6: Conflict Resolution
- Define and explain the benefits of conflict.
- Explain the differences between constructive and destructive conflict.
- Identify and explain the conflict process model.
- Provide guidelines to resolve conflict.
Conflict
Introduction
This section begins with a discussion of the conflict process, followed by a look at negotiations both within and between organizations.
By any standard of comparison, conflict in organizations represents an important topic for managers. Just how important it is can be seen in the results of a study of how managers spend their time. It was found that approximately 20 percent of top and middle managers’ time was spent dealing with some form of conflict (K. Thomas & W. Schmidt, 1976). Another study found that managerial skill in handling conflict was a major predictor of managerial success and effectiveness (J. Graves, 1983).
There are many ways to determine conflict as it relates to the workplace. For our purposes here, we will define conflict as the process by which individuals or groups react to other entities that have frustrated, or are about to frustrate, their plans, goals, beliefs, or activities. In other words, conflict involves situations in which the expectations or actual goal-directed behaviors of one person or group are blocked—or about to be blocked—by another person or group. Hence, if a sales representative cannot secure enough funds to mount what she considers to be an effective sales campaign, conflict can ensue. Similarly, if A gets promoted and B doesn’t, conflict can emerge. Finally, if a company finds it necessary to lay off valued employees because of difficult financial conditions, conflict can occur. Many such examples can be identified; in each, a situation emerges in which someone or some group cannot do what it wants to do (for whatever reason) and responds by experiencing an inner frustration.
Over the past two years at Google, 48 people have been terminated for sexual harassment. There is a firm policy at Google pertaining to this type of misconduct, but when the effects of these types of events cause an uproar based on reports that a former top executive was paid millions of dollars after leaving Google despite misconduct and harassment allegations, it’s important to get to the point of conflict and face it head-on.
That’s exactly why Chief Executive Officer Sundar Pichai did just that. In an attempt to get ahead of the storm, Pichai wrote an email explaining that none of the individuals that were asked to leave were given severance packages. Despite this, employees are still feeling upset over such claims.
“The culture of stigmatization and silence *enables* the abuse by making it harder to speak up and harder to be believed,” Liz Fong-Jones, who is quoted in the Times ’s story, wrote on Twitter. “It’s the abuse of power relationships in situations where there was no consent or consent was impossible.”
After the article came out in the New York Times reporting that Google gave Andy Rubin, former Android chief, a $90 million exit package, it was not just employees that were upset; there was external conflict between the company and Rubin. The media was heavily involved, including Bloomberg, and Rubin used social channels as well, making it even more complicated to counteract the negative comments or come to a resolution. Since the reports of Rubin’s actions as well as additional reports regarding Google’s permissive culture became public, Google has taken actions to update its policy on relationship disclosure.
This stance from the Google executive team is just one step in the right direction to address a culture that suggests a high level of conflict due to the protection of executives over the safety and well-being of the employees, who may be less likely to report incidents of abuse of power.
Sources: A. Barr, “Google CEO Tries to Calm Staff After Executive Misconduct Report,” Bloomberg , October 25, 2018, https://www.bloomberg.com/news/artic...conduct-report ; D. Wakabayashi and K. Benner, “How Google Protected Andy Rubin, the ‘Father of Android’,” New York Times , October 25, 2018, https://www.nytimes.com/2018/10/25/t...ndy-rubin.html ; A. Panchadar, “Alphabet Harassment,” New York Times, October 25, 2018, https://www.nytimes.com/reuters/2018...arassment.html .
In all organizations, including Google, some conflict is inevitable. Simply making a decision to do A instead of B often alienates the supporters of B , despite the soundness of the reasons behind the decision. Moreover, the consequences of conflict (and failed negotiations) can be costly to an organization, whether the conflict is between labor and management, groups, individuals, or nations. In an era of increasing business competition both from abroad and at home, reducing conflict is important. For these reasons, contemporary managers need a firm grasp of the dynamics of conflict and negotiation processes.
Benefits of Team Conflict
There are many sources of conflict for a team, whether it is due to a communication breakdown, competing views or goals, power struggles, or conflicts between different personalities. The perception is that conflict is generally bad for a team and that it will inevitably bring the team down and cause them to spiral out of control and off track. Conflict does have some potential costs. If handled poorly, it can create distrust within a group, it can be disruptive to group progress and morale, and it could be detrimental to building lasting relationships. It is generally seen as a negative, even though constructive conflicts and constructive responses to conflicts can be an important developmental milestone for a team. Some potential benefits of conflict are that it encourages a greater diversity of ideas and perspectives and helps people to better understand opposing points of view. It can also enhance a team’s problem-solving capability and can highlight critical points of discussion and contention that need to be given more thought.
