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Organizational
Behavior
CONFLICT
AND
NEGOTIATION
Future Executives
Mir Farzok Talpur
Danish Iqbal
Manesh Kumar
Aneel Kumar
Zeeshan Hyder Magsi

6403 “Leader”
6338
6434
6335
5768
Content


Conflict in Organizations







Conflict Management






Stages of Conflict
Indirect Conflict Management Approaches
Direct Conflict Management Approaches

Negotiation








Types of Conflict
Levels of Conflict
Functional and Dysfunctional Conflict
Culture and Conflict

What is Negotiation?
Negotiation Goals and Outcomes
Ethical Aspects of Negotiation
Organizational Settings for Negotiation
Culture and Negotiation

Negotiation Strategies




Distributive Negotiation
Integrative Negotiation
How to Gain Integrative Agreement
Danish

Iqbal
6338
CONFLICT
Conflict occurs when?


Disagreements between parties exist in a social situation over
issues of substance.



Emotional opposition 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 etc….
7
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.
LEVELS OF CONFLICT
 Inter-group conflict
 Occurs among members of different teams or groups.

 Inter-organizational conflict.
 Occurs between one organization to another organization
 Occurs between unions and organizations employing their members.
 Occurs between government regulatory agencies and organizations subject to their

surveillance.

 Occurs between organizations and suppliers of raw materials.
FUNCTIONAL &
DYSFUNCTIONAL CONFLICT

Functional conflict


Results in positive benefits to individuals, the group, or
the organization.



Likely effects.
 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.
FUNCTIONAL &
DYSFUNCTIONAL CONFLICT

Dysfunctional conflict
 Works to the disadvantage of individuals, the group, or the

organization.
 Likely effects:
 Diverts energies.
 Promotes interpersonal hostilities.
 Creates overall negative environment for workers.
Manesh
Kumar
6434
CULTURE AND CONFLICT

Culture and conflict


Conflict is likely to be high when:
 Persons from short-term cultures work with persons from long-term

cultures.
 Persons from individualistic cultures work with persons from collectivistic

cultures.
 Persons from high power distance cultures work with persons from low

power distance cultures.
CONFLICT MANAGEMENT

Conflict Resolution


A situation in which the underlying reasons for a given destructive
conflict are eliminated.



Effective resolution begins with a diagnosis of the stage to which
conflict has developed and recognition of the cause's of the
conflict.
How can conflict be managed successfully?

Stages of conflict


Conflict antecedents .
 Set the conditions for conflict.



Perceived conflict.
 Substantive or emotional differences are sensed.



Felt conflict.
 Tension creates motivation to act.
CAUSES OF CONFLICT


Vertical conflict
 Occurs between hierarchical levels.



Horizontal conflict
 Occurs between persons or groups at the same hierarchical level.



Line-staff conflict
 Involves disagreements over who has authority and control over specific

matters.



Manifest conflict
 Conflict resolution or suppression.
 Conflict aftermath.
CAUSES OF CONFLICT
 Role Conflicts
 Occur when the communication of task expectations proves not enough or upsetting.

 Work-flow Interdependencies
 Occur when people or units are required to cooperate to meet challenging goals.

 Domain Ambiguities
 Occur when individuals or groups are placed in ambiguous situations where it is difficult

to determine who is responsible for what.

 Resource Scarcity
 When resources are scarce, working relationships are likely to suffer.

 Power or Value Asymmetries
 Occur when interdependent people or groups differ substantially from one another in

status and influence or in values.
Mir
Farzok
Talpur
6403
DIRECT CONFLICT MANAGEMENT
APPROACHES

Collaboration and Problem Solving
 Assertive and cooperative.
 Seeking the satisfaction of everyone’s concerns by working

through differences.
 Finding and solving problems so everyone gains as a result.
INDIRECT CONFLICT
MANAGEMENT APPROACHES
Reduced interdependence.

Appeals to common goals.

Hierarchical referral.

