CHAPTER FIVE

Management of organizational conflict and Negotiation

Introduction
 Conflict is a process in which one party perceives that its interests
are being opposed or negatively affected by another party.
 Conflict is a basic fact of life in groups and organizations .It is an
inevitable feature of present-day organizations.
 Organizations contain people with divergent personalities,
perceptions, values and characters. In this concept conflict is very
essential.
 Those people are assigned to jobs that have contrasting
characteristics, impart unequal degrees of status and frequently
foster competition.
 Organization contains views and that must compete for scarce
resources they need to achieve their goal.
List out the major source conflicts in life and organization? Discuss
in group
 5.1The basic definition of conflicts
 There are many definitions for conflict. But there are three
common themes:
 Perception. Conflict must be perceived by the parties to it, if no
one is aware of a conflict, then generally it is agreed that no
conflict exists.
 Incompatibility. The parties must be in opposition or have
incompatible goals or desires in order for conflict to exist.
 Interaction. In order for there to be conflict, the parties must be
able to interact with each other
Features of Conflict
 Conflict occurs when two or parties pursue mutually Exclusive
goals, values or events. It is based on the assumption that there are
two or more parties whose interests or goals appear to be
incompatible.
 2. Conflict arises out of two perceptions. Is X perceives his goal to
be incompatible with those of Y and X has no opportunity to
frustrate the goal attainment of Y is no conflict.
 3. Conflict refers to deliberate behavior. X deliberately tries to
prevent Y from attainment his (Y’s) goals. If interference is
accidental, there is no conflict.
 4. Conflict can exist either at the latent or overt level, but
generally speaking, conflict is a term that is limited to overact.
 5. Conflict is different from competition. In conflict one side
sees an opportunity to interfere with the other’s opportunity to
acquire resources or perform activities. In competition both
sides try to win but neither side actively interferes with other.
5.2 Different Views in Conflict Thought
There are three schools of thought relating to conflict in
organizations. These have developed historically from the view
that all conflict in organizations is inherently bad (the traditional
view) through the idea that conflict is natural and inevitable (the
human relations view) to the most recent idea that conflict is
absolutely necessary for groups to perform effectively (the
interactionist view).
The Interationist View. This most recent view of conflict moves
beyond accepting conflict in groups and organizations to actively
encouraging it.
 It is believed that encouraging group leaders to maintain an
ongoing minimum level of conflict keeps groups viable, self-
critical, and creative.
 Not all conflict is to be encouraged however, there are two main
categories of conflict:
1. Functional Conflict. These are conflicts that support the goals
of the group and improve its performance: it is constructive.
2. Dysfunctional Conflict. These are conflicts that hinder group
performance: it is destructive.

