Conflict and Negotiation
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10 Conflict and Negotiation
Don't neglect the power of “yes”
The Key Point
Although cooperation and collaboration are ideal conditions, conflict and negotiation are ever present
in team and organizational dynamics. Everyone has to be able to deal with them in positive ways.
The word “yes” can often get things back on track when tensions build and communication falters in
teamwork and interpersonal relationships.
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What's Inside?
• Bringing OB to LIFE
Keeping It All Together When Mom's the Breadwinner
• Worth Considering … or Best Avoided?
Labor and Management Sides Disagree. Is a Strike the Answer?
• Checking Ethics in OB
Blogging Can Be Fun, But Bloggers Beware
• Finding the Leader in You
Alan Mulally Leads by Transforming an Executive Team
• OB in Popular Culture
Conflict and The Devil Wears Prada
• Research Insight
Words Affect Outcomes in Online Dispute Resolution
Copyright ©2014, 2012, 2010, 2008, 2005, John Wiley & Sons, Inc. All rights reserved.
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Conflict in Organizations
TYPES OF CONFLICT • LEVELS OF CONFLICT FUNCTIONAL AND DYSFUNCTIONAL
CONFLICT • CULTURE AND CONFLICT
We all need skills to work well with others who don't always agree with us, even in situations that are complicated and
stressful.1 Conflict occurs whenever disagreements exist in a social situation over issues of substance, or whenever
emotional antagonisms create frictions between individuals or groups.2 Team leaders and members can spend considerable
time dealing with conflicts. Sometimes they are direct participants, and other times they act as mediators or neutral third
parties to help resolve conflicts between other people.3 The fact is that conflict dynamics are inevitable in the workplace,
and it's best to know how to handle them.4
Types of Conflict
Conflicts in teams, at work, and in our personal lives occur in at least two basic forms: substantive and emotional. Both
types are common, ever present, and challenging. How well prepared are you to deal successfully with them?
Substantive conflict is a fundamental disagreement over ends or goals to be pursued and the means for their
accomplishment.5 A dispute with one's boss or other team members over a plan of action to be followed, such as the
marketing strategy for a new product, is an example of substantive conflict. When people work together every day, it is
only normal that different viewpoints on a variety of substantive workplace issues will arise. At times people will disagree
over such things as team and organizational goals, the allocation of resources, the distribution of rewards, policies and
procedures, and task assignments.
Emotional conflict involves interpersonal difficulties that arise over feelings of anger, mistrust, dislike, fear, resentment,
and the like.6 This conflict is commonly known as a “clash of personalities.” How many times, for example, have you
heard comments such as “I can't stand working with him” or “She always rubs me the wrong way” or “I wouldn't do what
he asked if you begged me”? When emotional conflicts creep into work situations, they can drain energies and distract
people from task priorities and goals. Yet, they emerge in a wide variety of settings and are common in teams, among coworkers, and in superior-subordinate relationships.
Levels of Conflict
Our first tendency may be to think of conflict as something that happens between two people, something we call
“interpersonal conflict.” Conflicts in teams and organizations take other forms as well, and each needs to be understood.
The full range of conflicts that we experience at work includes those emerging from the interpersonal, intrapersonal,
intergroup, and interorganizational levels.
Interpersonal conflict occurs between two or more individuals who are in opposition to one another. It may be
substantive, emotional, or both. Two teammates debating each other aggressively on the merits of hiring a specific job
applicant for the team is an example of a substantive interpersonal conflict. Two persons continually in disagreement over
each other's choice of words, work attire, personal appearance, or manners is an example of an emotional interpersonal
conflict. Both types of interpersonal conflict often arise in the performance assessment process where the traditional focus
has been on one person passing judgment on another. Sometimes the issue is one of substance—“Just exactly what does
‘poor’ performance mean?” asks the subordinate. Others times it is emotional—“I don't care if it is okay. Your long hair is
a misfit with the rest of the team,” says the boss. Even as performance reviews turn toward peer and 360° types, similar
issues can make assessments difficult interpersonal moments.
Intrapersonal conflict is tension experienced within the individual due to actual or perceived pressures from
incompatible goals or expectations. Approach-approach conflict occurs when a person must choose between two positive
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and equally attractive alternatives. An example is when someone has to choose between a valued promotion in the
organization or a desirable new job with another firm. Avoidance-avoidance conflict occurs when a person must choose
between two negative and equally unattractive alternatives. An example is being asked either to accept a job transfer to
another town in an undesirable location or to have one's employment with an organization terminated. Approachavoidance conflict occurs when a person must decide to do something that has both positive and negative consequences.
An example is being offered a higher-paying job with responsibilities that make unwanted demands on one's personal
time.
Intergroup conflict occurs between teams, perhaps ones competing for scarce resources or rewards or ones whose
members have emotional problems with one another. The classic example is conflict among functional groups or
departments, such as marketing and manufacturing. Sometimes these conflicts have substantive roots, such as marketing
focusing on sales revenue goals and manufacturing focusing on cost-efficiency goals. Other times such conflicts have
emotional roots, as when egotists in their respective departments want to look better than each other in a certain situation.
Intergroup conflict is quite common in organizations, and it can make the coordination and integration of task activities
very difficult.7 The growing use of cross-functional teams and task forces is one way of trying to minimize such conflicts
by improving horizontal communication.
Interorganizational conflict is most commonly thought of in terms of the rivalry that characterizes firms operating in
the same markets. A good example is business competition between U.S. multinationals and their global rivals: Ford
versus Hyundai, or AT&T versus Vodaphone, or Boeing versus Airbus, for example. But interorganizational conflict is a
much broader issue than that represented by market competition alone. Other common examples include disagreements
between unions and the organizations employing their members, between government regulatory agencies and the
organizations subject to their surveillance, between organizations and their suppliers, and between organizations and
outside activist groups.
Functional and Dysfunctional Conflict
Any type of conflict in teams and organizations can be upsetting both to the individuals directly involved and to others
affected by its occurrence. It can be quite uncomfortable, for example, to work on a team where two co-workers are
continually hostile toward each other, or where your team is constantly battling another to get resources from top
management attention. As Figure 10.1 points out, however, it's important to recognize that conflict can have a functional or
constructive side as well as a dysfunctional or destructive side.
F I G U R E 1 0 . 1 The two faces of conflict: functional conflict and dysfunctional
conflict.
WORTH CONSIDERING …OR BEST AVOIDED?
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Labor and Management Sides Disagree. Is a Strike the Answer?
It's hard to find a person who isn't in favor of good-quality schools. But when it comes time to change
schools in search of a better future, teachers, administrators, and school boards sometimes have a hard
time reaching agreement.
Take the case of Chicago. Mayor Rahm Emmanuel supported changes to lengthen school days, pay
teachers on merit based in part on measures of student performance, and close some schools and open
new ones. After months of negotiation teachers were given a 16 percent salary increase over 4 years.
Nonetheless, the teacher's union went on strike over concerns about teacher evaluations, job security, and
rules for hiring and firing teachers.
Even after a tentative agreement was reached by negotiators, the strike continued. Lewis said teachers
were “not happy with the agreement. They'd like it to actually be a lot better.” Robert Bruno, a labor law
professor at the University of Illinois at Chicago, said, “I'm hard pressed to imagine how they could have
done much better.” A parent commented, “What's the point of going on strike if you don't get everything you
need out of it?”
When the strike was over, more than 350,000 Chicago school kids had missed 9 days of school.
Do the Analysis
In contrast to the Chicago school situation, Ford and the Canadian Auto Workers Union
negotiated a new labor contract without a strike. The union's top negotiator said, “It's a damn
good deal in these economic times,” and Ford's negotiator said it “will improve competitiveness
of the Canadian operations.” So, is striking the answer when labor-management conflict hits the
wall? Who wins and who loses when strikes occur? When conflicts occur, does having the threat
of a strike on the table make management more willing to listen? What skills and conditions
make reaching agreements more likely in high conflict situations?
Information from Amanda Ripley, “Training Teachers to Embrace Reform,” Wall Street Journal (September 15-16, 2012), p.
C2; Stephanie Banchero and Melanie Trottman, “Chicago Teachers, City Reach Tentative Deal,” Wall Street Journal
(September 15-16, 2012), p. A3; and, “Chicago Teachers Strike Continues, Rahm Emanuel Turns to Courts,” Fox News
Latino, latino.foxnews.com (accessed September 18, 2012).
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Functional conflict , also called constructive conflict, results in benefits to individuals, the team, or the organization.
This positive conflict can bring important problems to the surface so they can be addressed. It can cause decisions to be
considered carefully and perhaps reconsidered to ensure that the right path of action is being followed. It can increase the
amount of information used for decision making. It can offer opportunities for creativity that can improve performance.
Indeed, an effective manager or team leader is able to stimulate constructive conflict in situations in which satisfaction
with the status quo is holding back needed change and development.
