This chapter discusses conflict and negotiation. It defines conflict as occurring when one party perceives another has negatively affected something they care about. There are three views of conflict: traditional, which sees it as harmful; human relations, which sees it as inevitable; and interactionist, which sees it as sometimes positive. Negotiation is bargaining to agree on an exchange. There are distributive and integrative approaches, with integrative aiming for win-win solutions. The chapter outlines the conflict and negotiation processes and how culture and individual differences influence them. It also discusses the roles of third parties in negotiations.

1. CONFLICT & NEGOTIATION
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2. Chapter Learning Objectives
➢ After studying this chapter, you should be able to:
– Define conflict.
– Differentiate between the traditional, human relations, and
interactionist views of conflict.
– Outline the conflict process.
– Define negotiation.
– Contrast distributive and integrative bargaining.
– Apply the five steps in the negotiation process.
– Show how individual differences influence negotiations.
– Assess the roles and functions of third-party negotiations.
– Describe cultural differences in negotiations.
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3. Conflict Defined
➢ A process that begins when one party perceives that
another party has negatively affected, or is about to
negatively affect, something that the first party cares
about
– That point in an ongoing activity when an interaction
“crosses over” to become an interparty conflict
➢ Encompasses a wide range of conflicts that people
experience in organizations
– Incompatibility of goals
– Differences over interpretations of facts
– Disagreements based on behavioral expectations
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4. Transitions in Conflict Thought
➢ Traditional View of Conflict
– The belief that all conflict is harmful and must be avoided
– Prevalent view in the 1930s-1940s
➢ Conflict resulted from:
– Poor communication
– Lack of openness
– Failure to respond to employee needs
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5. Continued Transitions in Conflict Thought
➢ Human Relations View of Conflict
– The belief that conflict is a natural and inevitable outcome in
any group
– Prevalent from the late 1940s through mid-1970s
➢ Interactionist View of Conflict
– The belief that conflict is not only a positive force in a group
but that it is absolutely necessary for a group to perform
effectively
– Current view
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6. Forms of Interactionist Conflict
Functional Conflict
• Conflict that supports
the goals of the group
and improves its
performance
Dysfunctional
Conflict
• Conflict that hinders
group performance
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7. Types of Interactionist Conflict
➢ Task Conflict
– Conflicts over content and goals of the work
– Low-to-moderate levels of this type are
FUNCTIONAL
➢ Relationship Conflict
– Conflict based on interpersonal relationships
– Almost always DYSFUNCTIONAL
➢ Process Conflict
– Conflict over how work gets done
– Low levels of this type are FUNCTIONAL
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8. The Conflict Process
➢ We will focus on each step in a moment…
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E X H I B I T 15-1

9. Stage I: Potential Opposition or Incompatibility
➢ Communication
– Semantic difficulties, misunderstandings, and “noise”
➢ Structure
– Size and specialization of jobs
– Jurisdictional clarity/ambiguity
– Member/goal incompatibility
– Leadership styles (close or participative)
– Reward systems (win-lose)
– Dependence/interdependence of groups
➢ Personal Variables
– Differing individual value systems
– Personality types
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10. Stage II: Cognition and Personalization
➢ Important stage for two reasons:
1. Conflict is defined
• Perceived Conflict
– Awareness by one or more parties of the existence of
conditions that create opportunities for conflict to arise
2. Emotions are expressed that have a strong impact on the
eventual outcome
• Felt Conflict
– Emotional involvement in a conflict creating anxiety,
tenseness, frustration, or hostility
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11. Stage III: Intentions
➢ Intentions
– Decisions to act in a given way
– Note: behavior does not always accurate reflect intent
➢ Dimensions of conflict-handling intentions:
– Cooperativeness
• Attempting to satisfy
the other party’s
concerns
– Assertiveness
• Attempting to satisfy
one’s own concerns
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E X H I B I T 15-2
Source: K. Thomas, “Conflict and Negotiation Processes in Organizations,” in M.D. Dunnette and L.M. Hough (eds.), Handbook of Industrial and
Organizational Psychology, 2nd ed., vol. 3 (Palo Alto, CA: Consulting Psychologists Press, 1992), p. 668. With permission.

12. Stage IV: Behavior
➢ Conflict Management
– The use of resolution and stimulation techniques to achieve
the desired level of conflict
➢ Conflict-Intensity Continuum
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E X H I B I T 15-3
Source: Based on S.P. Robbins, Managing Organizational Conflict: A Nontraditional Approach (Upper Saddle River, NJ: Prentice Hall, 1974), pp. 93–
97; and F. Glasi, “The Process of Conflict Escalation and the Roles of Third Parties,” in G.B.J. Bomers and R. Peterson (eds.), Conflict Management
and Industrial Relations (Boston: Kluwer-Nijhoff, 1982), pp. 119–40.

