MB13-02 : CONFLICT MANAGEMENT AND NEGOTIATION SKILLS

1.Explain the process of conflict.

According to Pondy, conflict can be more readily understood if it is considered as dynamic process. "Process" here indicates a series of events. Each conflict is made up of a sequence of interlocking conflict episodes, as shown below.

i) The aftermath of the preceding conflict episodes sets the stage for those that follow. Past experience with the antagonistic party set expectations and to a certain extent determines the response to new episodes.

ii) Latent conflict refers to the underlying conditions for conflict. Scarcity of resources, the drive for autonomy versus the need for control and divergence of personal or unit goals are examples of such underlying conditions Environmental effects also influence latent conflict. For example, an organization in a declining industry faces more stressful conditions than an organization in a stable or growing industry.

iii) Perceived conflict occurs with the awareness of the existence of the latent create conflict until someone notices that they are divergent. Perceived conflict is still incipient, -when the parties have not yet responded effectively. Two mechanisms operate to keep latent conflict from being perceived. First, suppression occurs when conflict is only mildly threatening and not "worth" dealing with. Second, the attention-focus mechanism represents organizational and individual priorities. They may be more conflicts than can be dealt with easily, so the attention is focused on only a few. Perceived conflict does not always become felt conflict. People may disagree over an issue but feel they may no anxiety or animosity. Felt conflict reaches the level of experience. At least some of the parties respond effectively, perhaps through anxiety, frustration, or feelings of hostility.

iv) Manifest conflict is expressed through behavior. The expression may be as low key as apathy or as dramatic as over hostility or aggression. Whether perceived conflicts and felt conflicts become manifest conflict depends partly on the availability of resolution mechanisms such as administrative review procedures or appeal processes. If the disagreement is strategic in nature, especially involving unit goals, then conflict is likely.

v) The conflict aftermath then becomes an environmental factor for the next conflict episode. If the conflict is resolved, the parties may move towards a cooperative relationship. If not, the conflict may expand to previously uninvolved parties or issues. Pondy suggests that the origins of organizational conflicts are informational, political functional, and social. Conflict can occur in any of the subsets while affecting and being affected by conflict in the other subsets.

2. Explain the Individual Conflict.

Individual conflict involves two or more individuals rather than one individual. Such conflict situations are made-up of at least two individuals who hold polarized points of view, who are somewhat intolerant or ambiguities, who ignore delicate shades of gray, and who are quick to jump to conclusion.

REASONS

Interpersonal conflicts usually result in such cases where each person is jockeying to possess a scare resource, which may be a material thing or an immaterial state such as status, prestige, fame, power or money. The most commonly cited reasons for interpersonal conflicts are:

i) Personality differences: Some people have difficulty in getting alone with each other. This is purely a psychological problem and it has nothing to do with their job requirements or formal inter-actions.

ii) Perceptions: Varied backgrounds, experiences, education and training result in individuals developing different perceptions of semi-realities, the result being an increase in the likelihood of interpersonal conflict. The belief that somebody else is out to eat away our share of resources may create ill feelings between that person and us. An individual who perceives conflict is likely (between managers and subordinates) to act in a manner conveying conflict intentions. Vertical conflicts develop usually because superiors try to control subordinates and subordinates tend to resist. The subordinates may resist because they believe the control infringes on their personal autonomy, "makes his behavior more predictable to others and thus weakens his power position in the organization".

iii) Clashes of values end interests: Conflict that so commonly develops between engineering and manufacturing personnel shows how differences in values might underlie conflict. Members of the engineering department might place a premium on quality, sophisticated design and durability while members of the manufacturing department might value simplicity and low manufacturing costs. The typical reactions may erupt in such forms. "It is too expensive to do it your way. But we'll lose our reputation for quality if we attempt it your way".

iv) Power and status differences: Interpersonal conflicts arise from unequal distribution of power and status. As pointed out by Abraham Zalenznik "Organizations are political structures". They operate by distributing authority and setting a stage for the exercise power. Similarly status inconsistencies lead to conflict. For example, conflict may result when low status waitresses try to give orders to high status cooks.

v) Scarce resources: Interpersonal conflict is almost automatic anytime there is scarcity. Conflicts over scarce resources are exceedingly common in organizations. Where the scarcity is absolute (the resource level cannot be enhanced) it is very difficult to manage interpersonal conflicts. For example, if there are three qualified individuals for superior positions in the organization and there is only one such position, interpersonal conflict may develop to an unmanageable level.