Dysfunctional conflict , or destructive conflict, works to the disadvantage of an individual or team. It diverts energies,
hurts group cohesion, promotes interpersonal hostilities, and creates an overall negative environment for workers. This
type of conflict occurs, for example, when two team members are unable to work together because of interpersonal
differences—a destructive emotional conflict—or when the members of a work unit fail to act because they cannot agree
on task goals—a destructive substantive conflict. Destructive conflicts of these types can decrease performance and job
satisfaction as well as contribute to absenteeism and job turnover. Managers and team leaders should be alert to destructive
conflicts and be quick to take action to prevent or eliminate them—or at least minimize any harm done.
CHECKING ETHICS IN OB
Blogging Can Be Fun, But Bloggers Beware
It is easy and tempting to set up your own blog, write about your experiences and impressions, and then
share your thoughts with others online. So, why not do it?
Catherine Sanderson, a British citizen living and working in Paris, might have asked this question before
launching her blog, Le Petite Anglaise. At one point it was so “successful” that she had 3,000 readers. But
the Internet diary included reports on her experiences at work—and her employer, the accounting firm
Dixon Wilson, wasn't at all happy when it became public knowledge.
Even though Sanderson was blogging anonymously, her photo was on the site, and the connection was
eventually discovered. Noticed, too, was her running commentary about bosses, colleagues, and life at the
office. One boss, she wrote, “calls secretaries ‘typists.’” A Christmas party was described in detail, including
an executive's “unforgivable faux pas.” Under the heading “Titillation,” she told how she displayed cleavage
during a video conference at the office.
When it all came out, Sanderson says that she was “dooced”—a term used to describe being fired for what
one writes in a blog. She sued for financial damages and confirmation of her rights, on principle, to have a
private blog. The court awarded her a year's salary.
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Who's in the Right?
Would you agree with the observer who asks, “Say you worked for a large corporation, and in your spare
time you wrote an anonymous ‘insider's view’ column for the Financial Times. Would you expect anything
less than termination upon discovery?” Or would you agree with another, who asks, “Where does the
influence your employer has on your day-to-day life stop?” Just what are the ethics issues here—from the
blogger's and the employer's perspectives? Who has what rights when it comes to communicating in public
about one's work experiences and impressions?
Information from Bridget Jones, “Blogger Fire Fury,” CNN.com (July 19, 2006); and Bobbie Johnson, “Briton Sacked for
Writing Paris Blog Wins Tribunal Case,” The Guardian (March 29, 2007):
www.guardian.co.uk/technology/2007/mar/30/news.france?INTCMP=SRCH (accessed July 2, 2013).
Culture and Conflict
Society today shows many signs of cultural wear and tear in social relationships. We experience difficulties born of racial
tensions, homophobia, gender gaps, and more. They arise from tensions among people who are different from one another
in some way. They are also a reminder that cultural differences must be considered for their conflict potential. Consider the
cultural dimension of time orientation. When persons from short-term cultures such as the United States try to work with
persons from long-term cultures such as Japan, the likelihood of conflict developing is high. The same holds true when
individualists work with collectivists and when persons from high-power-distance cultures work with those from lowpower-distance cultures.8
People who are not able or willing to recognize and respect cultural differences can cause dysfunctional conflicts in
multicultural teams. On the other hand, members with cultural intelligence and sensitivity can help the team to unlock its
performance advantages. Consider these comments from members of a joint European and American project team at
Corning. American engineer: “Something magical happens. Europeans are very creative thinkers; they take time to really
reflect on a problem to come up with the very best theoretical solution. Americans are more tactical and practical—we
want to get down to developing a working solution as soon as possible.” French teammate: “The French are more focused
on ideas and concepts. If we get blocked in the execution of those ideas, we give up. Not the Americans. They pay more
attention to details, processes, and time schedules. They make sure they are prepared and have involved everyone in the
planning process so that they won't get blocked. But it's best if you mix the two approaches. In the end, you will achieve
the best results.”9
Copyright ©2014, 2012, 2010, 2008, 2005, John Wiley & Sons, Inc. All rights reserved.
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Conflict Management
STAGES OF CONFLICT • HIERARCHICAL CAUSES OF CONFLICT CONTEXTUAL
CAUSES OF CONFLICT INDIRECT CONFLICT MANAGEMENT STRATEGIES DIRECT
CONFLICT MANAGEMENT STRATEGIES
Conflict can be addressed in many ways, but true conflict resolution —a situation in which the underlying reasons for
dysfunctional conflict are eliminated—can be elusive. When conflicts go unresolved, the stage is often set for future
conflicts of the same or related sort. Rather than trying to deny the existence of conflict or settle on a temporary resolution,
it is always best to deal with important conflicts in such ways that they are completely resolved.10 This requires a good
understanding of the stages of conflict, the potential causes of conflict, and indirect and direct approaches to conflict
management.
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Stages of Conflict
Most conflicts develop in the stages shown in the nearby figure. Conflict antecedents establish the conditions from which
conflicts are likely to emerge. When the antecedent conditions become the basis for substantive or emotional differences
between people or groups, the stage of perceived conflict exists. Of course, this perception may be held by only one of the
conflicting parties.
There is quite a difference between perceived and felt conflict. When conflict is felt, it is experienced as tension that
motivates the person to take action to reduce feelings of discomfort. For conflict to be resolved, all parties should perceive
the conflict and feel the need to do something about it.
Manifest conflict is expressed openly in behavior. At this stage removing or correcting the antecedents results in conflict
resolution, whereas failing to do so results in conflict suppression. With suppression, no change in antecedent conditions
occurs even though the manifest conflict behaviors may be temporarily controlled. This occurs, for example, when one or
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both parties choose to ignore conflict in their dealings with one another. Conflict suppression is a superficial and often
temporary state that leaves the situation open to future conflicts over similar issues. Only true conflict resolution
establishes conditions that eliminate an existing conflict and reduce the potential for it to recur in the future.
Hierarchical Causes of Conflict
The nature of organizations as hierarchical systems provides a convenient setting for conflicts as individuals and teams try
to work with one another. Vertical conflict occurs between levels and commonly involves supervisor-subordinate and team
leader-team member disagreements over resources, goals, deadlines, or performance results. Horizontal conflict occurs
between persons or groups working at the same organizational level.
Hierarchical conflicts commonly arise from goal incompatibilities, resource scarcities, or purely interpersonal factors.
Line-staff conflict involves disagreements between line and staff personnel over who has authority and control over
decisions on matters such as budgets, technology, and human resource practices. Also common are role ambiguity conflicts
that occur when the communication of task expectations is unclear or upsetting in some way, such as a team member
receiving different expectations from the leader and other members. Conflict is always likely when people are placed in
ambiguous situations where it is hard to understand who is responsible for what, and why.
Contextual Causes of Conflict
The context of the organization as a complex network of interacting subsystems is a breeding ground for conflicts. Task
and workflow interdependencies cause disputes and open disagreements among people and teams who are required to
cooperate to meet challenging goals.11 Conflict potential is especially great when interdependence is high—that is, when a
person or group must rely on or ask for contributions from one or more others to achieve its goals. Conflict escalates with
structural differentiation, when different teams and work units pursue different goals with different time horizons as
shown in Figure 10.2. Conflict also develops out of domain ambiguities, when individuals or teams lack adequate task
direction or goals and misunderstand such things as customer jurisdiction or scope of authority.
F I G U R E 1 0 . 2 Structural differentiation as a potential source of conflict
among functional teams.
Stay Alert for These Common Causes of Conflicts in Organizations
• Unresolved prior conflicts— When conflicts go unresolved, they remain latent and often emerge again in
the future as the basis for conflicts over the same or related matters.
• Role ambiguities— When people aren't sure what they are supposed to do, conflict with others is likely;
task uncertainties increase the odds of working at cross-purposes at least some of the time.
• Resource scarcities— When people have to share resources with one another and/or when they have to
compete with one another for resources, the conditions are ripe for conflict.
• Task interdependencies— When people must depend on others doing things first before they can do
their own jobs, conflicts often occur; dependency on others creates anxieties and other pressures.
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• Domain ambiguities— When people are unclear about how their objectives or those of their teams fit
with those being pursued by others, or when their objectives directly compete in win-lose fashion,
conflict is likely to occur.
• Structural differentiation— When people work in parts of the organization where structures, goals, time
horizons, and even staff compositions are very different, conflict is likely with other units.
Actual or perceived resource scarcity can foster destructive conflict. Working relationships are likely to suffer as
individuals or teams try to position themselves to gain or retain maximum shares of a limited resource pool. They are also
likely to resist having their resources redistributed to others.
Power or value asymmetries in work relationships can also create conflict. They exist when interdependent people or
teams differ substantially from one another in status and influence or in values. Conflict resulting from asymmetry is
likely, for example, when a low-power person needs the help of a high-power person who does not respond, when people
who hold dramatically different values are forced to work together on a task, or when a high-status person is required to
interact with and perhaps be dependent on someone of lower status.