Another key benefit or outcome of conflict is that a team that trusts each other—its members and members’ intentions—will arise from conflict being a stronger and higher-performing team. Patrick Lencioni, in his bestselling book The Five Dysfunctions of a Team (2002, p. 188), writes:
“The first dysfunction is an absence of trust among team members. Essentially, this stems from their unwillingness to be vulnerable within the group. Team members who are not genuinely open with one another about their mistakes and weaknesses make it impossible to build a foundation for trust. This failure to build trust is damaging because it sets the tone for the second dysfunction: fear of conflict. Teams that lack trust are incapable of engaging in unfiltered and passionate debate of ideas. Instead, they resort to veiled discussions and guarded comments.”
Lencioni also asserts that if a team doesn’t work through its conflict and air its opinions through debate, team members will never really be able to buy in and commit to decisions. (This lack of commitment is Lencioni’s third dysfunction.) Teams often have a fear of conflict so as not to hurt any team members’ feelings. The downside of this avoidance is that conflicts still exist under the surface and may resurface in more insidious and back-channel ways that can derail a team. How can a team overcome its fear of conflict and move the team forward?
Figure 4.7 The Five Dysfunctions of Team is a team development model that explores the fundamental causes of organizational politics and team failure. Initially applied in business and corporate settings, it is now increasingly popular in the context of Sport (Hansen Bay https://youtu.be/GCxct4CR-To )
Lencioni names a few strategies that teams can use to make conflict more common and productive. Mining is a technique that can be used in teams that tend to avoid conflict. This technique requires that one team member “assume the role of a ‘miner of conflict’—someone who extracts buried disagreements within the team and sheds the light of day on them. They must have the courage and confidence to call out sensitive issues and force team members to work through them.” Real-time permission is another technique to “recognize when the people engaged in conflict are becoming uncomfortable with the level of discord, and then interrupt to remind them that what they are doing is necessary.” This technique can help the group to focus on the points of conflict by coaching the team not to sweep things under the rug.
The team leader plays a very important role in the team’s ability to address and navigate successfully through conflicts. Sometimes a leader will have the attitude that conflict is a de-railer and will try to stymie it at any cost. This ultimately leads to a team culture in which conflict is avoided and the underlying feelings are allowed to accumulate below the surface of the discussion. The leader should, by contrast, model the appropriate behavior by constructively addressing conflict and bringing issues to the surface to be addressed and resolved by the team. This is key to building a successful and effective team.
In summary, conflict is never easy for an individual or a team to navigate through, but it can and should be done. Illuminating the team about areas of conflict and differing perspectives can have a very positive impact on the growth and future performance of the team, and it should be managed constructively.
Types of Conflict
If we are to try to understand the roots of conflict, we need to know what type of conflict is present. At least four types of conflict can be identified:
- Goal conflict occurs when one person or group desires a different outcome than others do. This is simply a clash over whose goals are going to be pursued.
- Cognitive conflict results when one person or group holds ideas or opinions that are inconsistent with those of others. This type of conflict is evident in political debates.
- Affective conflict emerges when one person’s or group’s feelings or emotions (attitudes) are incompatible with those of others. Affective conflict is seen in situations where two individuals simply don’t get along with each other.
- Behavioral conflict exists when one person or group does something (i.e., behaves in a certain way) that is unacceptable to others. Dressing for work in a way that “offends” others and using profane language are examples of behavioral conflict.
Each of these types of conflict is usually triggered by different factors, and each can lead to very different responses by the individual or group.
Levels of Conflict
In addition to different types of conflict, there exist several different levels of conflict. Level refers to the number of individuals involved in the conflict. That is, is the conflict within just one person, between two people, or between two or more groups. Both the causes of a conflict and the most effective means to resolve it can be affected by level.
- Intrapersonal conflict is conflict within one person. We often hear about someone who has an approach-avoidance conflict; that is, she is both attracted to and repelled by the same object. Similarly, a person can be attracted to two equally appealing alternatives, such as two good job offers (approach-approach conflict) or repelled by two equally unpleasant alternatives, such as the threat of being fired if one fails to identify a coworker guilty of breaking plant rules (avoidance-avoidance conflict). In any case, the conflict is within the individual.
- Interpersonal conflict. Conflict can also take form in an interpersonal conflict, where two individuals disagree on some matter. For example, you can have an argument with a coworker over an issue of mutual concern. Such conflicts often tend to get highly personal because only two parties are involved and each person embodies the opposing position in the conflict. Hence, it is sometimes difficult to distinguish between the opponent’s position and her person.
