Chapter 10…Conflict and Negotiations

(1)

Talya Bauer and Berrin Erdogan

(2)

Learning Objectives

 Understand the different types of conflict

 Understand the causes of conflict

 Understand the consequences of conflict

 Understand how to manage conflict effectively

 Understand the stages of the negotiation process

 Understand how to avoid common negotiation mistakes

 Engage in conflict management and negotiation ethically

 Understand cross-cultural differences in conflict and negotiation

Chapter 10 Conflict and Negotiations

(3)

Negotiation Failure: PointCast Negotiation Failure: PointCast

Many “dotcoms” startups of the 1990s consisted of little more than a few

employees and a room full of servers.

Many “dotcoms” startups of the 1990s consisted of little more than a few

employees and a room full of servers.

Stalled

negotiations cost PointCast $443 million, ultimately being acquired by Idealab for a mere

$7 million.

Stalled

negotiations cost PointCast $443 million, ultimately being acquired by Idealab for a mere

$7 million.

(4)

Conflict Conflict

(5)

Is Conflict Always Bad?

Low High

Conflict

LowHighPerformance

The inverted U relationship between performance and conflict.

(6)

• What are the types of conflicts that individuals may have at work? Which type have you experienced the most?

• What are some primary causes of conflict at work?

• Explain how miscommunication might be related to a conflict at work.

Discussion

(7)

Causes of Conflict Causes of Conflict

(8)

Outcomes of Conflict Outcomes of Conflict

(9)

Is Your Job at Risk for Workplace Violence?

Dealing With People Dealing With People

(10)

Is Your Job at Risk for Workplace Violence?

Being In High-Risk Situations Being In High-Risk Situations

(11)

• What are some primary causes of conflict at work?

• What are the outcomes of workplace conflict? Which

types of jobs are the most at risk for workplace violence?

Why do you think that is?

• What outcomes have you observed from conflict?

Discussion

(12)

Ways to Manage Conflict Ways to Manage Conflict

…such as the competition

…separate the personalities

Conflict management –

resolving disagreements

effectively

…focus on the problem, not on each other, and get to the root

(13)

Conflict Handling Styles Conflict Handling Styles

Low High

Level of

Competitiveness

LowHighLevel of Cooperation

AvoidanceAvoidance

AccommodationAccommodation CollaborationCollaboration

CompetitionCompetition CompromiseCompromise

…see “notes”

(14)

Conflict Handling Styles Conflict Handling Styles

(15)

Which Style is Best?

There is no single “right way” to deal with

conflict. Although many people have a single method they use most frequently, the best conflict handlers will adapt their style to the situation.

There is no single “right way” to deal with

conflict. Although many people have a single method they use most frequently, the best conflict handlers will adapt their style to the situation.

Body language can

unintentionally fuel a conflict.

Body language can

unintentionally fuel a conflict.

(16)

OB Toolbox:

How Can You Stimulate Healthy Conflict?

OB Toolbox:

How Can You Stimulate Healthy Conflict?

…allow individuals to come up with

their own ideas

…bring in new people to “shake

things up”

(17)

• List three ways to decrease a conflict situation. What are some pros and cons of each of these approaches?

• Do you deal with conflict differently with friends and family than you do at work? If so, why do you think that is?

• What is you usual conflict-handling style at work? Do you see it as effective or ineffective?

• Describe a situation in which not having enough conflict can be a problem.

Discussion

(18)

The Five Phases of Negotiation The Five Phases of Negotiation

Information gathering stage

…see “notes”

Will help you decide whether to accept an

offer or not.

You assemble the information you’ve gathered in a way that supports your position.

Each party discusses their goals and seeks to get an agreement.

Concession – giving up one

thing to get something else in return.

The last part of negotiation…

to deal or not to deal.

(19)

The Five Phases of Negotiation The Five Phases of Negotiation

All phases of the negotiation process are important. The

presentation is the one that normally receives the most attention but the work done before that point is equally important.

All phases of the negotiation process are important. The

presentation is the one that normally receives the most attention but the work done before that point is equally important.

(20)

Determining your BATNA Determining your BATNA

B ^est

A ^lternative T ^{o a}

N ^egotiated A ^greement

“If you don’t know where

you’re going, you will probably end up somewhere else.”

- Lawrence J. Peter

(21)

OB Toolbox:

BATNA Best Practices

OB Toolbox:

BATNA Best Practices

…if negotiation does not go

favorably.

…into actionable alternatives.

…to be kept in reserve as a

fall-back.

…keep revising it for accuracy.

If your BATNA is worse than other party expected, their offer may go down.

(22)

Negotiation Strategies Negotiation Strategies

Each party looks for ways to expand the pie, so that each

party gets more.

“win-win approach”

see “notes”

(23)

OB Toolbox:

Seven Steps to Negotiating a Higher Salary

OB Toolbox:

Seven Steps to Negotiating a Higher Salary

Take a look at pages 230 -

231.

(24)

Avoiding Common Mistakes in Negotiations

(25)

Tips for Negotiation Success Tips for Negotiation Success

…rather than on those topics which you disagree.

If you don’t have a deadline, use the flexibility to your advantage.

During negotiations, each side is presenting their case – their version of reality.

…more likely to strike a deal, due to more creative thinking and more concessions,

when deadlines loom.

After you have made an offer, allow the other party to respond…wait and listen.

(26)

When All Else Fails: Third Party Negotiations

Third party

negotiations are intended to help avoid a formal trial or hearing.

Third party

negotiations are intended to help avoid a formal trial or hearing.

Alternative Dispute Resolution (ADR) – includes mediation, arbitration, and other ways of resolving conflicts with the help of a specially trained, neutral

third party without the need for a formal trial or hearing.

(27)

(28)

As a last resort, judges resolve conflicts. The Supreme Court of the USA is the highest court in America and consists of nine justices: Chief Justice

Roberts (bottom center) and the 8 associate justices (left to right) Alito, Kennedy, Scalia, Thomas, Sotomayor, Stevens, Ginsburg, and Breyer.

As a last resort, judges resolve conflicts. The Supreme Court of the USA is the highest court in America and consists of nine justices: Chief Justice

Roberts (bottom center) and the 8 associate justices (left to right) Alito, Kennedy, Scalia, Thomas, Sotomayor, Stevens, Ginsburg, and Breyer.

(29)

You Know It’s Time for a Mediator When…

(30)

Ethics and Negotiations Ethics and Negotiations

(31)

Negotiations Around the Globe Negotiations Around the Globe

Various other differences exist among cultures, such as levels of trust (e.g., Pakistan), negotiation “rituals” (e.g., China), how information exchanges are handled (e.g.,

Japan vs. United States), and how negotiations are viewed (e.g., Western vs. other cultures).

Various other differences exist among cultures, such as levels of trust (e.g., Pakistan), negotiation “rituals” (e.g., China), how information exchanges are handled (e.g.,

Japan vs. United States), and how negotiations are viewed (e.g., Western vs. other cultures).

Countries have different thresholds for conflict.

(32)

• Is the goal of negotiation to maximize your economic outcome at all costs? Why or why not? Is it ethical to do so?

• What are some similarities and differences in conflict

management preference and negotiation practices among different countries around the globe? Have you had any negotiating experiences with individuals from other

cultures? If so, how did it go? How might it have gone better?