OB Conflict and Negotiation

Conflict

 A process that begins when one party perceives that another party has negatively affected, or is about to negatively affect, something the first party cares about

Functional Conflict

 Constructive conflict that supports group goals and improves performance

Functional Dysfunctional

 Destructive conflict that hinders group performance

Relationship Conflict

Focuses on interpersonal incompatibilities; almost always dysfunctional and psychologically exhausting

Task Conflict

Relates to the content and goals of the work; can be functional in decision-making teams if it leads to critical assessment

Process Conflict

Focuses on how the work gets done (delegation and roles)

Loci of Conflict

Dyadic: Between two people.

Intragroup: Within a group or team.

Intergroup: Between different groups or teams

The Conflict Process

The process consists of five stages

Stage I: Potential Opposition or Incompatibility:

Conditions like communication (too much or too little), structure (size, specialization, tenure), and personal variables (personality, emotions, values) create opportunities for conflict to arise

Stage II: Cognition and Personalization

Conflict is actualised. It can be perceived (awareness) or felt (emotional involvement leading to anxiety or frustration)

Stage III: Intentions

Decisions to act in a certain way based on assertiveness and cooperativeness. Five modes include

• Competing: Assertive and uncooperative

• Collaborating: Assertive and cooperative (win–win)

• Avoiding: Unassertive and uncooperative

• Accommodating: Unassertive and cooperative

• Compromising: Midrange on both (give-and-take)

Stage IV: Behavior

 Where conflict becomes visible through statements, actions, and reactions

Stage V: Outcomes

Functional results (increased performance/creativity) or dysfunctional results (poor communication, reduced cohesiveness)

Distributive Bargaining:

Negotiation that seeks to divide a fixed pie (win–lose). It focuses on short-term gains and positions

SAVVY tip: Using a precise first offer anchor can provide an advantage

Integrative Bargaining

Negotiation that seeks settlements that create a win–win solution. It builds long-term relationships and focuses on congruent interests

The Negotiation Process

1. Preparation and Planning: Identifying goals and the BATNA (Best Alternative to a Negotiated Agreement)—the least a party should accept

2. Definition of Ground Rules: Determining who, where, and what constraints apply.

3. Clarification and Justification: Explaining and bolstering original demands.

4. Bargaining and Problem Solving: The actual give-and-take to reach an agreement.

5. Closure and Implementation: Formalising the agreement.

Factors Influencing Negotiation

• Personality: Extraverted and open negotiators tend to have better experiences, though the link between personality and outcomes is generally weak.

• Moods/Emotions: Anger can elicit concessions if the negotiator has power; anxiety usually leads to lower outcomes.

• Culture: People generally negotiate more effectively within their own cultures than between them.

• Gender: Men and women do not differ significantly in negotiation outcomes, but women are less likely to initiate negotiations due to social role norms

• Social Context: Reputation (trustworthiness) and Relationships (repeated interactions) are critical social factors that encourage integrative problem-solving.

Third-Party Negotiations

When direct negotiations reach a stalemate, third parties can intervene

Mediator

A neutral third party who facilitates a solution using reasoning and persuasion

Arbitrator

 A third party with the authority to dictate an agreement

Conciliator

A trusted third party who provides an informal communication link