CPM Program

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CPM Program

• Negotiating Conflict and Employment Relations
• Lance J. Noe
• Drake University
• December, 2005

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Conflict Management, Negotiation, and Employment
Relations

• Six Learning Objectives
• Understanding why we experience conflict in our
  organizations
• Understand several different types of conflict
  and the levels at which conflict occurs
• ID conflict management techniques based on
  various concerns of the disputants
• ID the basic concepts and dimensions of
  negotiation

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Conflict Management, Negotiation, and Employment
Relations

• Objectives continued
• Appreciate importance of planning for a
  negotiation and knowing the key issues to
  consider when preparing to negotiate
• I.D. and understand special types of
  conflict-management situations such as multiparty
  negotiations and third party intervention

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The Growing Importance of Conflict Management

• Why increasingly important?
• With diversity comes a wider array of views and
  perspectives
• Continual change in governmental structures
  increase conflicts
• Government activities are hard to quantifyso
  conflict management is especially challenging

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The Growing Importance of Conflict Management

• Group Activity
• List areas of conflictboth within your
  organization and between your org and outside
  groups
• Once created, then develop a simple history of
  that/those conflicts
• Do the reasons justify the conflict?
• If conflict seems larger than the history might
  suggestwhy?

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Causes of Conflict

• Basic Conflicta fundamental problem natural in
  organizations with resource scarcity
• Members want resources and cant get all they
  wantresource scarcity
• Conflict is not competition
• Competition does not try to hold the other down
• Conflict spends energy reducing the effectiveness
  of the other

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Causes of Conflict

• Conflict is not Competition exercise
• Evaluate the conflicts from your earlier work
• Rate each conflict on a conflict scale
• 1pure conflict
• 5half conflict, half healthy competition
• 10pure healthy competitionall boats rising!
• Evaluate each situationdid it start out as one
  and move to the other??

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Causes of Conflict

• Group assessment of the value of conflict
• Option 1 Conflict is a necessary and useful
  part of organizational life. Appropriate levels
  can stimulate and heighten attention. Bold
  solutions come from conflict as people search to
  satisfy diverse sets of interests. An absence of
  conflict results in group think and hampers
  creativity

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Causes of Conflict

• Groups assessment of the value of conflict
  continued..
• Option 2 Conflict is dysfunctional. Conflict
  is a negative phenomenon. High conflict is
  detrimental and destructive. Time and energy
  goes to resolution rather than work. One study
  shows that 20 of managers time is spent
  resolving rather than achieving the mission.
  It also raises stress and creates an untrusting
  and paranoid organization
• Thoughts????????????????

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Kinds of Conflict

• Jehns Typology of Conflict
• Task Content Conflict-disagreement about the
  actual task being performed by members
• Example We generally agree to introduce wolves
  into Polk County, BUT we disagree HOW it should
  be done
• Contract out to Carnivores Inc.?
• Develop expertise within government to introduce
  wolves by develop a County owned wolf cub nursery?

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Kinds of Conflict

• Jehns Typology of Conflict
• Emotional Conflict-interpersonal
  incompatibilities among co-workers
• Negative emotions toward others involved in the
  conflict
• SO, we learn that a person we dislike has been
  tapped to head the Bring our Wolves With Out
  Waiting programso conflict results (Bow Wow)

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Kinds of Conflict

• Jehns Typology of Conflict
• Administrative Conflict-disagreements about how
  an org. does or plans to do things
• We disagree about individual responsibilities
• We disagree about who should decide which areas
  are appropriate for wolves or who will work with
  farmers/residents, etc.
• This isnt all bad as group think is the
  ultimate alternative to conflict

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Kinds of Conflict

• Conclusions?
• A moderate amount of task context conflict is
  critical to effective functioning of a
  groupavoids group think
• Administrative conflict and Emotional conflict
  are often the result of dysfunctional groups and
  more often impair actionBUT it depends upon the
  level of conflict

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Individual versus Group Conflict

• Individual Conflict
• Approach/Approach conflictthe person is trying
  to choose between two alternativeswhich plan do
  I chooseboth options may be good or effective
• Avoidance/Avoidance conflictthe person must
  choose between equally unattractive optionssuch
  as you must lay off one of two good people

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Individual versus Group Conflict

• Individual Conflict
• Approach/Avoidance conflictmost common situation
  that occurs when multiple options have favorable
  and unfavorable features
• Approach/Approach often turns into
  Approach/Avoidance once the issues are further
  explored

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Individual versus Group Conflict

• Group Conflict
• Group Conflict between two or more people due
  to
• Incompatible goals/ideas/feeling/beliefs
• With group conflict there is a necessary
  dependence on the parties so the choice of one
  impacts the other

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Individual versus Group Conflict

• OKReturning to your examples
• Define the type of conflict (Task,
  Administrative, Emotional)
• Determine if your conflict occurs at the
  individual or group levels
• Report to group

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Techniques for Managing Conflict

• Dual Concern ModelThe negotiator, by knowing the
  level of concern of each party, can find a
  solution
• There are four ways that you as a manager can
  handle conflict
• Accommodationjust give in
• Pressingpushing to the limitno care about the
  other side
• Avoidancetake no action
• Negotiationworking to find compromise

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Expressed graphically..
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Four OptionsDual Concern Model

• Accommodation
• Easy to give in
• It is efficientthe conflict ends quickly
• Relationship between parties is preservedmaybe
  even remember to return the favor
• Realityit is unreasonable to expect this too
  often!

