Will you be able to complete the full course?

Conflict and Negotiation 7 Learning Objectives After reading this chapter and studying the materials, you should be able to:• Explain the natur e of conflict .

• Utilize v arious methods t o r esolve conflicts.

• Recognize the f orms of negotiation, including distributi ve and int egrative situations.

• Understand the stages of negotiation in a constructi ve manner . Rawpixel/iStock/Thinkstock 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. The Nature of Conflict Section 7.1 7.1 The Nature of Conflict One indisputable f act of or ganizational lif e is that ther e ar e people in volved, and that man y times the y get int o disput es and conflicts. A t times such disagr eements can be r esolved thr ough r elatively calm, r ational pr ocesses including mediation or other f orms of negotiation. A t others, conflicts emer ge pr actically without notice and no int ervening st ep can be tak en t o pr event them or e ven slo w them do wn. In other situations, w hat begins as an une ventful negotiation can e volve int o a mor e dr amatic conflict situation. In all cases, indi vidual emplo y- ees and their supervisors will be e xpected t o r espond and r eact t o the issue at hand. Consider the cir cumstances pr esent in the OB in Action f eature r egarding emplo yee and management r eligious concerns in profit-seeking companies. OB in Action: The Potential for Negotiation and Conflict— Religious Activities and Company Policies What happens w hen the r eligious affiliations of emplo yees become pot entially at odds with compan y policies and pr actices? T wo st ories hig hlight the need f or car eful negotiation or con - flict resolution. The first occurr ed in 2015 at a Car gill manu- f acturing f acility in F ort Mor gan, Color ado. Car gill emplo yed mor e than 150 w orkers w ho pr acticed Islam. A gr oup of 11 w ork- ers of Somalian descent ask ed if the y could ha ve access t o a “pr ayer and r eflection” r oom within the plant f or a common time of pr ayer. Some disagr eement e xists r egarding the manner in w hich management dealt with the request. One emplo yee stat ed that the immediat e supervisor ask ed them t o br eak in smaller gr oups so that the y w ould not disrupt pr o- duction on the assembl y line. Another claimed that hig her le vel managers decided t o r educe the number of pr ayer br eaks as a r esponse t o the r equest. In either case, the Somali w orkers pr ayed in small gr oups on the da y of their request, and at the end of their shift, 10 of the 11 workers quit. Soon aft er, 150 Muslim w orkers missed w ork f or thr ee da ys in pr otest. The management t eam at Car gill dismis sed them f or f ailing t o inf orm the compan y that the y w ould be absent . F ollow- ing the incident , near ly 130 of the fir ed w orkers filed compla ints with the U .S. E qual Emplo y- ment Opportun ity Commission (EEOC) r egarding discrimina tory pr actices based on r eligion (Chang, 2016).

The sec ond e vent occurr ed in 2014. In that case, the U .S. Supr eme Court , on its final da y of acti vity f or the session, ruled that an y r equirement of f amily-owned corpor ations t o pa y f or insur ance co verage f or contr aception under the Aff ordable Car e A ct violat ed a f ederal la w pr o- tecting r eligious fr eedom. The dissenting opinion made b y Justice R uth Bader Ginsber g fr om (continued) Purestock/Thinkstock Religious expression is a common area of contention in workplace policies.

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. The Nature of Conflict Section 7.1 OB in Action: The Potential for Negotiation and Conflict— Religious Activities and Company Policies (continued) the cour t w as that the out come r epresented “a decision of startling br eadth” (Liptak, 2014). She atta cked the majority opinion as a r adical o verhaul of corpor ate rig hts and w orried that it could apply to all corporations and to countless laws regarding religion in the workplace.

The case r evolved ar ound ar guments made b y att orneys f or Hobb y Lobb y and Conest oga W ood Specialties. Both companies insist ed the y should not be r equired t o include contr acep- tion co verage as part of insur ance policies f or emplo yees. R eligious liberty b y the o wners w as the primary argument made by the winning side (Liptak, 2014).

The court’s dec ision pr oduced significant publicity r egarding Hobb y Lobb y. Some cust omers ma y ha ve f elt that e ven bringing the complaint w as an undesir able act; w hereas others ma y ha ve been thrilled the compan y “t ook a stand” in t erms of the r eligious belief s of the o wners. Clear ly, taking the issue t o the Supr eme Court suggests str ong det ermination b y those w ho br ought the case.

Reflection and Application Questions 1. Could both of these events have been resolved through negotiation rather than conflict?

2. Describe all of the potential persons or groups who might have had interests or a “stak e” in the outcome of both situations.

3. Why might religious beliefs and preferences create an even more incendiary situation than other organizational issues? This chapt er considers conflict and negotiation. An y emplo yee can e xpect t o deal with these issues, beginning with bar gaining f or w ages and other consider ations w hen hir ed. Conflict will be examined first, followed by negotiation.

What do y ou think of w hen y ou hear the t erm “conflict”? T o some, conflict r epresents a neg a- tive f orce, accompanied b y w ords such as “destructi ve,” “violent ,” or “angry .” Others view con - flict on a continuum r anging fr om mild disagr eements t o major confr ontations. Ov er time, conflict has been view ed as something t o be a voided or eliminat ed, as ine vitable but manage- able, and e ven as a dri ving f orce that leads t o inno vation and much needed change (De Dr eu & V an de Vliert, 1997; Fink, 1968). Consequently, defining the term creates challenges.

In the cont ext of or ganizational beha vior, c onflict is a cir cumstance in w hich one party neg - atively aff ects or seek s t o neg atively aff ect another party (Thomas, 1992). Conflict can be observ able or per ceived (W all & Callist er, 1995), w hich means that someone ma y belie ve that a conflict e xists e ven w hen it w ould be difficult t o point out as an observ able e vent. Con- flict and negotiation ar e closel y r elated concepts, in that both suggest that tw o parties ar e in volved, and both parties seek to impose their will or gain in a disputed situation.

Conflict contr asts with another concept , c ompetition; a condition in w hich all parties in an e vent or situation att empt t o do their best , with the person or gr oup pr oducing the most desir ed out come emer ging as the winner . A sales cont est betw een indi viduals or t eams is a \251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. The Nature of Conflict Section 7.1 competition; a confr ontation betw een tw o members of a sales f orce o ver w hich one should mak e a call on a prospective client is a conflict.

Recently, conf lict has been conceptualized as taking tw o f orms. In an or ganizational cont ext, functional c onflict occurs w hen the or ganization’s int erests ar e serv ed in some w ay, such as impr ovement in perf ormance or gr eater cooper ation among indi viduals or gr oups. F unctional conflict is also called c onstructive, or c ooperative, conflict. A functional conflict w ould in volve an argument about how best to design a retail store to make it more customer-friendly.

Dysfunctional conflict tak es the f orm of destructi ve acti vities that hinder gr oup or or ganiza- tional perf ormance. Thr ee cat egories of d ysfunctional conflict ha ve been identified, as sho wn in Table 7.1 (Amason, 1996).

Table 7.1: Categories of dysfunctional conflict Task conflict Disagreement about the type of work that should be performed and goals Relationship conflict Interpersonal dispute Process conflict Disagreement about methods of doing a job or performing a task Functional conflicts t end t o r evolve ar ound ideas. The pr ocess of r esolution ma y be passion- at e, but the goal r emains t o achie ve a positi ve out come. Dy sfunctional conflicts de volve int o char acter assassination and v endettas as the parties in volved seek t o “win ” r ather than neces- saril y reaching a viable solution or compromise.

Levels of Conflict Not all conflicts ar e the same. Managers should be a ware that f our le vels of conflict occur in the w orkplace. R esolving conflict cannot tak e place until the le vel has been pr operly identi - fied.

The four levels of conflict are as follows:

• intrapersonal, or intrapsychic, conflict • interpersonal conflict • intragroup conflict • intergroup conflict Intrapersonal conflicts (al so called intr apsychic conflicts) occur within an indi vidual. Ideas, thoug hts, v alues, and emotions can conflict with one another . F or instance, selling a pr oduct that so meone does not think has sufficient quality or one that is pot entially danger ous ma y cr eate an intr apsychic conflict w hen the indi vidual also r ecognizes the need t o mak e sales and gener ate personal income. Int erpersonal conflicts tak e place betw een indi viduals. Man y times, tw o indi viduals in a compan y ent er int o conflicts. P ersonality conflicts oft en r esult fr om w orkplace inci vility. \251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. The Nature of Conflict Section 7.1 Examples of inci vility include se xually inappr opriate comments, r acial or ethnic slurs, ridicule of older or y ounger w orkers, derision based on se xual orientation, and insensiti ve comments about ph ysical or mental disabilities (Blau & Anderson, 2005). Other int erpersonal conflicts tak e place simpl y because one person dislik es another , or w hen mutual animosity e xists, f or w hatever r eason. Int erpersonal conflicts also emer ge f or w hat could be consider ed “legiti- mat e” r easons, such as disa greements about or ganizational goals, managerial decisions, the distribution of r esources (budgets, pa y), or a mor e personal matt er such as a perf ormance appr aisal rating.

Intragroup conflict r efers t o incidents betw een members of a gr oup. Disa greements about gr oup goals, methods of oper ation, and leadership cr eate intr agroup conflicts. When conflicts ar e not pr operly managed and r esolved, the end r esults can be poor decisions and ineff ective gr oup functioning (Bazerman & Neale, 1992). Intr agroup conflict can quickl y emer ge w hen tw o individuals try to assume the role of leader, especially in forming stage of the group.

Intergroup conflict tak es place betw een v arious gr oups, such as betw een departments within a compan y, or betw een f actions such as ethnic gr oups or f emale and male emplo yees. Int ergroup conflicts emer ge w hen disagr eements about goals, diff erences of opinion about w hich gr oup should be assigned a pr oject or task, or budget allocations become the f ocus of att ention.