- Intergroup conflict usually involves disagreements between two opposing forces over goals or the sharing of resources. For example, we often see conflict between the marketing and production units within a corporation as each vies for more resources to accomplish its subgoals. Intergroup conflict is typically the most complicated form of conflict because of the number of individuals involved. Coalitions form within and between groups, and an “us-against-them” mentality develops. Here, too, is an opportunity for groupthink to develop and thrive.
The Positive and Negative Sides of Conflict
People often assume that all conflict is necessarily bad and should be eliminated. On the contrary, there are some circumstances in which a moderate amount of conflict can be helpful. For instance, conflict can lead to the search for new ideas and new mechanisms as solutions to organizational problems. Conflict can stimulate innovation and change. It can also facilitate employee motivation in cases where employees feel a need to excel and, as a result, push themselves in order to meet performance objectives.
Conflict can at times help individuals and group members grow and develop self-identities. As noted by Coser (1956):
Conflict, which aims at a resolution of tension between antagonists, is likely to have stabilizing and integrative functions for the relationship. By permitting immediate and direct expression of rival claims, such social systems are able to readjust their structures by eliminating their sources of dissatisfaction. The multiple conflicts which they experience may serve to eliminate the causes for dissociation and to reestablish unity. These systems avail themselves, through the toleration and institutionalization of conflict, of an important stabilizing mechanism.
Conflict, on the other hand, can have negative consequences for both individuals and organizations when people divert energies away from performance and goal attainment and direct them toward resolving the conflict. Continued conflict can take a heavy toll in terms of psychological well-being. As we will see in the next chapter, conflict has a major influence on stress and the psychophysical consequences of stress. Finally, continued conflict can also affect the social climate of the group and inhibit group cohesiveness.
Thus, conflict can be either functional or dysfunctional in work situations depending upon the nature of the conflict, its intensity, and its duration. Indeed, both too much and too little conflict can lead to a variety of negative outcomes, as discussed above. In such circumstances, a moderate amount of conflict may be the best course of action. The issue for management, therefore, is not how to eliminate conflict but rather how to manage and resolve it when it occurs.
Causes of Conflict
A number of factors are known to facilitate organizational conflict under certain circumstances. In summarizing the literature, Robert Miles (1980) points to several specific examples. These are as follows:
Task Interdependencies. In essence, the greater the extent of task interdependence among individuals or groups (that is, the more they have to work together or collaborate to accomplish a goal), the greater the likelihood of conflict if different expectations or goals exist among entities, in part because the interdependence makes avoiding the conflict more difficult. This occurs in part because high task interdependency heightens the intensity of relationships. Hence, a small disagreement can very quickly get blown up into a major issue.
Status Inconsistencies. For example, managers in many organizations have the prerogative to take personal time off during workdays to run errands, and so forth, whereas nonmanagerial personnel do not. Consider the effects this can have on the nonmanagers’ view of organizational policies and fairness. Likewise, a student team in a course may have one member who uses their job or other course work as a reason to miss deadlines or meetings. By not respecting that their teammates also have other responsibilities, this member creates a higher status for themselves and rightly so, this often leads to conflict among the teammates who are left to do more than their share of the work.
Jurisdictional Ambiguities are situations where it is unclear exactly where responsibility for something lies. For example, many organizations use an employee selection procedure in which applicants are evaluated both by the personnel department and by the department in which the applicant would actually work. Because both departments are involved in the hiring process, what happens when one department wants to hire an individual, but the other department does not?
Communication Problems. When one person misunderstands a message or when information is withheld, the person often responds with frustration and anger.
Dependence on Common Resource Pool. Whenever several departments must compete for scarce resources, conflict is almost inevitable. When resources are limited, a zero-sum game exists in which someone wins and, invariably, someone loses.
Lack of Common Performance Standards. Differences in performance criteria and reward systems provide more potential for organizational conflict. This often occurs because of a lack of common performance standards among different groups within the same organization. For example, production personnel are often rewarded for their efficiency, and this efficiency is facilitated by the long-term production of a few products. Sales departments, on the other hand, are rewarded for their short-term response to market changes—often at the expense of long-term production efficiency. In such situations, conflict arises as each unit attempts to meet its own performance criteria.
Individual Differences. Finally, a variety of individual differences , such as personal abilities, traits, and skills, can influence in no small way the nature of interpersonal relations. Individual dominance, aggressiveness, authoritarianism, and tolerance for ambiguity all seem to influence how an individual deals with potential conflict. Indeed, such characteristics may determine whether or not conflict is created at all.