Indirect Conflict Management Strategies
Most people will tell you that not all conflict in teams and organizations can be resolved by getting everyone involved to
adopt new attitudes, behaviors, and stances toward one another. Think about it. Aren't there likely to be times when
personalities and emotions prove irreconcilable? In such cases an indirect or structural approach to conflict management
can often help. It uses such strategies as reduced interdependence, appeals to common goals, hierarchical referral, and
alterations in the use of mythology and scripts to deal with the conflict situation.
Managed Interdependence
When workflow conflicts exist, managers can adjust the level of interdependency among teams or individuals.12 One
simple option is decoupling, or taking action to eliminate or reduce the required contact between conflicting parties. In
some cases, team tasks can be adjusted to reduce the number of required points of coordination. The conflicting parties are
separated as much as possible from one another.
Buffering is another approach that can be used when the inputs of one team are the outputs of another. The classic
buffering technique is to build an inventory, or buffer, between the teams so that any output slowdown or excess is
absorbed by the inventory and does not directly pressure the target group. Although it reduces conflict, this technique is
increasingly out of favor because it increases inventory costs.
“This puts me smack in the middle of a distinctively modern dilemma:
how to handle the tensions of a marriage between an alpha woman
and a beta man?”
Keeping It All Together When Mom's the Breadwinner
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Members of today's new generation were largely raised with a sense of male-female equality. But is the
man prepared for the woman to be the primary breadwinner? It wasn't too long ago that this question would
have seemed out of the ordinary. After all, the female partner or spouse as breadwinner was pretty much
an anomaly. Times have changed, and both men and women are facing adjustments.
The U.S. Bureau of Labor Statistics reports that some 40 percent of women earn more than their
husbands, and wives out-earn husbands in 35 percent of families in top income brackets. Susan is one,
and says, “This puts me smack in the middle of a distinctively modern dilemma: how to handle the tensions
of a marriage between an alpha woman and a beta man?” Michelle is another and she says that gender
role reversal—man takes care of the kids and chores while the woman goes to work—“puts immense
pressure on our marriage.”
Even though many, perhaps most, men don't have a problem with their partners or wives out-earning them,
the stereotype still puts them in an awkward position. What does the label “house husband” mean to you
—“slacker dude letting his wife do the heavy work” or “modern guy finding fulfillment in his role?” When Jon
says, “I'm not the ambitious type like Alison, so I'm happy for her to make more money,” does that make
something less of him in their life partnership? When Greg says, “I do feel angry and helpless because I
can't support the family unit,” what are the implications for his self-concept, work, and family relationships?
OB is heavy into issues of work-life balance, and the issues seem to be getting more complex than ever.
More understanding of gender role reversals and female breadwinners would be useful. Indications are that
relationships are better when couples are open with one another and in general agreement about what's
taking place and why. Maybe OB can fill in the details and help couples increase the likelihood that both
parties will be satisfied at home, at work, and in their relationship.
Information from Susan Gregory Thomas, “When the Wife Has a Fatter Paycheck,” Wall Street Journal (July21-22, 2012), p.
C2.
Conflict can sometimes be reduced by assigning people to serve as liaisons between groups that are prone to conflict.13
Persons in these linking-pin roles are expected to understand the operations, members, needs, and norms of their host
teams. They are supposed to use this knowledge to help the team work better with others in order to accomplish mutual
tasks.
Appeals to Common Goals
An appeal to common goals can focus the attention of conflicting individuals and teams on one mutually desirable
conclusion. This elevates any dispute to the level of common ground where disagreements can be put in perspective. In a
course team where members are arguing over content choices for a PowerPoint presentation, for example, it might help to
remind everyone that the goal is to impress the instructor and get an “A” for the presentation and that this is only possible
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if everyone contributes their best.
OB IN POPULAR CULTURE
Conflict and The Devil Wears Prada
Who wears Prada? In the hit movie The Devil Wears Prada, there is no doubt that it is Miranda Priestly
(Meryl Streep). She's quite a contrast to her new assistant Andrea Sachs (Anne Hathaway). “Andy” is
clearly out of her element when it comes to working in the fashion industry. As an assistant to the
demanding Miranda, editor-in-chief of Runway magazine, she frequently finds herself assigned to
impossible tasks.
In one scene, Andy is sent to retrieve sketches from designer James Holt (Daniel Sunjata) and gets buried
in a party. She meets famed writer Christian Thompson (Simon Baker). Their conversation centers on
career talk, but it's easy to see that Thompson has other motives. Although Andy recognizes this to a
degree, she also realizes this relationship could have real value in terms of helping her meet Miranda's
“impossible demands.”
There are many work themes in this movie, from good boss-bad boss issues to everyday “How do you get
along in a tough job” insights. The next time you watch it, however, check how the various players use or
don't use conflict management and negotiation skills.
Management consultant William C. Byham says it is important to forge “deliberate connections” on the job.
These connections become networks for learning, collaboration, and work accomplishment. They help us
build all-important social capital: the capacity to enlist the help and support of others when it is needed.
Get to Know Yourself Better
Take Assessment 18, Conflict Management Strategies, in the OB Skills Workbook. Think seriously about
how you handle conflict and negotiation situations in your personal and work situations. What did you learn
in this assessment about your preferred style for dealing with conflict? Sometimes the styles tend to be
about equal. In other cases, we may learn that we have a dominant style. What about you? If you have a
dominant style, how well does it serve you?
W. C. Byham, “Start Networking Right Away (Even if You Hate It),” Harvard Business Review 87 (January, 2009), p. 22.
Upward Referral
14
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Upward referral uses the chain of command for conflict resolution.14 Problems are moved up from the level of conflicting
individuals or teams for more senior managers to address. Although tempting, this has limitations. If conflict is severe and
recurring, the continual use of upward referral may not result in true conflict resolution. Higher managers removed from
day-to-day affairs may fail to see the real causes of a conflict, and attempts at resolution may be superficial. In addition,
busy managers may tend to blame the people involved and perhaps act quickly to replace them.
Altering Scripts and Myths
In some situations, conflict is superficially managed by scripts, or behavioral routines, that are part of the organization's
culture.15 The scripts become rituals that allow the conflicting parties to vent their frustrations and to recognize that they
are mutually dependent on one another. An example is a monthly meeting of department heads that is held presumably for
purposes of coordination and problem solving but actually becomes just a polite forum for agreement.16 Managers in such
cases know their scripts and accept the difficulty of truly resolving any major conflicts. For instance, by sticking with the
script, expressing only low-key disagreement, and then quickly acting as if everything has been taken care of, the
managers can leave the meeting with everyone feeling a superficial sense of accomplishment.
Direct Conflict Management Strategies
In addition to the indirect conflict management strategies just discussed, it is also very important to understand how
conflict management plays out in face-to-face fashion. Figure 10.3 shows five direct conflict management strategies that
vary in their emphasis on cooperativeness and assertiveness in the interpersonal dynamics of the situation. Although true
conflict resolution can occur only when a conflict is dealt with through a solution that allows all conflicting parties to
“win,” the reality is that direct conflict management may also pursue lose-lose and win-lose outcomes.17
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F I G U R E 1 0 . 3 Five direct conflict management strategies.
Lose-Lose Strategies
Lose-lose conflict occurs when nobody really gets what he or she wants in a conflict situation. The underlying reasons for
the conflict remain unaffected, and a similar conflict is likely to occur in the future. Lose-lose outcomes are likely when
the conflict management strategies involve little or no assertiveness. Avoidance is the extreme where no one acts
assertively and everyone simply pretends the conflict doesn't exist and hopes it will go away. Accommodation (or
smoothing) as it is sometimes called, involves playing down differences among the conflicting parties and highlighting
similarities and areas of agreement. This peaceful coexistence ignores the real essence of a conflict and often creates
frustration and resentment. Compromise occurs when each party shows moderate assertiveness and cooperation and is
ultimately willing to give up something of value to the other. Because no one gets what they really wanted, the antecedent
conditions for future conflicts are established.
Win-Lose Strategies
In win-lose conflict, one party achieves its desires at the expense and to the exclusion of the other party's desires. This is a
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high-assertiveness and low-cooperativeness situation. It may result from outright competition in which one party
achieves a victory through force, superior skill, or domination. It may also occur as a result of authoritative command ,
whereby a formal authority such as manager or team leader simply dictates a solution and specifies what is gained and
what is lost by whom. Win-lose strategies fail to address the root causes of the conflict and tend to suppress the desires of
at least one of the conflicting parties. As a result, future conflicts over the same issues are likely to occur.
Win-Win Strategies
Win-win conflict is achieved by a blend of both high cooperativeness and high assertiveness.18 Collaboration and
problem solving involve recognition by all conflicting parties that something is wrong and needs attention. It stresses
gathering and evaluating information in solving disputes and making choices. All relevant issues are raised and openly
discussed. Win-win outcomes eliminate the reasons for continuing or resurrecting the conflict because nothing has been
avoided or suppressed.
