Page 20 - DMGT519_Conflict Management and Negotiation Skills

Conflict Management and Negotiation Skills

Notes 11. Changing Structure: Another way to resolve a conflict is to change the structure of the
organization. One way of accomplishing this is to create an integrator role. An integrator
is a liaison between groups with very different interests. In severe conflicts, it may be the
best that the integrator be a neutral third party. Creating the integrator role is a way of
opening dialogue between groups that have difficulty in communicating.
Using cross-functional teams is another way of changing the organization’s structure to
manage conflict. In the old methods of designing new products in organizations, many
departments had to contribute and delays resulted from difficulties in coordinating the
activities of the various department. Using a cross-functional team made up of members
from different departments, improves coordination and reduces delays by allowing many
activities to be performed at the same time rather than sequentially. The team approach
allows members from different departments to work together and reduces the potential
for conflict.

12. Confronting and Negotiating: Some conflicts require confrontation and negotiation
between the parties. Both these strategies require skill on the part of the negotiator and
careful planning before engaging in negotiations. The process of negotiation involves an
open discussion of problem solutions, and the outcome is often an exchange in which both
parties work towards a mutually beneficial solution.

1.6 Resolving Conflict through Negotiation

The Two Most Important Kinds of Bargaining: Distributive (win-lose) vs. Integrative
(win-win)

All bargaining situations can be divided into two categories:

1.6.1 Distributive (also called Competitive, Zero Sum, Win-lose or
Claiming Value)

In this kind of bargaining, one side “wins” and one side “loses.” In this situation there are fixed
resources to be divided so that the more one gets, the less the other gets. In this situation, one
person’s interests oppose the others. In many “buying” situations, the more the other person
gets of your money, the less you have left. The dominant concern in this type of bargaining is
usually maximizing one’s own interests. Dominant strategies in this mode include manipulation,
forcing, and withholding information. This version is also called “claiming value” since the
goal in this type of situation is to increase your own value and decrease your opponent’s.

1.6.2 Integrative (Collaborative, Win-win or Creating Value)

In this kind of bargaining, there is a variable amount of resources to be divided and both sides
can “win.” The dominant concern here is to maximize joint outcomes. An example is resolving
a different opinion about where you and a friend want to go to dinner. Another example is a
performance appraisal situation with a subordinate or resolving a situation of a subordinate
who keeps coming in late to work. Dominant strategies in this mode include cooperation,
sharing information, and mutual problem solving. This type is also called “creating value”
since the goal here is to have both sides leave the negotiating feeling they had greater value than
before.
It needs to be emphasized that many situations contain elements of both distributive and
integrative bargaining. For example, in negotiating a price with a customer, to some degree
your interests oppose the customer (you want a higher price; he wants a lower one) but to some

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