3. Explain the Stimulation Strategies.

1) Communication: Managers can manipulate messages in such ways

as to stimulate conflict. Ambiguous or threatening messages encourage conflict. Information that a plant will close, that a department is to be wiped out Considering the amount of controversy surrounding the term 'Conflict', the whole notion of 'Conflict stimulation' is often difficult to accept without reservation. The language of conflict stimulation is hard to digest and this partly explains the dearth of ideas on conflict stimulation techniques. Although writers often discuss ways of reducing conflict relatively few write about the stimulation strategies. Robbins had offered certain guidelines in this direction or that a lay off is certain can reduce apathy, force members to confront their differences, stimulate new ideas and force re-evaluation of current practices etc. Sometimes, a manager can also redirect messages and alter channels to encourage conflict. Intelligently planted rumors in the informal channels can also serve a useful purpose.

ii) Bringing in outsiders: A commonly used method of 'shaking up' a stagnant unit organization is to bring in people whose backgrounds, attitudes, values and managerial style vary significantly from the prevalent norms. Introduction of heterogeneous people into the organization helps in disturbing the status quo (for example suggesting innovative ideas, offering divergent opinions, demonstrating originality etc.).

iii) Restructure the organization: Changing the structure of an organization is an excellent way of creating conflict. Breaking up old work groups and departments and re-organizing them so that they have new entrants or responsibilities will create uncertainties that call for readjustments immediately. Conflict that develops during this period may ultimately lead to improved methods of operation as members try to adjust to new circumstances.

iv) Encouraging competition: The use of bonuses, incentive pay and awards for excellent performance will stimulate competition. Such incentives, when administered properly, foster a competitive spirit among individuals and groups. Conflicts will be productive as one-group struggles hard to out do the other.

4. Write short notes on: a) Bargaining b) Negotiation

a) Bargaining:

In everyday speech, "bargaining" is some times employed interchangeably with negotiation. The word negotiation is usually employed to refer to transactions, which are more complex, more dignified or take more time. We "bargain" for a carpet in the bazaar, but "negotiate" a long-term loan from the bank.

In the area of business negotiation it is useful to distinguish between "bargaining" and "joint problem-solving", or simply "problem-solving". They refer to different types of negotiation, and the distinction is crucial and well understood either explicitly or implicitly by skilled negotiators. To use an analogy, both tennis and golf are considered co-operation-conflict relationships. But the rules of each are different, as are the skills required.

Consider bargaining. In this type of negotiation, one party's gain is automatically the other party's loss. Bargaining is primarily a win-lose situation. If, for example, you and another party divide a pie, then the larger the share the other party takes, the smaller the share remains for you.

Conversely, if you increase your share, then the other party's share diminishes. Sometimes you can alleviate the conflict by equally dividing the item in conflict. But suppose you provided the oven and most of the ingredients is a 50:50 solution then fair to you?

A prominent union official once confided that he would fight any proposed efficiency, which might reduce the number of employees, represented by his organization. He would do this with no consideration for what the efficiency change might contribute to the company's welfare.

The official is restricting his flexibility by adopting a hard-line position; by specifying the single outcome, which he will accept, he insures a bargaining situation.

In most bargaining situations, the parties co-operate to bake that pie and then enter into conflict to get the larger slice of it for themselves. The conflict component is more prominent than the co-operation. All this is based upon the fact, or the belief that the size of the pie is fixed.

But the two parties can also co-operate to bake a larger pie.

The Concept of Joint Problem-solving

If the party's combine to take a larger pie, even though their relative shares (in this case, 50:50) remains the same, they both obtain more. This is a win-win situation. The emphasis is on co-operation rather than on conflict. You have solved the problem of how to increase both shares by making a joint effort.