Alterations in the use of mythology and scripts.
INDIRECT CONFLICT
MANAGEMENT APPROACHES


Reduced Interdependence


Used for adjusting level of interdependency when work-flow conflicts exists.



Options






Decoupling.
Buffering.
Linking pins.

Appeals to common goals.


Focusing the attention of potentially conflicting parties on one mutually desirable goal.



Helping parties to recognize their mutual interdependence.



Can be difficult to achieve if:



Prior performance is poor.
Parties disagree over how to improve performance.
INDIRECT CONFLICT
MANAGEMENT APPROACHES
 Hierarchical Referral
 Makes use of the chain of command for conflict resolution.
 Problems with hierarchical referral.
 May not result in true conflict resolution.
 Possibility of inaccurate diagnosis of causes of conflict, resulting in only superficial

resolution.
 Superiors may attribute conflict to poor interpersonal relationships.

 Alterations in the use of mythology and scripts

 Scripts are behavioral routines that become part of the organization’s culture.

 Scripts prescribe ways of dealing with conflict.
DIRECT CONFLICT
MANAGEMENT APPROACHES
 Direct conflict management approaches are based on the relative

emphasis that a person places on boldness and cooperativeness.

 Assertiveness.
 Attempting to satisfy one’s own concerns.
 Unassertive versus assertive.
 Cooperativeness.
 Attempting to satisfy the other party’s concern.
 Uncooperative versus cooperative.
DIRECT CONFLICT
MANAGEMENT APPROACHES
 Avoidance
 Unassertive and uncooperative.

 Downplaying disagreement.

 Failing to participate in the situation and/or staying neutral at all costs.

 Accommodation or smoothing
 Unassertive and cooperative.

 Letting the other’s wishes rule.

 Smoothing over differences to maintain superficial harmony.
DIRECT CONFLICT
MANAGEMENT APPROACHES
 Compromise
 Moderate assertiveness and moderate cooperativeness.
 Working toward partial satisfaction of everyone’s concerns.
 Seeking acceptable rather than optimal solutions so that no one

totally wins or loses.
 Competition and authoritative command.
 Assertive and uncooperative.
 Working against the wishes of the other party.
 Fighting to dominate in win/lose competition.
 Forcing things to a favorable conclusion through the exercise of authority.
THE ISSUE OF “WHO WINS?”
 Lose-lose Conflict
 Occurs when nobody gets what he or she wants.
 Avoidance, accommodation or smoothing, and compromise are forms of lose-

lose conflict.
 Win-lose Conflict
 One part achieves its desires at the expense and to the exclusion of the other

party’s desires.
 Competition and authoritative command are forms of win-lose conflict.
 Win-win Conflict
 Both parties achieve their desires.
 Collaboration or problem solving are forms of win-win conflict.
Anil
Kumar

6335
NEGOTIATION
Negotiation


The process of making joint decisions when the
parties involved have different preferences.



Workplace disagreements arise over a variety of
matters.
NEGOTIATION GOALS AND OUTCOMES


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.
ETHICAL ASPECTS OF
NEGOTIATION

To maintain good working relationships, negotiating

parties should strive for high ethical standards.

The negotiating parties should avoid being side tracked

by self-interests, thereby being tempted to pursue
unethical actions.
ORGANIZATIONAL SETTINGS FOR
NEGOTIATION


Two-Party Negotiation
The manager negotiates directly with one other person.



Group Negotiation
The manager is apart of a team or group whose members are negotiating to arrive at a
common decision



Inter-Group Negotiation
The manager is the part of a group that is negotiating with another group to arrive at a decision
regarding problem or situation affecting both.



Constituency Negotiation
The manager is involved in negotiation with other persons, with each party representing a
broader constituency.
CULTURE AND NEGOTIATION
Differences in negotiation approaches and practices
are influenced by cultural differences in
 Time orientation

 Individualism-collectivism

 Power distance
Zeeshan
Hyder
Magsi
5768
NEGOTIATION
STRATEGIES


Distributive Negotiation






Focuses on positions staked out or declared by the conflicting parties.
Parties try to claim certain portions of the existing pie.

