Conflict Mght June 08 2010 TBS

7/29/2019 Conflict Mght June 08 2010 TBS

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Conflict &Negotiation Process

Prof.Shabir Ahmad

The Business School

University of kashmir

June 24, 2010


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Conflict

Summary

As people with different backgrounds, interests, visions,

values, needs and ideologies interact, a variety of conflicts

often develop.

A contemporary perspective on conflict recognizes that

conflict is neither inherently good or bad but can be either

depending on how it is dealt with.

Thus in dealing with conflict the critical issue is not so much

the conflict itself but how it is managed.


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Learning Objectives

1. Understand the nature of

organizational conflict, its sources,

and the way it arises between

stakeholders and subunits

2. Identify the mechanisms by which

managers and stakeholders can

obtain power and use that powerto influence decision making and

resolve conflict in their favour


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What is Organizational Conflict?

The clash that occurs when thegoal-directed behavior of one

group blocks or thwarts the goals

of another

Although conflict is often

perceived as something negative,

research suggests that some

conflict can actually improveorganizational effectiveness

Can overcome inertia and lead to

learning and change


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What is Organizational Conflict?

Beyond a certain point, conflictbecomes a cause for organizational

decline

Conflict leads to inability to reach

consensus and indecision

Too much time spent on bargaining

rather than acting swiftly to resolve

problems On balance, organizations should be

open to conflict and recognize its

value


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Pondys Model of Organizational

Conflict

Conflict is a process that consists offive sequential stages

Stage 1: Latent conflict: no outrightconflict exists, but there is apotential for conflict because ofseveral latent factors Sources of conflict include:

Interdependence

Difference in goals and priorities Bureaucratic factors

Incompatible performance criteria

Competition for scarce resources


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Pondys Model of Organizational Conflict

(cont.)

Stage 2: Perceived conflict: subunitsbecome aware of conflict and begin toanalyze it

Conflict escalates as groups battle over

the cause of conflict Stage 3: Felt conflict: subunits

respond emotionally to each other,and attitudes polarize into us-versus-

them Cooperation between units decreases

What began as a small problemescalates into huge conflict


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Pondys Model of Organizational Conflict

(cont.)

Stage 4: Manifest conflict: subunits tryto get back at each other

Fighting and open aggression

Passive aggression doing nothing Organizational effectiveness suffers

Stage 5: Conflict aftermath: conflict is

resolved in some way If sources of conflict are not resolved, the

dispute will arise again

Conflict aftermath


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Pondys Model of Organizational

Conflict


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Conflict

Functional

Conflict Dysfunctionalconflict

A functional conflict is a confrontation

Between groups that enhances and

benefits the organizations performance.Functional conflict can contribute to

Creativity, innovation, and improved

decision-making among other benefits.

Dysfunctional conflict, on the other

hand,Is that which harms the organization

or hinders the achievement of

organizational goals .


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Macro

organizational

group

InterpersonalIntra-individual

Micro

Conflict


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Intra-individual Conflict

Frustration Model

Goal Conflict

Role Conflict and Ambiguity


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Sources of Interpersonal Conflict

Personal differences

Information deficiency

Role Incompatibility

Environment Stress


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Johari Window

Known to othersOpen area Blind area

Known to self Not known to self

Not know to others Hidden area Unknown area


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Factors Contributing to Intergroup Behavior

The interdependent nature of the

relationship between work groups

Differences in goals

Differences in perceptions


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Reactions to Conflict

Competing

Collaborating

Avoiding Accommodating

Compromising


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Organizational conflict can escalate

rapidly and sour an organizationsculture

Managing conflict is an important

priority Organizations must balance the

need to have some good conflict

without letting it escalate into bad

conflict

Choice of conflict resolution

method depends on the source of

the roblem

Managing Conflict


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Managing Conflict: Resolution Strategies

Acting at the level of structure Because task interdependence and

differences in goals produce conflict, alter

the level of differentiation and integrationto change relationships

Increase the number of integrating roles

Assign top managers to solve conflict

Rethink the hierarchy/reporting chain


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Managing Conflict: Resolution Strategies

(cont.)

Acting at the level of attitudes andindividuals

Establish a procedural system that allows

parties to air their grievances Important for conflict between management

and unions

Use a third-party negotiator

Exchange/rotate/terminate individuals

CEOs can also use their power to resolve

conflicts and motivate units to cooperate


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Strategies for Interpersonal Conflict resolution

Model the attitudes and behaviors you want your

employees to emulate

Identify the source of conflict, structural or

interpersonal

Focus on the task not personalities

Address conflict in a timely way

Learn for conflict

AND

Allow time to cool off Analyze the situation State the problem to the other

person

Leave the person an out


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The common dilemma

Participants are friends.

The goal is agreement.

Make concessions to cultivate the

relationship.

Be soft on the people.

Trust others.

Make offers.

Have to talk

Relationship over substance

Open with a reasonable position

Concede generously

Will/offers

Participants are adversaries.

The goal is victory.

Be hard on the problem.

Distrust others.

Dont have to talk

Dig in your position.

Open with an extreme position

Concede stubbornly

Wont/threats

SOFT HARD


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Negotiation Skills

People : Separate the people from the problem.

Interests: Focus on interests, not positions.

Options: Generate a variety of possibilities beforebefore deciding what to do

Criteria: Insist that the result be based on someobjective standard.