Responses to Conflict
There are a variety of individual responses to conflict that you may see as a team member. Some people take the constructive and thoughtful path when conflicts arise, while others may jump immediately to destructive behaviors. In Managing Conflict Dynamics: A Practical Approach , Capobianco, Davis, and Kraus (2005) recognized that there are both constructive and destructive responses to conflict, as well as active and passive responses that we need to recognize. They believe that in the event of team conflict, the goal is to have a constructive response in order to encourage dialogue, learning, and resolution. Responses such as perspective-taking, creating solutions, expressing emotions, and reaching out are considered active and constructive responses to conflict. Reflective thinking, delay responding, and adapting are considered passive and constructive responses to conflict. See the chart below for a visual of the constructive responses, as well as the destructive responses, to conflict.
A Model of the Conflict Process
Having examined specific factors that are known to facilitate conflict, we can ask how conflict comes about in organizations. The most commonly accepted model of the conflict process was developed by Kenneth Thomas (1967). This model consists of four stages: (1) frustration, (2) conceptualization, (3) behavior, and (4) outcome.
Stage 1: Frustration. As we have seen, conflict situations originate when an individual or group feels frustration in the pursuit of important goals. This frustration may be caused by a wide variety of factors, including disagreement over performance goals, failure to get a promotion or pay raise, a fight over scarce economic resources, new rules or policies, and so forth. In fact, conflict can be traced to frustration over almost anything a group or individual cares about.
Stage 2: Conceptualization. In stage 2, the conceptualization stage of the model, parties to the conflict attempt to understand the nature of the problem, what they themselves want as a resolution, what they think their opponents want as a resolution, and various strategies they feel each side may employ in resolving the conflict. This stage is really the problem-solving and strategy phase. For instance, when management and union negotiate a labor contract, both sides attempt to decide what is most important and what can be bargained away in exchange for these priority needs.
Stage 3: Behavior. The third stage in Thomas’s model is actual behavior . As a result of the conceptualization process, parties to a conflict attempt to implement their resolution mode by competing or accommodating in the hope of resolving problems. A major task here is determining how best to proceed strategically. That is, what tactics will the party use to attempt to resolve the conflict? Thomas has identified five modes for conflict resolution. These are (1) competing, (2) collaborating, (3) compromising, (4) avoiding, and (5) accommodating.
The choice of an appropriate conflict resolution mode depends to a great extent on the situation and the goals of the party. Each party must decide the extent to which it is interested in satisfying its own concerns—called assertiveness —and the extent to which it is interested in helping satisfy the opponent’s concerns—called cooperativeness . Assertiveness can range from assertive to unassertive on one continuum, and cooperativeness can range from uncooperative to cooperative on the other continuum.
Once the parties have determined their desired balance between the two competing concerns—either consciously or unconsciously—the resolution strategy emerges. For example, if a union negotiator feels confident she can win on an issue that is of primary concern to union members (e.g., wages), a direct competition mode may be chosen. On the other hand, when the union is indifferent to an issue or when it actually supports management’s concerns (e.g., plant safety), we would expect an accommodating or collaborating mode (on the right-hand side of the exhibit).
Stage 4: Outcome. Finally, as a result of efforts to resolve the conflict, both sides determine the extent to which a satisfactory resolution or outcome has been achieved. Where one party to the conflict does not feel satisfied or feels only partially satisfied, the seeds of discontent are sown for a later conflict. One unresolved conflict episode can easily set the stage for a second episode. Managerial action aimed at achieving quick and satisfactory resolution is vital; failure to initiate such action leaves the possibility (more accurately, the probability) that new conflicts will soon emerge.
Five Modes of Resolving Conflict
Modes |
Situation |
| Competing |
|
| Collaborating |
|
| Compromising |
|
| Avoiding |
|
| Accommodating |
|
Table 4.2 Adapted from K. W. Thomas, “Toward Multidimensional Values in Teaching: The Example of Conflict Behaviors,” Academy of Management Review 2 (1977), Table 1, p. 487
Conflict Negotiation: How to achieve a mutually advantageous agreement
We have discovered that conflict is pervasive throughout organizations and some conflict can be good for organizations. People often grow and learn from conflict, as long as the conflict is not dysfunctional. The challenge for managers is to select a resolution strategy appropriate to the situation and individuals involved. A review of past management practice in this regard reveals that managers often make poor strategy choices. As often as not, managers select repressive or ineffective conflict resolution strategies.
Common Strategies that Seldom Work
At leave five conflict resolution techniques commonly found in organizations prove to be ineffective fairly consistently. 8 In fact, not only do such techniques seldom work—in many cases, they actually serve to increase the problem. Nonetheless, they are found with alarming frequency in a wide array of business and public organizations. These five ineffective strategies are often associated with an avoidance approach and are described below.
