Conflict and Negotiation

CONFLICT AND NEGOTIATION
Learning Objectives: Define Conflict Differentiate between traditional, human relations and interactionist views of conflict Contrast task, relationship and process conflict Outline the conflict process Describe the five conflict-handling intentions Contrast distributive and integrative bargaining Identify the five steps in the negotiation process Describe cultural differences in negotiations
CONFLICT
Any situation in which incompatible goals, attitudes, emotions or behaviors lead to disagreement or opposition between two or more parties
LEVELS OF CONFLICT
Interpersonal occurs between two or more individuals Intrapersonal occurs within an individual Intergroup occurs among members of different teams or groups Inter-organizational competition and rivalry that characterize firms operating in the same market
THREE VIEWS OF CONFLICT

Traditional View Conflict is dysfunctional, destructive and irrational Human Relations View Conflict is natural in groups and organizations Interactionist View Conflict is not only a positive force in a group but that is absolutely necessary for a group to perform effectively
FUNCTIONAL VS. DYSFUNCTIONAL CONFLICT
Functional Conflict A healthy, constructive disagreement between two or more people Dysfunctional Conflict An unhealthy, destructive between two or more people
disagreement
THREE TYPES OF CONFLICT

Task Disagreements among group members, concerning ideas and opinions about the task being performed. Relationship Focuses on interpersonal relationships. It is generated from emotions and frustrations, and has a detrimental impact on group or organizational outcomes.
Process Conflict over how work gets done
THE CONFLICT PROCESS

Potential Opposition or Incompatibility
Outcome
Cognition and personalization
CONFLICT
Behavior
Intentions
Stage 2 Cognition and personalization

Stage 1 Potential Opposition or Incompatibility
Stage 4 Outcome Stage 3 Intentions Stage 4 Behavior Increased group performance
Recognize conflict
Communication Structure Personal Variables
Competing Collaborating Compromising Avoiding Accommodating
Partys behavior
Others reaction
Felt conflict
Decreased group performance
NEGOTIATION
A process in which two or more parties exchange goods or services and attempt to agree on the exchange rate for them. There are two general approaches to negotiation: Distributive and Integrative Bargaining.
Distributive Bargaining
A negotiation method in which two parties strive to divide a fixed pool of resources, often money, each party trying to maximize its share of the distribution Distributive bargaining is a fixed-sum game, and the limited resource is often termed a fixed pie. It is also called a zero-sum process because one party loses whatever amount is gained by the other.
INTEGRATIVE BARGAINING
A negotiation strategy in which parties collaborate to find a win-win" solution to their dispute. This strategy focuses on developing mutually beneficial agreements based on the interests of the disputants. Interests include the needs, desires, concerns, and fears important to each side.
Distributive vs. Integrative Bargaining

Bargaining Characteristic AVAILABLE RESOURCES MOTIVATION Distributive Bargaining Fixed amount of resources to be divided Win-Lose Integrative Bargaining Variable amount of resources to be divided Win-Win
INTERESTS
Opposed
Congruent
RELATIONSHIP DURATION
Short term
Long term
NEGOTIATION PROCESS
Preparation and Planning
Definition of Ground Rules
Clarification and Justification
Bargaining and Problem Solving
Closure and Implementation
Preparation and Planning Make sure that your goal stays paramount in your discussions Put your goals in writing and develop a range of outcomes to keep your attention focused. Assess what you think are the other partys goals Once you have gathered your information, use it to develop a strategy.
Definition of Ground Rules During this phase, the parties will exchange their initial proposals or demands. At this stage, you are ready to begin defining with the other party the ground rules and procedures of the negotiation itself.
Clarification and Justification Both you and other party will explain, amplify, clarify and justify your original demands
Bargaining and Problem Solving This is where both party will need to make compromise Closure and Implementation The final step is formalizing the agreement that has been worked out and developing any procedures necessary for implementation and monitoring
Cultural differences in Negotiation

The methods of negotiation vary with culture. Some people may adopt a more direct or simple method of communication, whereas others may adopt a method that is more indirect or complex. Each culture has its own standards, and one behavior that has a certain meaning in a certain culture could be interpreted differently in another.
Cultural factors that influenced Communicative Difficulties

1. 2. 3. 4. 5. 6. 7. 8. Attitude Social structure Cognitive pattern Roles and role interpretation Language Non-verbal expressions Spatial usage and organization Understanding of time
Aspects of Cultural Differences in Negotiation

Definition of Negotiation Selection of Negotiators Rituals of Negotiation Communication Time Risk Tendency Group and Individual Natural Agreement
CONCLUSION
Negotiation can be viewed as a process in which a party wishes to persuade and change the thought s and behaviors of another. When both parties wish to do so, they both need to seek mutual benefits that address their needs and perspectives before they can reach a consensus. Different people have different views, and it is even more difficult to reach an agreement in an international negotiation that involves different cultural backgrounds. The three domains of personal qualities, situational factors, and strategies are very different between different cultures. For example, Americans focus heavily on facts, and they persuade others by using logic. To the Chinese people, however, the mutual relationship between the negotiators is the key to a successful negotiation. This kind of guan-xi (relationship) is different from the Western sense of relationship (Chang, 2001). Therefore, a successful multinational business negotiation begins with understanding the opponents cultural and cognitive patterns.

Conflict and Negotiation

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What are the three views of conflict according to the text?

What are the three views of conflict according to the text?

What are the three types of conflict discussed?

What are the three types of conflict discussed?

CONFLICT AND NEGOTIATION

THREE VIEWS OF CONFLICT

FUNCTIONAL VS. DYSFUNCTIONAL CONFLICT

THREE TYPES OF CONFLICT

Process Conflict over how work gets done

THE CONFLICT PROCESS

Cognition and personalization

Stage 2 Cognition and personalization

Stage 4 Outcome Stage 3 Intentions Stage 4 Behavior Increased group performance

Communication Structure Personal Variables

Competing Collaborating Compromising Avoiding Accommodating

Decreased group performance

Distributive vs. Integrative Bargaining

Definition of Ground Rules

Clarification and Justification

Bargaining and Problem Solving

Closure and Implementation

Cultural differences in Negotiation

Cultural factors that influenced Communicative Difficulties

Aspects of Cultural Differences in Negotiation

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