conflict and negotiation = bargaining

After studying this chapter,
you should 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.
LEARNINGOBJECTIVES

After studying this chapter,
you should be able to:
7. Identify the five steps in the
negotiating process.
8. Describe cultural differences in
negotiations.

Conflict and Negotiation
The work life of a project manager is a life of
conflict. Although conflict is not necessarily bad,
it is an issue that has to be resolved by the
project manager. Without excellent negotiation
skills, the project manager has little chance for
success.
Taylor, J. 1998. A survival guide for project managers. AMACON

Transitions in Conflict Thought
.Causes:
• Poor communication
• Lack of openness
• Failure to respond to employee needs
Traditional view of conflict – all conflict is harmful and must be avoided

Interactionist view of conflict – conflict is not only a positive force in a group, but it is
also an absolute necessity for a group to perform effectively.
Human relations view of conflict –conflict is a natural and inevitable outcome in
any group.

Functional versus Dysfunctional
ConflictFunctional Conflict
Conflict that supports the goals
of the group and improves its
performance.
Dysfunctional Conflict
Conflict that hinders
group performance.

3 types of conflict:
Task conflict – conflict over content and goals of the
work.
Relationship conflict – conflict based on interpersonal
relationships.
Process conflict – conflict over how work gets done.

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

Stage II: Cognition and
Personalization
Positive FeelingsNegative Emotions
Conflict Definition
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.

STAGE III: INTENTIONS
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14–12
Cooperativeness:
• Attempting to satisfy the other party’s concerns.
Assertiveness:
• Attempting to satisfy one’s own concerns.
Intentions
Decisions to act in a given way.

DIMENSIONS OF CONFLICT-HANDLING
INTENTIONS

STAGE III: INTENTIONS (CONT’D)
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14–14
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.

STAGE III: INTENTIONS (CONT’D)
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
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14–16
Conflict Management
The use of resolution and stimulation techniques to
achieve the desired level of conflict.

Conflict Management Techniques
Conflict Resolution Techniques
• Problem solving
• Superordinate goals
• Expansion of resources
• Avoidance
• Smoothing
• Compromise
• Authoritative command
• Altering the human variable
• Altering the structural variables

Conflict Management Techniques
Conflict Resolution Techniques
• Communication
• Bringing in outsiders
• Restructuring the organization
• Appointing a devil’s advocate

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.
Stage V: Outcomes

Stage V: Outcomes
• Dysfunctional Outcomes from Conflict
– Development of discontent
– Reduced group effectiveness
– Retarded communication
– Reduced group cohesiveness
– Infighting among group members overcomes
group goals

Negotiation
Negotiation
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.

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
Bargaining Distributive Integrative
Characteristic Characteristic Characteristic
Available resources Fixed amount of Variable amount of
resources to be divided resources to be divided
Primary motivations I win, you lose I win, you win
Primary interests Opposed to each other Convergent or congruent
with each other
Focus of relationships Short term Long term

Preparation
and planning
• What is the nature of conflict?
• Who is involved?
• What are your goals?
• BATNA ( the best alternative to a negotiated agreement)
Definition of
ground rules
• Who will do the negotiating?
• Where it will take place?
• What is the time limit?
Clarification
and
justification
• Educating and informing

Bargaining and
Problem Solving
• Concessions time
Closure and
implementation
• Formalizing the agreement and developing
procedure
• BUT closure of the negotiation process for
most cases is nothing more than a formal
handshake

INDIVIDUAL DIFFERENCES IN
NEGOTIATION EFFECTIVENESS
Personality traits
•The best bargainer is Disagreeable introvert (according to the Big Five Test)
Moods/emotions
Gender differences
•a popular stereotype: women are more cooperative and pleasant in negotiations
than men.
Cultural differences
•Brazilians on average said “no” 83 times, Japanese 5 and North Americans 9
•Brazilians interrupted 2.5 to 3 times more often than the North Americans and
Japanese
•Japanese and North Americans had no physical contact while Brazilians
touched each other almost 5 times every half hour

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

THIRD PARTY NEGOTIATIONS
Conciliator – a trusted
third party who
provides an informal
communication link
between the negotiator
and the opponent.
Consultant – a skilled and
impartial third party who attempts
to facilitate problem solving through
communication and analysis, aided
by a knowledge of conflict
management.

conflict and negotiation = bargaining

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