Nonaction. Perhaps the most common managerial response when conflict emerges is nonaction —doing nothing and ignoring the problem. It may be felt that if the problem is ignored, it will go away. Unfortunately, that is not often the case. In fact, ignoring the problem may serve only to increase the frustration and anger of the parties involved.
Administrative Orbiting. In some cases, managers will acknowledge that a problem exists but then take little serious action. Instead, they continually report that a problem is “under study” or that “more information is needed.” Telling a person who is experiencing a serious conflict that “these things take time” hardly relieves anyone’s anxiety or solves any problems. This ineffective strategy for resolving conflict is aptly named administrative orbiting .
Due Process Nonaction. A third ineffective approach to resolving conflict is to set up a recognized procedure for redressing grievances but at the same time to ensure that the procedure is long, complicated, costly, and perhaps even risky. The due process nonaction strategy is to wear down the dissatisfied employee while at the same time claiming that resolution procedures are open and available. This technique has been used repeatedly in conflicts involving race and sex discrimination.
Secrecy. Oftentimes, managers will attempt to reduce conflict through secrecy. Some feel that by taking secretive actions, controversial decisions can be carried out with a minimum of resistance. One argument for pay secrecy (keeping employee salaries secret) is that such a policy makes it more difficult for employees to feel inequitably treated. Essentially, this is a “what they don’t know won’t hurt them” strategy. A major problem of this approach is that it leads to distrust of management. When managerial credibility is needed for other issues, it may be found lacking.
Character Assassination. The final ineffective resolution technique to be discussed here is character assassination . The person with a conflict, perhaps a woman claiming sex discrimination, is labeled a “troublemaker.” Attempts are made to discredit her and distance her from the others in the group. The implicit strategy here is that if the person can be isolated and stigmatized, she will either be silenced by negative group pressures or she will leave. In either case, the problem is “solved.”
Preventing Negative Conflict
On the more positive side, there are many things managers can do to reduce or actually solve dysfunctional conflict when it occurs. These fall into two categories: actions directed at conflict prevention and actions directed at conflict reduction. We shall start by examining conflict prevention techniques, because preventing conflict is often easier than reducing it once it begins. These include:
- Emphasizing organization-wide goals and effectiveness. Focusing on organization-wide goals and objectives should prevent goal conflict. If larger goals are emphasized, employees are more likely to see the big picture and work together to achieve corporate goals.
- Providing stable, well-structured tasks. When work activities are clearly defined, understood, and accepted by employees, conflict should be less likely to occur. Conflict is most likely to occur when task uncertainty is high; specifying or structuring jobs minimizes ambiguity.
- Facilitating intergroup communication. Misperception of the abilities, goals, and motivations of others often leads to conflict, so efforts to increase the dialogue among groups and to share information should help eliminate conflict. As groups come to know more about one another, suspicions often diminish, and greater intergroup teamwork becomes possible.
- Avoiding win-lose situations. If win-lose situations are avoided, less potential for conflict exists. When resources are scarce, management can seek some form of resource sharing to achieve organizational effectiveness. Moreover, rewards can be given for contributions to overall corporate objectives; this will foster a climate in which groups seek solutions acceptable to all.
These points bear a close resemblance to descriptions of the so-called Japanese management style. In Japanese firms, considerable effort is invested in preventing conflict. In this way, more energy is available for constructive efforts toward task accomplishment and competition in the marketplace.
Sustainability and Responsible Management: Constructive Conflict that Leads to Championships
Dealing with conflict lies at the heart of managing any business. Confrontation—facing issues about which there is disagreement—is avoided only at a manager’s peril. Many issues can be postponed, allowed to fester, or smoothed over; eventually, they must be solved. They are not going to disappear. This philosophy not only applies to business but to sports dynamics as well.
Take two NBA all-stars, Kobe Bryant and Shaquille O’Neal. Although they are world-renowned athletes now, when they first started in the NBA, there was plenty of conflict that could have caused their careers to take a much different path.
In 1992, O’Neal was the first play taken in by the NBA draft, he dominated the court with his size and leadership from day one. Four years later, Kobe Bryant, the youngest player to start in the NBA was brought onto the same team: the Los Angeles Lakers. The two were not fast friends, and the trash talk started as Bryant publicly criticized his teammate—and continued for years.