Integrative Negotiation


Sometimes called principled negotiation.



Focuses on the merits of the issues.



Parties try to enlarge the available pie.
NEGOTIATION
STRATEGIES
Distributive Negotiation
Key questions is: “Who is going to get this resource?”


“Hard” distributive negotiation.




Soft” distributive negotiation.




Each party holds out to get its own way.

One party is willing to make concessions to the other party to get things over.

Bargaining zone.


The range between one party’s minimum reservation point and the other party’s maximum
reservation point.



A positive bargaining zone exists when the two parties’ points overlap.



A positive bargaining zone provides room for negotiation.
NEGOTIATION
STRATEGIES
Integrative Negotiation
Key questions 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.


Range of feasible negotiation tactics.



Selective avoidance.



Compromise.



True collaboration.
HOW TO GAIN INTEGRATIVE
AGREEMENTS?

Gaining truly integrative agreements rests on
Supportive attitudes.
Constructive behaviors.
Good information.
HOW TO GAIN INTEGRATIVE
AGREEMENTS?
Supportive Attitudes.
Integrative agreements require that each party must:
 Approach the negotiation with a willingness to trust the other party.
 Convey a willingness to share information with the other party.
 Show a willingness to ask concrete questions of the other party.

Constructive Behaviors.
Reaching integrative agreements depends on the negotiator’s ability to
 Separate the people from the problem.
 Focus on interests rather than positions.
 Avoid making premature judgments.
 Keep alternative creation separate from evaluation.
 Judge possible agreements on an objective set of criteria or standards.
HOW TO GAIN INTEGRATIVE
AGREEMENTS?
Good Information
 Each negotiation party must know what he/she will do if an

agreement can’t be reached.

 Each party must understand the relative importance of the other

party’s interests.
COMMON NEGOTIATION
PITFALLS
 The myth of the fixed pie.
 The possibility of escalating commitment.
 Negotiators often develop overconfidence in their

positions.
 Communication problems can cause difficulties during a

negotiation.
 Telling problem.
 Hearing problem.
Thank 
You
All

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Organizational Behavior: Conflict and Negotiation Strategies