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Four OptionsDual Concern Model

• Pressingmy way or the highway!
• Threaten, promise, argue, to get what you want
  with little concern for the other
• Test of willsgame of chickenblinking first
• Sometimes, those who press from a position of
  weakness end up strong
• Gandhi, MLK, etc.

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Four OptionsDual Concern Model

• Avoidancethe most common response
• Can be good if the conflict is trivial and both
  parties dont care much about the outcome
• Also, if cost is high or risky, best avoid it!
• Sometimes delay brings forth more options and new
  solutions
• But, there is risk with avoiding too long

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Four OptionsDual Concern Model

• Negotiationworking together to develop an
  outcome
• A process between parties
• Parties want something that is to some degree
  under control by the other

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NegotiationBasic Concepts

• First principleyou may or may not reach an
  agreementa function of BATNA
• This is the point at which you are better off not
  reaching agreementknown as your Best Alternative
  To a Negotiated Settlement (BATNA)
• BATNA is your primary negotiating toolit give
  you the option to walk away

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NegotiationBasic Concepts

• Knowing BATNA allows you to set the reservation
  pricethe bottom line
• At the reservation priceyou can take it or leave
  iteither way offers equal satisfaction
• Know this!!
• The reservation price ALSO must include the value
  that you place on the BATNA PLUS whatever
  transaction costs you will incur to enact your
  best alternativeimportant point

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NegotiationBasic Concepts

• Have an aspiration level
• It is your target or goal
• It should be challenging but attainable
• If too unrealistic, it will not motivate sides
  toward agreement
• If too lowit also does not motivate
• The Positive Bargaining Zone exists if parties
  overlapif not then no agreement

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NegotiationBasic Concepts

• The Positive Bargaining Zone examples
• Side 1 A state agency and an environmental
  groupCitizens Helping Our Wolves (CHOW) would
  like to introduce wolves to a rural/residential
  area. The minimum number they believe which can
  offer a reasonable chance for success is ten.
  However, they believe the best possible number
  would be 48 wolves. However, they know that 24
  wolves allows for 95 of the benefit that 48
  wolves presents. Ten wolves is basically a wash
  regarding chance of success versus other programs.

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NegotiationBasic Concepts

• The Positive Bargaining Zone examples
• Side 2 The group Citizens Opposed to Wolves
  Around ResiDential Sites (COWARDS) would prefer
  that zero wolves be introduced. They could live
  with an absolute maximum of twelve. If the
  number introduced was much more than 12, they
  would pull out of negotiations and pursue action
  through the courts or resort to protesting, etc..

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NegotiationBasic Concepts

• The Positive Bargaining Zone examples
• For the Group CHOW
• What is the BATNA?
• What is the reservation price?
• What should be the aspiration level?
• For the Group COWARDS
• What is the BATNA?
• What is the reservation price?
• What should be the aspiration level?
• Is Agreement possible????

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Managing Conflict Techniques

• Distribution versus Integrative dimensions of
  negotiation
• Distributive negotiation refers to splitting up
  resources
• Integrative refers to one or both parties gaining
  with no one losing
• Multiple issues coordinated for positive result
• Logrolling issues together
• Win/Win

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Managing Conflict TechniquesDistributive

• Distribution negotiating strategies
• Know your BATNA
• Determine your bottom line or reservation price
• Set a goal or aspiration level that is
• Significantly better than your bottom line
• Optimistically realistic

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Managing Conflict TechniquesDistributive

• Distribution negotiating strategies continued
• Think of objective standards that might be
  acceptable to the other side
• Plan your openingoffer should not be too
  extreme, but should prevent other party from
  anchoring the negotiation
• Develop reciprocityavoid making unilateral
  concessions

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Managing Conflict TechniquesIntegrative

• Integrative negotiating strategies
• While distributive means splitting up
  resourcesintegrative means one or both parties
  gaining with no losers
• This means multiple issues coordinated for
  positive results
• Logrolling issues
• Win/Win

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Managing Conflict TechniquesIntegrative

• Integrative negotiating strategies
• Requires a problem solving and cooperative
  approachis not a contentious and competitive
  approach
• You are trying to expand the pie or create value
• Requires trust to be developed so information can
  be shared reciprocallywhich is needed to solve
  problems

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Managing Conflict TechniquesIntegrative

• Integrative dimensions
• Many solution paths may be available
• The point is to work on differences in the
  preferences that each side seeks to
  implementthat is your basis for negotiation
• It requires digging deep into the problems to
  find alternative that could be acceptable to both
  sides