Ultimately in 1999, Phil Jackson was brought in to coach the LA Lakers, and his creative approach to their conflict changed everything. Instead of seeing this tension and ignoring it, or chastising the players for their feud, he used their skills to develop a new way of playing the game. O’Neal brought power and strength to the court, while Bryant was fast and a great shooter. Jackson developed a way of playing that highlighted both of these talents, and he built a supporting cast around them that brought out the best in everyone. The outcome: three NBA championships in a row.
While many may have just ignored or tried to separate the two superstars, Jackson was innovative in his approach, saw the opportunity in using the conflict to create a new energy, and was able to build a very successful program.
What do you think?
- What was the key to the success for Phil Jackson and his team?
- How would you have approached the two players (or employees) that were in conflict and causing tension on your team?
- What strategies would have been important to employ with these two individuals to resolve the conflict?
Sources: J. DeGraff, “3 Legendary Creative Conflicts That Sparked Revolutionary Innovation,” Huffington Post , September 26, 2017, https://www.huffingtonpost.com/entry...b08d66155043d6 ; K. Soong, “‘I owe you an apology’: Shaquille O’Neal explains why he loves Kobe Bryant years after feud,” Washington Post , February 17, 2017, https://www.washingtonpost.com/news/...=.b9cca63b5761 ; M. Chiari, “Kobe Bryant Discusses Getting into Fist Fight with Shaquille O'Neal,” Bleacher Report , March 9, 2018, https://bleacherreport.com/articles/...haquille-oneal .
Remedies for Negative Conflict
Where dysfunctional conflict already exists, something must be done, and managers may pursue one of at least two general approaches: they can try to change employee attitudes, or they can try to change employee behaviors . If they change behavior, open conflict is often reduced, but team members may still dislike one another; the conflict simply becomes less visible. Changing attitudes, on the other hand, often leads to fundamental changes in the ways that team members get along. However, it also takes considerably longer to accomplish than behavior change because it requires a fundamental change in social perceptions.
- Physical separation . The quickest and easiest solution to conflict is physical separation. Separation is useful when conflicting team members are not working on a joint task or do not need a high degree of interaction. Though this approach does not encourage members to change their attitudes, it does provide time to seek a better accommodation.
- Use of rules and regulations. Conflict can also be reduced through the increasing specification of rules, regulations, and procedures. This approach, also known as the bureaucratic method, imposes solutions on teams from above. Again, however, basic attitudes are not modified.
- Confrontation and negotiation. In this approach, competing parties are brought together face-to-face to discuss their basic areas of disagreement. The hope is that through open discussion and negotiation , means can be found to work out problems. Contract negotiations between union and management represent one such example. If a “win-win” solution can be identified through these negotiations, the chances of an acceptable resolution of the conflict increase.
- Third-party consultation . In some cases, it is helpful to bring in outside consultants for third-party consultation who understand human behavior and can facilitate a resolution. A third-party consultant not only serves as a go-between but can speak more directly to the issues, because she is not a member of either group.
- Rotation of members. By rotating from one group to another, individuals come to understand the frames of reference, values, and attitudes of other members; communication is thus increased. When those rotated are accepted by the receiving groups, change in attitudes as well as behavior becomes possible. This is clearly a long-term technique, as it takes time to develop good interpersonal relations and understanding among group members.
- Use of training. The final technique on the continuum is team training. Training experts are retained on a long-term basis to help teams develop relatively permanent mechanisms for working together. Structured workshops and training programs can help forge more favorable attitudes and, as a result, more constructive behavior.
Negotiation and bargaining strategies
We have seen the central role conflict plays in organizational processes. Clearly, there are some areas where managers would prefer to solve a problem between two parties before it results in high levels of conflict. This is usually accomplished through negotiation. Negotiation is the process by which individuals or groups attempt to realize their goals by bargaining with another party who has at least some control over goal attainment. Throughout the negotiation process, considerable skill in communication, decision-making, and the use of power and politics is required in order to succeed.
We will consider several aspects of negotiation, including stages of negotiation, types of negotiation behavior, and the negotiation process itself. We begin with the reasons why people engage in negotiation and bargaining in the first place.
Stages of Negotiation
In general, negotiation and bargaining are likely to have four stages. Although the length or importance of each stage can vary from situation to situation or from one culture to another, the presence and sequence of these stages are quite common across situations and cultures.
- Non-task time. During the first stage, the participants focus on getting to know and become comfortable with each other and do not focus directly on the task or issue of the negotiation. In cultures such as ours, this stage is often filled with small talk. However, it is usually not very long and is not seen as important as other stages. North Americans use phrases such as “Let’s get down to business,” “I know you’re busy, so let’s get right to it,” and “Let’s not beat around the bush.” However, in other cultures such as Mexico or South Korea, the non-task stage is often longer and of more importance, because it is during this stage the relationship is established. In these cultures, it is the relationship more than the contract that determines the extent to which each party can trust the other to fulfill its obligations.
