Managing conflict effectively in negotiations

Expectations for purchasing professionals have reached new heights, driven substantially by the confluence of global supplier networks, increasing supplier performance expectations, expanding definitions of value, and disruptive digital and analytical capabilities. When these trends overlap, they drive unprecedented complexity in commercial agreements and negotiations. Complexity is hard enough on its own, but it also adds stress to supplier relationships.

One effect we observe in our work with clients is a trend of failed or unsatisfactory negotiations. Unfortunately, when negotiations fail, it is easy to blame the economics of the deal—that there was not enough common economic ground to support a zone of possible agreement (ZOPA). This is by far the most frequent excuse.

However, McKinsey’s research confirms what the most seasoned practitioners postulate: that “process” and “people” problems account for most failed deals—in other words, the deals that don’t happen. In particular,  over 70 percent of deal discussions fail to materialize due to these two non-content dimensions. By “process” we mean the actions related to the negotiation, including the overall schedule of negotiations, interaction cadence, meeting locations and agenda, and escalation provisions. By “people” we mean the behaviors of individuals or teams, including tactics and gambits deployed during negotiation; the approach to cooperation and exchanging information; the responsiveness to the counterparty’s requests; general mind-set regarding empathy and understanding the others’ needs; and other related factors.

A second significant finding from McKinsey’s research is a corollary of the first. Specifically,  negotiation teams frequently compromise on economics when they could (or should) have solved for process and people . The results are avoidable value loss and, in the longer term, unsustainable deal terms on lead times, quality, intellectual property ownership, volume guarantees, exclusivity provisions, termination clauses, and the like. And, of course, the critical process and people issues remain unaddressed—a threat to the next negotiation.

Why do negotiation teams avoid the process and people dimensions? In most cases, we observe that it is to avoid conflict or to stay out of “the soft stuff.” By contrast, great negotiators confront and control these factors throughout a negotiation. Here are five core techniques that practitioners can use to get started.

  • Improve communication. Increasing the volume and quality of communication with your counterparty helps to avoid misunderstandings and provides a channel for trust-building techniques, including active listening, deferring judgement, playing back what you hear, and demonstrating empathy where appropriate. The quality of communication is conditioned on behaviors that help to isolate (rather than conflate) points of disagreement, for example by using temperate language and tone, focusing on questions rather than accusations, and providing opportunities for the counterparties to explain, to reason, and to describe their expectations, assumptions, and so forth. A familiar example in this category (in English) is avoiding adverbs such as “never” and “always” which tend to be too absolute.
  • Take perspective. Putting yourself in the shoes of your counterparties requires authentic curiosity about their needs, interests, and motivations and it can be the fastest way to remove biases in your own thinking and accurately anticipate your counterparty’s next moves. The objective here is to understand their real interests—as opposed to their positions. A questioning attitude and a desire to understand not only improve your chances of doing so; they may also engender mirroring behaviors from the other side of the table.
  • Eliminate unnecessary escalation. Having a short fuse can complicate any situation. It usually increases the risk of slipping into a downward spiral of negative countermoves, the highly destructive tit-for-tat cycle that presages a failed deal. Avoiding the first step in that cycle means staying away from even the suggestion of a punitive course of action. It can also be helpful to think critically ahead of time whether moves that are intended to be neutral might come across as punitive; for example, stating that senior stakeholders should become involved or consulted can, under some circumstances, imply a threat to escalate over the counterparty’s head.
  • Uncover issues sooner rather than later. When you suspect that an issue or question may be sensitive for either party, delaying a discussion of it only intensifies the urgency when it is finally addressed. Furthermore, if some dimensions of a solution have already been decided in earlier stages of negotiation, one or more parties may feel cornered or deliberately maneuvered into a foreclosed position. Whether intentional or not, this raises the probability of an angry counter-response. An effective negotiator takes the time to identify and address the most sensitive issues early in the process.
  • Hit the pause button. When all else fails (and it will), the best course of action is to take a break. Budget substantial time for breaks and use all of it. Fifteen minutes is not so much of a break as four hours or four days. A break should give teams time to reflect and reconstruct what they have experienced, to decide on new behaviors, and to practice them.

In conclusion, the value at stake from mastering the process and people dimensions of negotiation are high. To get started, practice specific behaviors that control conflict, with the objective of securing both better economics and improved relationships with your suppliers.

Milan Prilepok is a senior expert in McKinsey’s New York office, and a lecturer at The Wharton School at the University of Pennsylvania.

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Chapter 10: Conflict and Negotiations

Learning objectives.

After reading this chapter, you should be able to do the following:

  • Understand the different types of conflict.
  • Understand the causes of conflict.
  • Understand the consequences of conflict.
  • Understand how to manage conflict effectively.
  • Understand the stages of the negotiation process.
  • Understand how to avoid common negotiation mistakes.
  • Engage in conflict management and negotiation ethically.
  • Understand cross-cultural differences in conflict and negotiation.

Organizational Behavior Copyright © 2017 by University of Minnesota is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License , except where otherwise noted.