 Assessing Conflict. In order to determine if conflict is functional

or dysfunctional, managers must examine the type (or relevant
types) of conflict in the situation.
 Task Conflict. This type of conflict relates to the content and
goals of the work. High levels of task conflict become
dysfunctional when they create uncertainty about task roles;
increase the time needed to complete tasks; or lead to members
working at cross-purposes. Low-to-moderate levels of task
conflict are functional as they consistently demonstrate a positive
effect on group performance.
 Relationship Conflict. This type of conflict focuses on
interpersonal relationships. Almost all conflict of this type is
dysfunctional.
 Process Conflict. This final type of conflict relates to how the
work is accomplished. Low levels of process conflict are
functional, while moderate-to-high levels of process conflict are
dysfunctional.
5.3 The Conflict Process
There are five stages in the conflict process.
Stage I: Potential Opposition or Incompatibility. This indicates the
presence of conditions that create opportunities for conflict to arise.
These conditions do not need to directly lead to conflict, but one of
these causes is necessary for conflict to surface. There are three
general categories of these causes or sources of conflict.
Stage II: Cognition and Personalization. If the antecedent
conditions of the first stage negatively affect something one party
cares about, then the potential for conflict becomes actualized in the
second stage. One party must be aware of this antecedent condition in
order for the conflict to become actualized (“perceived” conflict.
Stage III: Intentions. Intentions are decisions to act in a given way.
People's perceptions and emotions are focused by their intentions into
their overt behavior. But behavior does not always accurately reflect a
person's intentions
Stage IV: Behavior. This is the visible stage of conflict. It
includes statements, actions, and reactions made by the conflicting
parties. These behaviors are usually overt attempts to implement
each party's intentions. The conflict behaviors themselves act as a
stimulus to the other party, often in unintended ways.
Stage V: Outcomes. The behaviors given in Stage IV result in
consequences, i.e., functional or dysfunctional outcomes.
Functional Outcomes. Normally associated with low-to-moderate
levels of task and process conflict, these outcomes result in an
improvement in the group's performance.
 Functional Outcome Indicators. Conflicts can be considered to
have functional outcomes when any of the following end-
conditions exist:
 Interest and curiosity among group members is encouraged.
 Problems are aired and tensions are released.
 An environment of self-evaluation and change is created
Dysfunctional Outcomes. Uncontrolled opposition breeds
discontent, which acts to dissolve common ties, and eventually leads
to the destruction of the group.
Dysfunctional Outcome Indicators.
 Group effectiveness is reduced.
 Group communication is retarded.
 Group cohesiveness is reduced.
 Group goals are subordinated to infighting among members.
 The group is threatened with destruction
5.4 Conflict Handling Techniques/Strategies
Negotiation
 Negotiation is often the means to resolve conflict. Negotiation is
becoming far more common at all levels: it has been said that life
itself is a series of small negotiations.
 Definition: negotiation is a process in which two or more parties
exchange goods or services and attempt to agree on the exchange
rate for them
Bargaining Strategies. There are two general approaches to
negotiation: distributive bargaining and integrative bargaining.
Negotiation Process. This simplified model of the negotiation
process is composed of five steps.
 Step One: Preparation and Planning. Negotiators must prepare
for the conflict by:
 Step Two: Definition of Ground Rules. In this initial stage of
negotiations, the methodology of the negotiation itself is
determined. The step determines the who, what, when, and how
of the negotiation process.
 Step Three: Clarification and Justification. In this step each
party will explain, amplify, clarify, bolster, and justify the
original demands or proposals
 Step Four: Bargaining and Problem Solving. This step is what
is typically thought of as negotiations. It is the actual give-and-
take necessary to accomplish agreement
Step Five: Closure and Implementation. The final step in the
process is formalizing the negotiated agreement and developing any
necessary procedures for implementing and monitoring that
agreement.
This step can be accomplished by anything from creating a formal
contract through simply shaking hands on it
Method of Managing Conflict
These are some guidelines for handling conflict:
Competition. Use this method when:
 Quick, decisive action is vital (emergencies).
 Deciding important issues for which unpopular actions need to
be implemented (such as cost cutting and discipline).
 Deciding issues vital to the organization's welfare when you
know you are right and your opponents are wrong.
 Negotiating with people who take advantage of noncompetitive
behavior
Collaboration. Use this method when:
 There is a need to find an integrative solution when both sets of
concerns are too important to be compromised.
 Your objective is to learn.
 The desire is to merge insights from people with different
perspectives.
 Wishing to gain commitment by incorporating concerns into a
consensus.
 Working through feelings that interfered with the relationship
Avoidance. Use this method when:
 The issue is trivial, or when issues that are more important are
pressing.
 You perceive no chance of satisfying your concerns.
 The potential disruption outweighs the benefits of resolution.
 You desire to let people cool down and regain perspective
 Gathering information supersedes the need for an immediate
decision
Accommodation. Use this method when:
 You find you are wrong and wish to allow a better
position to be heard in order to learn and to show
your reasonableness.
 Issues are more important to others than to yourself
and you wish to satisfy others and maintain
cooperation.
 Harmony and stability are especially important.
 You wish to allow subordinates to develop by
learning from their mistake.
 Chapter Six
Stress Management

Group Assignment
1) What is stress?
2) What are causes of stress?
3) What are stress management techniques?
The end of
chapter five
Thank you!