The ultimate test for collaboration and problem solving is whether or not the conflicting parties see that the solution to the
conflict: (1) achieves each party's goals, (2) is acceptable to both parties, and (3) establishes a process whereby all parties
involved see a responsibility to be open and honest about facts and feelings. When success in each of these areas is
achieved, the likelihood of true conflict resolution is greatly increased. However, this process often takes time and
consumes lots of energy, to which the parties must be willing to commit. Collaboration and problem solving aren't always
feasible, and the other strategies are sometimes useful if not preferred.19 As the “You Should Know …” features points
out, each of the conflict management strategies may have advantages under certain conditions.
Know When to Use Alternative Conflict Management Strategies
• Avoidance may be used when an issue is trivial, when more important issues are pressing, or when
people need to cool down temporarily and regain perspective.
• Accommodation may be used when issues are more important to others than to yourself or when you
want to build “credits” for use in later disagreements.
• Compromise may be used to arrive at temporary settlements of complex issues or to arrive at expedient
solutions when time is limited.
• Authoritative command may be used when quick and decisive action is vital or when unpopular actions
must be taken.
• Collaboration and problem solving are used to gain true conflict resolution when time and cost permit.
Copyright ©2014, 2012, 2010, 2008, 2005, John Wiley & Sons, Inc. All rights reserved.
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Negotiation
ORGANIZATIONAL SETTINGS FOR NEGOTIATION NEGOTIATION GOALS AND
OUTCOMES • ETHICAL ASPECTS OF NEGOTIATION
Picture yourself trying to make a decision. Situation: You are about to order a new tablet device for a team member in your
department. Then another team member submits a request for one of a different brand. Your boss says that only one brand
can be ordered. Situation: You have been offered a new job in another city and want to take it, but you are disappointed
with the salary. You've heard friends talk about how they “negotiated” better offers when taking jobs. You are concerned
about the costs of relocating and would like a signing bonus as well as a guarantee of an early salary review.
The preceding examples are just two of the many situations that involve negotiation —the process of making joint
decisions when the parties involved have different preferences.20 Negotiation has special significance in teams and work
settings, where disagreements are likely to arise over such diverse matters as wage rates, task objectives, performance
evaluations, job assignments, work schedules, work locations, and more.
Organizational Settings for Negotiation
Managers and team leaders should be prepared to participate in at least four major action settings for negotiations. In a twoparty negotiation, the manager negotiates directly with one other person. In a group negotiation, the manager is part of a
team or group whose members are negotiating to arrive at a common decision. In an intergroup negotiation, the manager is
part of a team that is negotiating with another group to arrive at a decision regarding a problem or situation affecting both.
In a constituency negotiation, each party represents a broader constituency—for example, representatives of management
and labor negotiating a collective bargaining agreement.
Negotiation Goals and Outcomes
Two important goals are at stake in any negotiation: substance goals and relationship goals. Substance goals deal with
outcomes that relate to the content issues under negotiation. The dollar amount of a salary offer in a recruiting situation is
one example. Relationship goals deal with outcomes that relate to how well people involved in the negotiation and any
constituencies they may represent are able to work with one another once the process is concluded. An example is the
ability of union members and management representatives to work together effectively after a labor contract dispute has
been settled.
Effective negotiation occurs when substance issues are resolved and working relationships are maintained or even
improved. In practice, think of this in terms of two criteria for effective negotiation:
Criteria of effective negotiation
• Quality of outcomes— The negotiation results in a “quality” agreement that is wise and satisfactory to all sides.
• Harmony in relationships— The negotiation is “harmonious” and fosters rather than inhibits good interpersonal
relations.
Ethical Aspects of Negotiation
It would be ideal if everyone involved in a negotiation followed high ethical standards of conduct, but this goal can get
sidetracked by an overemphasis on self-interests. The motivation to behave ethically in negotiations can be put to the test
by each party's desire to get more than the other from the negotiation and/or by a belief that there are insufficient resources
to satisfy all parties.21 After the heat of negotiations dies down, the parties may try to rationalize or explain away
questionable ethics as unavoidable, harmless, or justified. Such after-the-fact rationalizations can have long-run negative
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consequences, such as not being able to achieve one's wishes again the next time. At the very least, the unethical party may
be the target of revenge tactics by those who were disadvantaged. Once some people have behaved unethically in one
situation, furthermore, they may become entrapped by such behavior and may be more likely to display it again in the
future.22
FINDING THE LEADER IN YOU
Alan Mulally Leads by Transforming an Executive Team
Why did a CEO brought in from outside the industry fare the best as the Big Three automakers went into
crisis mode during the economic downturn? That's a question that Ford Motor Company's chairman, William
Clay Ford Jr., has been happy to answer. The person he's talking about is Alan Mulally, a former Boeing
executive that Ford hired to retool the firm and put it back on a competitive track.
Many wondered at the time if an “airplane guy” could run an auto company. It isn't easy to come in from
outside an industry and successfully lead a huge firm. Mulally's management experience and insights are
proving well up to the task. One consultant remarked, “The speed with which Mulally has transformed Ford
into a more nimble and healthy operation has been one of the more impressive jobs I've seen.” He went on
to say that without Mulally's impact, Ford might well have gone out of business.
In addition to making changes to modernize plants and streamline operations, Mulally tackled the
bureaucratic problems common to many extremely large organizations—particularly those dealing with
functional chimneys and a lack of open communication. William Ford says that the “old” Ford had a culture
that “loved to meet” and in which managers got together to discuss the message they wanted to
communicate to the top executives. Mulally changed all that.
He began with a focus on transparency and data-based decision making. He pushed for greater
cooperation between Ford's divisions. He pursued a more centralized approach to global operations, one
that focused on building vehicles to sell in many markets. When some of the senior executives balked and
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tried to go directly to Ford with their complaints, Mulally refused. “I didn't permit it,” he says, thus reinforcing
his authority to run the firm his way.
Ford's a dividend-paying stock once again, and Mulally has gained lots of respect for his executive prowess.
One of his senior managers says, “I've never had such consistency of purpose before.” The next big
question is: “Who's going to replace Mulally?” He's due for retirement soon.
What's the Lesson Here?
How comfortable are you with conflict? Can you tolerate heated discussions around you, and can
you recognize the difference between productive and nonproductive conflict? Would you be able to
stand firm when others disagree with you (e.g., try to protect the status quo), or would you question
your judgment?
Information and quotes from David Kiley, “Ford’s Savior?” BusinessWeek (March 16, 2009), pp. 31-34;and Alex Taylor III,
“Fixing up Ford,” Fortune (May 14, 2009).
Copyright ©2014, 2012, 2010, 2008, 2005, John Wiley & Sons, Inc. All rights reserved.
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Negotiation Strategies
APPROACHES TO DISTRIBUTIVE NEGOTIATION
HOW TO GAIN INTEGRATIVE AGREEMENTS • COMMON NEGOTIATION PITFALLS
THIRD-PARTY ROLES IN NEGOTIATION
When we think about negotiating for something, perhaps cars and salaries are the first things that pop into mind. But people
in organizations are constantly negotiating over not only just pay and raises, but also such things as work rules or
assignments, rewards, and access to any variety of scarce resources—money, time, people, facilities, equipment, and so on.
The strategy used can have a major influence on how the negotiation transpires and its outcomes.
Two broad negotiation strategies differ markedly in approach and possible outcomes. Distributive negotiation focuses
on positions staked out or declared by conflicting parties. Each party tries to claim certain portions of the available “pie”
whose overall size is considered fixed. Integrative negotiation , sometimes called principled negotiation, focuses on the
merits of the issues. Everyone involved tries to enlarge the available pie and find mutually agreed-on ways of distributing it,
rather than stake claims to certain portions of it.23 Think of the conversations you overhear and are part of in team
situations. The notion of “my way or the highway” is analogous to distribution negotiation; “Let's find a way to make this
work for both of us” is more akin to integrative negotiation.
Approaches to Distributive Negotiation
Participants in distributive negotiation usually approach it as a win-lose episode. Things tend to unfold in one of two
directions—a hard battle for dominance or a soft and quick concession. Neither one nor the other delivers great results.
“Hard” distributive negotiation takes place when each party holds out to get its own way. This leads to competition,
whereby each party seeks dominance over the other and tries to maximize self-interests. The hard approach may lead to a
win-lose outcome in which one party dominates and gains, or it can lead to an impasse.
“Soft” distributive negotiation takes place when one party or both parties make concessions just to get things over with.
This soft approach leads to accommodation—in which one party gives in to the other—or to compromise—in which each
party gives up something of value in order to reach agreement. In either case at least some latent dissatisfaction is likely to
remain.
Figure 10.4 illustrates classic two-party distributive negotiation by the example of the graduating senior negotiating a job
offer with a recruiter.24 Look at the situation first from the graduate's perspective. She has told the recruiter that she would
like a salary of $60,000; this is her initial offer. However, she also has in mind a minimum reservation point of $50,000—
the lowest salary that she will accept for this job. Thus she communicates a salary request of $60,000 but is willing to
accept one as low as $50,000. The situation is somewhat the reverse from the recruiter's perspective. His initial offer to the
graduate is $45,000, and his maximum reservation point is $55,000; this is the most he is prepared to pay.