Each of these f our types of conflict r equires an int ervention. In the case of an intr apersonal conflict , a counselor or ad visor ma y assist . Int erpersonal, intr agroup, and int ergroup conflicts ma y be r esolved in a v ariety of w ays. Managers choose the most appr opriate method f or deal - ing with each problem as it arises. Conflict resolution will be discussed in Section 7.2.

A Model of the Stages of Conflict Louis P ondy (1967) de veloped one of the first and most widel y cit ed models of conflict . A modified v ersion appears as Figur e 7.1. P ondy’s model stat es that conflicts occur t o a lesser or gr eater e xtent depending on the or ganization’s place in a c onflict cycle. The cy cle suggests that w hen indi viduals become subject ed t o a series of conflicts (e ven w hen the y ar e onl y spectat ors), the y become incr easingly sensitized t o the e vents. As a r esult, subsequent con - flict will be mor e lik ely. When a series of conflicts has been r esolved and the compan y ent ers a mor e tr anquil period, participants become mor e patient with each other and the net r esult is r educed numbers of open conflicts. Managerial skill and int ervention can br eak the cy cle of incr easing conflict.

As sho wn in Figur e 7.1, lat ent conflict r epresents all of the pot ential sour ces of conflict at the indi vidual or gr oup le vel. T able 7.2 displa ys the v arious ar eas or issues w here pot ential sour ces of conflict within an or ganization mig ht e xist. These pot ential sour ces ma y or ma y not erupt int o open confr ontations. Some pr oblems ma y e xist f or y ears without e ver becom - ing manifest. Others may take a “fast track” and quickly develop into altercations.

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. The Nature of Conflict Section 7.1 Figure 7.1: Adaptation of Pondy’s conflict model and conflict cycle Pondy’s model of the phases of organizational conflict shows how conflict can become a cycle that continues to feed upon itself.

Source: Pondy, L. (1967 September) Organizational Conflict: Conflicts and Models, Administrative Science Quarterly, 12, 296–320. Table 7.2: Potential sources of conflict Individual level Group or departmental level • Job assignments • Group task assignments • Performance appraisals • Budgets/resource allocation • Promotions • Personalities of group members • Pay raises • Dependence/bottlenecks • Personality issues and incivility• Goals • Dependence/bottlenecks • Communication breakdown • Goals • Ethical issues • Status differences • Communication breakdown • Power differences • Ethical violations Felt conflict occur s w hen people kno w something is wr ong but cannot pinpoint the sour ce. H ave y ou had the e xperience of w alking int o a r oom and kno wing immediat ely something is not rig ht, but ha ving no clue as t o the actual pr oblem? A t that point , y ou ar e f eeling the conflict .

Perceived conflict means that those near a conflict kno w the issues and the people in volved, y et do not f eel discomf ort fr om it . In essence, the conflict is “someone else’s pr oblem.” Oft en, per ceived conflicts take place in other departments or parts of an organization.

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. The Nature of Conflict Section 7.1 As sho wn in Figur e 7.1, f elt conflicts can e volve int o per ceived conflicts and vice v ersa. In other w ords, an emplo yee or emplo yee gr oup mo ves fr om kno wing something is wr ong t o disco vering w hat other people ar e fig hting about . Con versely, per ceived conflicts can mo ve int o the r ealm of being f elt. In this instance, the conflict in volved suddenl y starts t o cast a pall o ver those w ho pr eviously knew about it but did not f eel uncomf ortable as a r esult. This means they now experience it more directly.

As f elt and per ceived conflict int ensifies, per ceptions of the conflict change. When this hap - pens, those near the conflict f eel it so str ongly that it begins t o aff ect their w ork and/or f eel- ings about the w orkplace, leading t o a sense that things ar e about t o “e xplode.” Those w ho per- cei ve the conf lict can no longer sta y neutr al, f eeling the y must “tak e sides. ” In both instances (f eelings and per ceptions become str onger), the conflict has tak en on new dimensions. The t endency shifts t oward int erpreting people and e vents as being either with or ag ainst one side.

Thinking r everts t o mor e st ereotypical and biased f orms that f avor a person ’s viewpoint . This se ts the stage f or open c onflict, w hich displa ys vis ible outw ard signs (Lewicki, Barry , & Saunders, 2010, p. 19).

One dri ving f orce that mo ves a conflict fr om a pot ential issue int o a mor e tangible stage is frustr ation (Me yers, 1990). When a w orker has a goal in mind and a policy , action, beha vior, or an y other o vert or co vert barrier pr events achie vement of that goal, conflict becomes mor e lik ely. The w orker’s goal could be as political as getting an undeserv ed pr omotion or as posi- ti ve as trying to help out a coworker.

Open conflicts appear as sho wdowns, confr ontations, and other outw ard signs. Oft en an open conflict r esults fr om ongoing escalation of the issue. Manif est conflict beha viors include y ell- ing, loud ar guments, and vio lence t oward others at the indi vidual le vel, and w ork slo wdowns, strik es, and deliber ate rules violations at the gr oup le vel. A t that point , conflict r esolution must take place. A manager or arbiter needs to step in.

As an e xample, consider a lat ent conflict with both indi vidual and departmental elements. The pot ential disput e pla ys out in the accounting and sales departments. The issue is the tim - ing of turning in sales r eport figur es. The sales department and indi vidual salespeople wish t o w ait until the last possible minut e t o turn in their numbers, ther eby gi ving them the chance t o list as man y sales as possible—w hich in turn aff ects their commissions. The accounting department cannot “close the book s” until all sales inf ormation arri ves. This oft en r esults in la te nig hts f or the accountants w ho w ant t o complet e their r eports on time. As a r esult, a lat ent conflict exists.

Simultaneously, one of the salespeople and one of the accountants ar e part of the saf ety com - mittee, w hich also in volves the human r esources manager and a member of the pr oduction staff.

During one of their w eekly meetings, the account ant is visibl y pertur bed and irritable. Others in the room feel the presence of a conflict but do not know the source of the tension.

After the meeting, the accountant describes his frustr ation t o the pr oduction department manager w ho then understands the pr oblem, but concludes he does not w ant t o get in volved and that it is not his problem. Perceived conflict is now in place.

Over time, frustr ations continue t o mount . Neither the accountant nor the salesperson seems particular ly eng aged in the w ork of the saf ety committ ee, and g lares and star es r eplace mor e pleasant int eractions. The pr oduction department members begin t o belie ve that such lat e \251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Conflict Resolution Section 7.2 sales r eports and dela yed accounting statements can slo w the pr ocess of r eplacing inventory in a timel y f ashion. Thus, the y conclude that the t ension betw een accounting and sales has an impact on them. As a result, both felt and perceived conflicts have reached new levels.

Eventually, the t ensions boil o ver in the hall way aft er a saf ety committ ee meeting. The accoun - tant and the salesperson ar e nose-to-nose tr ading insults and complaints. Soon after, the dis- pute has been described t o members of both departments, with outrig ht hostility beginning t o gr ow. The conflict has become open, and someone must tak e char ge t o r esolve the situation. The mediat or (manager or some other person) w orries that this conflict mig ht lead t o other conflicts between production, sales, and accounting, if not resolved quickly and effectively.

In sum, conflict is a cir cumstance in w hich one party neg atively aff ects or seek s t o neg atively aff ect another party . Managers should be a ware of the pot ential sour ces of conflict and w ork t o resolve them when they occur. Comprehension Exercise 1. When the organization’s interests are served in some way, such as improvement in per- f ormance or greater cooperation among individuals or groups, which form of conflict e xists?

a. positive b. directed c. functional d. competitive 2. When two members of a newly established safety committee argue over who should lead it, which kind of conflict takes place?

a. interpersonal b. intergroup c. intragroup d. virtual team Answers: 1) c 2) c 7.2 Conflict Resolution A manif est conflict oft en r equires a cooling-off period bef ore an y att empt at r esolution can start . When emotions ar e hig h, r easonable dialogue will be unlik ely. When an ar biter or man - ager surmises that both sides ha ve sufficientl y calmed do wn, conflict r esolution can com - mence.

In gener al, the conf lict r esolution pr ocess in volves the f ollowing st eps or acti vities (R ackham, 1976):

• Identify the parties involved.

• Identify the issues.

• Identify the positions of the parties.

• Find the bargaining zone.

• Make a decision.

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Conflict Resolution Section 7.2 Note that these acti vities ma y not occur e xactly in this sequence . A t times se veral char acteristics, such as the issues, parties, and positions ma y be e vident fr om the outset . In others, mor e than one of the f actors ma y be r evealed at the same time due t o one stat ement made b y a party t o the con - flict.

The manager’s job (or the mediat or) will be t o ide ntify each element bef ore seeking a r esolution. T o iden tify the parties in volved, the manager seek s t o be certain w hether an indi vidual or gr oup conflict e xists. Ne xt, he or she must identify the r eal issues in volved in the disput e, w hich ma y tak e time. Man y times a conflict first becomes manif est because of something quit e minor . When tw o persons become in volved in a sho ving mat ch o ver w ho should use the copier first , odds ar e the real issue is something else.

The moder ator w orks t o ide ntify the positions of each party . When the conflict in volves onl y tw o indi viduals or tw o gr oups, disco vering their positions should be f airly eas y. Oft en, ho w- ever, a pr oblem or concern e xhibits man y f acets and the net r esult is that se veral people or coalitions have some sort of vested int erest. To effectively resolve the conflict, the moderator must determine the agendas of all parties involved, which may be a more difficult task.

Finding the bar gaining zon e in a conflict r esolution r esembles identifying the settlement r ange in a negotiation. The bar gaining zone is the ar ea in w hich gi ve and tak e can be carried out . At times, no such range may be found; one side will win and the other will lose.