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Appendix A: Case Studies

List of case studies, case study 1: handling roommate conflicts, case study 2: salary negotiation at college corp, case study 3: oecollaboration, case study 4: the ohio connection, case study 5: uber pays the price, case study 6: diverse teams hold court.

Chapter Reference: Section 2.2 Approaches to Conflict

Whether you have a roommate by choice, by necessity, or through the random selection process of your school’s housing office, it’s important to be able to get along with the person who shares your living space. While having a roommate offers many benefits such as making a new friend, having someone to experience a new situation like college life with, and having someone to split the cost on your own with, there are also challenges. Some common roommate conflicts involve neatness, noise, having guests, sharing possessions, value conflicts, money conflicts, and personality conflicts (Ball State University, 2001). Read the following scenarios and answer the following questions for each one:

  • Which conflict management style, from the five discussed, would you use in this situation?
  • What are the potential strengths of using this style?
  • What are the potential weaknesses of using this style?

Scenario 1: Neatness. Your college dorm has bunk beds, and your roommate takes a lot of time making their bed (the bottom bunk) each morning. They have told you that they don’t want anyone sitting on or sleeping in the bed when they are not in the room. While your roommate is away for the weekend, your friend comes to visit and sits on the bottom bunk bed. You tell your friend what your roommate said, and you try to fix the bed back before your roommate returns to the dorm. When they return, your roommate notices that the bed has been disturbed and confronts you about it.

Scenario 2: Noise and having guests. Your roommate has a job waiting tables and gets home around midnight on Thursday nights. They often brings a couple friends from work home with them. They watch television, listen to music, or play video games and talk and laugh. You have an 8 a.m. class on Friday mornings and are usually asleep when they returns. Last Friday, you talked to your roommate and asked them to keep it down in the future. Tonight, their noise has woken you up and you can’t get back to sleep.

Scenario 3: Sharing possessions. When you go out to eat, you often bring back leftovers to have for lunch the next day during your short break between classes. You didn’t have time to eat breakfast, and you’re really excited about having your leftover pizza for lunch until you get home and see your roommate sitting on the couch eating the last slice.

Scenario 4: Money conflicts. Your roommate got mono and missed two weeks of work last month. Since they have a steady job and you have some savings, you cover their portion of the rent and agree that they will pay your portion next month. The next month comes around and your roommate informs you that they only have enough to pay their half of the rent.

Scenario 5: Value and personality conflicts. You like to go out to clubs and parties and have friends over, but your roommate is much more of an introvert. You’ve tried to get them to come out with you or join the party at your place, but they’d rather study. One day your roommate tells you that they want to break the lease so they can move out early to live with one of their friends. You both signed the lease, so you have to agree or they can’t do it. If you break the lease, you automatically lose your portion of the security deposit

Works Adapted

“ Conflict and Interpersonal Communication ” in Communication in the Real World  by University of Minnesota is licensed under a  Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License , except where otherwise noted.

Ball State University. (2001). Roommate conflicts. accessed June 16, 2001, from  http://cms.bsu.edu/CampusLife/CounselingCenter/VirtualSelfHelpLibrary/RoommateIssues.asx.

Chapter Reference:  Section 2.4 Negotiation

Janine just graduated college, she’s ready to head out on her own and get that first job, and she’s through her first interviews. She receives an offer of a $28,000 salary, including benefits from COLLEGE CORP, from an entry-level marketing position that seems like a perfect fit. She is thrown off by the salary they are offering and knows that it is lower than what she was hoping for. Instead of panicking, she takes the advice of her mentor and does a little research to know what the market range for the salary is for her area. She feels better after doing this, knowing that she was correct and the offer is low compared to the market rate. After understanding more about the offer and the rates, she goes back to the HR representative and asks for her preferred rate of $32,500, knowing the minimum that she would accept is $30,000. Instead of going in for her lowest amount, she started higher to be open to negotiations with the company. She also sent a note regarding her expertise that warranted why she asked for that salary. To her happy surprise, the company counter offered at $31,000—and she accepted.

  • What key points of Janice’s negotiation led to her success?
  • What could have Janice done better to get a better outcome for her salary?

“ Conflict and Negotiations ” in Organizational Behaviour by OpenStax is licensed under a Creative Commons Attribution 4.0 International License .

“Good & Bad Salary Negotiations,”  Salary.com , April 19, 2018, https://www.salary.com/articles/good-bad-examples-of-salary-negotiations .

Herner, M. (n.d). 5 things HR wishes you knew about salary negotiation. Payscale.com, accessed October 21, 2018, https://www.payscale.com/salary-negotiation-guide/salary-negotiation-tips-from-hr .

Chapter Reference:  Section 3.2 Creating, Maintaining, and Changing Culture

At OECollaboration, a technology company that develops virtual collaboration software for new companies, Mike Jones is a new manager. One of the biggest challenges he has faced is that the team that he is managing is well established and because he is an outsider, the team members haven’t yet developed trust in him.

