Day 1:

Conflict Lecture
Conflict Style Activity
Big Red Orange Activity
Day 2:
Negotiation Lecture
Negotiation Activity
15-1
What is conflict?
Conflict occurs whenever:
Parties disagree over substantive issues
Emotional antagonisms cause frictions between individuals
or groups
Types of conflict:
Substantive conflict
A fundamental disagreement over ends or goals to be
pursued and the means for their accomplishment
Emotional conflict
Interpersonal difficulties that arise over feelings of anger,
mistrust, dislike, fear, resentment, and the like

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Levels of Conflict
Intrapersonal conflicts
Actual or perceived pressures from incompatible goals
or expectations
Approach-approach conflict
Avoidance-avoidance conflict
Approach-avoidance conflict

Interpersonal conflict - Occurs between two or more
individuals who are in opposition to one another

Intergroup conflict - Occurs among members of
different teams or groups

Interorganizational conflict - Commonly refers to the
competition and rivalry that characterize firms operating
in the same markets


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Figure 15.1: The Two Faces of Conflict
15-4
Functional conflict: results in positive benefits to the group

Dysfunctional conflict: works to the groups or organizations disadvantage
Conflict
Potential benefits
Surfaces important problems
so they can be addressed
Causes careful consideration
of decisions
Causes reconsideration of
decisions
Increases information
available for decision making
Provides opportunities for
creativity
Potential disadvantages
Diverts energies
Hurts group cohesion
Promotes interpersonal
hostilities
Creates overall negative
environment
Can decrease work
productivity and job
satisfaction
Can contribute to
absenteeism and job
turnover
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Conflict Management Indirect
Managed interdependence - Adjusting the level of interdependency
among units or individuals when workflow conflicts exist
Decoupling - taking action to eliminate or reduce the required contact
between conflicting parties
Appeal to common goals - Focusing the attention of potentially
conflicting parties on one mutually desirable conclusion
Upward referral - Problems are referred up the hierarchy for more senior
managers to reconcile
Altering scripts and myths - Superficial management of conflict by using
behavioral routines that become part of the organizations culture
We just play our roles and ignore the issues.



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Conflict Management Direct (face to face)
Lose-Lose conflict - nobody gets what he or she wants
Avoidance - Everyone simply pretends that the conflict does not really
exist and hopes that it will go away
Accommodation (smoothing) - Involves playing down differences
among the conflicting parties and highlighting similarities and areas of
agreement
Compromise - Each party gives up something of value, but neither partys
desires are fully satisfied
Win-Lose conflict - one party achieves its desires at the expense and to the
exclusion of the other partys desires
Competition - One party achieves a victory through the use of force,
superior skills, or domination
Authoritative command - Use of formal authority to dictate a solution
and specify who gains what and who loses what


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Conflict Management Direct (face to face)
Win-Win conflict - both high cooperativeness and high assertiveness
Win-win solutions should:
Achieve each others goals
Be acceptable to both parties
Establish a process whereby both parties see a responsibility to be
open and honest about facts and feelings
Collaboration or problem solving
recognition by all conflicting parties that something is wrong and
needs attention
stresses gathering and evaluating information in solving disputes and
making choices
Potential disadvantages of collaboration
Collaboration requires time and energy
Both parties to the conflict need to be assertive and cooperative


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Direct Approaches
Copyright 2008 John Wiley & Sons, Inc. 15-9
Your Conflict Style

Copyright 2008 John Wiley & Sons, Inc. 15-10
Avoiding
desire to withdraw from or suppress a conflict
Appropriate Situations:
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 an immediate
decision.
When others can resolve the conflict more effectively.
When issues seem tangential or symptomatic of other issues.
Competing
a desire to satisfy ones interests regardless of the
impact on the other party.
Appropriate Situations:
When quick, decisive action is vital, such as
emergencies.
On important issues on which unpopular actions need
implementation, such as cost cutting, discipline.
On issues vital to organizational welfare when you
know you are right.
Against people who take advantage of noncompetitive
situations.
Accommodating
placing the opponents interests above self interests
Appropriate Situations:
When you find you are wrongto allow a better position to
be heard, to learn, and to show your reasonableness.
When issues are more important to others than to yourself
to satisfy others and maintain cooperation.
To build social credits for later issues.
To minimize a loss when you are outmatched and losing.
When harmony and stability are especially important.
To allow subordinates to develop by learning from mistakes.
Compromising
each party is willing to give up something
Appropriate Situations:
When goals are important but not worth the effort
or potential disruption of more assertive modes.
When opponents with equal power are committed
to mutually exclusive goals.
To achieve temporary settlement of complex issues.
To arrive at expedient solutions under time
pressures.
As a backup when collaboration or competition is
unsuccessful.
Collaborating
each party desires to satisfy fully the concerns of
all parties.
Appropriate Situations:
To find an integrative solution when both sets of
concerns are too important to compromise.
When your objective is to learn.
To manage 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.