Making the final decision det ermines the out come of the conflict . A win-win solution allo ws all sides t o mak e g ains. In essen ce, each side is “bett er off ” w hen a r esolution has been r eached. A win-lose solution means one side g ains the ad vantage o ver the other . A lose-lose, or compr o- mise, means both parties g ain on some issues but lose on others. Most bar gaining agr eements betw een unions and management r esult in compr omise solutions on a v ariety of issues, fr om pa y to benefits to other employment circumstances.

Conflict Responses Conflict r esolution includes an understanding of the concerns of the parties in volved. The dual concerns model, as de veloped b y R ubin, Pruitt , and Kim (1994), assumes that indi vid- uals handle conflict b y bala ncing a concern f or themse lves (their personal out comes) with a concern f or others. The t endency t o be pr o-social or pr o-self will det ermine a particular conflict sty le: cont ending/competing, inaction/a voiding, yielding/accommodating, pr oblem sol ving/collaborating, or conciliatory/compromising (see Figure 7.2). Duncan Smith/Photodisc/Thinkstock All conflicts are unique, and the order of steps toward resolution will be determined on a case-by-case basis.

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Conflict Resolution Section 7.2 Figure 7.2: Responses to concerns There are five main conflict styles, each characterized by a different level of concern for the other’s out comes.

Source: Rubin, J. Z., Pruitt, D., & Kim, S. H. (1994). Social conflict: Escalation, stalemate, and settlement (2nd ed.). New York, NY:

McGraw-Hill.

When one side has little concern about the other’s out comes, tw o conflict sty les ma y r esult: cont ending/competing or inaction/a voiding. Cont ending or competing occurs w hen one side full y pursues its out comes with no r egard f or the out comes of the other side. Str ong tactics, such as thr eats, intimidation, and unilat eral action, app ear. Other t erms associat ed with con - tending include “dominating” and “f orcing” (R ahim, 198 5). Inaction and a voiding ar e char ac- terized b y wit hdrawal and passi vity; the party in volved has little r egard f or its o wn out come or for the other side’s outcome. It retreats from the conflict.

When concern f or the other party ’s out come is hig h, tw o conflict sty les ar e possible: yielding/ accommodating and pr oblem sol ving/collaborating. The yielding/accommodating sty le in volves seeking t o help the other side achie ve its out comes with little car e about one’s o wn out comes, because maintain ing a social r elationship is mor e important than being “rig ht” or winning.

Yielding is also referred t o as “obliging” and “smoothing” (Rahim, 1985). A pr oblem sol ving/collaborating sty le occurs w hen hig h concern f or the other’s out comes accompanies hig h concern f or one’s personal out comes. The goal is t o achie ve a win-win solution. Pr oblem sol ving has also been labeled an “integrating” approach.

When ther e ar e moder ate le vels of concern f or the other party ’s out come as w ell as one’s o wn, the compr omising conflict sty le emer ges. A compr omise becomes mor e lik ely w hen the tw o \251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Conflict Resolution Section 7.2 sides hold equal le vels of po wer, consensus cannot be r eached, and the goals of the tw o par - ties ar e not str ongly connect ed. Disco vering the r elative positions of the tw o sides becomes part of the conflict r esolution pr ocess. Managers try t o identify the le vel of gi ve and tak e that will be possib le b y assessin g the str ength of commitment each side has t o its position. Mor e eff ective negotiations or resolutions then become possible.

Alternative Approaches At times, a conflict stands a bett er chance at eff ective r esolution w hen a thir d party int er- venes. Alt ernative disput e r esolution att empts t o incor porate user-friendl y methods of dis- put e r esolution and seek s t o a void mor e ad versarial appr oaches (Morr ow & Bernar di, 1999). The methods used in this appr oach include f acilitation, conciliation, peer r eview, ombuds - man, mediation, and arbitration. F acilitation in volves a thir d party ur ging the tw o sides t o meet and deal dir ectly in a construc - tive and positi ve f ashion. In simple t erms, a “f ace-to-face” meeting tak es place. Both parties ar e allo wed t o e xpress their positions and frustr ations in a ci vil manner . In gener al par lance, this mig ht be called “hashing things out ,” such as w hen an indi vidual emplo yee and a supervi- sor disagree about a performance appraisal score or rating.

Conciliation uses a neutr al thir d party w ho acts inf ormally as a communication conduit t o help r esolve a disput e without the parties dir ectly meeting. Conciliation in volves a “go-betw een” person.

Int ergroup conflicts can be r esolved b y a mana ger of hig her r ank pla ying the r ole of conciliat or. F or instance, a sales department manager w ould lik e t o be able t o off er each cli - ent a “t ailor made” pr oduct; w hereas a pr oduction manager pr efers mor e of a “one size fits all” s ystem t o mak e it ems mor e efficientl y. In another situation, a compan y tax att orney ma y disagr ee with an accountant or accounting department’s assessment of a tax liability t o be paid t o the go vernment. A manager of hig her r ank can serv e as the go-betw een looking f or accommodation by both sides.

When peer r eview is utilized, a panel of trustw orthy co workers that can r emain objecti ve is ask ed t o r ender a nonbinding v erdict or opinion about ho w the conflict should be r esolved. P eer r eview ta kes place in some or ganizations w hen a disput e betw een an indi vidual and a supervisor tak es place, o ver a matt er of discipline, w here the emplo yee f eels he or she has been treated unjustly or penalized in an unfair manner.

An omb udsman is a r espected emplo yee w ho will hear both sides of an ar gument and att empt t o arr ange a solution acceptable t o both sides. Some or ganizations include an ombudsman position in the hier archy. An y indi vidual or gr oup with a complaint ma y tak e it t o this indi- vidual, who then works toward a resolution.

Mediation emplo ys a tr ained ar biter t o find inno vative solutions t o the conflict . Man y union- management disputes are settled through mediation.

Arbitration r etains a thir d party w ho oper ates in a f ormal, court-lik e en vironment and hears t estimony and e vidence bef ore r endering a judgment about ho w the conflict should be r esolved. Ar bitration can be used t o settle conflicts o ver pa y or job assignments. It is oft en view ed as the “last resort,” when no other method has been successful.

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Conflict Resolution Section 7.2 Conflict Outcomes The goal of an y conflict r esolution should be t o r each a functional settlement . Desir ed out - comes of conflict r esolution include agr eement, str onger r elationships, and or ganizational learning.

Agr eement is achie ved w hen both sides belie ve a settlement w as f air or equitable. Str onger r elationships emer ge w hen both parties try t o build trust and good will f or the futur e. Or ganizational learning tak es place w hen an indi vidual or gr oup achie ves gr eater self- a wareness or better understands how to find creative solutions to problems.

Table 7.3 lists some of the additional positi ve out comes associat ed with conflict . These can occur at the int erpersonal, int ergroup, and intr agroup le vels. P ositive out comes ar e some- times difficult t o achie ve, in w hich case certain neg ative aft ereffects of conflict ma y r esult. These aftereffects are noted in Table 7.4.

Table 7.3: Positive outcomes of conflict Positive outcomes Conflicts may serve as safety valves to reduce pent-up emotions and pressures.

Conflict generated by external threats may increase internal cohesion.

Conflict can help introduce much-needed change.

Conflict can bring long-standing animosities and hidden agendas to the surface.

Conflict may trigger creativity and innovation.

Conflict resolution may foster increased communication in the future.

Source: King, D. (1981, January–February). Three cheers for conflict! Personnel, 58(1), 13–22.

Table 7.4: Negative aftereffects of conflict Negative aftereffects Conflict may foster anger and revenge which can lead to continuing attempts to make the other side look bad.

Conflict may result in noncompliance with orders and decisions.

Conflict may cause reduced effort or passive resistance from one or more parties.

Conflict may lead to empire building, withholding information, or territory defense.

Conflict may encourage an increasingly legalistic approach to tasks and assignments.

Conflict may result in withdrawal behaviors such as daydreaming or meeting in groups t o visit rather than to resolve issues.

Conflict may lead to new lobbying efforts.

Conflict may encourage sarcasm in front of the mediator.

Conflict may increase sensitivity to statements and comments.

Source: King, D. (1981, January–February). Three cheers for conflict! Personnel, 58(1), 13–22.

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. The Nature of Negotiations and Bargaining Processes Section 7.3 Effective management of conflict seek s t o lead t o the pot ential positi ve out comes not ed in T able 7.3 and a void the pot ential neg ative aft ereffects not ed in T able 7.4. Doing so includes tw o primary acti vities. First , managers should acti vely anal yze pot ential sour ces of conflict at all times, so that these sour ces can be eliminat ed. Second, managers should seek t o become quality conflict ar biters. The y should r emember that impartiality , a sense of humor , and a calm disposition are major assets in conflict resolution. Comprehension Exercise 1. When one party to a conflict has little concern for the outcomes of the other party, the tw o responses are contending or a. inaction/avoiding.

b. yielding/accommodating.

c. problem solving/collaborating.

d. compromise.

2. A respected employee who will hear both sides of an argument and attempt to arrange a solution acceptable to both sides is a(n) a. facilitator.

b. conciliatory spokesperson.

c. ombudsman.

d. arbitrator. Answers: 1) a 2) c 7.3 The Nature of Negotiations and Bargaining Processes As not ed at the start of the chapt er, conflicts can emer ge pr actically without notice, and no int ervening st ep can be tak en t o pr event them or e ven slo w them do wn. A t the same time, man y f orms of lat ent conflict ar e r esolved thr ough r elatively calm, r ational pr ocesses includ - ing mediation, negotiation, or e ven a simple f ace-to-face discussion. Unf ortunately, w hat begins as an une ventful negotiation can e volve int o a mor e dr amatic conflict . This section e xplains methods managers can use t o pr event a less significant disput e or bar gaining issue fr om turning into an outright conflict.

