and imagination
are needed throughout the mountain climb to achieve the goal.
To reach the mountain top, the conflict process requires three main steps.
Example of a conflict situations:
In RMG sector, there was happened a great conflict between garments labors’ and garments’
owners’ in August’2010. The main issue of that conflict was poor wages structure.
More than 100 garment factories halted production in August’2010 as workers continued riot for
cancelling new wages, stoking concern about the industry’s future.
The labour trouble, which has continued to rock the country’s two apparel hubs outside the
capital, left more than 50 people injured and police said workers smashed dozens of factories
and several vehicles at Jamgora in Ashulia.
Owners said they were forced to suspend operations for the day after thousands of workers went
on the rampage, vendalising plants, putting up barricades and damaged vehicles on the roads. In
Fatullah, workers clashed with police, which led to the suspension of several factories in the area
as owners feared further trouble.

7. Workers of Pall-mall, Microfiber, Liberty, Mitsuwear and Cadtrex garment factories, all located in
the city’s Katherpul area, started demonstrating inside their factories. They tried to come out of
the factories, but the move was thwarted by armed police, deployed at factory gates. Most of the
garment factories remained closed for the time being. Additional police forces were deployed in
the area to avert any unwarranted situation. Personnel from the elite force Rapid Action Battalion
were also patrolling in the areas. The workers also chanted slogans demanding immediate
release of a union leader Manto Ghosh. The workers of Sonargaon’s Sinha and Opex factories
also brought out demonstrations inside their factories. Jibon Kanti Sarker, chief of the Fatulla
Model Police Station, said the police dispersed the agitators as they tried to obstruct the traffic on
the highway. Hundreds of workers also staged demonstration at Mirpur in the capital but police
cleared the street when workers assembled. President of Bangladesh Garment Manufacturers
and Exporters Association (BGMEA) Abdus Salam Murshedy said owners would be compelled to
stay out of apparel business if the situation does not improve in the industrial belts. “We need
security for our investment. Such vandalisms will shatter the image of the country and will force
global retailers to change their destination,” he added. Meanwhile, two cases were filed against
10,000 workers with Ashulia police station last night on charges of vandalism and creating
anarchy in the industrial hub. One filed by police and another one by general manager of Shed
fashion The government Thursday announced news wages for the country’s three million apparel
workers increasing their minimum monthly basic wages to 3,000 taka (43 dollars), up by 80.45
per cent from 1,662.50 (28 dollars). The union leaders and workers have rejected the salary-
structure and demanded of 5,000 taka as minimum monthly wages with the effect from August 1
and warned of launching a nationwide shutdown unless their demand was met.
Analysis of this confliction:
1. These confliction was a conflict that goes under the types of interest conflict. That means Conflicts
of interest result when one or more of the parties believe that in order to satisfy his or her needs,
the needs and interests of an opponent must be sacrificed. Interest-based conflict will commonly
be expressed in positional terms. A variety of interests and intentions underlie and motivate
positions in negotiation and must be addressed for maximized resolution. Interest-based conflicts
may occur over substantive issues (such as money, physical resources, time, etc.); procedural
issues (the way the dispute is to be resolved); and psychological issues (perceptions of trust,
fairness, desire for participation, respect, etc.).
2. This confliction stage or level was inter-group conflict. That means inter-group conflict occurs
between two competing or distinct groups. Intergroup relations between two or more groups and
their respective members are often necessary to complete the work required to operate a
business. Many times, groups inter-relate to accomplish the organization’s goals and objectives,
and conflict can occur. Some conflict, called functional conflict, is considered positive, because it
enhances performance and identifies weaknesses. Dysfunctional conflict, however, is

8. confrontation or interaction between groups that harms the organization or hinders attainment of
goals or objectives.
Solutions to Intergroup Conflict
There are numerous choices available to circumvent conflict, to keep it from becoming damaging,
and to resolve conflict that is more serious. These include simple avoidance where possible,
problem solving, changing certain variables in the workplace, and in-house alternative dispute
resolution (ADR) programs. Any resolution method should depend on why the conflict occurred,
the seriousness of the conflict, and the type. A face-to-face meeting, as in problem solving, can
be very effective in conflicts of misunderstanding or language barriers. The groups can discuss
issues and relevant information, with or without a facilitator, to reach resolution.
Where groups have differing goals, it may be prudent to establish some type of goal that can only
be reached when the conflicting groups work together. A superordinate goal not only helps
alleviate conflict, it focuses more on performance, which is what the organization needs to
survive. A downside to this option is the identification of a common enemy of the conflicting
groups, who must come together to prevail. Eventually, the solidarity crumbles and groups begin
to again turn against each other.
Another stopgap solution to conflict is simply avoiding it. Although this does not resolve the
problem, it can help get a group through a period of time, in which those involved may become
more objective, or a greater, more immediate goal would have been met. Along those lines,
another solution is smoothing the groups by focusing on common interests and de-emphasizing
the differences between them. This approach is especially effective on relatively simple conflicts
and is viewed as a short-term remedy.
Yet another quick fix is the authoritative command, where groups, who cannot satisfactorily
resolve their conflict, are commanded by management. This response does not usually deal with
the underlying cause of the conflict, which is likely to surface again in some way. This would
probably be a choice of last resort in this era of individual independence and self-determination.
Although it is not always possible to change a person’s behavior, by focusing on the cause of the
conflict and the attitudes of those involved, it will lead to a more permanent resolution. It is also
possible to change the structural variables involving the conflicting groups, such as changing jobs
or rearranging reporting responsibilities. This approach is much more effective when the groups
themselves participate in structural change decisions. Without meaningful input, this resolution
method resembles avoidance or forcing and is not likely to succeed, further frustrating all
involved.