Two weeks into his new employment, Mike held a meeting and discussed all of the changes to the remote work agreements as well as implementing new meeting requirements for each employee to have a biweekly meeting scheduled with him to discuss their projects. The team was outraged, they were not excited, and the following days he wasn’t greeted in a friendly way; in addition, his team seemed less engaged when asked to participate in team functions.

Tracy James is also a new manager at OECollaboration who started at the same time as Mike, in a similar situation where she is a new manager of an existing team. Tracy was able to hold a meeting the first day on the job to listen to her team and get to know them. During this meeting she also told the team about herself and her past experiences. Additionally, she held one-on-one meetings to listen to each of her team members to discuss what they were working on and their career goals. After observation and discussion with upper management, she aligned her own team goals closely with the skills and experiences of her new team. She met with the whole team to make changes to a few policies, explaining why they were being changed, and set the strategy for the team moving forward.

Because she got her team involved and learned about them before implementing her new strategy, this was well received. Her team still had questions and concerns, but they felt like they could trust her and that they were included in the changes that were being made.

  • What challenges can a new manager encounter when starting to manage an existing team?
  • What strategies can a new manager implement to ensure that their new team is engaged with them and open to change and growth?

Adapted Works

“ Organizational Power and Politics ” in Organizational Behaviour by OpenStax is licensed under a Creative Commons Attribution 4.0 International License .

Giang, V. (2013, July 31). The 7 types of power that shape the workplace. Business Insider. https://www.businessinsider.com/the-7-types-of-power-that-shape-the-workplace-2013-7

Morin, A. (2018, June 25). How to prevent a workplace bully from taking your power. Inc. https://www.inc.com/amy-morin/how-to-prevent-a-workplace-bully-from-taking-your-power.html

Weinstein,  B. (n.d.). 10 tips for dealing with a bully boss,” CIO , accessed October 13, 2018, https://www.cio.com.au/article/198499/10_tips_dealing_bully_boss/.

Chapter Reference:  Section 4.1 Power

Janey worked as an executive assistant to a product manager at her company: Ohio Connection. Overall, she loved her job; she was happy to work with a company that provided great benefits, and she and found enjoyment in her day-to-day work. She had the same product manager boss for years, but last year, her manager left Ohio Connection and retired. Recently her new manager has been treating her unfairly and showcasing bullying behavior.

Yesterday, Janey came into work, and her boss decided to use their power as her manager and her “superior” to demand that she stay late to cover for him, correct reports that he had made mistakes on, and would not pay her overtime. She was going to be late to pick up her son from soccer practice if she stayed late; she told him this, and he was not happy.

Over subsequent days, her boss consistently would make comments about her performance, even though she had always had good remarks on reviews, and created a very negative work environment. The next time she was asked to stay late, she complied for fear of losing her job or having other negative impacts on her job. Janey’s situation was not ideal, but she didn’t feel she had a choice.

  • What type of power did Janey’s boss employ to get her to do the things that he wanted her to do?
  • What negative consequences are apparent in this situation and other situations where power is not balanced in the workplace?
  • What steps should Janey take do to counteract the power struggle that is occurring with her new manager?

Chapter Reference:   Section 5.1 Interpersonal Relationships at Work

Uber revolutionized the taxi industry and the way people commute. With the simple mission “to bring transportation—for everyone, everywhere,” today Uber has reached a valuation of around $70 billion and claimed a market share high of almost 90% in 2015. However, in June 2017 Uber experienced a series of bad press regarding an alleged culture of sexual harassment, which is what most experts believe caused their market share to fall to 75%.

In February of 2017 a former software engineer, Susan Fowler, wrote a lengthy post on her website regarding her experience of being harassed by a manager who was not disciplined by human resources for his behavior. In her post, Fowler wrote that Uber’s HR department and members of upper management told her that because it was the man’s first offense, they would only give him a warning. During her meeting with HR about the incident, Fowler was also advised that she should transfer to another department within the organization. According to Fowler, she was ultimately left no choice but to transfer to another department, despite having specific expertise in the department in which she had originally been working.

As her time at the company went on, she began meeting other women who worked for the company who relayed their own stories of harassment. To her surprise, many of the women reported being harassed by the same person who had harassed her. As she noted in her blog, “It became obvious that both HR and management had been lying about this being his ‘first offense.’” Fowler also reported a number of other instances that she identified as sexist and inappropriate within the organization and claims that she was disciplined severely for continuing to speak out. Fowler eventually left Uber after about two years of working for the company, noting that during her time at Uber the percentage of women working there had dropped to 6% of the workforce, down from 25% when she first started.

Following the fallout from Fowler’s lengthy description of the workplace on her website, Uber’s chief executive Travis Kalanick publicly condemned the behavior described by Fowler, calling it “abhorrent and against everything Uber stands for and believes in.” But later in March, Uber board member Arianna Huffington claimed that she believed “sexual harassment was not a systemic problem at the company.” Amid pressure from bad media attention and the company’s falling market share, Uber made some changes after an independent investigation resulted in 215 complaints. As a result, 20 employees were fired for reasons ranging from sexual harassment to bullying to retaliation to discrimination, and Kalanick announced that he would hire a chief operating officer to help manage the company. In an effort to provide the leadership team with more diversity, two senior female executives were hired to fill the positions of chief brand officer and senior vice president for leadership and strategy.