Negotiation is a gi ve-and-take decision-making pr ocess in volving int erdependent parties with diff ering objecti ves or out come pr eferences (Bazerman & Neale, 1992). T wo perspec- ti ves e xist r egarding the t erms “negotiation ” and “bar gaining.” Some sour ces identify them as being the same (R obbins, 2005, p. 434; W all, 1985). Others tak e a slig htly diff erent view , suggesting that negotiation r efers t o a win-win situation in w hich the ultimat e objecti ve is t o find solutions that ar e mutually acceptable t o all parties to a comple x conflict . Bargaining, on the other hand, r epresents a competiti ve “win-lose” cir cumstance in w hich each party seek s t o obtain the best possible outcome for their side (Lewicki, Barry, & Saunders, 2010, p. 3). \251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. The Nature of Negotiations and Bargaining Processes Section 7.3 In this chapt er the tw o t erms will be used int erchangeably. Negotiations and w hat could be per ceived as “bar gaining” ma y not al ways be clear-cut , as not ed in the OB in A ction case r egarding quar antine f or he alth car e w orkers w ho tr eated patients with the Ebola virus in Africa a few years ago. OB in Action: The Quarantine Controversy In 2014, a major out break of the Ebola virus in W est Africa spr ead w orry and concern on pr actically a w orld-wide basis. The hig hly contagious disease r esulted in thousands of deaths and concerns of epidemics in new places. Conflict and negotiation emer ged in se veral situa - tions, based on w hether r eturning health car e w orkers w ho tr eated Ebola patients should be quar antined following their arrival in the United States. In New Jerse y, Nurse Kaci Hick ox w as placed int o a mandat ory quar antine due t o rules estab - lished b y the stat e go vernment. She complained that the go vernor at that time, Chris Christie, w as “not a doc tor” and called the policy “poor ly planned” and “not e vidence-based.” Hick ox, a v olunteer nurse f or Doc- t ors Wit hout Bor ders, t ested neg ative f or the virus upon her arri val in the U .S. She described the quar antine as inhumane and arbitrary.

The f ederal go vernment quickl y tried t o r espond. Mem - bers eng aged in ur gent discussions with the go vernors of New Y ork, New Jerse y, and Illinois o ver plans t o quar antine all health w orkers coming back fr om inf ected ar eas. The national go vernment did not tak e the ultimat e st ep of ask- ing that quar antines be lift ed, but spok espersons r aised con - cerns about cr eating undue panic in the gener al population (The Guardian, 2014).

Hickox w as e ventually r eleased fr om quar antine, and r eturned t o her home in Maine. Soon aft er, the contr oversy r e-emerged as go vernor P aul LeP age r aised concerns about w here she w ould be allo wed t o tr avel, e ven as she t ook a bik e ride in her community . Hick ox’s att orney Norm Siegel t old CNN that Hick ox w ent f or the ride t o mak e a point: She could be in out in public “with out fr eaking e veryone out .” LeP age’s office v owed t o “e xercise the full e xtent of his authority allo wable b y la w” t o k eep her a way fr om public spaces (F antz & Hanna, 2014).

The standoff r aised the question: Should this issue be r esolved based on f ear or f acts? “The w orst thing w ould be is if she st eps out of her house in the ne xt hour and the y try t o put hand - cuffs on her,” Siegel said. In the end, she did not contract the virus or infect any other person.

Reflection and Application Questions 1. Can you name all of the parties and stakeholders in this situation?

2. Evaluate the state government’s intervention in this controversy?

3. What type of resolution resulted from this negotiation: win-win, win-lose, or a compr omise? Nopparit/iStock/Thinkstock With the looming threat of infectious disease, the line between paranoia and reasonable caution can become blurry.

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. The Nature of Negotiations and Bargaining Processes Section 7.3 In emplo yment settings, tw o types of negotiations tak e place: distributi ve negotiations and int egrative negotiations (W alton & McK ersie, 1965). Distributi ve negotiations involve a sing le issue and a zer o-sum g ame in w hich one side’s g ains become the other side’s losses (win-lose), sim ilar t o a conf lict r esolution. A furnitur e manuf acturer negotiating the price of f abric used t o co ver sof as serv es as an e xample. E very dollar that the manuf acturer has t o pa y f or the raw material represents a dollar of revenue to the fabric supplier. The second cir cumstance, an int egrative negotiation, r esembles a pr oblem-solving agenda in w hich both sides try t o obta in a settlement that benefits both—a win-win solution. In t oday’s comple x mar ketplace, int egrative negotiations ha ve gr own in popularity and usage. T able 7.4 identifies some of the key differences between distributive and integrative negotiation.

Table 7.4 Integrative versus distributive negotiation IntegrativeDistributive Assumption Basic goals do not conflict Basic goals are fundamentally opposed Building a r elationship A strong priority Not a priority Resources Can expand A fixed amount Level of trust Is possible or exists Not possible In essen ce, a distributi ve app roach r esembles a zer o-sum g ame, such as pok er. One party wins b y taking a way “chips” fr om the other . Consequentl y, an y goals cannot o verlap betw een the tw o and trust is not lik ely. R elationships cannot be str engthened w hen this appr oach pr evails.

The int egrative method assumes r esources r esemble a “balloon concept” in w hich the y can be e xpanded w hen necessary . T rust can be built t o combine r esources and goal agr eement can be r eached. This method, in turn, mak es it possible t o build positi ve and lasting r elationships.

Integrative negotiation r equires a diff erent mindset . In essence, the negotiat or must be able t o separ ate personal f eelings (including diff erences) fr om anal ysis of the pr oblem. F urther, both si des must be able t o concentr ate on positions r ather than mer ely the int erests of their side or gr oup. The agenda should include time t o seek out mutuall y beneficial ideas r ather than merely gaining an advantage.

The primary pr oblem w hich can emer ge fr om an int egrative appr oach occurs w hen one side mistak es the att empt t o build a r elationship with “softness” or “w eakness.” If one party assumes a competiti ve ad vantage e xists due t o the willingness t o cooper ate fr om the other , the approach is destined to fail.

With the diff erences betw een the tw o appr oaches (int egrative v ersus distributi ve) in mind, T able 7.5 iden tifies thr ee types of negotiations that tak e place in the business community . The cat egories include negotiations betw een an indi vidual and a compan y, betw een tw o compa - nies, and betw een a compan y and an outside agency or or ganization. Both distributi ve and int egrative negotiations take place in those areas.

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. The Nature of Negotiations and Bargaining Processes Section 7.3 Table 7.5: Types of negotiations Between individual and company • Employment contract • Wages • Benefits Between two companies • Sales • Partnerships Between company and outside group • Company management and unions • Company and government • Company and special interest groups Preconditions to Negotiation Prior t o an y negotiation pr ocess, car eful deliber ation should be gi ven t o w hether negotiat- ing r epresents the best option. Pr econditions f or bar gaining in volve ensuring that se veral cir cumstances e xist. Thr ee ar eas t o consider ar e the ps ychological climat e, the a vailability of r esources, and the characteristics of the bargaining issue.

The Psychological Climate Negotiation can tak e place onl y w hen the parties in volved e xhibit certain mental char acteris- tics. When the pr oper fr ame of mind does not emer ge, negotiations become mor e lik ely t o f ail. The most important psychological elements are (Moore, 2011):

• willingness to participate in negotiations • readiness to negotiate • agreement on some issues • willingness to settle • sense of urgency The willingne ss t o participat e begins with the ability t o identify k ey parties t o a negotiation. Managers should be a ware of w ho the v arious stak eholders ar e prior t o an y bar gaining pr o- cess.

A stak eholder is a person or gr oup with a v ested int erest in the out come of a negotia - tion.

In the case of negotiations with outside agencies, f or e xample, it ma y be possible that a compan y will seek t o r each an agr eement with a union w hile at the same time r emaining a ware of go vernmental constr aints, such as those r elated t o bar gaining in good f aith, equal opportunity legislation, and antitrust la ws. Stak eholders should tangibl y demonstr ate their r eadiness t o be seat ed at the bar gaining table. If a stak eholder gr oup is absent or un willing t o commit to good-faith bargaining, the potential to find a viable solution is reduced.

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. The Nature of Negotiations and Bargaining Processes Section 7.3 An indi vidual or gr oup con veys the r eadiness t o negotiat e thr ough a commitment t o conduct the needed in vestigation prior t o an y first meeting. Th e stak eholder should ha ve adequat e time t o pr epare a negotiation str ategy. Bef ore beginning an y actual negotiation, all sides should be able to say, “We’re ready.” Negotiation will not be possible unless some agr eement on issues and int erests can be identi - fied.

Althoug h v arious issues ma y be of concern t o onl y one party , negotiation becomes less of an option unless some mutual int erests ar e f ound. F or e xample, a union should be able t o agr ee with compan y leaders that ensuring w orking saf ety is in the int erest of both sides. The parties should be able t o commit t o a joint decision-making pr ocess based on these agr ee- ments (Kolb & Williams, 2003).

Negotiations succeed w hen participants ar e willing t o settle. When continuing a conflict becomes mor e important than settling, negotiations t end t o f ail. Consequentl y, f or an agr ee- ment t o be r eached, the neg ative consequences of f ailing t o find an agr eement must be mor e significant than the neg ative consequences of k eeping the conflict going. Also, w hen one side e xpresses or holds une xpressed neg ative animosity t oward another party , it can sharpl y aff ect ps ychological r eadiness t o bar gain. These barriers must be lo wered so that participants will become mor e willing t o settle. The most standar d appr oach t o lo wering such barriers in volves starting with all points of agr eement and common gr ound prior t o discussing an y disput ed areas.

Finally, time fr ames also influence the ps ychological climat e surr ounding pot ential negotia - tions.