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Using the Seven Elements

Interests

BATNA

Communication

Commitment

Options

Legitimacy

Relationship

If YesIf No

Claim

Value

Create

Value

Enter the Circle


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Preparation

Gather facts

Create Positions

Build supportingarguments

Fix a bottom line

Create a concession

strategy: offer/counter-

offer

Risks a too-narrow focus,

rigidity, and aversion to

learning

Information overload

Scripted, unpersuasive:crafted to justify our views

rather than change theirs

Often unrelated to a

reality-tested, walk-away

alternative Places commitment before

anything else, limits option

creation

TYPICAL PREPARATION COMMON DIFFICULTIES


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7 Elements Preparation

Checklist Interests What are ours? What are theirs?

Ask ourselves Why? What else?

Are there other parties interests to consider?

Which interests are shared, which are just different, andwhich are in conflict?

What are thepriorities of these various interests?

Options Brainstorming whatpossible options might satisfy these

interests? What might they or a third party propose?

What possible arrangements might creatively satisfy eachparties interests?

Alternatives Whats our BATNA? Whats theirs?

Can we improve ours? Weaken theirs?


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Checklist Legitimacy What precedents exist? Is there a standard operating

procedure? Law? Custom? Market Value?

Is there a fair process if we currently lack a singlestandard?

What ought to govern an agreement?

How can they justify the outcome to their constituents?

Commitment What is our authority? Theirs?

What do we aspire to? What can we live with?

What kind of commitment do we want at each stage of thenegotiation process?

Conditional agreement? Joint recommendation?Framework agreement? List of interests, options? Processagreement?


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Checklist Communication What information do we want to listen for?

How can we show them they have been heard?

What message do we want left in their minds?

What is our process strategy?

How should we begin? What is our agenda? How might we

close? How will we deal with surprises? What are the words

we might use around the tough issue?

Relationship How is it today, and how would we like it to be in the future? What actions can we take to build the relationship without

conceding or buying the relationship?


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Some strategic guidelines

Use LEGITIMACY Offer why an option is fair or defensible

Explain your reasoning(Let me show you why/where this came from)

Before countering, inquire (Why? Based on what?) Look for fair procedures Use the Test of Reciprocity Be sure that you are open to persuasion

Ensure Good Two-Way COMMUNICATION Negotiate the process

Balance advocacy and inquiry Speak for yourself, not for them Listen and demonstrate that you have heard Test operating assumptions


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Classic positional bargainingCommitment (extreme position)

Offer

Last offer

Final last offer

Commitment (extreme position)

Offer

Last offer

Final last offer

Threat (BATNA)

Threat (BATNA)

Will there be any deal?


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Some strategic guidelines Acknowledge each BATNA as a choice

Reality test theirs How well does it satisfy their interests?

Consider sharing yours as a decision you face Use BATNA discussions as an opportunity:

To learn about interests

To invite options that exceed all BATNAs COMMITMENT with care, after learning all you can

Commit early to process Commit to substance at the end of the process

Review each partys understanding, documentif needed Ask if it has the necessary detail to be

implemented: who, what, where, when and how


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Some strategic guidelines Clarify INTERESTS, not positions

Ask Why?, What else?, In what order?

Share some of your interests

Share and test your understanding of theirs

Solicit criticism of possible options

Invent OPTIONS for joint gain Jointly brainstorm multiple options

Separate inventing from deciding Break up decision makingOption generation

Option evaluation/refinement

Commitment to an option


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Some strategic guidelines

Deal with RELATIONSHIPS and substance,each on its own merits

Be unconditionally constructive on therelationship

Trustworthy, even if not trusting Understanding, even if not agreeing

Accepting the person, even if not their behavior

Separate the people from the problem

Use interests, options, legitimacy to address the problem

Discuss relationship issues separately and explicitly

CCBD Consider Consulting BeforeDeciding

Common errors for both


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Common errors for both

Assumes a choice: RELATIONSHIP or

substance

Focuses on positions, ignores INTERESTS

Ignores LEGITIMACY

Mixes inventing and deciding - limits OPTIONS

Places COMMITMENT before listening

One-way COMMUNICATION

Ignores real worldALTERNATIVES

SOFT HARD


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Charting Negotiation Success

PREP

ARATI

ON

SU

CCESS

Strategy & Tactics

Review and learning

Effective negotiation skills: The key stages

S f


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Some common measures of

successWinning Get the most concessions

Break their bottom line

Get the last possible dollar

They hurt more

Not losing

No one is happierAvoid confrontation

Get any deal

Just dont get cheated


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Complex negotiations

Repeat over

time

Multi-issue

Multi-party

Intangible

Factors

External

and InternalTangible

Factors


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A Seven Element framework for measuring success

No agreement, OR an agreement that:

1. Is better than any walk-awayALTERNATIVE

Esp. ourBATNA ourBestAlternative To a NegotiatedAgreement

2. Satisfies INTERESTS:

Ours, well INTERESTS POSITIONS

Theirs, at least acceptably

Others, at least tolerably

3. Leaves no joint gains on the table: is among the best of many

OPTIONS

4. Uses LEGITIMACY: objective criteria or transparent processes allowparties to view mutual decisions as fair and sensible

5. Contains COMMITMENTS that are well-planned, mutually

understood, and operational

6. Is reached efficiently with effective COMMUNICATION

7. Builds a good working RELATIONSHIP among the parties


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Conflict outcomes

I want you to:

Lose Win

1 2

Lose Lose- Lose Lose-Win

3 4

Win Win-Lose Win-Win

I want to:


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Thank You

Documents

Conflict Mght June 08 2010 TBS