In contrast to the earlier union official who was establishing a bargaining relationship, consider the position adopted sometime ago by the United Auto Workers Union in the U.S.

b) Negotiation:

Skilled negotiators have a more comprehensive and useful understanding of what negotiation" is than the ordinary executive

The term "negotiation" in popular usage refers to a variety of transactions in which the terms of exchange are not fixed, but evolve in the course of people getting together to do business with one another. If the price is fixed and cannot be changed, as in a departmental store or supermarket, the buyers simply decide whether they want to do business at this price or go elsewhere. If, on the other hand, you are selling your house or any other asset then there is no fixed price. You have to come to terms with the other party to determine the conditions under which the exchange will take place. You negotiate an agreement.

Other Aspects of Negotiation

The term negotiation also implies the involvement of at least two parties, since we do not negotiate with ourselves. There may well be more than two, as when the government becomes involved in union- management negotiations to avert a strike, or a number of countries get together to negotiate a multilateral treaty.

All parties must share some common need, however, or they would not come together initially. They must also have needs which they do not share with the other parties. If they do not have any difference, then they can arrive at instant agreement and there is no need for negotiation.

Negotiation is a process of building on common interests and reducing differences in order to arrive at an agreement, which is at least minimally acceptable to all Conflict Management & Negotiation Skills parties concerned. The parties co-operate by getting together and then must try to reduce the conflict of different interests. Any negotiation must therefore involve both cooperation and conflict.

If one party has sufficient power to impose all of its terms on the other party, this constitutes unconditional surrender for the other party, and is not negotiation. In any negotiation there must be give and take. Each party must, in varying degrees, be able to revise its expectations and be prepared to reduce some demands in order to have others met. Although those concessions may not be equal on both sides, the distance between the parties' positions must be reduced if an agreement is to be reached and a deadlock avoided.

This process of mutual adjustment of interest can be quite lengthy. Negotiations may be quickly concluded or take many years, as in the international political arena. There is also a differential time perspective in regard to the type of relationship (e.g., short-term/long-term, personal/impersonal) being entered into by the parties. This has an important influence on the type of negotiation involved.

Taking all of these points into consideration, the final definition of negotiation is; the process that occurs when two or more parties, each of whom is seen as controlling some resource which the other desires, confer to reach an agreement on mutual exchange of the resources.

Q5. Explain the building Understanding negotiation.

This phase of the negotiation has three components:

1. Getting information

2. Testing arguments and positions

3. Using timing and adjournments

1. Getting Information

In a negotiation, information is power. The more information you can get from the other side the better.

It seems obvious that to gain information, you should ask questions. However, in real negotiations it is remarkably easy to get so wrapped up in presenting your own case that you forget to ask questions at all.

The quality of the information provided by the other party depends largely on the type of questions asked. Anyone, who has seen a skilful lawyer break down a carefully constructed lie knows the value of effective questions.

2. Testing Arguments and Positions

Having obtained more information from the other party, their case should be tested. In particular, when testing the other side's case, you should look for the following flaws or distortions in the arguments of the other negotiator:

* Factual errors or omissions

* Faulty logic

* Selective use of statistics

* Hidden agenda

* Misrepresentation of priorities

3. Using Timing and Adjournments

In planning and conducting negotiations, positive attention should be paid to the duration of bargaining sessions, formal presentations and individual contributions to the discussion. In our experience, one individual session should rarely exceed two hours, formal presentation 15 to 20 minutes, and an informal contribution 2 to 3 minutes. Longer discussions often lead to boredom, loss of attention, fatigue and/or unproductive exchange related to the random walk syndrome.

How to use Adjournment?

Adjournments can be used as powerful aids to negotiation. You should use them whenever you find yourself in a situation such as: to absorb and consider the impact of important new information that has an effect on your strategy or position, recognize an important change in climate or style on the part of the other party etc.

Who should call an Adjournment?

The time to call for an Adjournment is when the need first becomes apparent. Failure to do so for fear. It may be perceived as a disruption or a waste of time by the other party is self-defeating.