Critical Thinking Questions

  • Based on Cox’s business case for diversity, what are some positive outcomes that may result in changes to Uber’s leadership team?
  • If the case had occurred in Canada, what forms of legislation would have protected Fowler?
  • What strategies should have been put in place to help prevent sexual harassment incidents like this from happening in the first place?

“ Diversity in Organizations ” in Organizational Behaviour by OpenStax is licensed under a Creative Commons Attribution 4.0 International License .

Della Cava, M. (2017, June 13). Uber has lost market share to Lyft during crisis. USA Today. https://www.usatoday.com/story/tech/news/2017/06/13/uber-market-share-customer-image-hit-string-scandals/102795024/

Fowler, T. (2017, February 19). Reflecting on one very, very strange year at Uber. https://www.susanjfowler.com/blog/2017/2/19/reflecting-on-one-very-strange-year-at-uber.

Lien,  T. (2017, June 6). Uber fires 20 workers after harassment investigation. Los Angeles Times.  http://www.latimes.com/business/la-fi-tn-uber-sexual-harassment-20170606-story.html

Uber (2017, February). Company info. https://www.uber.com/newsroom/company-info/

Chapter Reference:  Section 5.3 Collaboration, Decision-Making and Problem Solving in Groups

Diverse teams have been proven to be better at problem-solving and decision-making for a number of reasons. First, they bring many different perspectives to the table. Second, they rely more on facts and use those facts to substantiate their positions. What is even more interesting is that, according to the Scientific American article “How Diversity Makes Us Smarter,” simply “being around people who are different from us makes more creative, diligent, and harder-working.”

One case in point is the example of jury decision-making, where fact-finding and logical decision-making are of utmost importance. A 2006 study of jury decision-making, led by social psychologist Samuel Sommers of Tufts University, showed that racially diverse groups exchanged a wider range of information during deliberation of a case than all-White groups did. The researcher also conducted mock jury trials with a group of real jurors to show the impact of diversity on jury decision-making.

Interestingly enough, it was the mere presence of diversity on the jury that made jurors consider the facts more, and they had fewer errors recalling the relevant information. The groups even became more willing to discuss the role of race case, when they hadn’t before with an all-White jury. This wasn’t the case because the diverse jury members brought new information to the group—it happened because, according to the author, the mere presence of diversity made people more open-minded and diligent. Given what we discussed on the benefits of diversity, it makes sense. People are more likely to be prepared, to be diligent, and to think logically about something if they know that they will be pushed or tested on it. And who else would push you or test you on something, if not someone who is different from you in perspective, experience, or thinking. “Diversity jolts us into cognitive action in ways that homogeneity simply does not.”

So, the next time you are called for jury duty, or to serve on a board committee, or to make an important decision as part of a team, remember that one way to generate a great discussion and come up with a strong solution is to pull together a diverse team.

  • If you don’t have a diverse group of people on your team, how can you ensure that you will have robust discussions and decision-making? What techniques can you use to generate conversations from different perspectives?
  • Evaluate your own team at work. Is it a diverse team? How would you rate the quality of decisions generated from that group?

Sources: Adapted from Katherine W. Phillips, “How Diversity Makes Us Smarter,” Scientific American, October 2014, p. 7–8.

“ Critical Thinking Case ” in  Organizational Behaviour by OpenStax is licenced under a Creative Commons Attribution 4.0 International License .

Conflict Management Copyright © 2022 by Laura Westmaas, BA, MSc is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License , except where otherwise noted.

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Managing Conflict With Negotiation Training Ppt

This set of slides provides information about the use of the negotiation approach to resolve workplace conflicts which are win-win, win-lose, and inefficient but equitable. It also covers the negotiation process with stages such as identification of the problem, preparation of negotiation, and negotiation. Further, it contains tips for negotiating effectively and tabulates the difference between negotiation and mediation.

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Presenting Managing Conflict with Negotiation. This PPT presentation is thoroughly researched by the experts, and every slide consists of appropriate content. All slides are customizable. You can add or delete the content as per your need. Not just this, you can also make the required changes in the charts and graphs. Download this professionally designed business presentation, add your content and present it confidently.

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Content of this Powerpoint Presentation

This slide provides information about the definition of negotiation in a conflict situation, i.e., a systematic process in which two parties in conflict achieve a mutual consensus by reaching a win-win solution. It also provides details of the possible negotiation outcomes such as win-win, win-lose, and inefficient but equitable.

Instructor's Notes:

There are three possible outcomes of negotiation in a conflict situation:

  • Win-win: In this outcome, both parties win. It is also known as integrative bargaining
  • Win-lose: In this, one party wins while the other party loses. It is also known as distributive bargaining
  • Inefficient but equitable: In this, agreement is such that all the resources are shared equally while both parties in conflict remain slightly dissatisfied

This slide illustrates the major steps of the negotiation process used to resolve workplace conflict. The major steps are identification of the problem, preparation of negotiation, and negotiation.

