Conflict and Negotiations Essays

Conflict and Negotiations Essays Conflict and Negotiations Essay Conflict and Negotiations Essay I. EXECUTIVE SUMMARY Conflict is a process that begins when one party perceives that another party has negatively affected, or is about to be negatively affect, something that the first party cares about. It also encompasses a wide range of conflicts that people experience in organizations. Conflicts are usually caused by poor communication, lack of openness and failure to respond to employee needs. Human Relations View Conflict as the belief that conflict is a natural and inevitable outcome in any group. While Interactionist View Conflict as 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. There are at least three Types of Conflicts: Task Conflicts or Conflicts over content and goals of the work; Relationship Conflicts or conflicts based on interpersonal relationships and; Process Conflicts or conflict over how work gets done. There are five stages of conflict and they are as follows – Stage 1: Potential opposition or incompatibility, Stage 2: Cognition and Personalization; Stage 3: Intentions; Stage 4: Behavior and finally; Stage 5: Outcomes. Negotiation in definition is a process in which two or more parties exchange goods or services and attempt to agree on the exchange rate for them. There are two BARGAINING STRATEGIES that you can employ during negotiations: (1) Distributive Bargaining or the negotiation that seeks to divide up a fixed amount of resources; a win-lose situation and; (2) Integrative Bargaining or the negotiation that seeks one or more settlements that can create a win-win solution. There are also steps to be followed in ensuring a successful egotiation process – Step 1: Preparation and planning; Step 2: Definition of ground rules; Step 3: Classification and justification; Step 4: Bargaining and Problem Solving and; Step 5: Closure and implementation Finally there are five CONFLICT-HANDLING INTENTIONS: Competition, Collaboration, Avoidance, Accommodation, Compromise II. OBJECTIVES ? At the end of this report, the group ensures that the audience will be able to: 1. Define conflict. 2. Differentiate between the traditional, human relations, and interactionist views of conflict. 3. Contrast task, relationship, and process conflict. 4. Outline the conflict process. 5. Describe the five conflict-handling intentions. 6. Contrast distributive and integrative bargaining. 7. Identify the five steps in the negotiating process. 8. Describe cultural differences in negotiations. III. CONFLICT IN DEFINITION – 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. Is that point in an ongoing activity when an interaction â€Å"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 Transitions in Conflict Thought – The belief that all conflict is harmful and must be avoided. Causes: – Poor communication – Lack of openness – Failure to respond to employee needs Human Relations View of Conflict – The belief that conflict is a natural and inevitable outcome in any group. 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. Functional versus Dysfunctional Conflict Functional Conflict – Conflict that supports the goals of the group and improves its performance. Dysfunctional Conflict – Conflict that hinders group performance Types of Conflict 1. Task Conflict – Conflicts over content and goals of the work. 2. Relationship Conflict – Conflict based on interpersonal relationships. 3. Process Conflict – Conflict over how work gets done. IV. THE CONFLICT PROCESS [pic] Stage I: Potential Opposition or Incompatibility – Communication – Semantic difficulties, misunderstandings, and â€Å"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 Stage II: 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 creating anxiety, tenseness, frustration, or hostility. [pic] Stage III: Intentions Intentions – Decisions to act in a given way. Cooperativeness: – Attempting to satisfy the other party’s concerns. Assertiveness: – Attempting to satisfy one’s own concerns. Dimensions of Conflict-Handling Intentions [pic] Competing – A desire to satisfy one’s interests, regardless of the impact on the other party to the conflict. Collaborating – A situation in which the parties to a conflict each desire to satisfy fully the concerns of all parties. Avoiding – The desire to withdraw from or suppress a conflict. Accommodating – The willingness of one party in a conflict to place the opponent’s interests above his or her own. Compromising A situation in which each party to a conflict is willing to give up something. Stage IV: Behavior Conflict Management – The use of resolution and stimulation techniques to achieve the desired level of conflict. Conflict-Intensity Continuum [pic] Conflict Management Techniques 1. Problem solving 2. Superordinate goals 3. Expansion of resources 4. Avoidance 5. Smoothing 6. Compromise 7. Authoritative command 8. Altering the human variable 9. Altering the structural variables 10. Communication 11. Bringing in outsiders 12. Restructuring the organization 13. Appointing a devil’s advocate Stage V: Outcomes Functional Outcomes from Conflict – 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 Creating Functional Conflict – Reward dissent and punish conflict avoiders. Dysfunctional Outcomes from Conflict – Development of discontent – Reduced group effectiveness – Retarded communication – Reduced group cohesiveness – Infighting among group members overcomes group goals V. NEGOTIATION IN DEFINITION – A process in which two or more parties exchange goods or services and attempt to agree on the exchange rate for them. BATNA – The Best Alternative To a Negotiated Agreement; the lowest acceptable value (outcome) to an individual for a negotiated agreement. VI. BARGAINING STRATEGIES 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. Distributive Versus Integrative Bargaining [pic] Staking Out the Bargaining Zone [pic] VII. THE NEGOTIATION PROCESS [pic] VIII. ISSUES IN NEGOTIATION The Role of Personality Traits in Negotiation – Traits do not appear to have a significantly direct effect on the outcomes of either bargaining or negotiating processes. Gender Differences in Negotiations – Women negotiate no differently from men, although men apparently negotiate slightly better outcomes. – Men and women with similar power bases use the same negotiating styles. – Women’s attitudes toward negotiation and their success as negotiators are less favorable than men’s. IX. THIRD-PARTY NEGOTIATIONS 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. X. 