  • 3. Future Executives Mir Farzok Talpur Danish Iqbal Manesh Kumar Aneel Kumar Zeeshan Hyder Magsi 6403 “Leader” 6338 6434 6335 5768
  • 4. Content  Conflict in Organizations      Conflict Management     Stages of Conflict Indirect Conflict Management Approaches Direct Conflict Management Approaches Negotiation       Types of Conflict Levels of Conflict Functional and Dysfunctional Conflict Culture and Conflict What is Negotiation? Negotiation Goals and Outcomes Ethical Aspects of Negotiation Organizational Settings for Negotiation Culture and Negotiation Negotiation Strategies    Distributive Negotiation Integrative Negotiation How to Gain Integrative Agreement
  • 6. CONFLICT Conflict occurs when?  Disagreements between parties exist in a social situation over issues of substance.  Emotional opposition cause frictions between individuals or groups.
  • 7. 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 etc…. 7
  • 8. 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.
  • 9. LEVELS OF CONFLICT  Inter-group conflict  Occurs among members of different teams or groups.  Inter-organizational conflict.  Occurs between one organization to another organization  Occurs between unions and organizations employing their members.  Occurs between government regulatory agencies and organizations subject to their surveillance.  Occurs between organizations and suppliers of raw materials.
  • 10. FUNCTIONAL & DYSFUNCTIONAL CONFLICT Functional conflict  Results in positive benefits to individuals, the group, or the organization.  Likely effects.  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.
  • 11. FUNCTIONAL & DYSFUNCTIONAL CONFLICT Dysfunctional conflict  Works to the disadvantage of individuals, the group, or the organization.  Likely effects:  Diverts energies.  Promotes interpersonal hostilities.  Creates overall negative environment for workers.
  • 13. CULTURE AND CONFLICT Culture and conflict  Conflict is likely to be high when:  Persons from short-term cultures work with persons from long-term cultures.  Persons from individualistic cultures work with persons from collectivistic cultures.  Persons from high power distance cultures work with persons from low power distance cultures.
  • 14. CONFLICT MANAGEMENT Conflict Resolution  A situation in which the underlying reasons for a given destructive conflict are eliminated.  Effective resolution begins with a diagnosis of the stage to which conflict has developed and recognition of the cause's of the conflict.
  • 15. How can conflict be managed successfully? Stages of conflict  Conflict antecedents .  Set the conditions for conflict.  Perceived conflict.  Substantive or emotional differences are sensed.  Felt conflict.  Tension creates motivation to act.
  • 16. CAUSES OF CONFLICT  Vertical conflict  Occurs between hierarchical levels.  Horizontal conflict  Occurs between persons or groups at the same hierarchical level.  Line-staff conflict  Involves disagreements over who has authority and control over specific matters.  Manifest conflict  Conflict resolution or suppression.  Conflict aftermath.
  • 17. CAUSES OF CONFLICT  Role Conflicts  Occur when the communication of task expectations proves not enough or upsetting.  Work-flow Interdependencies  Occur when people or units are required to cooperate to meet challenging goals.  Domain Ambiguities  Occur when individuals or groups are placed in ambiguous situations where it is difficult to determine who is responsible for what.  Resource Scarcity  When resources are scarce, working relationships are likely to suffer.  Power or Value Asymmetries  Occur when interdependent people or groups differ substantially from one another in status and influence or in values.
  • 19. DIRECT CONFLICT MANAGEMENT APPROACHES Collaboration and Problem Solving  Assertive and cooperative.  Seeking the satisfaction of everyone’s concerns by working through differences.  Finding and solving problems so everyone gains as a result.
  • 20. INDIRECT CONFLICT MANAGEMENT APPROACHES Reduced interdependence. Appeals to common goals. Hierarchical referral. Alterations in the use of mythology and scripts.
  • 21. INDIRECT CONFLICT MANAGEMENT APPROACHES  Reduced Interdependence  Used for adjusting level of interdependency when work-flow conflicts exists.  Options     Decoupling. Buffering. Linking pins. Appeals to common goals.  Focusing the attention of potentially conflicting parties on one mutually desirable goal.  Helping parties to recognize their mutual interdependence.  Can be difficult to achieve if:   Prior performance is poor. Parties disagree over how to improve performance.
  • 22. INDIRECT CONFLICT MANAGEMENT APPROACHES  Hierarchical Referral  Makes use of the chain of command for conflict resolution.  Problems with hierarchical referral.  May not result in true conflict resolution.  Possibility of inaccurate diagnosis of causes of conflict, resulting in only superficial resolution.  Superiors may attribute conflict to poor interpersonal relationships.  Alterations in the use of mythology and scripts  Scripts are behavioral routines that become part of the organization’s culture.  Scripts prescribe ways of dealing with conflict.