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F I G U R E 1 0 . 4 The bargaining zone in classic two-party negotiation.
Sooner or Later You'll Need to Know How to Negotiate a Better Raise
We've all done it—wish we'd asked for more when negotiating a starting salary or a pay raise. Why didn't
we? And, even if we did, would it have made a difference? Chances are you'll go into a salary negotiation
unprepared. And you may pay a price for that. There's quite a bit of advice around for how to negotiate pay
raises. A compilation of thoughts and tips follows.
• Prepare, prepare, prepare— do the research and find out what others make for a similar position inside
and outside the organization, including everything from salary to benefits, bonuses, incentives, and job
perks.
• Document and communicate— identify and communicate your value; put forth a set of accomplishments
that show how you have saved or made money and created value for an employer, or how your skills
and attributes will do so for a prospective one.
• Advocate and ask— be your own best advocate; in salary negotiation, the rule is “Don't ask, don't get.”
But don't ask too soon; your boss or interviewer should be the first to bring up salary.
• Stay focused on the goal— the goal is to satisfy your interests to the maximum extent possible; this
means everything from getting immediate satisfaction to being better positioned for future satisfaction.
• View the details from the other side— test your requests against the employer's point of view; ask if you
are being reasonable, convincing, and fair; ask how the boss could explain to higher levels and to your
peers a decision to grant your request.
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• Don't overreact to bad news— never “quit on the spot” if you don't get what you want; be willing to
search for and consider alternative job offers.
The bargaining zone is the range between one party's minimum reservation point and the other party's maximum
reservation point. In Figure 10.4, the bargaining zone is $50,000 to $55,000. This is a positive bargaining zone since the
reservation points of the two parties overlap.
Whenever a positive bargaining zone exists, bargaining has room to unfold. Had the graduate's minimum reservation point
been greater than the recruiter's maximum reservation point (for example, $57,000), no room would have existed for
bargaining. Classic two-party bargaining always involves the delicate tasks of first discovering the respective reservation
points—one's own and the other's. Progress can then be made toward an agreement that lies somewhere within the
bargaining zone and is acceptable to each party.
How to Gain Integrative Agreements
The integrative approach to negotiation is less confrontational than the distributive, and it permits a broader range of
alternatives to be considered in the negotiation process. From the outset there is much more of a win-win orientation. Even
though it may take longer, the time, energy, and effort needed to negotiate an integrated agreement can be well worth the
investment. Always, the integrative or principled approach involves a willingness to negotiate based on the merits of the
situation. The foundations for gaining truly integrative agreements can be described as supportive attitudes, constructive
behaviors, and good information.25
Attitudinal Foundations
There are three attitudinal foundations of integrative agreements. First, each party must approach the negotiation with a
willingness to trust the other party. This is a reason why ethics and maintaining relationships are so important in
negotiations. Second, each party must convey a willingness to share information with the other party. Without shared
information, effective problem solving is unlikely to occur. Third, each party must show a willingness to ask concrete
questions of the other party. This further facilitates information sharing.
Two-Tier Wages a Hot Button Issue in Labor-Management Negotiations
It was tough for automakers to sell cars and trucks when consumers were struggling. It was tough to earn a
profit when costs, especially legacy pension costs, were high. And it was tough to compete with foreign
carmakers who were building new cost-efficient plants. America's big firms—Chrysler, Ford, General Motors
—responded with a two-tier wage system that pays new workers substantially less (up to one-half less) than
existing workers doing the same job. So far the industry's labor unions have gone along with the two-tier
system. It's appearing in other settings as well—many new teachers, for example, face similar two-tier
systems. Some say two-tier wages are just a stopgap measure that will fade away with an improving
economy? Others say they're here to stay.
See Bill Vlasic, “Equal Work, Unequal Pay at U.S. Auto Plants,” New York Times, Global Edition (September 14, 2011),
p. 15.
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Behavioral Foundations
All behavior during a negotiation is important for both its actual impact and the impressions it leaves behind. This means
the following behavioral foundations of integrative agreements must be carefully considered and included in any
negotiator's repertoire of skills and capabilities:
How to gain integrative agreements
• Separate people from the problem.
• Don't allow emotional considerations to affect the negotiation.
• Focus on interests rather than positions.
• Avoid premature judgments.
• Keep the identification of alternatives separate from their evaluation.
• Judge possible agreements by set criteria or standards.
Information Foundations
The information foundations of integrative agreements are substantial. They involve each party becoming familiar with the
best alternative to a negotiated agreement (BATNA). That is, each party must know what he or she will do if an agreement
cannot be reached. Both negotiating parties must identify and understand their personal interests in the situation. They must
know what is really important to them in the case at hand and, they must come to understand what the other party values.
Common Negotiation Pitfalls
The negotiation process is admittedly complex on ethical and many other grounds. It is subject to all the possible
confusions of complex, and sometimes even volatile, interpersonal and team dynamics. And as if this isn't enough,
26
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negotiators need to guard against some common negotiation pitfalls.26
One common pitfall is the tendency to stake out your negotiating position based on the assumption that in order to gain
your way, something must be subtracted from the gains of the other party. This myth of the fixed pie is a purely distributive
approach to negotiation. The whole concept of integrative negotiation is based on the premise that the pie can sometimes be
expanded or used to the maximum advantage of all parties, not just one.
Second, the possibility of escalating commitment is high when negotiations begin with parties stating extreme demands.
Once demands have been stated, people become committed to them and are reluctant to back down. Concerns for
protecting one's ego and saving face may lead to the irrational escalation of a conflict. Self-discipline is needed to spot
tendencies toward escalation in one's own behavior as well as in the behavior of others.
Third, negotiators often develop overconfidence that their positions are the only correct ones. This can lead them to ignore
the other party's needs. In some cases negotiators completely fail to see merits in the other party's position—merits that an
outside observer would be sure to spot. Such overconfidence makes it harder to reach a positive common agreement.
Fourth, communication problems can cause difficulties during a negotiation. It has been said that “negotiation is the process
of communicating back and forth for the purpose of reaching a joint decision.”27 This process can break down because of a
telling problem—the parties don't really talk to each other, at least not in the sense of making themselves truly understood.
It can also be damaged by a hearing problem—the parties are unable or unwilling to listen well enough to understand what
the other is saying. Indeed, positive negotiation is most likely when each party engages in active listening and frequently
asks questions to clarify what the other is saying. Each party occasionally needs to “stand in the other party's shoes” and to
view the situation from the other's perspective.28
Research Insight
Words Affect Outcomes in Online Dispute Resolution
A study of dispute resolution among eBay buyers and sellers finds that using words that give “face” were
more likely than words that attack “face” to result in the settlement of online disputes. Jeanne Brett, Marla
Olekans, Ray Friedman, Nathan Goates, Cameron Anderson, and Cara Cherry Lisco studied real disputes
being addressed through Square Trade, an online dispute resolution service to which eBay refers unhappy
customers. For purposes of the study, a “dispute” was defined as a form of conflict in which one party to a
transaction made a claim that the other party rejected.
The researchers point out that most past research on dispute resolution has focused on situational and
participant characteristics. In this case, they adopted what they call a “language-based” approach based on
the perspectives of face theory, essentially arguing that how participants use language to give and attack
the face of the other party will have a major impact on results. In filing a claim, for example, an unhappy
buyer might use polite words that preserve the positive self-image or face of the seller, or they might use
negative words that attack this sense of face. Examples of negative words are agitated, angry,
apprehensive, despise, disgusted, frustrated, furious, and hate.
This study examined 386 eBay-generated disputes processed through Square Trade. Words in the first
social interchange between parties were analyzed. Results showed that expressing negative emotions and
giving commands to the other party inhibited dispute resolution, whereas providing a causal explanation,
offering suggestions, and communicating firmness all made dispute resolution more likely. A hypothesis that
expressing positive emotions would increase the likelihood of dispute resolution was not supported. The
study also showed that the longer a dispute played out, the less likely it was to be resolved.
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In terms of practical implications, the researchers state, “Watch your language; avoid attacking the other's
face either by showing your anger toward them, or expressing contempt; avoid signaling weakness; be firm
in your claim. Provide causal accounts that take responsibility and give face.” Finally, they note that these
basic principles apply in other dispute resolution contexts, not just online.
Do the Research
Consider the suggestions for successful online dispute resolution. Can you design a study to
test how well they apply to disputes that may occur in virtual teamwork?
Source: Jeanne Brett, Marla Olekans, Ray Friedman, Nathan Goates, Cameron Anderson, and Cara Cherry Lisco,
“Sticks and Stones: Language and On-Line Dispute Resolution,” Academy of Management Journal 50 (February
2007).
Third-Party Roles in Negotiation
Negotiation may sometimes be accomplished through the intervention of third parties, such as when stalemates occur and
matters appear to be irresolvable under current circumstances. In a process called alternative dispute resolution, a neutral
third party works with persons involved in a negotiation to help them resolve impasses and settle disputes. There are two
primary forms through which it is implemented.