When no deadline, pr essure, or ur gency t o r each an agr eement appears, negotiations ar e less lik ely t o pr oceed. A sense of ur gency ma y be imposed either b y e xternal or int ernal time constr aints or b y pot ential neg ative or positi ve consequences t o a negotiation out come, such as a court dat e or the time w hen an e xisting sales or union contr act is set t o e xpire. A side that can aff ord t o pr ocrastinate has an ad vantage in a negotiation in w hich the other side e xperiences a sense of urgency.

The Availability of Resources In or der f or a negotiation t o tak e place, r esources must be pr esent, such as sufficient time and mone y t o full y eng age in a dialogue. An additional bar gaining r esource includes the bar gain- ing skills of k ey negotiat ors. In gener al, w hen one side’s r esources ar e inadequat e or unequal t o the other side’s r esources, the first side’s bar gaining position ma y be w eakened t o the point at which negotiations become difficult to conduct.

The r esources held b y a gr oup in a negotiation include a “means of influence” f orm of le ver- age.

Classic view s of po wer suggest that influence is based on legitimat e, r eward-based, coer- ci ve, e xpertise-oriented, and charismatic means (F rench & R aven, 1959), as displa yed in T able 7.6.

Oft en, the t endency ma y be t o think first about the use of coer cion t o achie ve bar gaining objecti ves; however, persuasion may also result from using the other methods.

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. The Nature of Negotiations and Bargaining Processes Section 7.3 Table 7.6: Means of influence in negotiation Type of influence Description LegitimateBased on a negotiator’s superior position due to • a governmental dictate • ownership of a patent or similar protection • contractual advantage from a previous negotiation Reward based Based on the ability to promise rewards such as access to additional business partners/cust omers or the potential that a basis will be established for future agr eements Coercion Based on the ability to deliver negative consequences such as • loss of revenues • loss of supplies • damaged relations with customers • damaged relations with governmental organizations Expertise Based on influence achieved through presentation of factual evidence and/or analy- sis by experts in the area or field Charisma Based on the use of personal persuasiveness, thought-provoking questions, and discussion The Characteristics of the Bargaining Issue The ba rgaining issue, or the primary it em t o be negotiat ed, poses an impediment or cr eates the need t o bar gain. T o r each the status of a viable bar gaining issue, se veral f actors should be in place:• interdependence • willingness to compromise • unpredictability of the outcome • negotiable issues • participants hold the authority to decide Interdependence.

The hig h le vel of attachment or necessary int eraction betw een the parties r esults in int erdependence. An emplo yee bar gaining f or salary off ers t o e xchange a skill or talent; and the or ganization, w hich needs that skill or talent , agr ees t o a le vel of compensa - tion.

Th e e xchange cr eates int erdependence. P arties t o a sale, such as the pr ovider of a r aw mat erial and a manuf acturer, should in some w ay r ely on each other—that is, be int erdepen- dent—in or der t o ha ve their needs met or int erests satisfied. When one party t o a bar gaining arr angement finds it can satisfy its needs without the help or cooper ation of the other , no r eal r eason to negotiate exists.

Willingness to Compromise.

Compan y leaders kno w that not all negotiations r equire com - promise.

P arties ma y r each an agr eement that meets the needs of all participants without a concession fr om an y party . In man y disput es, ho wever, compr omise ma y be necessary f or the parties t o r each an agr eement. If one side det ermines that the other has “dug in ” and no compr omise will be possible, negotiation becomes a less viable option.

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. The Nature of Negotiations and Bargaining Processes Section 7.3 Unpredictability of the Outcome. P arties will also negotiat e w hen the out come of an issu e can - not be pr edicted. F or e xample, if one compan y kno ws that a la wsuit ag ainst another com - pany onl y has a 50% chance of success, the firm ’s management t eam ma y decide that its best int erests ar e serv ed b y negotiating inst ead. The r eason f or the decision w ould be that b y negotiating, the compan y w ould r eceive at least some of w hat it w ants; on the other hand, if the parties pursue litig ation, a court or der ma y complet ely f avor the other side b y imposing a judgment and damages ag ainst one of the tw o parties. The same holds true w hen an indi- vidual considers suing another person or a company.

Issues.

For successful negotiation to occur, negotiators must believe that ther e are acceptable settlement options. R oom f or gi ve and tak e must be pr esent. When onl y win-lose settlement possibilities occur, the parties involved become more reluctant to enter into dialogue.

Participants Hold the Authority to Decide .

In an y negotiation, the participants in volved must ha ve the auth ority t o mak e a decision. When the y do not , or w hen a r atification pr ocess has not been established, negotiations will normall y be limit ed t o an inf ormation e xchange betw een the parties (Lewicki & Hiam, 2006, pp. 40–73).

Alternative Approaches Prior t o ent ering int o a negotiation pr ocess, managers should e valuate and select a guide f or the pr ocess. Among the methods a vailable f or a tw o-sided e vent, negotiation r epresents onl y one option.

Other options include f acilita- tion, mediation, ar bitration, and the courts, w hich w ere discussed ear lier in the chapt er. These additional meth - ods should be in vestigated, especiall y w hen it becomes clear that negotia - tion is not an option: f or e xample, if the other sid e has made unethical demands or act ed in bad f aith. Nego- tiation should also not be an option if y our side • has not prepared.

• would have an improved position by simply waiting.

• does not have time to negotiate.

• could lose everything.

• has little or nothing to gain. (Lewicki, Barry, & Saunders, 2010; Levinson, Smith, & Wilson, 1999) In summary , the gi ve-and-take decision-making pr ocess of negotiation can seek the goals of winning at the e xpense of the other side in a distributi ve pr ocess, or can seek a settlement that assists both sides in an int egrative negotiation. Prior t o an y negotiation, the persons or gr oups in volved should assess the ps ychological clima te, the a vailability of r esources, and Comstock Images/Stockbyte/Thinkstock In situations where negotiation is not plausible, alternative methods are available, such as mediation.

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. The Stages of Negotiation Section 7.4 the char acteristics of the ba rgaining issue, taking int o account cir cumstances in w hich other disput e resolution options are more viable. Comprehension Exercise 1. A negotiation that involves a single issue and a zero-sum game in which one side’s gains become the other side’s losses (win-lose) is a a. representative negotiation.

b. distributive negotiation.

c. integrative negotiation.

d. selective negotiation.

2. A willingness to participate, readiness to negotiate, agreement on some issues, and a willingness to settle are all part of which negotiation precondition?

a. the bargaining matrix b. the psychological climate c. the availability of resources d. the characteristics of the bargaining issue Answers: 1) b 2) b 7.4 The Stages of Negotiation When the parties ha ve det ermined that negotiation r epresents the best option f or settling an issu e, an indi vidual or compan y begins the v arious stages of negotiation. R esults can be achie ved b y car eful manage ment of the entir e pr ocess. A t the most gener al le vel, negotiation consists of thr ee o verall stages: the initial, middle, and ending stages. T able 7.7 pr esents the v arious tasks that take place within this three-stage model of negotiation.

Table 7.7: The stages of negotiation Initial Stage Middle Stage Ending Stage Prepare Open Argue Explore Signal PackageClose Sustain Source: Adapted from: Baack, D. (2012) Management Communication. Bridgepoint Education, Inc., p. 232.

The Initial Stage The initial stage of negotiat ion consists of tw o primary acti vities: pr eparation and opening. When managers plan thor oughly, the chances f or achie ving desir ed bar gaining goals incr ease. The f ailure t o plan pr ovides the other party with a bar gaining ad vantage that continues thr ough the remainder of the process.

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. The Stages of Negotiation Section 7.4 Preparing At the point in w hich manag ement det ermines that negotiations should go f orward, pr epara- tion begins. Managers should employ several principles to guide preparations:

• Identify and prioritize goals.

• Establish a settlement range.

• Focus on long-term goals and consequences.

• Concentrate on mutual principles and concerns.

When a sing le-party negotiation tak es place, an indi vidual ma y be trying t o bar gain f or the best possible pa y pack age, bu yout, or r etirement settlement . The indi vidual’s bar gaining goal depends on his or her cir cumstances. A person taking a bu yout w ho also plans t o continue w orking has goals that ar e diff erent fr om someone int ending t o r etire. When someone is negotiating f or a salary , se veral k ey f actors det ermine e xactly w hat that indi vidual will bar - gain f or, including the pr evailing mar ket r ate, curr ent economic conditions, benefits off ered, long-t erm consider ations (building a car eer v ersus ha ving a job f or the time being), and the indi vidual’s tangible personal accomplishments (Brophy, 2004).

In a similar f ashion, w hen parties bar gain as part of a pur chasing situation, tw o companies ma y seek t o mak e a one-time pur chase at the best possible price or use the negotiation pr o- cess t o build a longer-t erm r elationship with the other or ganization. A compan y bar gaining with a union mig ht prioritiz e a voiding a w ork st oppage or seek t o achie ve the best possible deal regardless of the cost.

Finding the settlement r ange—the bar gaining zone in w hich acceptable out comes ar e locat ed—results fr om kno wing the compan y’s priorities, its a vailable r esources, and the str ength of its bar gaining position. A negotiat or needs t o kno w the boundaries prior t o begin - ning an y sessi on. An indi vidual bar gaining with the compan y establishes similar “final off er” points.

To find the settlement range, the mediator should:

• Collect and analyze relevant data about the people and dynamics involved in the pr oblem.

• Verify the accuracy of the data.

• Minimize the impact of inaccurate or unavailable data.

• Identify all parties’ substantive, procedural, and psychological interests. (Moore, 2011, para. 66) Long-term goals and conseq uences include issues such as trust and confidence in the other party . Mutual principles and concerns begin with w hether the r elationship will be ad versarial or cooper ative. One of the mor e destructi ve f orces in the pr ocess can tak e place w hen the ur ge t o win o verwhelms r ational thinking (Malhotr a, K u, & Murnig han, 2008). Pr eparation in volves selecting appr oaches or pr ocedures that lead t o pr oblem sol ving w henever possible.