9. Any method or response to conflict, lost productivity, miscommunication, or unhealthy work
environment can be reconstituted in many forms of ADR. Alternative dispute resolution should
also be appropriate to the needs of those involved. It is crucial that the organization determines
the needs of its stakeholders, the types of conflict that occur, and the conflict culture (how conflict
is dealt with) within the organization before initiating an ADR program. Any program must allow
for creativity, approachability, and flexibility if people are asked to utilize it. All employees should
be aware or involved in the establishment of an ADR program, if it is to work properly. Without full
involvement or input, needs assessment is hit or miss, and assumptions lead to actions, which
lead to the same place you were before. This assumicide behavior by an organization’s
leadership would not be tolerated in marketing a new product or acquiring a capital asset, so why
are people less important?
Any collaborative process intended to address and manage intergroup conflict should have
objectives to encourage it. In this major commitment of time and resources, success is its best
reward, but to ensure an ADR approach suitable for you, it is important to:
 Build trust
 Clearly define participants’ roles and authorities
 Establish ground rules
 Promote leadership
 Bring a collaborative attitude to the table
 Maintain participant continuity
 Recognize time and resource constraints
 Address cultural differences and power imbalances
 Build accountability and organizational commitment
 Make this a consensus process
 Produce early measurable results
 Link decision making and implementation
 Promote good communication and listening skills
When an organization is creating a dispute resolution process, there are key factors to success:
1. A critical mass of individuals who are committed to the process;
2. A leadership group who perceive it in their best interest and the best interests of the people they
serve;
3. Strategic cooperation among historical enemies;
4. Realistic and satisfactory outcomes;
5. A moratorium on hostilities or conflict-seeking behavior.
There also are barriers to success:
1. Fear of losing power;
2. Unwillingness to negotiate;
3. No perceived benefit;
4. Corporate philosophy;

10. 5. Top leadership reluctance;
6. Lack of knowledge about ADR;
7. Lack of success stories.
Responsible measures to reduce barriers and encourage a true paradigm shift are training,
incentives, marketing, periodic review, case studies, and top management support and
participation. Facilitators trained in mediation and other forms of ADR are a necessary resource
from outside or within the organization. The workplace of the new millennium will have in-house
mediation or other conflict management programs to reduce formal claims and act as a risk
management business practice.
Conclusion:
Throughout the research, researchers had identified the consequences and the factors of
intergroup conflict. From the literature review, researchers had found that those sources of
conflict are also supported by other research done by other researchers. Besides that,
researchers had identified the possible outcome of consequences of intergroup conflict which is
positive consequences of intergroup conflict and negative consequences of intergroup conflict.
The understanding of the factors of intergroup of conflict and their relationship to organization
performance is vital in the business world especially in Bangladesh. CEOs, managers and
companies use to ignore or overlook the intergroup conflict that occurred. By understanding the
factors of the intergroup conflict towards their organization performance, organization may be
able to understand the importance of the management of the intergroup conflict.
Researchers found that power and status is the factor when two or more groups are perceived to
differ in or compete for status and power, it may lead to feeling of threat and negative feelings. In
addition, goal is another influential factor to the consequences of intergroup conflict. Goal
incompatibility exists which the goals of two or more groups are in direct opposition that is one
group accomplishes its goals at the direct expense of another group’s achieving its goals. The
other factors like psychological distance, communication openness and leadership style also
contribute to the negative consequences of intergroup conflict.
As a conclusion, the future studies of this field can add in more factors of conflict and others
consequences of intergroup conflict. Groups can reduce the conflict when more factors and
consequences been identified.

11. Refference :
1. www.google.com
2. www.wikipedia.com
3. Stephen P. Robbins, Timothy A Judge “ Organizational Behavior “ 15th edition
2013-2014