  • 23. DIRECT CONFLICT MANAGEMENT APPROACHES  Direct conflict management approaches are based on the relative emphasis that a person places on boldness and cooperativeness.  Assertiveness.  Attempting to satisfy one’s own concerns.  Unassertive versus assertive.  Cooperativeness.  Attempting to satisfy the other party’s concern.  Uncooperative versus cooperative.
  • 24. DIRECT CONFLICT MANAGEMENT APPROACHES  Avoidance  Unassertive and uncooperative.  Downplaying disagreement.  Failing to participate in the situation and/or staying neutral at all costs.  Accommodation or smoothing  Unassertive and cooperative.  Letting the other’s wishes rule.  Smoothing over differences to maintain superficial harmony.
  • 25. DIRECT CONFLICT MANAGEMENT APPROACHES  Compromise  Moderate assertiveness and moderate cooperativeness.  Working toward partial satisfaction of everyone’s concerns.  Seeking acceptable rather than optimal solutions so that no one totally wins or loses.  Competition and authoritative command.  Assertive and uncooperative.  Working against the wishes of the other party.  Fighting to dominate in win/lose competition.  Forcing things to a favorable conclusion through the exercise of authority.
  • 26. THE ISSUE OF “WHO WINS?”  Lose-lose Conflict  Occurs when nobody gets what he or she wants.  Avoidance, accommodation or smoothing, and compromise are forms of lose- lose conflict.  Win-lose Conflict  One part achieves its desires at the expense and to the exclusion of the other party’s desires.  Competition and authoritative command are forms of win-lose conflict.  Win-win Conflict  Both parties achieve their desires.  Collaboration or problem solving are forms of win-win conflict.
  • 28. NEGOTIATION Negotiation  The process of making joint decisions when the parties involved have different preferences.  Workplace disagreements arise over a variety of matters.
  • 29. NEGOTIATION GOALS AND OUTCOMES  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.
  • 30. ETHICAL ASPECTS OF NEGOTIATION To maintain good working relationships, negotiating parties should strive for high ethical standards. The negotiating parties should avoid being side tracked by self-interests, thereby being tempted to pursue unethical actions.
  • 31. ORGANIZATIONAL SETTINGS FOR NEGOTIATION  Two-Party Negotiation The manager negotiates directly with one other person.  Group Negotiation The manager is apart of a team or group whose members are negotiating to arrive at a common decision  Inter-Group Negotiation The manager is the part of a group that is negotiating with another group to arrive at a decision regarding problem or situation affecting both.  Constituency Negotiation The manager is involved in negotiation with other persons, with each party representing a broader constituency.
  • 32. CULTURE AND NEGOTIATION Differences in negotiation approaches and practices are influenced by cultural differences in  Time orientation  Individualism-collectivism  Power distance
  • 34. NEGOTIATION STRATEGIES  Distributive Negotiation    Focuses on positions staked out or declared by the conflicting parties. Parties try to claim certain portions of the existing pie. Integrative Negotiation  Sometimes called principled negotiation.  Focuses on the merits of the issues.  Parties try to enlarge the available pie.
  • 35. NEGOTIATION STRATEGIES Distributive Negotiation Key questions is: “Who is going to get this resource?”  “Hard” distributive negotiation.   Soft” distributive negotiation.   Each party holds out to get its own way. One party is willing to make concessions to the other party to get things over. Bargaining zone.  The range between one party’s minimum reservation point and the other party’s maximum reservation point.  A positive bargaining zone exists when the two parties’ points overlap.  A positive bargaining zone provides room for negotiation.
  • 36. NEGOTIATION STRATEGIES Integrative Negotiation Key questions 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.  Range of feasible negotiation tactics.  Selective avoidance.  Compromise.  True collaboration.
  • 37. HOW TO GAIN INTEGRATIVE AGREEMENTS? Gaining truly integrative agreements rests on Supportive attitudes. Constructive behaviors. Good information.
  • 38. HOW TO GAIN INTEGRATIVE AGREEMENTS? Supportive Attitudes. Integrative agreements require that each party must:  Approach the negotiation with a willingness to trust the other party.  Convey a willingness to share information with the other party.  Show a willingness to ask concrete questions of the other party. Constructive Behaviors. Reaching integrative agreements depends on the negotiator’s ability to  Separate the people from the problem.  Focus on interests rather than positions.  Avoid making premature judgments.  Keep alternative creation separate from evaluation.  Judge possible agreements on an objective set of criteria or standards.
  • 39. HOW TO GAIN INTEGRATIVE AGREEMENTS? Good Information  Each negotiation party must know what he/she will do if an agreement can’t be reached.  Each party must understand the relative importance of the other party’s interests.
  • 40. COMMON NEGOTIATION PITFALLS  The myth of the fixed pie.  The possibility of escalating commitment.  Negotiators often develop overconfidence in their positions.  Communication problems can cause difficulties during a negotiation.  Telling problem.  Hearing problem.