2. What’s Conflict?
Is a process that begins when one party perceives that another
party has negatively affected, or is about to negatively affect,
something that the first party cares about.
Encompasses a wide range of conflicts that people experience
Incompatibility of goals
Differences over interpretations of facts
Disagreements based on behavioral expectations
3. When Conflict Occurs?
Conflict occurs whenever:-
Disagreements exist in a social situation over issues of
Emotional antagonisms cause frictions between individuals
5. Traditional View
The belief that all conflict is harmful and must be avoided.
• Poor communication
• Lack of openness
• Failure to respond to
• Poor communication
• Lack of openness
• Failure to respond to
6. Interactionist View
The belief that conflict is not
only a positive force in a
group but that it is absolutely
necessary for a group to
7. Resolution Focused View
Focused more on productive conflict resolution
Encouraging limited levels of conflict
Finding a method for resolving conflicts productively in order to
decrease the disruptive influence
The belief that conflict is a natural and inevitable outcome in any
9. Intra-personal Conflict
Actual or perceived pressures from incompatible goals or
Occurs between two or more individuals who are in opposition
to one another
10. Intra- Organizational Conflicts
Functional (or constructive) conflict
Results in positive benefits to
individuals, the group, or the
• Surfaces important problems
so they can be addressed.
• Causes careful consideration
• Causes reconsideration of
• Increases information
available for decision making.
Provides opportunities for
Dysfunctional (or destructive)
Works to the disadvantage of
individuals, the group, or the
• Diverts energies.
• Harms group cohesion.
• Promotes interpersonal
Creates overall negative
environment for workers
11. Inter-organizational conflict
Occurs in the competition and rivalry that characterize firms
operating in the same markets.
Occurs between unions and organizations employing their
Occurs between government regulatory agencies and
organizations subject to their surveillance.
Occurs between organizations and suppliers of raw materials.
13. Stage I: Potential Opposition or
Semantic difficulties, misunderstandings, and “noise”
Size and specialization of jobs
Leadership styles (close or participative)
Reward systems (win-lose)
Dependence/interdependence of groups
Differing individual value systems
17. Stage III: Intentions (cont’d)
A desire to satisfy one’s interests, regardless of the
impact on the other party to the conflict.
A situation in which the parties to a conflict each
desire to satisfy fully the concerns of all parties.
The desire to withdraw from or suppress a conflict.
18. Stage III: Intentions (cont’d)
The willingness of one party in a conflict to place the
opponent’s interests above his or her own.
A situation in which each party to a conflict is
willing to give up something.
21. Stage V: Outcomes
Functional Outcomes from Conflict
Increased group performance
Improved quality of decisions
Stimulation of creativity and innovation
Encouragement of interest and curiosity
Provision of a medium for problem-solving
Creation of an environment for self-evaluation and change
Creating Functional Conflict
Reward dissent and punish conflict avoiders.
22. Stage V: Outcomes
Dysfunctional Outcomes from Conflict
Development of discontent
Reduced group effectiveness
Reduced group cohesiveness
Infighting among group members overcomes group goals
Jack Derry – CEO
Eric Holt – Director of Strategy
Randy Louderback – Sales & Marketing
Ray LaPierre - Manufacturing
Maureen Turner - Design
Carl Simmons - Distribution
A process in which two or more parties exchange goods
or services and attempt to agree on the exchange rate for them
A give-and-take decision-making process
It is a collection of behaviours that involves communication, sales,
marketing, psychology, sociology, assertiveness and conflict
27. Distributive Negotiation
When two parties with opposing goals compete over set value
The key question
in a distributed negotiation
“Who will claim the
A Zero Sum exchange in which whatever one side gains, the other side loses
28. Integrative Negotiation
When two groups integrate interests,
create value, invest in the agreement (win-
The key questions
“How can the resource
best be utilized?”
39. Speak more quietly than them.
Have more space in between your words than them.
If they interrupt, pause for a few seconds after they finish.
Be critical of foul language.
Do not rise to a bait if they attack or blame you.
Ignore all threats.
43. Phase 1: Prep and Plan
Do your Home work
Focus on the objective
Identify your BANTA
44. Phase 2: Definition of ground
Define rules and procedures
Who will do the negotiation
What constraints are applicable
What procedure to follow if an impasse
45. Phase 3: Clarification and
After the Exchange of information in the
form of demands
Need not be confrontational
Addressing the importance and the
genesis of their needs
46. Phase 4: Bargaining and Problem
Actual give and take
Both parties try to hash out an
Concessions will have to be made
47. Phase 5: Closure and
Formalizing the agreement
Hammering out the specifics in a formal
In short just end it with a smile and a
48. Do’s and Don'ts
Don’t appear needy
Don’t take it personally
Don’t force it
Be prepared to walk away
Do your research
Ask for what you feel is yours
Practice, Practice, Practice
49. CHARACTERISTICS OF AN EFFECTIVE
He should be a good learner and observer.
Should know the body language of the people at the negotiation
Should be open and flexible and yet firm.
Exercise great patience, coolness and maturity.
Should possess leadership qualities.
50. Should control emotions and not
show his weaknesses.
Should bargain from the position of strength.
Should know and anticipate the pros and cons of his each move
and its repercussions.
Should know how to create the momentum for the negotiations
and must know when to exit and where to exit by closing the
51. Should build trust and confidence.
Should be confident and optimist.
Should have clear cut goals and objectives.
If necessary, he should provide a face saving formula for his
Should be able to grasp the situation from many dimensions.
Should know human psychology and face reading
52. Should not be a doubting Thomas.
Should plan and prepare thoroughly with relevant data and
information to avoid
blank mind in the process.