In arbitration , such as the salary arbitration now common in professional sports, the neutral third party acts as a “judge”
and has the power to issue a decision that is binding on all parties. This ruling takes place after the arbitrator listens to the
positions advanced by the parties involved in a dispute. In mediation , the neutral third party tries to engage the parties in
a negotiated solution through persuasion and rational argument. This is a common approach in labor-management
negotiations, where trained mediators acceptable to both sides are called in to help resolve bargaining impasses. Unlike an
arbitrator, the mediator is not able to dictate a solution.
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10 Study Guide
Key Questions and Answers
What is the nature of conflict in organizations?
• Conflict appears as a disagreement over issues of substance or emotional antagonisms that create
friction between individuals or teams.
• Conflict situations in organizations occur at intrapersonal, interpersonal, intergroup, and
interorganizational levels.
• Moderate levels of conflict can be functional for performance, stimulating effort and creativity.
• Too little conflict is dysfunctional when it leads to complacency; too much conflict is dysfunctional when it
overwhelms us.
How can conflict be managed?
• Conflict typically develops through a series of stages, beginning with antecedent conditions and
progressing into manifest conflict.
• Indirect conflict management strategies include appeals to common goals, upward referral, managed
interdependence, and the use of mythology and scripts.
• Direct conflict management strategies of avoidance, accommodation, compromise, competition, and
collaboration show different tendencies toward cooperativeness and assertiveness.
• Lose-lose conflict results from avoidance, smoothing or accommodation, and compromise; win-lose
conflict is associated with competition and authoritative command; win-win conflict is achieved through
collaboration and problem solving.
What is the nature of negotiation in organizations?
• Negotiation is the process of making decisions and reaching agreement in situations where participants
have different preferences.
• Managers may find themselves involved in various types of negotiation situations, including two-party,
group, intergroup, and constituency negotiation.
• Effective negotiation occurs when both substance goals (dealing with outcomes) and relationship goals
(dealing with processes) are achieved.
• Ethical problems in negotiation can arise when people become manipulative and dishonest in trying to
satisfy their self-interests at any cost.
What are alternative strategies for negotiation?
• The distributive approach to negotiation emphasizes win-lose outcomes; the integrative or principled
approach to negotiation emphasizes win-win outcomes.
• In distributive negotiation, the focus of each party is on staking out positions in the attempt to claim
desired portions of a fixed “pie.”
• In integrative negotiation, sometimes called principled negotiation, the focus is on determining the merits
of the issues and finding ways to satisfy one another's needs.
• The success of negotiations often depends on avoiding common pitfalls such as the myth of the fixed pie,
escalating commitment, overconfidence, and both the telling and hearing problems.
• When negotiations are at an impasse, third-party approaches such as mediation and arbitration offer
alternative and structured ways for dispute resolution.
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SELF-TEST 10
Multiple Choice
1. A/an ________ conflict occurs in the form of a fundamental disagreement over ends or goals and the means for
accomplishment.
(a) relationship
(b) emotional
(c) substantive
(d) procedural
(c) substantive
2. The indirect conflict management approach that uses the chain of command for conflict resolution is known as
________.
(a) upward referral
(b) avoidance
(c) smoothing
(d) appeal to common goals
(a) upward referral
3. Conflict that ends up being “functional” for the people and organization involved would most likely be ________.
(a) of high intensity
(b) of moderate intensity
(c) of low intensity
(d) nonexistent
(b) of moderate intensity
4. One of the problems with the suppression of conflicts is that it ________.
(a) creates winners and losers
(b) is a temporary solution that sets the stage for future conflict
(c) works only with emotional conflicts
(d) works only with substantive conflicts
(b) is a temporary solution that sets the stage for future conflict
5. When a manager asks people in conflict to remember the mission and purpose of the organization and to try to
reconcile their differences in that context, she is using a conflict management approach known as ________.
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(a) reduced interdependence
(b) buffering
(c) resource expansion
(d) appeal to common goals
(d) appeal to common goals
6. An ________ conflict occurs when a person must choose between two equally attractive alternative courses of action.
(a) approach-avoidance
(b) avoidance-avoidance
(c) approach-approach
(d) avoidance-approach
(c) approach-approach
7. If two units or teams in an organization are engaged in almost continual conflict and the higher manager decides it is
time to deal with matters through managed interdependence, which is a possible choice of conflict management
approach?
(a) compromise
(b) buffering
(c) appeal to common goals
(d) upward referral
(b) buffering
8. A lose-lose conflict is likely when the conflict management approach is one of ________.
(a) collaborator
(b) altering scripts
(c) accommodation
(d) problem solving
(c) accommodation
9. Which approach to conflict management can be best described as both highly cooperative and highly assertive?
(a) competition
(b) compromise
(c) accommodation
(d) collaboration
(d) collaboration
10.
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Both ________ goals should be considered in any negotiation.
(a) performance and evaluation
(b) task and substance
(c) substance and relationship
(d) task and performance
(c) substance and relationship
11. The three criteria for effective negotiation are ________.
(a) harmony, efficiency, and quality
(b) quality, efficiency, and effectiveness
(c) ethical behavior, practicality, and cost-effectiveness
(d) quality, practicality, and productivity
(a) harmony, efficiency, and quality
12. Of the following statements, only ________ is true.
(a) Principled negotiation leads to accommodation.
(b) Hard distributive negotiation leads to collaboration.
(c) Soft distributive negotiation leads to accommodation or compromise.
(d) Hard distributive negotiation leads to win-win conflicts.
(c) Soft distributive negotiation leads to accommodation or compromise.
13. Another name for integrative negotiation is ________.
(a) arbitration
(b) mediation
(c) principled negotiation
(d) smoothing
(c) principled negotiation
14. When a person approaches a negotiation with the assumption that in order for him to gain his way, the other party
must lose or give up something, the ________ negotiation pitfall is being exhibited.
(a) myth of the fixed pie
(b) escalating commitment
(c) overconfidence
(d) hearing problem
(a) myth of the fixed pie
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15. In the process of alternative dispute resolution known as ________, a neutral third party acts as a judge to determine
how a conflict will be resolved.
(a) mediation
(b) arbitration
(c) conciliation
(d) collaboration
(b) arbitration
Short Response
16. List and discuss three conflict situations faced by managers.
17. List and discuss the major indirect conflict management approaches.
18. Under what conditions might a manager use avoidance or accommodation?
19. Compare and contrast distributive and integrative negotiation. Which is more desirable? Why?
Applications Essay
20. Discuss the common pitfalls you would expect to encounter in negotiating your salary for your first job, and explain
how you would best try to deal with them.
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11
Communication
Communication builds relationships and results
The Key Point
How well do you communicate? Many people think they are effective communicators, but evidence
suggests otherwise. In this chapter we identify the challenges of communication in organizational
contexts, and describe what we can do to become more skilled communicators.
What's Inside?
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• Bringing OB to LIFE
Removing Doubts by Embracing Open Information
• Worth Considering … or Best Avoided?
Everyone on the Team Seems Really Happy. Is It Time to Create Some Disharmony?
• Checking Ethics in OB
Privacy in the Age of Social Networking
• Finding the Leader in You
IDEO Selects for Collaborative Leaders
• OB in Popular Culture
Cross-Cultural Communication and The Amazing Race
• Research Insight
Leadership Behavior and Employee Voice: Is the Door Really Open?
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The Nature of Communication
THE IMPORTANCE OF COMMUNICATION
THE COMMUNICATION PROCESS • NONVERBAL COMMUNICATION
Communication is the lifeblood of the organization. All organizational behavior—good and bad—stems from communication. Yet,
despite the fact that we spend most of our lives communicating, we are not always very good at it.
In this chapter we examine communication in organizational and relational contexts to identify factors associated with effective and
ineffective communication. A basic premise of this chapter is that to communicate effectively we need to have good relationships,
and to have good relationships we need to communicate effectively.
Importance of Communication
Communication has always been important, but the nature of communication is changing in organizations and in the world. Widely
available information is empowering people and societies in unprecedented ways. For example, the Egyptian Revolution of 2012
was called the “Facebook Revolution” because Egyptian citizens used Facebook to organize a revolution behind the scenes. In
organizations, managers are not able to control information like they once could, and this is changing the nature of power in
organizations. When Yahoo! announced in 2013 that it would no longer allow employees to work at home, employees rebelled by
anonymously posting company memos online. What managers had intended to be private company policy quickly snowballed into a
major international news story and critique.
Communication is the glue that holds organizations together. It is the way we share information, ideas, and expectations as well as
display emotions to coordinate action. Therefore we need to make effective communication a top priority in organizations.
The Communication Process
Although we all know what communication is, it is useful to review the basic communication model to set up a discussion of how
and why communication breakdowns occur. As illustrated in Figure 11.1, communication is a process of sending and receiving
messages with attached meanings. The key elements in the communication process include a source, which encodes an intended
meaning into a message, and a receiver, which decodes the message into a perceived meaning. The receiver may or may not give
feedback to the source.