13. Conflict Resolution Techniques
– Problem solving
– Superordinate goals
– Expansion of resources
– Avoidance
– Smoothing
– Compromise
– Authoritative command
– Altering the human
variable
– Altering the structural
variables
– Communication
– Bringing in outsiders
– Restructuring the
organization
– Appointing a devil’s
advocate
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E X H I B I T 15-4
Source: Based on S. P. Robbins, Managing Organizational Conflict: A Nontraditional Approach (Upper Saddle River, NJ: Prentice Hall, 1974), pp.
59–89

14. Stage V: Outcomes
➢ Functional
– Increased group
performance
– Improved quality of
decisions
– Stimulation of creativity
and innovation
– Encouragement of interest
and curiosity
– Provision of a medium for
problem-solving
– Creation of an environment
for self-evaluation and
change
➢ Dysfunctional
– Development of discontent
– Reduced group
effectiveness
– Retarded communication
– Reduced group
cohesiveness
– Infighting among group
members overcomes group
goals
➢ Creating Functional
Conflict
– Reward dissent and punish
conflict avoiders
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15. Negotiation
➢ Negotiation (Bargaining)
– A process in which two or more parties exchange goods or
services and attempt to agree on the exchange rate for them
➢ Two General Approaches:
– Distributive Bargaining
• Negotiation that seeks to divide up a fixed amount of
resources; a win-lose situation
– Integrative Bargaining
• Negotiation that seeks one or more settlements that can create
a win-win solution
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16. Distributive versus Integrative Bargaining
Bargaining Characteristic Distributive
Bargaining
Integrative Bargaining
Goal Get all the pie you can Expand the pie
Motivation Win-Lose Win-Win
Focus Positions Interests
Information Sharing Low High
Duration of Relationships Short-Term Long-Term
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E X H I B I T 15-5
Mine
Yours Mine
Yours
Distributive
Integrative
Source: Based on R. J. Lewicki and J. A. Litterer,
Negotiation (Homewood, IL: Irwin, 1985), p. 280.

17. Bargaining Tactics and the Bargaining Zone
➢ Distributive Tactics
– Make an aggressive
first offer
– Reveal a deadline
➢ Integrative Tactics
– Bargain in teams
– Put more issues on the
table
– Don’t compromise
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E X H I B I T 15-6

18. The Negotiation Process
➢ BATNA
– The Best Alternative
To a Negotiated
Agreement
– The lowest acceptable
value (outcome) to an
individual for a
negotiated agreement
➢ The “Bottom Line”
for negotiations
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E X H I B I T 15-7

19. Individual Differences in Negotiation Effectiveness
➢ Personality Traits
– Extroverts and agreeable people weaker at distributive
negotiation – disagreeable introvert is best
– Intelligence is a weak indicator of effectiveness
➢ Mood and Emotion
– Ability to show anger helps in distributive bargaining
– Positive moods and emotions help integrative bargaining
➢ Gender
– Men and women negotiate the same way, but may
experience different outcomes
– Women and men take on gender stereotypes in negotiations:
tender and tough
– Women are less likely to negotiate
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20. Third-Party Negotiations
➢ Four Basic Third-Party Roles
– Mediator
• A neutral third party who facilitates a negotiated solution by using
reasoning, persuasion, and suggestions for alternatives
– Arbitrator
• A third party to a negotiation who has the authority to dictate an
agreement.
– Conciliator
• A trusted third party who provides an informal communication
link between the negotiator and the opponent
– Consultant
• An impartial third party, skilled in conflict management, who
attempts to facilitate creative problem solving through
communication and analysis
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21. Global Implications
➢ Conflict and Culture
– Japanese and U.S. managers view conflict differently
– U.S. managers more likely to use competing tactics while
Japanese managers are likely to use compromise and
avoidance
➢ Cultural Differences in Negotiations
– Multiple cross-cultural studies on negotiation styles, for
instance:
• American negotiators are more likely than Japanese bargainers
to make a first offer
• North Americans use facts to persuade, Arabs use emotion, and
Russians used asserted ideals
• Brazilians say “no” more often than Americans or Japanese
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22. Summary and Managerial Implications
➢ Conflict can be
constructive or
destructive
➢ Reduce excessive conflict
by using:
– Competition
– Collaboration
– Avoidance
– Accommodation
– Compromise
➢ Integrative negotiation is
a better long-term
method
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E X H I B I T 15-8

23. Thank You.
-drjma
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