Should radiate energy and enthusiasm and must be in a position
to empathize with his opponents.
Should be a patient listener.
53. To develop these skills and use them
effectively, you must know:
what negotiation means and the various forms it can take
that negotiating, in the fullest sense, means forging long-
the role that the individual personalities play in negotiating
that you must take a variety of approaches to negotiation,
since no single set of principles will suffice in all
54. Negotiating and long-term
Good negotiators are the people who understand
how to build key relationships
how to identify what people need
how to give them what they need and
how to get what they want in return, all in a way that
55. Negotiating and individual
Autocratic managers typically hold the view that they are going to get
what they want when they interact with subordinates, because their
inherent authority precludes the need to negotiate.
These managers do not realize that, in the process of handing out
orders, they are engaged in a kind of one-sided negotiation that can
antagonize others, with the result that the tasks they wish to see
completed may be carried out improperly or not at all.
56. The Accommodating manager is
more concerned with what
others want than with their own
In order to avoid conflict, they do
not negotiate at all and often
end up overriding their own
57. Issues in Negotiation
The Role of Mood & Personality
Traits in Negotiation
Positive moods positively
Traits do not appear to have
a significantly direct effect
on the outcomes of either
bargaining or negotiating
extraversion, which is bad
58. Gender Differences in Negotiations
Women negotiate no differently from men, although men
apparently negotiate slightly better outcomes.
Men and women with similar power bases use the same
Women’s attitudes toward negotiation and their success as
negotiators are less favorable than men’s.
61. NEGOTIATION TIPS
1) Do not underestimate your power.
2) Do not assume that other party knows your weaknesses.
3) It is a mistake to assume you know what the other party wants.
4) Never accept the 1st offer.
5) Don’t fear to negotiate.
6) Listen !!
Notas do Editor
When preparing to negotiate a settlement, we generally think in terms of distributing the risk of loss among the parties.
Day-to-day / Managerial Negotiations Such types of negotiations are done within the organization and are related to the internal problems in the organization. It is in regards to the working relationship between the groups of employees. Usually, the manager needs to interact with the members at different levels in the organization structure. For conducting the day-to-day business, internally, the superior needs to allot job responsibilities, maintain a flow of information, direct the record keeping and many more activities for smooth functioning. All this requires entering into negotiations with the parties internal to the organization.
Commercial Negotiations Such types of negotiations are conducted with external parties. The driving forces behind such negotiations are usually financial gains. They are based on a give-and-take relationship. Commercial negotiations successfully end up into contracts. It relates to foregoing of one resource to get the other.
Legal Negotiations These negotiations are usually formal and legally binding. Disputes over precedents can become as significant as the main issue. They are also contractual in nature and relate to gaining legal ground.
Prepare, prepare, prepare. Enter a negotiation without proper preparation and you've already lost. Start with yourself. Make sure you are clear on what you really want out of the arrangement. Research the other side to better understand their needs as well as their strengths and weaknesses. Enlist help from experts, such as an accountant, attorney or tech guru. Pay attention to timing. Timing is important in any negotiation. Sure, you must know what to ask for. But be sensitive to when you ask for it. There are times to press ahead, and times to wait. When you are looking your best is the time to press for what you want. But beware of pushing too hard and poisoning any long-term relationship. Leave behind your ego. The best negotiators either don't care or don't show they care about who gets credit for a successful deal. Their talent is in making the other side feel like the final agreement was all their idea. Ramp up your listening skills. The best negotiators are often quiet listeners who patiently let others have the floor while they make their case. They never interrupt. Encourage the other side to talk first. That helps set up one of negotiation's oldest maxims: Whoever mentions numbers first, loses. While that's not always true, it's generally better to sit tight and let the other side go first. Even if they don't mention numbers, it gives you a chance to ask what they are thinking. If you don't ask, you don't get. Another tenet of negotiating is "Go high, or go home." As part of your preparation, define your highest justifiable price. As long as you can argue convincingly, don't be afraid to aim high. But no ultimatums, please. Take-it-or-leave-it offers are usually out of place.
Anticipate compromise. You should expect to make concessions and plan what they might be. Of course, the other side is thinking the same, so never take their first offer. Even if it's better than you'd hoped for, practice your best look of disappointment and politely decline. You never know what else you can get. Offer and expect commitment. The glue that keeps deals from unraveling is an unshakable commitment to deliver. You should offer this comfort level to others. Likewise, avoid deals where the other side does not demonstrate commitment. Don't absorb their problems. In most negotiations, you will hear all of the other side's problems and reasons they can't give you what you want. They want their problems to become yours, but don't let them. Instead, deal with each as they come up and try to solve them. If their "budget" is too low, for example, maybe there are other places that money could come from. Stick to your principles. As an individual and a business owner, you likely have a set of guiding principles — values that you just won't compromise. If you find negotiations crossing those boundaries, it might be a deal you can live without. Close with confirmation. At the close of any meeting — even if no final deal is struck — recap the points covered and any areas of agreement. Make sure everyone confirms. Follow-up with appropriate letters or emails. Do not leave behind loose ends.
This type of manager must learn to be more collaborative. Autocratic managers have a tendency to miss seeing the big picture. When these types of managers fail to negotiate effectively, the results of their efforts often suffer. While autocratic types may believe they are skilled negotiators, they often are not because they lack the ability to listen and to empathize.
Since negotiation often implies conflict (something these types of managers avoid at all costs), it is critical for them to take responsibility for forcing a certain amount of compromise. This is the only way they will be able to lead others effectively.