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F I G U R E 1 1 . 1 The communication process.
The information source, or sender , is a person or group trying to communicate with someone else. The source seeks to
communicate, in part, to change the attitudes, knowledge, or behavior of the receiver. A team leader, for example, may want to
communicate with a division manager in order to explain why the team needs more time or resources to finish an assigned project.
This involves encoding —the process of translating an idea or thought into a message consisting of verbal, written, or nonverbal
symbols (such as gestures), or some combination of these. Messages are transmitted through various communication channels ,
such as face-to-face meetings, e-mail, texts, videoconferencing, Skype, blogs, and newsletters. The choice of channel can have an
important impact on the communication process. Some people are better at particular channels, and certain channels are better able
to handle some types of messages. In the case of the team leader communicating with the division manager, for example, it can
make quite a difference whether the message is delivered in person or electronically.
The communication process is not complete even though a message is sent. The receiver is the individual or group of individuals to
whom a message is directed. In order for meaning to be assigned to any received message, its contents must be interpreted through
decoding. This process of translation is complicated by many factors, including the knowledge and experience of the receiver and
his or her relationship with the sender. A message may also be interpreted with the added influence of other points of view, such as
those offered by co-workers, colleagues, or family members. Problems can occur in receiving when the decoding results in the
message being interpreted differently from what was originally intended.
Feedback is the process through which the receiver communicates with the sender by returning another message. Feedback
represents two-way communication, going from sender to receiver and back again. Compared to one-way communication, which
flows from sender to receiver only, two-way communication is more accurate and effective, although it may also be more costly and
time consuming. Because of their efficiency, one-way forms of communication—mass e-mails, reports, newsletters, division-wide
meetings, and the like—are frequently used in work settings. Although one-way messages are easy for the sender, they might be
more time consuming in the long run when receivers are unsure what the sender means or wants done.
Perception Alert!
Is Wealth Due to Good Connections or Hard Work?
If asked to choose which of the following statements is closest to the truth, how would you respond?
a. Most rich people today are wealthy mainly because of their own hard work, ambition, or education.
b. Most rich people today are wealthy mainly because they know the right people or were born into wealthy
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families.
This question was in a Pew Research survey with the following results. Overall, 46 percent of respondents chose B—
the “good connections” alternative—while 42 percent chose A—the “hard work” alternative. Interestingly, when
respondents were categorized as upper or lower class, 56 percent of the uppers attributed their success to hard work
while 53 percent of the lowers attributed the uppers' success to connections. In another Pew Research survey, 76
percent of respondents believed that “the rich get richer while the poor get poorer.”
Pew Research Center, “Trends in American Values: 1987-2012,” www.people-press.org/values (accessed October 2, 2012).
Although this process appears to be elementary, it is not as simple as it looks. Many factors can inhibit effective transmission of a
message. One of these is noise. Noise is the term used to describe any disturbance that disrupts communication and interferes with
the transference of messages within the communication process. If your stomach is growling because your class is right before
lunch, or if you are worried about an exam later in the day, it can interfere with your ability to pay attention to what your professor
and classmates are saying. In addition, if you don't like a person, your emotions may trigger a “voice” in your head that you can't
turn off, disrupting your ability to hear and listen effectively. These are all noise in the communication process.
Nonverbal Communication
Nonverbal communication is communication through means other than words. The most common forms are facial expressions,
body position, eye contact, and other physical gestures. Studies show that when verbal and nonverbal communication do not match,
receivers pay more attention to the nonverbal. This is because the nonverbal side of communication often holds the key to what
someone is really thinking or meaning. Do you know how to tell if someone is lying? Watch for avoidance of eye contact and signs
of stress, such as fidgeting, sweating, and, in more serious cases, dilated pupils.
Nonverbal communication affects the impressions we make on others. Because of this, we should pay careful attention to both
verbal and nonverbal aspects of our communication, including dress, timeliness, and demeanor. It is well known that interviewers
tend to respond more favorably to job candidates whose nonverbal cues are positive, such as eye contact and erect posture, than to
those displaying negative nonverbal cues, such as looking down or slouching. The way we choose to design or arrange physical
space also has powerful effects on how we interpret one another.1 This can be seen in choice of workspace designs, such as that
found in various office layouts or buildings. Figure 11.2 shows three different office arrangements and the messages they may
communicate to visitors. Check the diagrams against the furniture arrangement in your office or that of your instructor or a person
with whom you are familiar. What are you or they saying to visitors by the choice of furniture placement?2
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F I G U R E 1 1 . 2 Furniture placement and nonverbal communication in the office.
FINDING THE LEADER IN YOU
IDEO Selects for Collaborative Leaders
IDEO has built a business based on design thinking—an approach that engages diverse people in raucous dialogue
to generate breakthrough ideas and creative solutions. Design thinking requires a certain kind of leader, so IDEO
seeks out individuals who are smart and willing to engage in collaborative work: “We ask ourselves what will this
person be like at dinner, or during a brainstorm, or during a conflict? We are eclectic, diverse, and there is always
room for another angle.”
Brainstorming is a fundamental element of design thinking, and failure is an accepted part of the culture. To succeed
at IDEO, you have to be able to function with “confusion, incomplete information, paradox, irony, and fun for its own
sake.” Once ideas are developed, the key is storytelling through videos, skits, narratives, animations, and even
comic strips. Free flow of ideas is enabled by discouraging formal titles, dress codes, and encouraging employees
to move around—especially during mental blocks. According to general manager Tom Kelley, “It's suspicious when
employees are at their desk all day because it makes you wonder how they pretend to work.”
The creativity is reflected in the physical space that often looks like “cacophonous kindergarten classrooms.” As
described by Tom Peters, “Walk into the offices of IDEO design in Palo Alto, California, immediately you'll be caught
up in the energy, buzz, creative disarray, and sheer lunacy of it all.” Lunacy or not, for IDEO, design thinking is the
key to success.
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What's the Lesson Here?
How would you fare at IDEO? Does the communication environment fit with your leadership style? Would
you find the confusion and ambiguity exhilarating or frustrating?
Description of design thinking found on IDEO Web page, accessed February 22, 2009, at www.ideo.com. Information taken from Web
site at www.ideo.com. Quotes can be found in Harvard Business School Case 9-600-143, “IDEO Product Development,” April 26, 2007,
written by Stefan Thomke and Ashok Nimgade, pp. 5-6. See also T. Peters, “The Peters Principles,” Forbes ASAP, September 13,
1993, p. 180.
Because nonverbal communication is so powerful, those who are more effective at communication are careful to use it to their
advantage. For some, this means recognizing the importance of presence , or the act of speaking without using words. Analysis of
Adolf Hitler's speeches shows he was a master at managing presence. Hitler knew how to use silence to great effect. He would stand
in front of large audiences in complete silence for several minutes, all the while in total command of the room. Steve Jobs of Apple
used the same technique during product demonstrations. In fact, Jobs was so good at managing presence that it made it more
difficult for his successor, Tim Cook, who pales in comparison.
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Communication Barriers
INTERPERSONAL BARRIERS • PHYSICAL BARRIERS
SEMANTIC BARRIERS • CULTURAL BARRIERS
In interpersonal communication, it is important to understand the barriers that can easily create communication problems.
The most common barriers in the workplace include interpersonal issues, physical distractions, meaning (or “semantic”)
barriers, and cultural barriers.
Interpersonal Barriers
Interpersonal barriers occur when individuals are not able to objectively listen to the sender due to things such as lack
of trust, personality clashes, a bad reputation, or stereotypes/prejudices. Interpersonal barriers are reflected in a quote
paraphrased from Ralph Waldo Emerson: “I can't hear what you say because who you are rings so loudly in my ears.”
When strong, interpersonal barriers are present, receivers and senders often distort communication by evaluating and
judging a message or failing to communicate it effectively. Think of how you communicate with someone you don't like,
or a co-worker or a classmate who rubs you the wrong way. Do you listen effectively, or do you ignore them? Do you
share information, or do you keep your interactions short, and perhaps even evasive?
Such problems are indicative of selective listening and filtering. In selective listening , individuals block out information
or only hear things that match preconceived notions. Someone who does not trust will assume that the other is not telling
the truth, or may “hear” things in the communication that are not accurate. An employee who believes a co-worker is
incompetent may disregard important information if it comes from that person. Individuals may also filter information by
conveying only some of the information. If we don't like a co-worker, we may decide to leave out critical details or
pointers that would help him or her to be more successful in getting things done.
Another major problem in interpersonal communication is avoidance. Avoidance occurs when individuals choose to
ignore or deny a problem or issue, rather than confront it. It is a major barrier to openness and honesty in communication.
Avoidance occurs because individuals fear the conversation will be uncomfortable, or worry that trying to talk about the
problem will only make it worse. This fear often comes with a lack of understanding about how to approach difficult
conversations. Avoidance can be overcome by learning to use supportive communication principles, as described in a later
section.
