Chapter 11

Conflict and negotiation

in the workplace

Copyright © 2016 McGraw-Hill Education (Australia) Pty Ltd

McShane, Olekalns, Newman, Travaglione, Organisational Behaviour, 5e 1-1
Conflict

The process in which one party

perceives that its interests are
being opposed or negatively
affected by another party.

Copyright © 2016 McGraw-Hill Education (Australia) Pty Ltd

McShane, Olekalns, Newman, Travaglione, Organisational Behaviour, 5e 1-2
Consequences of workplace
conflict

Copyright © 2016 McGraw-Hill Education (Australia) Pty Ltd

McShane, Olekalns, Newman, Travaglione, Organisational Behaviour, 5e 1-3
Is conflict good or bad?
 1970s to 1990s—
Good
belief in an optimal Optimal
conflict
level of conflict
 Some level of

Conflict outcomes
conflict is good
because it: 0
◦ energises debate
◦ re-examines
assumptions
◦ improves
responsiveness to
external environment Bad
◦ increases team Low Level of conflict High
cohesion

Copyright © 2016 McGraw-Hill Education (Australia) Pty Ltd

McShane, Olekalns, Newman, Travaglione, Organisational Behaviour, 5e 1-4
Task and relationship
conflict
 Task conflict: conflict when people focus
the discussion around the “task’ while
showing respect for people with other
points of view:
◦ due to disagreements about how a task should be
accomplished
 Relationship conflict: a type of conflict in
which people focus on characteristics of
others rather than issues as the source of
conflict:
◦ due to differences in personal values, individual
styles, personalities
• Task and relationship conflicts are not Continue
always clear-cut
Copyright © 2016 McGraw-Hill Education (Australia) Pty Ltd
d

McShane, Olekalns, Newman, Travaglione, Organisational Behaviour, 5e 1-5

Conflict process model

Copyright © 2016 McGraw-Hill Education (Australia) Pty Ltd

McShane, Olekalns, Newman, Travaglione, Organisational Behaviour, 5e 1-6
Structural sources of conflict

Incompatible • One party’s goals perceived to interfere

goals with other’s goals

• Different values/beliefs
Differentiation • Explains cross-cultural and generational
conflict

• Conflict increases with interdependence

Interdependence • Parties more likely to interfere with each
other

Continue
d
Copyright © 2016 McGraw-Hill Education (Australia) Pty Ltd
McShane, Olekalns, Newman, Travaglione, Organisational Behaviour, 5e 1-7
Structural sources of conflict
(cont.)

Scarce
• Motivates competition for the resource
resources

Ambiguous • Create uncertainty, threaten goals

rules • Without rules, people rely on politics

• Increase stereotyping
Communication
• Reduce motivation to communicate
problems
• Escalate conflict when arrogant

Copyright © 2016 McGraw-Hill Education (Australia) Pty Ltd

McShane, Olekalns, Newman, Travaglione, Organisational Behaviour, 5e 1-8
Interpersonal: five conflict
handling styles

Copyright © 2016 McGraw-Hill Education (Australia) Pty Ltd

McShane, Olekalns, Newman, Travaglione, Organisational Behaviour, 5e 1-9
Conflict handling styles
 Problem solving (win–win orientation)
◦ The belief that conflicting parties will find
a mutually beneficial solution to their
disagreement
◦ Best when:
 interests are not perfectly opposing
 parties have trust/openness
 issues are complex

Continue
d
Copyright © 2016 McGraw-Hill Education (Australia) Pty Ltd
McShane, Olekalns, Newman, Travaglione, Organisational Behaviour, 5e 1-10
Conflict handling styles (cont.)

 Forcing (win–lose orientation)

– The belief that conflicting parties
are drawing from a fixed pie, so the
more
one party receives, the less the
other party will get
◦ Best when:
 you have a deep conviction about your position
 quick resolution required
 other party would take advantage of cooperation

Continue
d
Copyright © 2016 McGraw-Hill Education (Australia) Pty Ltd
McShane, Olekalns, Newman, Travaglione, Organisational Behaviour, 5e 1-11
Conflict handling styles (cont.)

