MENT 3101: Conflict and Negotiations

Conflict (Definition & Causes)

• Conflict is the perception that another party has negatively affected something you care about

• Examples of sources:
  • Incompatible goals
  • Different interpretations of facts
  • Disagreements about behavioral expectations

Functional Conflict

• Conflict that supports group goals and enhances performance

• Outcomes include:
  • Higher performance
  • Better decision quality
  • More creativity and innovation
  • Greater curiosity and engagement
  • Better problem-solving
  • Environment for self-evaluation and change
  • Prevention of groupthink

Dysfunctional Conflict

• Conflict that hinders group performance

• Outcomes include:
  • Discontent among members
  • Lower effectiveness
  • Poor communication
  • Reduced cohesiveness
  • Infighting that overrides group goals

Thomas–Kilmann Conflict Resolution Model

• Assertiveness: Focus on your own outcomes

• Cooperativeness: Focus on others’ outcomes

• Conflict: Arises when two parties perceive their goals as misaligned

Competing Conflict Style

• High assertiveness, low cooperation

• Used for quick, decisive action

• Occurs in:
  • High power-distance situations
  • Important but unpopular issues
  • Vital issues where you’re confident you’re right
  • When facing people who might exploit you

• Results:
  • Win-lose outcome
  • Effective short-term
  • Can harm relationships long-term

Avoiding Conflict Style

• Low assertiveness, low cooperation

• Used when:
  • Issues are trivial or less urgent
  • Problems are symptomatic, not core
  • No chance to satisfy your concerns
  • Others can resolve better

• Results:
  • Lose-lose outcome
  • Ineffective short- and long-term
  • Doesn’t resolve conflict
  • Useful sometimes to allow cooling off and gaining perspective

Accommodating Conflict Style

• Low assertiveness, high cooperativeness

• Used when:
  • Issue matters more to the other person
  • You have low power

• Results:
  • Lose-win outcome
  • Maintains cooperation and harmony
  • Builds social capital
  • Minimizes loss when outmatched
  • Preserves stability

Collaborating Conflict Style

• High assertiveness, high cooperativeness

• Used when:
  • Task-focused, not personal conflict
  • Issues too important to compromise
  • Goal is to learn and find solutions

• Results:
  • Win-win outcome (non-zero-sum)
  • Full information sharing and discussion
  • Requires relatively equal power and time
  • Merges insights and perspectives
  • Gains commitment through consensus
  • Generally best but most difficult style

Compromising Conflict Style

• Medium assertiveness, medium cooperativeness

• Most common and easiest style

• Used for give-and-take and temporary settlements

• Occurs when:
  • Issue isn’t worth major disruption
  • Opponents have mutually exclusive goals
  • Time pressure requires expediency

• Results:
  • Maintains relationships
  • Often viewed favorably
  • Useful backup after collaboration or competition fails

Negotiation

• A process where two or more interdependent individuals discuss and try to reach an agreement

• Focuses on reconciling different preferences or interests

Distributive Bargaining

• Win-lose negotiation over a fixed amount of resources (fixed pie)

• Only one party wins

• Example: Purchasing a car

Integrative Bargaining

• Collaborative problem-solving with mutual respect

• Focus on win-win outcomes ("us" winning)

• Parties seek consensus that benefits both

• Example: Deciding on a honeymoon location

Negotiation Stage: Preparation

• Each party defines goals and evaluates what the other can offer

• Key to success: Understanding your BATNA (Best Alternative to a Negotiated Agreement)

BATNA & Zone of Potential Agreement

• BATNA: Your bottom line or walk-away point (e.g., next-best offer)

• Zone of Potential Agreement (ZOPA): Overlap between buyer’s and seller’s acceptable ranges where negotiation can happen

• Improving BATNA involves market knowledge

• Use BATNA to gain leverage and make strategic concessions

Negotiation Stage: Exchange Information

• Each party presents its position and shares favorable information

• Explains reasoning and highlights important issues

• Successful negotiators ask many questions and gather extensive info at this stage

Negotiation Stage: Bargaining

• Parties make concessions and trade-offs to reach agreement

• Goal: Both sides feel they’ve gained something valuable

• Outcome depends on negotiation strategy used

Closing and Commitment (Negotiation Stage)

• Formalizing the agreement reached during bargaining

• Or recognizing that no agreement was reached

Alternative Dispute Resolution (ADR)

• Conflict resolution using a neutral, trained third party

• Mediation: Facilitator helps parties find solution; no authority to decide

• Arbitration: Third party imposes a binding settlement

Perceived Power Bias in Negotiation

• Perception of power influences negotiation approach

• More perceived power → distributive (win-lose) approach

• Equal perceived power → integrative (win-win) approach

Negotiator Emotions and Bias

• Emotions impact negotiation style and decision making

• Positive emotions → more integrative but risk overconfidence and rushed decisions

• Negative emotions → more distributive and reduced judgment accuracy