The major steps of the negotiation process are:

  • Identification of the Problem: Identify the existing sources of brewing resentment, such as salary issues, micromanagement, etc. The correct identification of the cause is crucial as the nature of issues affect the entire negotiation process, i.e., the selection of representatives, period of negotiation, etc.
  • Preparation of Negotiation: In this stage, parties in conflict prepare (in advance) the list of issues to be discussed during the negotiation. Each party also appoints representatives to carry out the negotiation
  • Negotiation: An appointed chief negotiator presents the issue under consideration in the negotiation meeting. After that, the representatives of both parties put forward their point of view. Discussions continue under the observation of the negotiator till a final settlement is reached

This slide provides information about the multiple negotiation skills that one should develop to effectively resolve workplace conflict. The skills are discussion approach, prepare well, customize response, understand position – self and others, and aim for win-win.

Negotiation skills needed to resolve workplace conflicts in an effective manner are:

  • Follow Discussion Approach: In negotiations, always follow the discussion style while conversing. Remaining rigid about your own perception and not understanding the other party's viewpoint result in failure
  • Prepare Well: Preparation leads to success. Before entering into a negotiation, research the subject of conflict well
  • Customize Response: Tailor replies in accordance with the person in front of you. Use nonverbal cues to support verbal communication and make a lasting impact
  • Understand Position – Self and Others: Avoid making unrealistic demands as it will surely lead to failure of talks
  • Win-win for Everyone: Always aim for integrative bargaining so that everyone leaves the negotiation table on a happy note

This slide tabulates the difference between negotiation and mediation as techniques for workplace conflict resolution. The primary difference between negotiation and mediation is that in mediation, there is an active intervention of a third party, i.e., the mediator that actively guides the parties to arrive at an amicable solution.

Managing Conflict With Negotiation Training Ppt with all 20 slides:

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Conflict and Negotiation

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

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Presentation Transcript

Conflict • Conflict Defined • A process that begins when one party perceives that another party has negatively affected, or is about to negatively affect, something that the first party cares about. • Is that point in an ongoing activity when an interaction “crosses over” to become an interparty conflict. • Encompasses a wide range of conflicts that people experience in organizations • Incompatibility of goals • Differences over interpretations of facts • Disagreements based on behavioral expectations

Transitions in Conflict Thought Traditional View of Conflict The belief that all conflict is harmful and must be avoided. • Causes: • Poor communication • Lack of openness • Failure to respond to employee needs

Transitions in Conflict Thought (cont’d) Human Relations View of Conflict The belief that conflict is a natural and inevitable outcome in any group. Interactionist View of Conflict The belief that conflict is not only a positive force in a group but that it is absolutely necessary for a group to perform effectively.

Functional versus Dysfunctional Conflict (Positive) Functional Conflict Conflict that supports the goals of the group and improves its performance. Dysfunctional Conflict Conflict that hinders group performance. (Negative)

Types of Conflict Task Conflict Conflicts over content and goals of the work. Relationship Conflict Conflict based on interpersonal relationships. Process Conflict Conflict over how work gets done.

The Conflict Process

Stage I: Potential Opposition or Incompatibility • Communication • Semantic difficulties, misunderstandings, and “noise” • Structure • Size and specialization of jobs • Jurisdictional clarity/ambiguity • Member/goal incompatibility • Leadership styles (close or participative) • Reward systems (win-lose) • Dependence/interdependence of groups • Personal Variables • Differing individual value systems • Personality types

Positive Feelings Negative Emotions Stage II: Cognition and Personalization Perceived ConflictAwareness by one or more parties of the existence of conditions that create opportunities for conflict to arise. Felt ConflictEmotional involvement in a conflict creating anxiety, tenseness, frustration, or hostility. Conflict Definition

Stage III: Intentions Intentions Decisions to act in a given way. • Cooperativeness: • Attempting to satisfy the other party’s concerns. • Assertiveness: • Attempting to satisfy one’s own concerns.

Dimensions of Conflict-Handling Intentions Source: K. Thomas, “Conflict and Negotiation Processes in Organizations,” in M.D. Dunnette and L.M. Hough (eds.), Handbook of Industrial and Organizational Psychology, 2nd ed., vol. 3 (Palo Alto, CA: Consulting Psychologists Press, 1992), p. 668. With permission.

Stage III: Intentions (cont’d) Competing A desire to satisfy one’s interests, regardless of the impact on the other party to the conflict. Collaborating A situation in which the parties to a conflict each desire to satisfy fully the concerns of all parties. Avoiding The desire to withdraw from or suppress a conflict.

Stage III: Intentions (cont’d) Accommodating The willingness of one party in a conflict to place the opponent’s interests above his or her own. Compromising A situation in which each party to a conflict is willing to give up something.

Stage IV: Behavior Conflict Management The use of resolution and stimulation techniques to achieve the desired level of conflict.