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. The Stages of Negotiation Section 7.4 Opening The opening stage begins w hen parties mak e initial contact in person, b y t elephone, or b y mail. In this initial stage, eff orts t o build r apport and establish a cor dial r elationship can ease ear ly t ensions. Negotiat ors shou ld e xpress the desir e t o r each an acceptable agr eement. Expr essing one’s commitment t o f ollow thr ough with pr ocedures that ha ve been established cr eates a mor e pr ofessional t one. Those in volved should check their per- ceptions of the other side and seek t o minimize the eff ects of st ereotypes. Both sides should full y understand the pr ocesses that will be used (Moore, 2011).

At the same time, each negotiat or should understand that “no ” can be the opening position, and that the first off er made b y the other side will oft en be quit e diff erent fr om his or her e xpectations. The bar gainer or t eam should be a ware of the “r eluctant bu yer” (or seller) plo y, w hich in volves deliber ate stalling and con veying an un willingness t o r each a quick agr eement. As part of the opening, the negotiat or should be r eady with tactics t o r espond t o these and other complications. Doing so includes de veloping a str at- egy t o handle str ong emotions (Shell, 1999). When opening, the negotiat or should employ the following steps:

• Introduce all parties. • Ex change statements that demonstrate willingness to listen and share ideas, show openness, and demonstrate desire to bargain in good faith. • Establish guidelines for behavior. • Stat e mutual expectations for the negotiations. • Describe history of problem and explain why there is a need for change or agr eement. • Identify interests and/or positions. • Define issues and set an agenda. (Lewicki & Hiam, 2006) In sum, pr eparation leads t o confidence. Ho wever, confi dence should be accompanied b y cau - tion.

An anal ysis of the issue s coupled with seeking t o understand the other party helps lead t o an effective bargaining session.

The Middle Stage Once negotiations ar e full y under w ay, a wise appr oach is t o start with an issue in w hich ther e is hig h in vestment on the part of all participants, w here no serious disagr eements ar e pr esent, and in w hich a str ong lik elihood of agr eement e xists. Then, parties should tak e turns describing ho w the y view the situation. A moder ator or one party can encour age participants t o e xpress their side in enoug h detail t o ensur e that all in volved understand the indi vidual’s or group’s viewpoint. The negotiating parties should listen actively to one another, ask open- ended questions, and f ocus on collecting inf ormation. The middle stage, as not ed in T able 7.7, includes the processes of arguing, exploring, signaling, and packaging. Valueline/Valueline/Thinkstock The opening stage is meant to build familiarity between the two parties.

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. The Stages of Negotiation Section 7.4 Arguing Negotiators mor e efficientl y ar gue w hen both parties first identify specific issues t o be discussed.

These issues sho uld be fr amed in a nonjudgmental, neutr al manner w henever possible.

As issues of disput e ar e r aised, both sides r eveal inf ormation that benefits their ar guments and a void r evealing damaging inf ormation. V arious persuasion t echniques ar e emplo yed, including silence, v erifying inf ormation, and r econfiguring ar guments t o best suit a party ’s position (Goldman & R ojot, 2003). An e xample of using silence includes w aiting until the other side mak es an off er, w hich means, as man y salespeople will not e, “the first person t o speak loses. ” F urther, ar guments ma y be r econfigured, such as w hen one side sa ys, “W e can aff ord t o bu y this, ” and the opposing side r esponds, “Y ou can ’t aff ord NO T t o bu y this, ” ther eby att empting to increase the value of what has been offered.

In the ar guing phase, negotiat ors can use a v ariety of additional t echniques. Some att empt t o c ontrol the agenda of the sales meeting b y ensuring that onl y r elevant inf ormation that pertains t o the pot ential sale is discussed. Bu yers ma y att empt t o contr ol the agenda as w ell. Either party ma y att empt t o slic e a deal b y tabling issues on w hich the y cannot r each agr ee- ment and inst ead f ocusing on smaller slices of the deal. The y ma y also att empt t o split t he dif- ference w hen arri ving at a final deal. Her e, the y w ould f ocus on meeting halfw ay on subjects such as price, deli very demands, and other issues pertaining t o the final agr eement (Baack, Harris, & Baack, 2012).

A k ey concept that dri ves negotiat ors in the ar guing stages is B AT N A, w hich stands f or Best Alt ernative T o a Negotiat ed Agr eement. The B ATNA concept typicall y det ermines the lo west acceptable v alue in the negotiation, because an ything that is mor e desir able than the best out - side alt ernative is lik ely t o be accept ed (Bazerman & Ne ale, 1992, pp. 67–68). Ideall y, B ATNA is identified as part of the pr eparation f or a negotiation, because it allo ws the person bar gain- ing t o kno w w hen an off er is hig her than one that w ould lead t o an impasse because it is abo ve that “floor” le vel. A negotiat or will oft en try t o disco ver the B ATNA of the opposing side in or der to further expedite negotiation arguments.

Exploring During the e xploration stage, parties try t o gener ate options f or settlement . Exploring in volves r eviewing the needs of parties that r elate t o disput ed ar eas and looking f or agr eements in principle.

Negotiat ors ma y consider br eaking a major issue int o smaller , mor e manageable issues and generating solutions for these sub-issues. Exploration tactics include: • Expanding the pie so that benefits are increased for all parties.

• Alternating satisfaction so that each party has his or her interests satisfied but at diff erent times.

• Trading items that are valued differently by parties.

• Looking for integrative or win-win options.

• Using trial and error to generate multiple solutions.

• Trying silent generation in which each individual develops privately a list of options and then presents his or her ideas to other negotiators.

• Conducting position/counterposition option generation.

• Separating generation of possible solutions from evaluation. (adapted from: Lewicki, Barry , & Saunders, 2010) \251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. The Stages of Negotiation Section 7.4 As part of the e xploration pr ocess, a negotiat or, w hen ask ed f or a concession, will oft en r equest a tr adeoff. The bar gaining party should be w ary of an y person that att empts t o r ely on a “hig her authority ,” such as “My boss w on’t go f or that off er,” as a r ationale f or not meeting v arious negotiation points. Also, eff ective bar gainers ar e a ware of the “vise” tactic, in w hich the other side continuall y uses phr ases such as “Y ou’ll ha ve t o do bett er than that” t o put the squeeze on a bargaining position.

As not ed in the definition of negotiation, e xploration occurs w hen true gi ve and tak e tak es place.

The two parties can def end areas of greatest interest to their sides w hile offering com- promises in other ar eas. Ex ploration can help identify hidden int erests or agendas of the other side. Bar gaining parties can pr obe each issue either one at a time or t ogether t o identify int erests, need s, and concerns of the principal participants in the disput e. Explor ation contin - ues unless or until a stalemate takes place.

Signaling A signal can tak e one of se veral f orms. One is r ecognition that an impasse has been r eached, such as w hen one side or a mediat or sa ys, “W e’re not getting an ywhere.” T o handle an impasse, thr ee appr oaches mig ht be used: (a) the issue mig ht be set aside so that other issues can be dealt with; (b) one of the negotiating points mig ht be changed; or (c) an outside party mig ht be brought in to seek a resolution.

Another type of signal not es that agr eeable t erms ar e in sig ht. When a negotiat or sa ys some- thing along the lines of “I think w e’re getting close, ” the signal has been sent . When a union negotiat or r esponds, “I think our members w ould r atify that pr oposal,” a signal of pot ential agr eement has been offered.

Packaging Once a signal has been sent that agr eement is possible, a pack age can be r eached. P ackaging is the part of the pr ocess w here negotiat ors assess final options f or settlement . This includes a review of the int erests of the parties in volved and an analysis of ho w many int erests can be met b y the a vailable options. P art of assessing options is that both sides e valuate the costs and benefits of each option. A t that point , a party can r evise bar gaining str ategies w hen needed. In gener al, the consensus is that one side’s po wer incr eases w hen the other side first commits. Ther efore, both sides should be willing t o not e agr eement in or der t o mo ve t oward a final arr angement.

The Ending Stage The ending stage commences w hen the tw o sides agr ee t o the alt ernative or set of alt erna- tives. An individual negotiat ing for salary and benefits reaches the ending stage when all ele - ments of the emplo yment contr act ha ve been agr eed upon. A sale r eaches the ending stage w hen the t erms, including price, deli very schedule, financing, and other matt ers ha ve been settled.

An agr eement betw een a compan y and a union occurs w hen all issues pr esent in the bar gaining session ha ve been r esolved. T wo elements of the ending stage ar e the close and eff orts to sustain the agreement.

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. The Stages of Negotiation Section 7.4 Closing The close inclu des the moment when the parties establ ish a procedural means to finalize the agr eement. It ma y tak e the f orm of a writt en memor andum or a leg al contr act. The bar gaining arr angement should contain sufficient detail t o implement the agr eement and handle an y con - tingencies that mig ht arise. Monit oring pr otocols may also be established.

An indi vidual negotiating employment with a compan y has r eached the close w hen a contr act or memo spells out the dat e emplo yment will begin, along with all of the details of the agr eement. In some cir cumstances, a v erbal accep - tance is all that is necessary . Or dinarily, ho wever, it is bett er t o put the agr ee- ment in writing.

A sale is closed w hen papers specify- ing the natur e of the pur chase ha ve been signed or v erbally agr eed upon b y both sides. F or e xample, a bill of lading specifie s the cont ents of a ship- ment of goods.

