CHAPTER 11

Conflict and negotiation in the workplace

New approach to workplace disputes

Workplace disputes cost time and money. The Fair Work Commission developed an alternative
dispute resolution practice, New Approaches, which offers training in interest-based bargaining and
dispute resolution as well as facilitation services.

Conflict
Process in which one party perceives that its interests are being opposed or negatively affected by
another party

Consequences of workplace conflict

Is conflict good or bad?

• 1970s to 1990s: belief in an optimal level of conflict Good
C o n flic t o u tc o m e s

Optimal

• Some level of conflict is good because it: conflict

– energises debate
– re-examines assumptions 0
– improves responsiveness to external
environment
– increases team cohesion
Bad
Low Level of conflict High

Task and relationship conflict

• Task conflict refers to constructive conflict where people focus the discussion around the
issue (the ‘task’) while showing respect for people with other points of view.

• In contrast, in relationship conflict people focus on characteristics of others rather than

issues as the source of conflict.

• Three strategies to help focus on the task:

– emotional intelligence and emotional stability 

– cohesive team 

– supportive team norms 

Conflict process model

Sources of conflict

 Intrapersonal conflicts 
 Interpersonal conflicts 
 Intraorganisational conflicts 

Interpersonal conflicts 

Intraorganisational conflicts
Interpersonal: five conflict handling styles

1. Problem solving
2. Forcing
3. Conflict avoidance
4. Yielding
5. Compromising

Problem solving

• Win–win orientation

– The belief that conflicting parties will find

a mutually beneficial solution to their disagreement

– Best when:

o interests are not perfectly opposing

o parties have trust/openness

o issues are complex

– Problem: other party takes advantage of information

Forcing

• Win–lose orientation

– The belief that conflicting parties are drawing from a fixed pie, so the more
one party receives, the less the other party will get

– Best when:

o you have a deep conviction about your position

o quick resolution required
o other party would take advantage of cooperation
– Problems: relationship conflict, long-term relations
Conflict avoidance

• Avoiding

– Best when:

 conflict is emotionally charged (relationship conflict)

 conflict resolution cost is higher than benefits

– Problems: doesn’t resolve conflict, frustration

Yielding

– Best when:

 other party has much more power

 issue is much less important to you than to the

other party

 value/logic of your position is imperfect

– Problem: increases others’ expectations; imperfect solution

Compromising

– Best when:

 parties have equal power

 quick solution is required

 parties lack trust/openness

– Problem: suboptimal solution where mutual gains are possible

Cultural and gender differences in conflict

handling styles

• Cultural values and norms influence the conflict handling style

– Individualism/collectivism:

 focus on harmony vs personal goals

– Power distance:

 high power distance people signal status in conflicts

– High/low context style:

 low context people communicate more directly, using logical arguments

Gender and conflict

• During conflict women tend to favour a more constructive approach to conflict resolution.
• Women use either problem solving or compromising.
• Women have better outcomes in conflict when parties approach the disagreement
collaboratively.
• Men prefer a competing style: they are willing to express anger.

Structural approaches to conflict management

• Emphasising superordinate goals:

– stress common objective rather than conflicting subgoals

– reduce goal incompatibility and differentiation

• Reducing differentiation:

– remove sources of different values and beliefs:

 e.g. move employees around to different jobs

• Improving communication/understanding:
– employees understand and appreciate each other’s views through communication
– relates to contact hypothesis
– warning: apply communication/understanding after reducing differentiation
• Reducing interdependence:
– create buffers
– use integrators
– combine jobs

• Increasing resources:
– duplicate resources
• Clarifying rules and procedures:
– clarify resource distribution
– change interdependence

Third-party conflict resolution

Any attempt by a relatively neutral person to help conflicting parties resolve their differences
Choosing the best third-party intervention
• Managers prefer inquisitional strategy, but this is not usually the best approach.
• Mediation potentially offers the highest satisfaction with process and outcomes.
• Use arbitration when mediation fails.

Negotiation
Process whereby two or more conflicting parties attempt to resolve their divergent goals by
redefining the terms of their interdependence:
• need to consider desired outcomes, tactics, deal design and the scope of the negotiation

Negotiating essentials
• Building good deals in negotiation:
– Collaboration:
 create value
 claim value
 satisfy own plus others’ needs
– Setting limits:
 target point
 resistance point
– Assessing power:
 consider alternatives
 skills

Creating and claiming value

Creating and claiming value

• Managing the deal
– Information
– Skills
– Concessions
– Strategies
• Managing information
– Small number of strong arguments
– Understand the other negotiator’s needs
 – Investigative approach to negotiations

Beyond the deal

• Relationship building
– Positive first impressions
– Building trust and signal trustworthiness 
• Reputation
– Constructive negotiations increase likelihood of future success

Negotiating ethically
• Avoid:
– misrepresentation
– false promises
– attacking an opponent’s network
– inappropriate information gathering
– strategic misrepresentation of positive or negative emotions

Gender and negotiations

• Women obtain poorer personal outcomes than men:
– set lower target points than men
– accept offers just above their resistance points
• A consequence of how others treat women: women receive less generous offers than men and
are perceived negatively when negotiating
• If negotiation is linked to problem solving, women outperform men 

Summary
• Conflict can have positive and negative organisational effects.
• It is difficult to distinguish task from relationship conflict.
• The conflict process model begins with the five structural sources of conflict.
• There are five known conflict handling styles: problem solving, forcing, avoiding, yielding and
compromising. People who use problem solving have a win–win orientation
• Effective negotiators need to engage in both collaboration and competition in order to obtain
outcomes.
• Structural approaches support conflict management.
• Mediation and arbitration are more appropriate with third-party conflict resolution.