Physical Barriers
Physical distractions are another barrier that can interfere with the effectiveness of a communication attempt. Some of
these distractions are evident in the following conversation between an employee, George, and his manager.3
Okay, George, let's hear your problem (phone rings, boss picks it up, promises to deliver the report “just as soon as I
can get it done”). Uh, now, where were we—oh, you're having a problem with marketing. So (the manager's
secretary brings in some papers that need immediate signatures; he scribbles his name and the secretary leaves) …
you say they're not cooperative? I tell you what, George, why don't you (phone rings again, lunch partner drops by)
… uh, take a stab at handling it yourself. I've got to go now.
Besides what may have been poor intentions in the first place, George's manager allowed physical distractions to create
information overload. As a result, the communication with George suffered. Setting priorities and planning can eliminate
this mistake. If George has something to say, his manager should set aside adequate time for the meeting. In addition,
interruptions such as telephone calls, drop-in visitors, and the like should be prevented. At a minimum, George's manager
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could start by closing the door to the office and instructing his secretary not to disturb them.
Semantic Barriers
Semantic barriers involve a poor choice or use of words and mixed messages. When in doubt regarding the clarity of
your written or spoken messages, the popular KISS principle of communication is always worth remembering: “Keep it
short and simple.” Of course, that is often easier said than done. The following illustrations of the “bafflegab” that once
tried to pass as actual “executive communication” are a case in point.4
A. “We solicit any recommendations that you wish to make, and you may be assured that any such recommendations
will be given our careful consideration.”
B. “Consumer elements are continuing to stress the fundamental necessity of a stabilization of the price structure at a
lower level than exists at the present time.”
One has to wonder why these messages weren't stated more understandably: (A) “Send us your recommendations; they
will be carefully considered.” (B) “Consumers want lower prices.”
Cultural Barriers
We all know that globalization is here to stay. What we might not realize is that the success of international business often
rests with the quality of cross-cultural communication. A common problem in cross-cultural communication is
ethnocentrism , the tendency to believe one's culture and its values are superior to those of others. It is often
accompanied by an unwillingness to try to understand alternative points of view and to take the values they represent
seriously. Another problem in cross-cultural communication arises from parochialism —assuming that the ways of your
culture are the only ways of doing things. It is parochial for traveling American businesspeople to insist that all of their
business contacts speak English, whereas it is ethnocentric for them to think that anyone who dines with a spoon rather
than a knife and fork lacks proper table manners.
OB IN POPULAR CULTURE
Cross-Cultural Communication and The Amazing Race
You hear it often enough: To be successful in today's business world you must be culturally aware. This is
particularly true when it comes to communication. Being proficient in other languages is an important skill.
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The ability to recognize the nuances of communication in other cultures, such as body language and the
use of space, is even more important. Ethnocentrism, the belief that the ways of our own culture are
superior, must be avoided in order to communicate effectively.
In Season 6 of The Amazing Race, contestants travel to Dakar, Senegal, to find the final resting place of a
nationally famous poet. The stress of competition combined with the difficulties of a new culture cause
problems for some of the teams. Gus and Hera are clearly uncomfortable with the conditions they face.
Adam and Rebecca, limited in terms of language skills, nevertheless make fun of their taxi driver's inability
to communicate with them. Freddy and Kendra get into an argument with a driver over the cab fare. Kris
and Jon are excited by the prospects of experiencing a new culture. At the same time, Kris is appalled by
how other competitors in the race are handling the situation.
When Jonathan screams for someone to speak to him in English, he is clearly exhibiting the “ugly
American behavior” that Kris abhors. It is one thing to be uncomfortable with new surroundings, but to be
abusive when individuals from other cultures do not respond the way you want shows disrespect for the
host country.
Get to Know Yourself Better
Assessment 4, Global Readiness Index, in the OB Skills Workbook measures your global readiness. The
increasingly global nature of business demands workers who understand other cultures and are
comfortable interacting with individuals whose values and practices may be quite different. If you were
suddenly dropped into an unfamiliar country, how would you respond?
The difficulties with cross-cultural communication are perhaps most obvious in respect to language differences.
Advertising messages, for example, may work well in one country but not when translated into the language of another.
Problems accompanied the introduction of Ford's European small car model, the “Ka,” into Japan (in Japanese, ka means
“mosquito”). Gestures may also be used quite differently in the various cultures of the world. For example, crossed legs
are quite acceptable in the United Kingdom but are rude in Saudi Arabia if the sole of the foot is directed toward someone.
Pointing at someone to get his or her attention may be acceptable in Canada, but in Asia it is considered inappropriate and
even offensive.5
The role of language in cross-cultural communication has additional and sometimes even more subtle sides. The
anthropologist Edward T. Hall notes important differences in the ways different cultures use language, and he suggests that
these differences often cause misunderstanding.6 Members of low-context cultures are very explicit in using the spoken
and written word. In these cultures, such as those of Australia, Canada, and the United States, the message is largely
conveyed by the words someone uses, and not particularly by the context in which they are spoken. In contrast, members
of high-context cultures use words to convey only a limited part of the message. The rest must be inferred or interpreted
from the context, which includes body language, the physical setting, and past relationships—all of which add meaning to
what is being said. Many Asian and Middle Eastern cultures are considered high context, according to Hall, whereas most
Western cultures are low context.
International business experts advise that one of the best ways to gain understanding of cultural differences is to learn at
least some of the language of the country with which one is dealing. Says one global manager: “Speaking and
understanding the local language gives you more insight; you can avoid misunderstandings.” A former American member
of the board of a German multinational says: “Language proficiency gives a [non-German] board member a better grasp of
what is going on … not just the facts and figures but also texture and nuance.”7 Although the prospect of learning another
language may sound daunting, there is little doubt that it can be well worth the effort.
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Communication in Organizational Contexts
COMMUNICATION CHANNELS • COMMUNICATION FLOWS
VOICE AND SILENCE
Communication Channels
Organizations are designed based on bureaucratic organizing principles; that is, jobs are arranged in hierarchical fashion with specified job
descriptions and formal reporting relationships. However, much information in organizations is also passed along more spontaneously through
informal communication networks. These illustrate two types of information flows in organizations: formal and informal communication
channels.
Formal channels follow the chain of command established by an organization's hierarchy of authority. For example, an organization chart
indicates the proper routing for official messages passing from one level or part of the hierarchy to another. Because formal channels are
recognized as authoritative, it is typical for communication of policies, procedures, and other official announcements to adhere to them. On the
other hand, much “networking” takes place through the use of informal channels that do not adhere to the organization's hierarchy of authority.
They coexist with the formal channels but frequently diverge from them by skipping levels in the hierarchy or cutting across divisional lines.
Informal channels help to create open communications in organizations and ensure that the right people are in contact with one another.
A common informal communication channel is the grapevine , or network of friendships and acquaintances through which rumors and other
unofficial information are passed from person to person. Grapevines have the advantage of being able to transmit information quickly and
efficiently. They also help fulfill the needs of people involved in them. Being part of a grapevine can provide a sense of security that comes from
“being in the know” when important things are going on. It also provides social satisfaction as information is exchanged interpersonally. The
primary disadvantage of grapevines arises when they transmit incorrect or untimely information. Rumors can be very dysfunctional, both to
people and to organizations. One of the best ways to avoid rumors is to make sure that key persons in a grapevine get the right information from
the start.
Channel richness indicates the capacity of a channel to convey information. And as indicated in Figure 11.3, the richest channels are face to
face. Next are telephone, videoconferences and text, followed by e-mail, reports, and letters. The leanest channels are posted notices and
bulletins. When messages get more complex and open ended, richer channels are necessary to achieve effective communication. Leaner channels
work well for more routine and straightforward messages, such as announcing the location of a previously scheduled meeting.
F I G U R E 1 1 . 3 Richness of communication channels.
Communication Flows
Information in organizations flows in many directions: downward, laterally, and upward. Downward communication follows the chain of
command from top to bottom. Lower-level personnel need to know what higher levels are doing and be reminded of key policies, strategies,
objectives, and technical developments. Of special importance are feedback and information on performance results. Sharing such information
helps minimize the spread of rumors and inaccuracies regarding higher-level intentions, as well as create a sense of security and involvement
among receivers who believe they know the whole story.
Lateral communication is the flow of information across the organization. The biggest barrier to lateral communication is organizational
silos , units that are isolated from one another by strong departmental or divisional lines. In siloed organizations, units tend to communicate more
inside than outside, and they often focus on protecting turf and information rather than sharing it. This is in direct contrast to what we need in
today's organizations, which is timely and accurate information in the hands of workers.
Inside organizations, people must communicate across departmental or functional boundaries and listen to one another's needs as “internal
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customers.” More effective organizations design lateral communication into the organizational structure, in the form of cross-departmental
committees, teams, or task forces as well as matrix structures. There is also growing attention to organizational ecology—the study of how
building design may influence communication and productivity by improving lateral communications.
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