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Managing Conflict TechniquesIntegrative

• Integrative negotiating strategies
• Logrollingtrading issue that are differing
  importance to the two parties
• The points that we are bridging the gap between
  BATNAcritical if there is no zone of acceptance

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Managing Conflict TechniquesIntegrative

• Integrative negotiating strategies
• Other advantagessides can come closer to their
  aspiration level with an integrative approach
• Increased stability in the relationship due to
  more integrative process with enhanced sharing

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Managing Conflict TechniquesIntegrative

• Integrative negotiating strategies How to
• Know your BATNAtry to ascertain the other sides
  BATNA
• Analyze each others reservation prices to
  determine the bargaining zone
• Set priorities on your interests and those of the
  other
• Construct multi-issue package of offers that take
  into account differences between priorities

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The Mixed-Motive Nature of Negotiations

• When using either techniqueyou need to
  understand the mixed-motive nature of
  negotiations
• Creating value requires primarily Cooperative
  behavior needed for integrative
• Competitive behavior is the basis for
  distributive
• Leads to the question Can I first pursue under
  the cooperative/integrative model to expand the
  pie, then get competitive?

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Role of Information Sharing

• One key element The role of information sharing
• We need to learn the opponent's preferences,
  BATNA and reservation price
• We need to learn of the willingness to concede,
  interest in adding other issue(s) to the
  negotiation
• Basically we are learning each others orientation

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Role of Information Sharing

• The role of information sharing
• Talking is not always sharing
• Ideally information should be shared in a
  reciprocal fashionincrementally
• This builds trust

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Role of Information Sharing

• Strategies for information sharing
• Build trust which opens the other side to
  communication
• Ask questions!
• Giving way information unilaterally in hope of a
  return favordangerous?
• Multiple offers so the other party's interests
  can be inferred
• Searching for post-settlement settlement
  (agreements that occur based on an extended
  search after the initial agreement)

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Role of Compatible Issues

• Compatible issues are those for which the parties
  have the same preference
• No conflictbut they are often part of the
  negotiations because negotiators do not know that
  they have the same preferences
• Sometimes these compatible issues are not
  negotiated and thus both sides lose out on an
  opportunity for a win/win!

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Multiparty Negotiations

• Important factors related to multi-party
  negotiations
• More complex with more people, more options,
  more goalsmore everything!
• Harder to determine bargaining zones, tough to
  build trust and exchange informationsome parties
  may not want to reach agreementwhich much be
  considered

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Multiparty Negotiations

• Problems with multi-party negotiations
• Coalition formation complicates actions because
  what is best for the coalition may not be best
  for any one partyso knowing party interests is
  less useful
• Also, coalitions break down from time to time
  changing all of the dynamics immediately

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Fairness and Ethics in Negotiations

• What do negotiators claim?
• That they are being fair and honest
• That their numbers are accurate
• That their perspectives are FACT
• That their perspectives are equable and
  efficient!
• True??????

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Preparing to Negotiate

• Preparing is key to success in negotiations
• Develop your BATNAyou have more power when you
  have a wide range of options already
  consideredalso know when you cant agree
• Think about what issues are likely to be
  includedthose not specified also
• Develop our perspective on the importance of
  those issues both to you and your opponentthe
  more you know, the better off you will be

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Preparing to Negotiate

• Preparing is key to success in negotiations
• Learn how many people with be at the tableyou
  want to match numbers and roles
• Determine time constrainsthe party with the
  longer time has the advantage
• Determine what information is to be shared once
  the negotiation is concludedyou many not want to
  show all your cards to avoid the other side
  becoming dissatisfied post negotiation

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Third Party Intervention

• Often disputants are unable to resolve
  conflict-so we introduce a third party dispute
  resolution
• Dispute Intervention Goalswhat is a manager to
  do?
• Main choice is what control the manager wishes to
  give
• Control over process?
• Control over outcome?
• Control over both?

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Third Party Intervention

• Manager choices
• High control over both process and outcomeact as
  inquisitor
• Manager gathers informationnot letting each side
  present their own case
• Manager then makes the decisionthe final word!

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Third Party Intervention

• Manager choices
• Low control over process, but high control over
  outcomeacting as arbitrator
• Parties present their side of the case their way
• Manager then makes the decisionthe final word

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Third Party Intervention

• Defining roles
• Mediateno real authority, but can coordinate
  information exchange and act as go between to
  allow both sides to decide
• Arbitratesomeone else decides a solution but
  doesnt control the process leading up to the
  decision
• Inquisitormanage process and make final decision

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Final Management Thoughts.

• If you know the level of conflict, you can better
  manage it.
• When people are entwined in a situation and in
  disagreement, the decision will impact all
  parties.
• If the conflict is severe, then productivity may
  drop
• The conflict may not be rational (likely it is
  not) making the solution difficult.
• Good LUCK!!