15-16
Negotiation
Negotiation defined
Distributive negotiation
Integrative negotiation
Negotiation process
Levels of negotiation
3
rd
party negotiation
Negotiation pitfalls
Negotiation tips
Negotiation
Negotiation is the process of making joint decisions when the parties
involved have different preferences
Substance goals - Outcomes that relate to content issues
Relationship goals - Outcomes that relate to how well people involved in
the negotiations (and any constituencies they represent) are able to work
with one another once the process is concluded
Criteria of an effective negotiation:
Quality - The negotiation results offer a quality agreement that is wise
and satisfactory to all sides.
Harmony - The negotiation is harmonious and fosters rather than inhibits
good interpersonal relations.
Efficiency - The negotiation is efficient and no more time consuming or
costly than absolutely necessary.

15-18
Negotiation Strategies
Distributive negotiation
Focuses on positions staked out or declared by the
conflicting parties, each of whom is trying to claim
certain portions of the available pie.
Integrative negotiation
Sometimes called principled negotiation
Focuses on the merits of the issues and the parties
involved try to enlarge the available pie rather than stake
claims to certain portions of it.
Looks at deeper interests vs. positions
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Distributive negotiation
Participants ask: Who is going to get this
resource?
Hard distributive negotiation - Each party holds out to
get its own way
Soft distributive negotiation - One party is willing to
make concessions to the other party to get things over
Bargaining zone - range between one partys
minimum reservation point and the other partys
maximum reservation point

15-20
Integrative Negotiation
The key question is: How can the resource best
be utilized?
Is less confrontational than distributive negotiation, and permits a
broader range of alternative solutions to be considered
Opportunity for a true win-win solution




Attitudinal foundations of integrative agreements
Willingness to trust the other party
Willingness to share information with the other party
Willingness to ask concrete questions of the other party

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Integrative Negotiation
Behavioral foundations of integrative agreements
Ability to separate the people from the problem
Ability to focus on interests rather than positions
Ability to avoid making premature judgments
Ability to keep alternative creation separate from evaluation
Ability to judge possible agreements on an objective set of
criteria or standards
Information foundations of integrative agreements
Each party must know what he or she will do if an
agreement cant be reached (BATNAs best alternative to a
negotiated agreement)
Each party must determine what is personally important in
the situation

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Summary of
Distributive vs. Integrative Bargaining
Bargaining
Characteristics
Distributive
Bargaining
Integrative
Bargaining
Available Resources Fixed Amount Variable Amount
Primary
Motivations
I win, you lose I win, you win
Primary Interests Opposed Congruent
Focus of
Relationships
Short-Term Long-Term
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Negotiation Process
Preparation and planning.
What are your goals?
What are the other partys goals?
Determine your & others BATNA
Definition of Ground Rules
Who, What, Where, When, How Long, Initial
Proposals
Clarification and Justification
Bargaining and Problem-Solvinggive & take
Closure & Implementationformal agreement


Confetti Negotiation Instructions
You will have 10 minutes to prepare. What should you
consider in your individual preparation?
You will have 15 minutes to negotiate
You must complete the contract on the back of your
negotiation sheet or write no deal
After you negotiate we will have a class discussion

15-25
15-26
Common negotiation pitfalls
Myth of the fixed pie
Possibility of escalating commitment
Negotiators often develop overconfidence in their
positions
Communication problems can cause difficulties
during a negotiation (telling too much or too little)
Framing negotiations
Availability of information
The winners curse
Negotiating Tips
Research Your Opponent
Separate the People from the Problem
Focus on Interests, not Positions
Begin with a Positive Overture
Pay Little Attention to Initial Offers
Dont Haggle; Invent Options for Mutual Gain
Insist on Using Objective Criteria
Develop your BATNA
3
rd
Party Roles
Alternative dispute resolution
A neutral third party works with persons involved in a
negotiation to help them resolve impasses and settle
disputes
Arbitration
A third party acts as a judge and has the power to issue a
decision that is binding on all disputing parties
Mediation
A neutral third party tries to engage disputing parties in a
negotiated solution through persuasion and rational argument

15-28
Further Reading
Getting to Yes: Negotiating Agreement
without Giving In by Roger Fisher &
William Ury
Bargaining for Advantage: Negotiation
Strategies for Reasonable People by G.
Richard Shell
Six Habits of Merely Effective Negotiators
by James K. Sebenius. Harvard Business
Review, April 2001, p. 87-95
Six Habits of Merely Effective Negotiators
1) Neglecting the Other Sides Problem
2) Letting Price Bulldoze Other Interests
The Relationship
The Social Contract
The Process
The Interests of the Full Set of Players
3) Letting Positions Drive Out Interests
4) Searching Too Hard for Common Ground
5) Neglecting BATNAs
6) Failing to Correct for Skewed Vision
Self-Serving Bias
Partisan Perceptions