- Information exchange. The second stage of negotiations involves the exchange of background and general information. During this stage, participants may, for example, provide overviews of their company and its history. In Japan, this is an important stage because specific proposals or agreements must be considered and decided in the larger context. The information exchanged during the second stage provides this larger context.
- Influence and persuasion . The third stage involves efforts to influence and persuade the other side. Generally, these efforts are designed to get the other party to reduce its demands or desires and to increase its acceptance of your demands or desires. There are a wide variety of influence tactics, including promises, threats, questions, and so on. The use of these tactics as well as their effectiveness is a function of several factors. First, the perceived or real power of one party relative to another is an important factor. For example, if one party is the only available supplier of a critical component, then threatening to go to a new supplier of that component unless the price is reduced is unlikely to be an effective influence tactic. Second, the effectiveness of a particular influence tactic is also a function of accepted industry and cultural norms. For example, if threats are an unacceptable form of influence, then their use could lead to consequences opposite from what is desired by the initiator of such tactics.
- Closing . The final stage of any negotiation is the closing. The closing may result in an acceptable agreement between the parties involved or it may result in failure to reach an agreement. The symbols that represent the close of a negotiation vary across cultures. For example, in the United States, a signed contract is the symbol of a closed negotiation. At that point, “a deal is a deal” and failure to abide by the contents of the document is considered a breach of contract. In China, however, there is not the strong legal history or perspective that exists in the United States, and a signed document is not necessarily a symbol of the close of the negotiations. In fact, to some extent it symbolizes the beginning of the final points of negotiation. The signed document identifies the key issues that still need to be negotiated despite the fact that it may contain specific obligations for the involved parties concerning these issues. Quite simply, even though the document may obligate one party to deliver a product on a certain day and obligate the other party to pay a certain price for delivery, the document itself does not symbolize that the negotiation concerning these specifics is closed.
Each of these four stages and the sequence described above are common across most situations and cultures. However, the length of time devoted to each stage, the importance of each stage, and the specific behaviors associated with each stage can vary by situation and certainly do vary by culture.
Bargaining Strategies
Within the context of these four stages, both parties must select an appropriate strategy that they believe will assist them in the attainment of their objectives. In general, two rather distinct approaches to negotiation can be identified. These are distributive bargaining and integrative bargaining .
Distributive Bargaining. In essence, distributive bargaining is “win-lose” bargaining. That is, the goals of one party are in fundamental and direct conflict with those of the other party. Resources are fixed and limited, and each party wants to maximize her share of these resources. Finally, in most cases, this situation represents a short-term relationship between the two parties. In fact, such parties may not see each other ever again.
A good example of this can be seen in the relationship between the buyer and seller of a house. If the buyer gets the house for less money (that is, she “wins”), the seller also gets less (that is, she “loses”). This win-lose situation can also be seen in classes where the professor insists on grading on a specified curve. If your friends get an A, there are fewer As to go around, and your chances are diminished.
Integrative Bargaining. Integrative bargaining is often described as the “win-win” approach. That is, with this technique, both parties try to reach a settlement that benefits both parties. Such an approach is often predicated on the belief that if people mutually try to solve the problem, they can identify some creative solutions that help everyone. A good example can be seen in bilateral trade negotiations between two nations. In such negotiations, participants usually agree that a trade war would hurt both sides; therefore, both sides attempt to achieve a balance of outcomes that are preferable to a trade war for both sides. In doing so, however, the trick is to give away as little as possible to achieve the balance. 10
This approach is characterized by the existence of variable resources to be divided, efforts to maximize joint outcomes, and the desire to establish or maintain a long-term relationship. The interests of the two parties may be convergent (noncompetitive, such as preventing a trade war between two countries) or congruent (mutually supportive, as when two countries reach a mutual defense pact).
In both cases, bargaining tactics are quite different from those typically found in distributive bargaining. Here, both sides must be able and willing to understand the viewpoints of the other party. Otherwise, they will not know where possible consensus lies. Moreover, the free flow of information is required. Obviously, some degree of trust is required here too. In discussions, emphasis is placed on identifying commonalities between the two parties; the differences are played down. And, finally, the search for a solution focuses on selecting those courses of action that meet the goals and objectives of both sides. This approach requires considerably more time and energy than distributive bargaining, yet, under certain circumstances, it has the potential to lead to far more creative and long-lasting solutions.