Conflict avoidance
 Avoiding
◦ Best when:
 conflict is emotionally charged (relationship
conflict)
 conflict resolution cost is higher than benefits

Continue
d
Copyright © 2016 McGraw-Hill Education (Australia) Pty Ltd
McShane, Olekalns, Newman, Travaglione, Organisational Behaviour, 5e 1-12
Conflict handling styles (cont.)

 Yielding
◦ Best when:
 other party has much more power
 issue is much less important to you than to the
other party
 value/logic of your position is imperfect

Continue
d
Copyright © 2016 McGraw-Hill Education (Australia) Pty Ltd
McShane, Olekalns, Newman, Travaglione, Organisational Behaviour, 5e 1-13
Conflict handling styles (cont.)

 Compromising
◦ Best when:
 parties have equal power
 quick solution is required
 parties lack trust/openness

Copyright © 2016 McGraw-Hill Education (Australia) Pty Ltd

McShane, Olekalns, Newman, Travaglione, Organisational Behaviour, 5e 1-14
 Culture and gender
differences in conflict
Cultural values and
handling norms influence the
styles
conflict handling style
 Individualism/collectivism:
◦ focus on harmony versus personal goals
 Power distance:
◦ high power distance people signal status in
conflicts
 High/low context style:
◦ low context people communicate more directly,
using logical arguments

Copyright © 2016 McGraw-Hill Education (Australia) Pty Ltd

McShane, Olekalns, Newman, Travaglione, Organisational Behaviour, 5e 1-15
Gender and conflict
 During conflict, women (compared to
men) tend to favour a more
constructive approach to conflict
resolution
 They use either problem solving or
compromising:
◦ focus more on relationship consequences
◦ set lower targets
◦ use fewer alternatives to improve their
outcomes
◦ see the process as necessarily competitive
Continue
d
Copyright © 2016 McGraw-Hill Education (Australia) Pty Ltd
McShane, Olekalns, Newman, Travaglione, Organisational Behaviour, 5e 1-16
Gender and conflict (cont.)

 Women have better outcomes in

conflict when parties approach the
disagreement collaboratively
 Men prefer a competing style: express
anger

Copyright © 2016 McGraw-Hill Education (Australia) Pty Ltd

McShane, Olekalns, Newman, Travaglione, Organisational Behaviour, 5e 1-17
 CONFLICT MANAGEMENT

Copyright © 2016 McGraw-Hill Education (Australia) Pty Ltd

McShane, Olekalns, Newman, Travaglione, Organisational Behaviour, 5e 1-18
Negotiation

The process whereby two or

more conflicting parties attempt
to resolve their divergent goals
by redefining the terms of their
interdependence:
 need to consider desired
outcomes, tactics, deal design
and the scope of the
negotiation

Copyright © 2016 McGraw-Hill Education (Australia) Pty Ltd

McShane, Olekalns, Newman, Travaglione, Organisational Behaviour, 5e 1-19
Negotiating ethically
Avoid:
 misrepresentation
 false promises
 attacking an opponent’s network
 inappropriate information gathering
 strategic misrepresentation of positive
or negative emotions

Copyright © 2016 McGraw-Hill Education (Australia) Pty Ltd

McShane, Olekalns, Newman, Travaglione, Organisational Behaviour, 5e 1-20
Gender and negotiations
Women:
 obtain poorer personal outcomes than
men
 set lower target points than men
 accept offers just above their
resistance points

Copyright © 2016 McGraw-Hill Education (Australia) Pty Ltd

McShane, Olekalns, Newman, Travaglione, Organisational Behaviour, 5e 1-21
Summary
 Conflict can have positive and negative
organisational effects.
 It is difficult to distinguish task from
relationship conflict.
 The conflict process model begins with
the five structural sources of conflict.
 There are five known conflict handling
styles: problem solving, forcing,
avoiding, yielding and compromising.
People who use problem solving have a
win–win orientation.
Continue
d
Copyright © 2016 McGraw-Hill Education (Australia) Pty Ltd
McShane, Olekalns, Newman, Travaglione, Organisational Behaviour, 5e 1-22