Conflict-Intensity Continuum Source: Based on S.P. Robbins, Managing Organizational Conflict: A Nontraditional Approach (Upper Saddle River, NJ: Prentice Hall, 1974), pp. 93–97; and F. Glasi, “The Process of Conflict Escalation and the Roles of Third Parties,” in G.B.J. Bomers and R. Peterson (eds.), Conflict Management and Industrial Relations (Boston: Kluwer-Nijhoff, 1982), pp. 119–40.

Conflict Management Techniques • Conflict Resolution Techniques • Problem solving • Superordinate goals • Expansion of resources • Avoidance • Smoothing • Compromise • Authoritative command • Altering the human variable • Altering the structural variables Source: Based on S. P. Robbins, Managing Organizational Conflict: A Nontraditional Approach (Upper Saddle River, NJ: Prentice Hall, 1974), pp. 59–89

Conflict Management Techniques • Conflict Resolution Techniques • Communication • Bringing in outsiders • Restructuring the organization • Appointing a devil’s advocate Source: Based on S. P. Robbins, Managing Organizational Conflict: A Nontraditional Approach (Upper Saddle River, NJ: Prentice Hall, 1974), pp. 59–89

Stage V: Outcomes • Functional Outcomes from Conflict • Increased group performance • Improved quality of decisions • Stimulation of creativity and innovation • Encouragement of interest and curiosity • Provision of a medium for problem-solving • Creation of an environment for self-evaluation and change • Creating Functional Conflict • Reward dissent and punish conflict avoiders

Stage V: Outcomes • Dysfunctional Outcomes from Conflict • Development of discontent • Reduced group effectiveness • Retarded communication • Reduced group cohesiveness • Infighting among group members overcomes group goals

Negotiation Negotiation A process in which two or more parties exchange goods or services and attempt to agree on the exchange rate for them. BATNA The Best Alternative To a Negotiated Agreement; the lowest acceptable value (outcome) to an individual for a negotiated agreement.

Bargaining Strategies Distributive Bargaining Negotiation that seeks to divide up a fixed amount of resources; a win-lose situation. Integrative Bargaining Negotiation that seeks one or more settlements that can create a win-win solution.

Distributive Versus Integrative Bargaining Bargaining Distributive IntegrativeCharacteristic Bargaining Bargaining Goal Get as much of pie Expand the pie as possible Motivation Win-Lose Win-Win Focus Positions Interests Information Low High Sharing Duration of Short term Long term relationships Source: Based on R. J. Lewicki and J. A. Litterer, Negotiation (Homewood, IL: Irwin, 1985), p. 280.

Staking Out the Bargaining Zone

The Negotiation Process BATNA The Best Alternative To a Negotiated Agreement; the lowest acceptable value (outcome) to an individual for a negotiated agreement.

Issues in Negotiation • The Role of Mood & Personality Traits in Negotiation • Positive moods positively affect negotiations • Traits do not appear to have a significantly direct effect on the outcomes of either bargaining or negotiating processes (except extraversion, which is bad for negotiation effectiveness) • Gender Differences in Negotiations • Women negotiate no differently from men, although men apparently negotiate slightly better outcomes. • Men and women with similar power bases use the same negotiating styles. • Women’s attitudes toward negotiation and their success as negotiators are less favorable than men’s.

Why American Managers Might Have Trouble in Cross-Cultural Negotiations • Italians, Germans, and French don’t soften up executives with praise before they criticize. Americans do, and to many Europeans this seems manipulative. Israelis, accustomed to fast-paced meetings, have no patience for American small talk. • British executives often complain that their U.S. counterparts chatter too much. Indian executives are used to interrupting one another. When Americans listen without asking for clarification or posing questions, Indians can feel the Americans aren’t paying attention. • Americans often mix their business and personal lives. They think nothing, for instance, about asking a colleague a question like, “How was your weekend?” In many cultures such a question is seen as intrusive because business and private lives are totally compartmentalized. Source: Adapted from L. Khosla, “You Say Tomato,” Forbes, May 21, 2001, p. 36.

Third-Party Negotiations Mediator A neutral third party who facilitates a negotiated solution by using reasoning, persuasion, and suggestions for alternatives. Arbitrator A third party to a negotiation who has the authority to dictate an agreement.

Third-Party Negotiations (cont’d) Conciliator A trusted third party who provides an informal communication link between the negotiator and the opponent. Consultant An impartial third party, skilled in conflict management, who attempts to facilitate creative problem solving through communication and analysis.

Conflict and Unit Performance

USE….Competition • When quick, decisive action is vital (in emergencies); on important issues. • Where unpopular actions need implementing (in cost cutting, enforcing unpopular rules, discipline). • On issues vital to the organization’s welfare. • When you know you’re right. • Against people who take advantage of noncompetitive behavior.

USE …..Collaboration • To find an integrative solution when both sets of concerns are too important to be compromised. • When your objective is to learn. • To merge insights from people with different perspectives. • To gain commitment by incorporating concerns into a consensus. • To work through feelings that have interfered with a relationship.