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 â€Å"no† more often than Americans or Japanese XI. CONFLICT AND UNIT PERFORMANCE [pic] XII. CONFLICT-HANDLING INTENTION Conflict-Handling Intention: Competition – When quick, decisive action is vital (in emergencies); on important issues. – Where unpopular actions need implementing (in cost cutting, enforcing unpopular rules, discipline). – On issues vital to the organization’s welfare. – When you know you’re right. – Against people who take advantage of noncompetitive behavior. Conflict-Handling Intention: Collaboration – To find an integrative solution when both sets of concerns are too important to be compromised. – When your objective is to learn. – To merge insights from people with different perspectives. To gain commitment by incorporating concerns into a consensus. – To work through feelings that have interfered with a relationship. Conflict-Handling Intention: Avoidance – When an issue is trivial, or more important issues are pressing. – When you perceive no chance of satisfying your concerns. – When potential disruption outweighs the benefits of resolution. – To let people cool down and regain perspective. – When gathering information supersedes immediate decision. – When others can resolve the conflict effectively – When issues seem tangential or symptomatic of other issues. Conflict-Handling Intention: Accommodation – When you find you’re wrong and to allow a better position to be heard. – To learn, and to show your reasonableness. – When issues are more important to others than to yourself and to satisfy others and maintain cooperation. – To build social credits for later issues. – To minimize loss when outmatched and losing. – When harmony and stability are especially important. – To allow employees to develop by learning from mistakes. Conflict-Handling Intention: Compromise – When goals are important but not worth the effort of potential disruption of more assertive approaches. When opponents with equal power are committed to mutually exclusive goals. – To achieve temporary settlements to complex issues. – To arrive at expedient solutions under time pressure. – As a backup when collaboration or competition is unsuccessful. XIII. REFERENCES – Robbins, Stephen P . Organizational Behavior, 11th ed. Prentice Hall Inc, 2006 – Robbins and Judge Organizational Behavior, 13th ed. Pearson Education, Inc. Publishing as Prentice Hall, 2009 – Thomas, â€Å"Conflict and Negotiation Processes in Organizations,† – 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. – S. P. Robbins, Managing Organizational Conflict: A Nontraditional Approach (Upper Saddle River, NJ: Prentice Hall, 1974), pp. 93–97; and – F. Glasi, â€Å"The Process of Conflict Escalation and the Roles of Third Parties,† – G. B. J. Bomers and R. Peterson (eds. ), Conflict Management and Industrial Relations (Boston: Kluwer-Nijhoff, 1982), pp. 119–40. Attachment 1: Negotiation Bargaining, Filipino Style Negotiating Filipino Style xcerpt from the book â€Å"Negotiating International Business The Nego tiator’s Reference Guide to 50 Countries Around the World† by Lothar Kat (updated April 2010) ? Leveraging relationships is an important element ? usually a joint problem-solving process. ? While the buyer is in a superior position, both sides in a business deal own the responsibility to reach agreement ? primary negotiation style is cooperative ? Maintaining harmonious relationships throughout the process is vitally important ? disapprove of competitiveness and strive to find win-win solutions Information is rarely shared freely, since the locals believe that privileged information creates bargaining advantages ? humility is a virtue in the Philippines’ business culture ? Excessive promotions may be taken as lies and could seriously damage your counterpart’s trust in you ? Expect negotiations to be slow and protracted (Relationship building, information gathering, bargaining, and decision making all take considerable time) ? Filipinos have a lower sense o f urgency than a Westerner may be accustomed to ? Filipinos generally employ a polychronic work style (vs. onochronic cultures, such as Germany, the United Kingdom, or the United State) Bargaining Filipino Style ? Most Filipinos love bargaining and haggling ? They expect to do a lot of it during a negotiation and may be offended if you refuse to play along ? The bargaining stage of a negotiation can be extensive ? Filipinos may prefer to respond to your inputs rather than presenting ideas ? While they will eventually open up to new ideas, they do not easily change their opinions of their own ? prices often move more than 40 percent between initial offers and final agreement Filipinos generally prefer a straightforward negotiation style ? they also use deceptive techniques (telling lies and sending fake non-verbal messages, initially pretending to be disinterested in the whole deal or in single concessions, misrepresenting an item’s value, or making false demands and concessio ns) ? do not use ‘good cop, bad cop’ ? not likely to use the ‘limited authority’ technique (groups, rather than individuals, normally make decisions) ? Do not use tactics such as applying time pressure or making expiring offers, could be viewed as signs that you are not willing to build a long-term Periods of silence are frequent and usually reflect a natural inclination rather than the intentional use of a negotiation technique ? Avoid pressure tactics such as opening with your best offer ? negotiators may sometimes use emotional techniques (such as attitudinal bargaining, attempting to make you feel guilty, grimacing, or appealing to personal relationships) ? defensive tactics such as blocking, distracting or changing the subject, asking probing questions, or making promises may be used ? fine line between giving gifts and bribing (What you may consider a bribe, a Filipino may view as only a nice gift) Conflicts and disputes that may arise during a negoti ation can be difficult to resolve because Filipinos prefer to ignore or deny them ? When making decisions, Filipinos usually consider the specific situation rather than applying universal principles. ? Personal feelings and experiences weigh much more strongly than empirical evidence and other objective facts do. ? Most Filipinos are moderate risk takers Conflict and negotiations Events and Systems March 20, 2011