The Negotiation Process
The negotiation process consists of identifying one’s desired goals—that is, what you are trying to get out of the exchange—and then developing suitable strategies aimed at reaching those goals. A key feature of one’s strategy is knowing one’s relative position in the bargaining process. That is, depending upon your relative position or strength, you may want to negotiate seriously or you may want to tell your opponent to “take it or leave it.” The dynamics of bargaining power can be extrapolated directly from power and indicate several conditions affecting this choice. For example, you may wish to negotiate when you value the exchange, when you value the relationship, and when commitment to the issue is high. In the opposite situation, you may be indifferent to serious bargaining.
Once goals and objectives have been clearly established and the bargaining strategy is set, time is required to develop a suitable plan of action. Research indicates that planning ahead and following such procedures does, in fact, lead to more successful bargaining. Planning for negotiation requires a clear assessment of your own strengths and weaknesses as well as those of your opponents. Roy Lewicki and Joseph Litterer have suggested a format for preparation for negotiation. 11 According to this format, planning for negotiation should proceed through the following phases:
- Understand the basic nature of the conflict. What are the primary areas of agreement and disagreement?
- What exactly do you want out of this negotiation? What are your goals?
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How will you manage the negotiation process? Here, several issues should be recognized:
- Identify the primary issues to negotiate.
- Prioritize these issues.
- Develop a desirable package including these important issues.
- Establish an agenda.
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Do you understand your opponent?
- What are your opponent’s current resources and needs?
- What is the history of your opponent’s bargaining behavior? What patterns can you see that can help you predict her moves?
Janice just graduated college, she’s ready to head out on her own and get that first job, and she’s through her first interviews. She receives an offer of a $28,000 salary, including benefits from COLLEGE CORP, from an entry-level marketing position that seems like a perfect fit. She is thrown off by the salary they are offering and knows that it is lower than what she was hoping for. Instead of panicking, she takes the advice of her mentor and does a little research to know what the market range for the salary is for her area. She feels better after doing this, knowing that she was correct and the offer is low compared to the market rate. After understanding more about the offer and the rates, she goes back to the HR representative and asks for her preferred rate of $32,500, knowing the minimum that she would accept is $30,000. Instead of going in for her lowest amount, she started higher to be open to negotiations with the company. She also sent a note regarding her expertise that warranted why she asked for that salary. To her happy surprise, the company counter-offered at $31,000—and she accepted.
What do you think?
- What key points of Janice’s negotiation led to her success?
- What could have Janice done better to get a better outcome for her salary?
Sources: “Good & Bad Salary Negotiations,” Salary.com , April 19, 2018, https://www.salary.com/articles/good...-negotiations/ ; M. Herner, “5 Things HR Wishes You Knew About Salary Negotiation,” Payscale.com , accessed October 21, 2018, https://www.payscale.com/salary-nego...n-tips-from-hr .
- Constructive conflict encourages a diversity of ideas and perspectives and helps team members understand opposing views.
- Positive responses to conflict include taking perspective, creating solutions, and reaching out to the other person.
- Destructive responses to conflict include displaying anger, demeaning others, and retaliating.
- Dysfunctional or negative conflict diverts energies away from performance and goal attainment.
- Understanding cultural differences is imperative to resolving negative conflict.
- Negative conflict can be prevented by emphasizing common goals, providing structured tasks, and facilitating communication.
- Negative conflict can be resolved through negotiation and bargaining.
- Managerial skill in handling conflict is a major predictor of managerial success and effectiveness.
References:
Brett, J., Behfar, K., Kern, M. (2007) “ Managing Multicultural Teams ”, Harvard Business Review .
Capobianco, S., Davis, M. & Kraus, L., (2003) Managing Conflict Dynamics: A Practical Approach. Eckerd College.
Coser, L. (1956). The Functions of Social Conflict New York: Free Press, 154.
Lencioni, P. (2002) Five Dysfunctions of a Team , New York, NY: John Wiley and Sons Inc.
Rahim, M. (1983). “A Measure of Styles of Handling Interpersonal Conflict,” Academy of Management Journal, 368–376.
Thomas, K. & Pondy, L. (1967).“Toward and Intent Model of Conflict Management Among Principal Parties,” Human Relations, 1967, 30, 1089–1102.
Thomas, K. & Schmidt, W. (1976).“A Survey of Managerial Interests with Respect to Conflict,” Academy of Management Journal, 315–318.
This work "Conflict Resolution" is a derivative of " Organizational Behavior " by J. Stewart Black & David S. Bright used under a CC BY 4.0 license. "Conflict Resolution" is licensed under CC BY 4.0 by Mary P. Richards.