USE….Avoidance • When an issue is trivial, or more important issues are pressing. • When you perceive no chance of satisfying your concerns. • When potential disruption outweighs the benefits of resolution. • To let people cool down and regain perspective. • When gathering information supersedes immediate decision. • When others can resolve the conflict effectively. • When issues seem tangential or symptomatic of other issues.

USE….Accommodation • When you find you’re wrong and to allow a better position to be heard. • To learn, and to show your reasonableness. • When issues are more important to others than to yourself and to satisfy others and maintain cooperation. • To build social credits for later issues. • To minimize loss when outmatched and losing. • When harmony and stability are especially important. • To allow employees to develop by learning from mistakes.

USE…Compromise • When goals are important but not worth the effort of potential disruption of more assertive approaches. • When opponents with equal power are committed to mutually exclusive goals. • To achieve temporary settlements to complex issues. • To arrive at expedient solutions under time pressure. • As a backup when collaboration or competition is unsuccessful.

Chapter Check-Up: Conflict By standing on the printer, what conflict resolution technique might this man (Tom Alexander) be employing? Authoritative Command Super ordinate goal Expansion of resources Compromise By shifting the focus of the meeting to the overall organizational competitiveness being threatened because of the excess strength being built into the printers, he directed the attendees to a super ordinate goal of the organization remaining competitive.

Chapter Check-Up: Conflict Suppose you are a staunch Democrat and your uncle is a Republican. Every time he sees you, he tries to pick a fight about politics and “those stupid liberals.” According to this chapter, what conflict handling intention should you use in dealing with him? Competing Collaborating Accommodating Avoidance Discuss with your neighbor under what circumstances (if any) you should shift to an accommodating intention (when talking with your uncle).

Chapter Check-Up: Negotiation Discuss the concepts of BATNA and resistance point with your neighbor. What similarities are there between the two? Differences?

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Team-Building Strategies: Building a Winning Team for Your Organization

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Discover how to build a winning team and boost your business negotiation results in this free special report, Team Building Strategies for Your Organization, from Harvard Law School.

Case Study of Conflict Management: To Resolve Disputes and Manage Conflicts, Assume a Neutral 3rd Party Role

Here is a case study of conflict management emphasizing the importance of hearing all sides in a dispute.

By PON Staff — on May 13th, 2024 / Conflict Resolution

conflict and negotiation case study slideshare

In their book Difficult Conversations: How to Discuss What Matters Most (Penguin Putnam, 2000), authors Douglas Stone , Bruce Patton , and Sheila Heen tell us how to engage in the conversations in our professional or personal lives that make us uncomfortable by examining a case study of conflict management. Tough, honest conversations are critical for managers, whether they need to change the group culture, manage conflict within a team, give a negative performance evaluation, disagree with others in a group, or offer an apology.

To set the stage for a productive discussion, open a difficult conversation with the “Third Story,” advise the authors of Difficult Conversations . The Third Story is one an impartial observer, such as a mediator, would tell; it’s a version of events both sides can agree on. “The key is learning to describe the gap—or difference—between your story and the other person’s story. Whatever else you may think and feel, you can at least agree that you and the other person see things differently,” Stone, Patton, and Heen write.

The New Conflict Management

Claim your FREE copy: The New Conflict Management

In our FREE special report from the Program on Negotiation at Harvard Law School - The New Conflict Management: Effective Conflict Resolution Strategies to Avoid Litigation – renowned negotiation experts uncover unconventional approaches to conflict management that can turn adversaries into partners.

Suppose two regional sales reps share responsibility for sending weekly updates to their manager. Brad always submits them on time, but Frank often turns them in late. Saying, “Frank, you’ve turned in the sales reports late again” would only put Frank on the defensive. Instead, Brad opens the conversation this way: “Frank, you and I place a different value on deadlines. I want to explain why meeting them is important to me, and then I’d like to hear your take on them.”

Brad learns that Frank, when faced with the choice of possibly making a sale or compiling the report, thinks he should focus on the sale. With this insight, Brad proposes another way to share responsibilities: Brad will complete the report when it’s Frank’s turn to do so, as long as Frank gives Brad two hours’ notice and a share in any commission Frank earns as a result of being able to continue pursuing a lead.

What are your favorite conflict management methods?

Related Conflict Resolution Article: Conflict Management Skills When Dealing with an Angry Public – Here is some negotiation advice drawn from a case study of conflict management dealing with an angry public.

Adapted from “How to Say What Matters Most,” by Susan Hackley (former managing director, Program on Negotiation), first published in the  Negotiation  newsletter.

Originally published in 2010.

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Understanding how to arrange the meeting space is a key aspect of preparing for negotiation. In this video, Professor Guhan Subramanian discusses a real world example of how seating arrangements can influence a negotiator’s success. This discussion was held at the 3 day executive education workshop for senior executives at the Program on Negotiation at Harvard Law School.

Guhan Subramanian is the Professor of Law and Business at the Harvard Law School and Professor of Business Law at the Harvard Business School.

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conflict and negotiation case study slideshare

Analysis Of Dalihan Na Tolu In Conflict Resolution In The Toba Batak Community: Case Study In Medan City

Article sidebar, main article content.