A close betw een tw o companies cr eating an arr angement such as a mer ger or joint v enture occurs w hen the tw o sides ha ve f ormally signed leg al documents cr eating the r elationship. A close betw een a union and a compan y tak es place w hen the bar gaining contr act has been agr eed upon and a v ote b y union members certifies the contr act, making it r eady f or a signa - ture fr om negotiat ors f or both sides. Monit oring of union–management agr eements normall y includes spec ified pr ocedures f or filing grie vances r egarding contr act violations or other matt ers of contention or disagreement. A handshak e pr ovides a s ymbolic finalization of an agr eement. When congr atulations ar e off ered, both parties ar e abl e t o r elax and enjo y the accomplishment of concluding an accept - able agreement.

Sustaining Efforts t o sustain an agr eement include establishing monit oring pr otocols. Standar d meth - ods used t o sustain agr eements include f ollow-up phone calls, lett ers, and other int eractions. These contact s help r eassure the other side that the agr eement is acceptable and that the t erms will be carried out . Monit oring in a sales situati on includes updat es r egarding w hen or ders ha ve been shipped and r eceived. A perf ormance bond also helps guar antee a pr oject will be properly completed, such as construction of a building or facility.

Conflict and Negotiation Across Cultures Culture is a major influence during the negotiation pr ocess (A dair, Ok umura, & Br ett, 2001) as w ell as during an y conflict r esolution pr ocess. When both bu yer and seller ar e fr om the same Antonio_Diaz/iStock/Thinkstock Negotiations are generally closed with a written acknowledgement, but verbal acknowledgements, as well as symbolic gestures, may occur as well.

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. The Stages of Negotiation Section 7.4 culture, negotiations can be f airly str aightforward. In cr oss-cultural negotiations, difficulties ar e more likely to arise. Table 7.8 provides examples of some of the primary differences.

Table 7.8 Cross-cultural issues in negotiation and conflict FactorExample Time • Arriving on time versus being late • Length of time needed to reach resolution • Time differences between countries Language • Aggr essive versus deferent forms of speech • Degree of formality/use of names and titles Use of slang • Differences in meaning of slang terms Gestures • Differences in meaning of gestures Rank • Rank of individual assigned to the negotiation • Differences in rank of negotiators Gender • Treatment of women Setting • Place negotiation/conflict resolution occurs Legal difference • Form of legal system in both countries Religious differences • Roles of religious values in both countries Cultural differences • Norms and social mores Technology • Use of technology • Trust/distrust of technology Infrastructure • Presence or absence in countries involved As T able 7.8 indicat es, parties in negotiations and in conflict situations ma y ha ve major dif- f erences in w ays of thinking and beha ving, and these f actors come dir ectly int o pla y (Hamner , 1980).

The use of w ords, cer emony, and the r elative status of the bar gaining parties oft en aff ects negotiations (Gulbr o & Her big, 1996). Some negotiat ors ar e un willing t o f ollow an y pr escribed negotiating scrip t or r outine. In that cont ext, what is left unsaid may be as impor- tant as what is actually said.

Consider a f ew basic complications. In one country , the use of bribery ma y be standar d busi - ness pr actice, and bribes paid ma y be tax -deductible costs of doing business. In another , such a tactic w ould be illeg al. F urther, in man y countries la ws r egarding int ellectual pr operty (pat- ents, f or e xample) v ary widel y. A bar gaining pr ocess or conflict r esolution int eraction mig ht be disrupted by such legal discrepancies.

With r egard t o def erence betw een parties, a person in an int ernational negotiation can hold r ank wit hin one or ganization, but f ail in conflict r esolution w hen the indi vidual is not r espected b y other parties, f or an y r eason, including the f act that the person is simpl y an outsider .

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. The Stages of Negotiation Section 7.4 Time per ceptions can aff ect negotiations, as w ell. Some bu yers tak e longer than others dur- ing the negotiation pr ocess. Bu yers in Japan, f or e xample, ar e usuall y much slo wer t o mak e decisions than bu yers in the Unit ed Stat es. A ttempting t o instill a specific deadline, a popular negotiation tactic, may be met with much hesitation in Japanese culture. In some countries, a popula r negotiation tactic, bluffin g, in volves thr eatening t o w alk a way fr om negotiati ons w hen the other side will not mo ve fr om a position or is not willing t o con - cede as much as is needed t o close the deal. In other nations, such a tactic w ould be hig hly off ensive. Eff ective salespeople utilize cultur al int elligence and cr oss-cultural compet ence t o arri ve at an agr eement that is satisf actory t o both themse lves and the pur chasing or ganization.

Cultures also v ary in t erms of willingness t o ar gue or dis play aggr essiveness (Schmidt , 1987). In man y cultur es, negotiat ions cannot begin until positi ve r elationships ha ve first been f ormed, and man y times bar gaining will be view ed as an unending pr ocess (Lubman, 1993). Other f actors that oft en influence int ernational negotiations include the use of e ye contact , the amount of ph ysical distance betw een the parties (including actuall y t ouching the other person), gift giving, and protocols for agreement (bowing versus a handshake). A cultur al assimilat or ma y be called upon t o help with int ernational negotiations. As dis- cussed in Chapt er 1, a cultur al assimilat or is a person v ersed in the cultur e of another country w ho aids in understanding how to interact in that culture.

Bargaining situations and conflict r esolution pr ocesses, as this section suggests, in volve a con - siderable amount of time and detail. Managers w ho eff ectively deal with each stage achie ve bett er results during negotiation sessions. Comprehension Exercise 1. Arguing, exploring, signaling, and packaging take place in what stage of negotiation?

a. preparation b. opening c. middle d. ending 2. In which process do bargaining parties try to generate options for settlement?

a. arguing b. exploring c. signaling d. packaging Answers: 1) c 2) b \251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Summary and Resources Summary and Resources Chapter Summary Negotiation, conflict , and conflict r esolution shar e man y common elements. P eople ar e at the heart of such similarities. Man y of the f actors that lead t o conflict and negotiation ar e similar , such as the distribution of r esources (pa y, budgets), human r esource decisions (hiring, firing, task assignments, perf ormance appr aisals, tr ansfers), goal disagr eements, and other manage- rial decisions of all sorts can either r esult in a mor e s ystematic and or ganized negotiation or an outright conflict that calls for resolution. Conflict is a cir cumstance in w hich one party neg atively aff ects or seek s t o neg atively aff ect another party . F unctional or cooper ative conflict occurs w hen the or ganization’s int erests ar e serv ed in some w ay, such as thr ough impr ovement in perf ormance or gr eater cooper ation among indi viduals or gr oups. Dy sfunctional conflict ta kes the f orm of destructi ve acti vities that hinder gr oup or or ganizational perf ormance. The f our le vels of conflict ar e intr apersonal or intrapsychic conflict, interpersonal conflict, intragroup conflict, and intergroup conflict.

The conflict cy cle begins with lat ent conflict , w hich includes all pot ential sour ces of conflict at the indi vidual or gr oup le vel. F elt conflict occurs w hen people kno w something is wr ong but cannot pinpoint the sour ce. P erceived conflict means that those near a conflict kno w the issues and the people in volved, y et do not f eel discomf ort fr om it . In open conflict sho wdowns, confr ontations, and other outw ard signs of manif est conflict appear . Open conflict r equires some form of resolution.

Conflict r esolution includes understanding the concerns of the parties in volved. The dual con - cerns model suggests a combination of concerns abou t one side’s out comes and concerns about the other side’s out comes. When one side has littl e concern about the other’s out comes, the tw o possible r esponses ar e cont ending (competing) and inaction (a voiding). In cir cum- stances in w hich concern f or the other’s out comes ar e hig h, the tw o possible actions ar e yield - ing (obliging) and pr oblem sol ving (an int egrating appr oach). When moder ate le vels of con - cern f or both personal and the other side’s out comes ar e pr esent, the most common appr oach in volves compromising.

The st eps of the conflict r esolution pr ocess include iden tifying the parties in volved, identify- ing the issues, identifying the positions of the parties, finding the bar gaining zone, and mak- ing a decision. Decisions may be win-lose, lose-lose (compromise), or win-win solutions.

Alternative disput e r esolution att empts t o incorpor ate mor e user-friendl y methods of dis- put e r esolution, and seek s t o a void ad versarial appr oaches. It uses methods such as f acilita- tion, conciliation, peer r eview, ombudsman, mediation, and ar bitration. Desir ed out comes of conflict resolution include agreement, stronger relationships, and organizational learning.

Negotiation is a gi ve-and-take decision-making pr ocess in volving int erdependent parties with diff ering objecti ves or out come pr eferences. Distributi ve negotiations in volve a sing le issue and a zer o-sum g ame in w hich one side’s g ains become the other side’s losses (win-lose). Int egrative negotiations r esemble a pr oblem-solving agenda in w hich both sides try t o obtain a se ttlement that benefits both—a win-win solution. Negotiations tak e place betw een indi- viduals and companies, betw een companies, and betw een a compan y and an outside gr oup. \251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Summary and Resources During the pr econditions t o negotiation stage, thr ee ar eas t o consider ar e the ps ychological climat e, the availability of resources, and the characteristics of the bargaining issue.

The initial, middle, and ending stages r equire managerial att ention. The initial stage in volves pr eparation and a quality opening. The middle stage consists of se veral phases: ar guing, e xploration, signaling, and pack aging pot ential solutions. The ending stage in volves a close and the att empt t o sustain the agr eement t o its full implementation. Pr eparation, negotiating tactics and methods, and closing methods can mak e a bar gaining session mor e palatable f or all concerned. Special consi deration should be gi ven t o int ernational negotiations. A cultur al assimilat or can be a valuable asset in international bargaining situations. CASE STUDY: Sarah’s Dilemma Sarah Norville lo ved her job as an ad vertising media bu yer and consultant . She w orked f or Impact A dvertising, one of the 20 lar gest ad vertising agencies in Calif ornia. Her t enure beg an str aight out of college aft er she serv ed an int ernship in the compan y. She knew man y of the emplo yees in her department and in other ar eas, and had tried har d t o de velop a r eputation as a professional, competent, and pleasant coworker.

