Conflict and negotiation

1. CONFLICT AND
NEGOTIATION

2. CHAPTER OBJECTIVES
•After studying this chapter, you should be able to:
–Define Describe the three types of conflict and the three
loci of conflict.
–Outline the conflict process.
–Contrast distributive and integrative bargaining.
–Apply the five steps of the negotiation process.
–Show how individual differences influence negotiations.

3. CONFLICT
Conflict
 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.
Functional conflict
 supports the goals of the group, improves its performance, and is thus
a constructive form of conflict. For example, a debate among
members of a work team about the most efficient way to improve
production can be functional if unique points of view are discussed
and compared openly.
 Conflict that hinders group performance is destructive or
dysfunctional conflict. A highly personal struggle for control in a
team that distracts from the task at hand is dysfunctional.

4. CONFLICT PROCESS
The conflict process has five stages:
Potential opposition or incompatibility,
Cognition & Personalization
Intentions
Behavior, and outcomes.

5. It includes the presence of a condition that creates opportunities for
conflicts to arise. The conditions that can cause conflict are of 3 types.
Communication: Insufficient exchange of information and noise in the
communication channel are all barriers of communication and create
conditions for conflicts.
Structure: Size and specialization act as a force to stimulate conflict. The
larger the group, the more specialized their activities, the greater the
likelihood of conflict.
Personal variables: This includes the value systems each person has and
personality characteristics each possess. Difference in value systems are a
source of conflict, as they result in disagreement between members of the
group.
STAGE 1: POTENTIAL OPPOSITION OR
INCOMPATIBILITY

6. STAGE 2: COGNITION AND
PERSONALIZATION
Perceived conflict:
Awareness by one or more parties of the existence of
conditions that create opportunities for conflict to arise.
Felt conflict:
Emotional involvement in a conflict that creates anxiety,
tenseness, frustration, or hostility.

7. STAGE:3 INTENTIONS
Intervene between people’s perceptions and emotions,
and their overt behavior. They are decisions to act in a
given way.
Using two dimensions:
Assertiveness: the degree to which one party attempts to
satisfy his or her own concerns.
Cooperativeness: the degree to which one party attempts
to satisfy the other party’s concerns

8. CONTINUED….
We can identify five conflict-handling intentions:
Competing: assertive and uncooperative.
Collaborating: assertive and cooperative.
Avoiding: unassertive and uncooperative.
Accommodating: unassertive and cooperative.
Compromising: midrange on both assertiveness and
cooperativeness.

9. STAGE:4 BEHAVIOR
This is where conflicts become visible. The behavior
stage includes statements, actions, and reactions
made by conflicting parties, usually as clear
attempts to implement their own intentions.

10. STAGE:5 OUTCOME
The action-reaction between conflicting parties results in two kinds of
outcomes.
i) Functional outcomes: Conflict results in improved performance of the
group. It improves the quality of decisions, brings about creativity and
innovations, encourage interests and curiosity among group members.
ii) Dysfunctional outcomes: It reduces the effectiveness of the group. It is
as a result of uncontrolled opposition. It leads to destruction of the group. It
reduces group communication and group coordination.

11. NEGOTIATION
Negotiation:
A process in which two or more parties exchange
goods or services and attempt to agree on the
exchange rate for them.
The negotiation Process:
Negotiation made up of five steps:
(1)preparation and planning, (2) definition of ground
rules, (3) clarification and justification, (4) bargaining
and problem solving, and (5) closure and
implementation.

12. BARGAINING STRATEGIES
There are two general approaches to negotiation—
distributive bargaining and integrative bargaining.
Distributive Bargaining:
Negotiation that seeks to divide up a fixed amount of
resources; a win–lose situation.
Fixed pie: The belief that there is only a set amount of
goods or services to be divvied up between the
parties.

13. BARGAINING STRATEGIES
There are two general approaches to negotiation—
distributive bargaining and integrative bargaining.
Integrative Bargaining:
Integrative bargaining Negotiation that seeks one or
more settlements that can create a win–win solution.
 Negotiation strategy in which the involved parties work
together to find a solution that satisfies the needs and concerns
of each.

14. Stage 1: PREPARATION AND PLANNING
Before you start negotiating, do your homework.
 What’s the nature of the conflict?
 What’s the history leading up to this negotiation?
 Who’s involved and what are their perceptions of the
conflict?
 What do you want from the negotiation?
 What are your goals?

15. STAGE: 2 GROUND RULES
 This is the part of the negotiation when both parties
exchange their initial positions.
 Each side should be allowed to share their underlying
interests and concerns, including what they aim to
receive at the end of the negotiation.
 Why they feel the way they do.

16. STAGE 3: CLARIFICATION AND
JUSTIFICATION
During the clarification step, both sides continue the
discussion that they began when exchanging information by
justifying and supporting their claims.
If one side disagrees with something the other side is saying,
they should discuss that disagreement in calm terms to reach
a point of understanding.

17. STAGE 4: BARGAINING AND PROBLEM
SOLVING
 After the initial first offer, each negotiating party should
propose different counter-offers for the problem, all the
while making and managing their concessions.
 During the bargaining process, keep your emotions in check;
the best negotiators use strong verbal communication skills
(active listening and calm feedback; in face-to-face
negotiation, this also includes body language).
 The goal of this step is to emerge with a win-win outcome

18. STAGE 5: CONCLUDE AND IMPLEMENT
 The final step in the negotiation process is formalizing
your agreement and developing procedures necessary
for implementing and monitoring it.
 Successful negotiations are all about creating and
maintaining good long-term relationships.
 Then they should outline the expectations of each
party and ensure that the compromise will be
implemented effectively.
 This step often includes a written contract and a
follow-up to confirm the implementation is going
smoothly.