The aim of this research is to find a policy model for resolving social conflicts based on local wisdom in the Toba Batak community in Medan City. This research includes models and social conflict resolution based on the local wisdom of the Toba Batak community, with consensus and principled negotiations in resolving conflicts and strategic efforts adopted by dalihan na tolu elements to resolve conflicts. The consensus and negotiation model is an effort used to raise public awareness of the existence of the traditional principles of dalihan na tolu in conflict resolution. The wisdom model shows that there is public awareness and understanding of the great potential of local wisdom in conflict resolution in urban areas, namely mutual respect, solidarity and kinship and this forum is always present in the customs carried out by the Toba Batak people in their daily lives.

The method for reducing conflict and weakening the pretext of na tolu is seen by building a commitment to togetherness and supporting public leaders such as ulama, traditional leaders and other community leaders to mediate between parties in conflict, as well as the need for a dual role of religious leaders in spreading the values ​​of peace and wisdom. local to strengthen the dalihan na tolu in the midst of the people or society. An analysis of the causes of conflict is seen through the resolution model in Toba Batak society with the patterns or functions of dalihan na tolu in conflict resolution in the city of Medan. The results of this research reveal that dalihan na tolu is a forum for consensus and principled negotiation in resolving conflicts in the Toba Batak community in Medan City where the actors in it wisely become the driving force in the consensus.

Article Details

Riana lumbanraja.

Administrasi Publik Universitas HKBP Nommensen Medan

Marlan Hutahaean

Jonson rajagukguk, kepler sinaga.

Administrasi Bisnis Universitas HKBP Nommensen Medan

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  1. Negotiation & Conflict Resolution

    25. DEFINITION A process in which two or more parties exchange goods or services and attempt to agree on the exchange rate for them A give-and-take decision-making process It is a collection of behaviours that involves communication, sales, marketing, psychology, sociology, assertiveness and conflict resolution. 26.

  2. Conflict and negotiations

    Editor's Notes. Competition for scarce resources- because the vital resources of money, manpower, time, materials and equipment are limited, allocating them to groups produces conflict, for some will certainly get less than they need or want Inherent Conflict - Standardized procedures, rules and policies that regulate behavior tend to reduce the likelihood of conflict but at the same time ...

  3. A Case Study of Conflict Management and Negotiation

    The following is drawn from a case study of conflict management and negotiation involving multi-party negotiation scenarios. Dora Lau of the Chinese University of Hong Kong and Keith Murnighan of the Kellogg Graduate School of Management at Northwestern University have examined group conflict in terms of fault lines the cracks that result when ...

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    Negotiation case studies introduce participants to new negotiation and dispute resolution tools, techniques and strategies. Videos are also a helpful way of introducing viewers to key concepts, and TNRC books , role-play simulations , and periodicals address the theory and practice of negotiation and conflict management.

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    Negotiating a Template for Labor Standards - Featured Case Study. Negotiating a Template for Labor Standards: The U.S.-Chile Free Trade Agreement is a detailed factual case study that tracks the negotiation of the labor provisions in the U.S.-Chile Free Trade Agreement signed into law on January 1, 2004. It draws upon a range of published and ...

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    Conflict resolution is the process of resolving a dispute or a conflict by meeting at least some of each side's needs and addressing their interests. Conflict resolution sometimes requires both a power-based and an interest-based approach, such as the simultaneous pursuit of litigation (the use of legal power) and negotiation (attempts to ...

  7. Top 10 International Business Negotiation Case Studies

    Just before negotiations were due to start, however, North Korea complained that it was insulted that the lead negotiator from the South wasn't higher in status. The conflict escalated, and North Korea ultimately withdrew from the talks. The case highlights the importance of pride and power perceptions in international negotiations.

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    In most cases, we observe that it is to avoid conflict or to stay out of "the soft stuff.". By contrast, great negotiators confront and control these factors throughout a negotiation. Here are five core techniques that practitioners can use to get started. Improve communication. Increasing the volume and quality of communication with your ...

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    The negotiation Somying tries to negotiate with Davide & John by using indirect communication She wants the best outcome for her and them David and John agree to negotiate and find the best outcome Direct Communication Can you guys stop partying every weekend because it's very annoying and loud. I must study or take a rest but I couldn't do such a thing due to the noise from your party ...

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    In their book Difficult Conversations: How to Discuss What Matters Most (Penguin Putnam, 2000), authors Douglas Stone, Bruce Patton, and Sheila Heen tell us how to engage in the conversations in our professional or personal lives that make us uncomfortable by examining a case study of conflict management. Tough, honest conversations are critical for managers, whether they need to change the ...

  18. Analysis Of Dalihan Na Tolu In Conflict Resolution In The Toba Batak

    The aim of this research is to find a policy model for resolving social conflicts based on local wisdom in the Toba Batak community in Medan City. This research includes models and social conflict resolution based on the local wisdom of the Toba Batak community, with consensus and principled negotiations in resolving conflicts and strategic efforts adopted by dalihan na tolu elements to ...