Sarah t ook the position aft er turning do wn an off er fr om another agency . The other off er included a hig her salary and a managerial title; ho wever, she w as not con vinced the compan y’s futur e w as as brig ht as she e xpected Impact A dvertising’s w ould be. She belie ved that her immediat e supervisor , Rick W atson, w ould adjust her salary w hen he learned of her v alue t o the agency.

After the first f our months on the job, a casual dinner with a co worker had a major impact . The co worker inf ormed Sar ah that she w as among the lo west-paid new hir es fr om the pr evious y ear, e ven thoug h she had mor e e xperience as the r esult of he r int ernship. Impact A dvertising had tried t o maintain a secr et pa y policy —with little success. This incident w as just one mor e e xample.

Sarah appr oached Rick car efully. She e xplained her frustr ation with a lo wer r ate of pa y than others with less e xperience. She also not ed that her w ork during the first quart er had earned her the highest possible ranking at her performance appraisal.

Rick r esponded, “W ell, y ou did accept the off er w e made. And y ou ha ve t o r emember, tw o of those hires also had taken some graduate courses. That sort of offsets experience.” Sarah r eplied, “I plan t o start an MB A this summer . Just one class. But o ver time, I plan t o com - plete the entire program.” Rick smiled, “W ell, w hen y ou do, I will guar antee w e will mak e this rig ht. If y ou finish y our MB A, y ou will earn at least $10 ,000 mor e than an y of y our cohorts, if the y’re still her e. Mean- w hile, I can bump y ou up some no w.” The salary he off ered mo ved her within 85% of w hat the t op new hire was earning. She had been at 75% of that figure. She reluctantly accepted.

Sarah acceler ated her MB A w ork, sacrificing o vertime and some hig hly e xciting pr ojects in or der t o complet e her course w ork. It t ook her tw o y ears t o accomplish her goal of a gr aduate degr ee.

During that time, her salary increased by $5,000 annually.(continued) \251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Summary and Resources CASE STUDY: Sarah’s Dilemma (continued) When Sar ah handed Rick her diploma, she e xpected t o r eceive the r aise he had pr omised. T echnically, w hat she w as off ered did r eflect w hat he said. She w as t o earn $10,000 mor e than the st arting salary of her hig hest-paid co worker. Mean while, that co worker had also r eceived a $5,000 salary increase, meaning that the differential between them was only $5,000.

Sarah ask ed f or a meeting wit h Rick, a member of human r esources, and the agency ’s vice pr esident. She pr epared her case, pointing out that she had been s ystematically underpaid f or tw o y ears, and that no w the compan y w as ag ain off ering w hat she t ermed a “lo w-ball” pa y r aise. She not ed that e ven with her e xtra time in class her perf ormance appr aisals had been among the hig hest in the compan y. She finall y ask ed, “Wh y w on’t y ou gu ys just do the rig ht thing?” She knew that if the y did not r espond eff ectively, other agencies w ould lo ve t o ha ve her skills and educational achievements.

Case Questions 1. Who are the parties involved in this negotiation?

2. What are the negotiation issues?

3. Explain how the processes of arguing, exploring, signaling, and packaging might become part of the meeting between Sarah and the others, if they are willing to negotiate.

4. Use the conflict model presented in this chapter to explain the issues in this case.

5. Might Sarah’s gender be an issue in this scenario? What other potential ethical issues ar e involved? Review Questions Define negotiation and explain the nature of distributive and integrative negotiations.

Negotiation is a gi ve-and-take decision-making pr ocess in volving int erdependent parties with di ffering objecti ves or out come pr eferences. Distributi ve negotiations in volve a sing le issue and a ze ro-sum g ame in w hich one side’s g ains become the other side’s losses (win- lose). An int egrative negotiation r esembles a pr oblem-solving agenda in w hich both sides try to obtain a settlement that benefits both, or a win-win solution. Int egrative bargaining, in other words, is similar to a “negotiation.” What three preconditions to bargaining should be considered prior to entering a negotiation?

The thr ee ar eas t o consider ar e the ps ychological climat e, the a vailability of r esources, and the characteristics of the bargaining issue.

What two activities are involved in the initial stage of negotiation?

In the initial stage, two primary activities, preparation and opening, receive attention.

What are the four elements of the middle stage of negotiation?

The middle stage includes the processes of arguing, exploration, signaling, and packaging.

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Summary and Resources Explain the two activities that take place during the ending stage of a negotiation.

Two elements of the ending stage ar e the close and eff orts t o sustain the agr eement. The close includes the moment w hen the parties establish a pr ocedural means t o finalize the agr ee- ment.

Eff orts t o sustain an agr eement include establishing monit oring pr otocols. Standar d methods used t o sustain agr eements include f ollow-up phone calls, lett ers, and other int erac- tions.

These contacts help r eassure the other side that the agr eement is acceptable and that the terms will be carried out.

Define conflict and competition and explain the nature of functional and dysfunctional conflict.

Conflict is a cir cumstance in w hich one party neg atively aff ects or seek s t o neg atively aff ect another party . Conflict contr asts with another concept , competition, a condition in w hich all parties in an e vent or situation att empt t o do their best , with the person or gr oup pr oducing the most desired outcome emerging as the winner. Functional conflict occurs w hen the orga- nization’s int erests ar e serv ed in some w ay, such as impr ovement in perf ormance or gr eater cooper ation among indi viduals or gr oups. F unctional conflict is also called constructi ve, or cooper ative, conflict . Dy sfunctional conflict tak es the f orm of destructi ve acti vities that hin - der group or organizational performance.

What four levels of conflict occur?

The f our le vels of conflict ar e intr apersonal (intr apsychic) conflict , int erpersonal conflict , intr agroup conflict, and intergroup conflict.

What are the stages of conflict and the conflict cycle?

The stages ar e lat ent conflict , per ceived conflict , f elt conflict , open conflict , and the conflict r esolution process.

What conflict styles are associated, respectively, with low concern for the other’s outcomes, high concern for the other’s outcomes, and moderate concern for the other’s outcomes in conflict resolution?

When one side has little concern about the other’s out comes, tw o conflict sty les ma y r esult: cont ending/competing and inaction/a voiding. When concern f or the other party ’s out come is hig h, tw o conflict sty les ar e possible: yielding/accommodating and pr oblem sol ving/ collabor ating. When ther e ar e moder ate le vels of concern f or the other party ’s out come as w ell as one’s own, the compromising conflict style emerges.

What steps are involved in the conflict resolution process?

The conflict r esolution pr ocess in volves the st eps of: identify the parties in volved, identify the issu es, ide ntify the positions of the parties, find the bar gaining zone, and mak e a decision.

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Summary and Resources Analytical Exercises 1. Identify forms of distributive and integrative negotiations in the following conflict situations. (If one or the other is not possible, explain why.) • indi vidual vs. company • company vs. company • company vs. outside group 2. Provide examples of situations under which the preconditions of negotiation cannot be met in the following circumstances: • An individual files a grievance alleging unfair treatment by a supervisor.

• A company that has filed for bankruptcy seeks to negotiate the sale of mer- chandise to another company.

• A union negotiates with a company that plans to outsource most jobs.

3. Explain how the processes of arguing, exploration, signaling, and packaging occur in the following negotiations: • An individual seeks a higher initial salary offer.

• A supplier tries to raise prices of raw materials to a manufacturer.

• A company negotiator attempts to convince a government official that a lower penalty for unpaid taxes should be imposed.

4. Provide an example of each stage of the conflict cycle as it applies to • an interpersonal conflict based on incivility.

• an intragroup conflict based on differing goals of two key members.

• an intergroup conflict based on two groups vying for offices on the top floor of a building.

5. In the dual concerns model, two key circumstances are (a) one party has low con- cerns for the other’s outcomes and (b) one party has high concern for the other’s out comes. Explain how these two circumstances would affect the following third- party approaches: • f acilitation • conciliation • peer review • an ombudsman • mediation Key Terms BATNA Acronym for Best Alternative to a Negotiated Agreement, which identifies the lowest acceptable value to a party in a negotiation.

c onflict  A circumstance in which one party neg atively affects or seeks to negatively aff ect another party.

conflict cycle A model where conflict mo ves from latent to perceived or felt con- flict, to open conflict, and finally to resolu- tion and aftermath, which may in turn lead t o new conflict. distributive negotiation  A negotiation in w hich a single issue and a zero-sum game in volve one side’s gains becoming the other side’s losses.

dysfunctional conflict  Conflict that takes the form of destructive activities that hinder gr oup or organizational performance.

felt conflict What occurs when people kno w something is wrong but cannot pin- point the source.

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Summary and Resources functional conflict Conflict in which the or ganization’s interests are served in some w ay, such as improvement in performance or greater cooperation among individuals or groups.

integrative negotiation  A problem-solv- ing agenda in which both sides try to obtain a settlement that benefits both (a win-win solution).

int ergroup conflict  Conflict that tak e place betw een various groups, such as between departments within a company or between f actions such as ethnic groups or female and male employees.

interpersonal conflicts Conflicts that take place between individuals.

intragroup conflict Conflicts or incidents betw een members of a group.

intrapersonal conflicts Conflicts that occur within an individual regarding ideas, thoug hts, values, and emotions that contra- dict each other. latent conflict  All the potential sources of conflict at the individual or group level.

negotiation  A give-and-take decision- making process involving interdependent parties with differing objectives or outcome pr eferences.

ombudsman  A respected employee who will hear both sides of an argument and att empt to arrange a solution acceptable to both parties.

open conflict  Showdowns, confrontations, and other outward signs of conflict.

perceived conflict  What occurs when those near a conflict know the issues and the people involved, yet do not feel discom- fort from it.

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. \251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution.