Organizational Conflict Management BUS 520, Section: 2 Faculty: Dr. Mahmud A. Shareef

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1 Organizational Conflict Management BUS 520, Section: 2 Faculty: Dr. Mahmud A. Shareef North South University

2 Objective: To comprehend Conflict and Conflict Management in workplace. To shed light into organizational Conflict Management Strategies. Demonstrate Methods to effectively Resolve Conflict Situations.

3 What is Conflict? Competitive or opposing action of incompatibles; antagonistic state or action. Webster s Definition Workplace Definition Each party seeks a position perceived to be incompatible with the wishes of the other. The practice of identifying and handling conflict in a sensible, fair & efficient manner. Conflict Management

4 Organizational Conflict Lack of conflict signals that management emphasizes conformity and stifles innovation. Conflict is good for organizational performance although excessive conflict causes managers to spend too much time achieving their own ends.

5 Effects of Conflict in Organizations Stress Absenteeism Staff turnover De-motivation Nonproductivity S.M.Israr

6 Understanding Conflict The condition in which people s concerns - the things they care about appear to be incompatible. Conflict does not always equate to fighting, arguing, blaming, & name-calling.

7 Common Causes of Conflict Competition over needs or perceived needs Difference in methods or process understandings Personality and behavioral style Communication style, tone and body language Competition over resources Differences of Opinions

8 Sources of Conflict Incompatible Goals & Time Horizons Status Inconsistencies Overlapping Authority Scarce Resources Organizational Conflict Task Interdependencies Incompatible Evaluation or Reward System

9 Types of Conflict Conflict between individuals Conflict within a group or team Interpersonal Conflict Intragroup Conflict Conflict between two or more teams or groups Intergroup Conflict Interorganizational Conflict Conflict that arises across organizations

10 Consequences of conflict Functional Problem awareness Increased group cohesiveness Motivation to improve Creative change Dysfunctional Suboptimiazation Negative feelings Distorted perceptions Negative stereotypes Decreased communication

11 Conflict and Performance

12 Managing Conflict Conflict Management Conflict Style Orientations Competing Accommodating Avoiding Collaborating Compromising Negotiating Strategies Teams Task forces Liaison roles Planning Problem solving Third party judgment Smoothing

13 Conflict management Styles Competing High Assertive Competing Style Collaborative Style Compromising Style Low Assertive Avoidance Style Accommodating Style Low Cooperation High Cooperation

14 Conflict management Styles Accommodating High Assertive Competing Style Collaborative Style Compromising Style Low Assertive Avoidance Style Accommodating Style Low Cooperation High Cooperation

15 Conflict management Styles - Avoidance High Assertive Competing Style Collaborative Style Compromising Style Low Assertive Avoidance Style Accommodating Style Low Cooperation High Cooperation

16 Conflict management Styles - Collaborative High Assertive Competing Style Collaborative Style Compromising Style Low Assertive Avoidance Style Accommodating Style Low Cooperation High Cooperation

17 Conflict management Styles Compromising High Assertive Competing Style Collaborative Style Compromising Style Low Assertive Avoidance Style Accommodating Style Low Cooperation High Cooperation

18 Negotiation & Bargaining Negotiation A form of problem solving where two groups with conflicting interests exchange things in order to reach a mutually agreeable resolution Bargaining Strategies Distributive Bargaining The negotiating process whereby two parties negotiate over the price of an item Integrative bargaining The negotiating process whereby the parties assume a win-win solution is possible

19 Negotiation & Bargaining (cont.) Staking out the Bargaining Zone $400 $475 $525 $600 Buyer s aspiration Range Seller s aspiration Range Bargaining Zone Buyer s Target Point Seller s Resistance point Buyer s Resistance point Seller s Target Point

20 Effetive Negotiation Consider the other party s situation Have a plan and concrete strategy Begin with a positive overture Address problems not personality Maintain a rational goal-oriented frame of mind Pay little attention to initial offers Emphasize win-win solutions Create a climate of trust Insist on using objective criteria Be open to accepting third-party assistance Adapt to cultural differences

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