WELCOME

MANAGING CONFLICT AND NEGOTIATION EFFECTIVELY

Presented By SREERAJ P. MANI & ANU BALAN P.

UNDERSTANDING CONFLICT
CONFLICT IS THE DISAGREEMENT BETWEEN TWO OR MORE INDIVIDUALS OR GROUPS OVER AN ISSUE OF MUTUAL INTEREST

SOURCES OF CONFLICT
ORGANIZATIONAL CHANGE PERSONALITY CLASHES DIFFERENCES IN VALUE SETS THREATS TO STATUS PERCEPTUAL DIFFERENCES

Conflict Management
Diagnostic processes, interpersonal styles, & negotiation strategies that are designed to avoid unnecessary conflict & reduce or resolve excessive conflict.

Levels of conflict

Intrapersona l

Interpersonal

Intergroup

CLASSIFICATION OF CONFLICTS
INTRAPERSONAL CONFLICT

Incompatibility between needs of the individual and the goals of the organization,and the absence of role clarity. Individual may face stress, frustration while achieving the goals.

CLASSIFICATION OF CONFLICTS
INTERPERSONAL CONFLICT
Is the result of differences in perception and gaps
in communication. Individual feels that his image is under threat because of the actions of another individuals. INTERGROUP CONFLICTS The conflicts between groups are referred to as intergroup conflicts May arise due to differences in viewpoints or competition

Negotiations

NEGOTIATION
The best way to resolve conflict is through negotiations. Negotiation is a process in which one party agrees to exchange a product or service with another party in return for something. Ex: Collective bargaining between labor unions & management. Approaches to negotiation are Distributive bargaining & integrative

Distributive Bargaining
Assumes that there can not be any solution that could result in win-win situation Operates under Zero- sum condition Whenever a one party gains a certain amount another party suffers an equivalent loss. Form of a win-lose situation. Each party has a target point Resistance point represents lowest acceptable outcomes. If the outcome is below its resistance point the party prefers to break off negotiations. The area between the target & the resistance point represents the aspiration range of each of the parties

INTEGRATIVE BARGAINING
Existence of one or more solutions to a problem that results in win-win situation.

Helps to develop long term relationships between the negotiating parties,eliminate differences & ensures cooperation of other party in future.

Negotiation process
Preparation & planning: Understands the nature & background of the conflict. Identifies the self goals as well as other parties goals. The negotiator prepares the strategy to be adopted by collecting possible information. Understanding priority objectives of the other party.

Negotiation process
2) Defining Rules : Both parties arrive at the negotiation table & establish the basic rules & procedures that will guide the negotiation process. 3) Clarification & justification: Both parties exchange their demands & justify them. Present documents in support of their position

Negotiation process
4) Bargaining & problem solving:
The parties start bargaining with each other. Each party gives concession to another party. The critical issues may be settled later on. Negotiating parties should take a break to avoid heated arguments. 5) Closure & implementation: The bargaining process is complete & the final agreement is written & signed. Monitoring & implementation of agreement.

ELEMENTS OF NEGOTIATION

Power Time Information

POWER
Power of expertise Power of investment

POWER
Power of expertise Power of rewarding or punishing owe

POWER
Power of expertise Power of rewarding or punishing Power of identification w

POWER
Power of expertise Power of rewarding or punishing Power of identification Power of morality Power of persuasive capacity Power of attitude

TIME If I know your deadline and you dont know mine. Who has the advantage?
- I WILL.

INFORMATION
Knowledge of other partys true interests, needs and priorities.n experienced negotiator never gives away such information during negotiation.

INFORMATION
Knowledge of other partys true interests, needs and priorities. An experienced negotiator never gives away such information during negotiation.Better way is to gather this information from other sources.

STAGES IN NEGOTIATION
Prepare

STAGES IN NEGOTIATION
Prepare Discuss

STAGES IN NEGOTIATION
Prepare Discuss Propose

STAGES IN NEGOTIATION
Prepare Discuss Propose

Bargain

STAGES IN NEGOTIATION
Prepare Discuss Propose Bargain greement

STAGES IN NEGOTIATION
Prepare Discuss Propose Bargain Agreement

greement

ISSUES IN THE NEGOTIATION PROCESS

Third-Party Negotiation When negotiations between the parties fail to result satisfactorily,the parties turn to a third party to arrive at an agreement. The role of third party may be in the form of Mediator : Third party uses logical reasoning & persuasion technique to convince the parties to arrive at an agreement. The mediator suggests the alternative solutions Mediators are used in union-management negotiations & civil court disputes

ISSUES IN THE NEGOTIATION PROCESS

Arbitrator
Has the authority to enforce his decision on parties. May be chosen voluntarily or may imposed by the laws It always results in the settlements. But may leave one or both the parties dissatisfied & the conflict may arise again.

Conciliator
Serves as a informal communication link between the conflicting parties. He is trusted by both the parties Tries to find a solution which is accepted by both the parties

ISSUES IN THE NEGOTIATION PROCESS

Consultant:
Is a skilled person who uses conflict management techniques to resolve the differences. Encourages the parties & develops positive attitude & builds long term relationship. Use his communication & analytical skills to motivate the parties Does not provide a solution but acts as a facilitator

Gender differences in Negotiation

Gender differences in Negotiation

Women are more cooperative and pleasant than men. Belief that women are nicer than men in negotiations.

Cultural differences in Negotiation

Cultural differences in Negotiation

French people tend to be indifferent to what their opponents think of them which results in prolonged negotiations. The Chinese & Japanese believe in building long term relationships & work out minute details of the agreement & obtain commitment from the another party to work together. Americans are impatient and tries to end negotiations as early as possible.

Conti
North Americans depends on objectives facts & logic to support their arguments & give importance to time & deadline. Arabs follows subjective feelings & emotions to achieve the end. Russians follow examples to support their arguments. Indians used to building up mutual respect & trust with considerable volume of tolerance & understanding.

FACTORS AFFECTING INTERGROUP RELATIONS

Interactions and relationships between people in groups. Interdependence The extent to which the group is dependent on another group in the organization determines the degree of interaction & the type of relations. Classification of Interdependence Pooled interdependence Here two or more groups function independently but their output needs to be combined to achieve the overall objectives of the organization The degree of interaction & coordination among groups is less.

FACTORS AFFECTING INTERGROUP RELATIONS

Sequential interdependence: Exists when one of the groups is dependent on the other for some input. The degree of interaction is greater Reciprocal interdependence Exists when there is an exchange of inputs & outputs among groups. The mutual dependence brings high degree of interaction & coordination

FACTORS AFFECTING INTERGROUP RELATIONS

Task uncertainty Groups task may range from highly routine to highly non routine. Groups performing non routine jobs tends to interact more frequently then compared to groups performing routine tasks. Orientation of time & goal Specialization & differentiation of tasks Differing goals & objectives of the groups creates problems in coordination

MANAGING INTERGROUP RELATIONS

Rules & Procedures
Follows formal rules & procedures. Simplest & least expensive method. Minimizes the need for interaction & verbal communication. Works when all the interactions among the groups are anticipated. Frequent interactions are essential to implement the rules

MANAGING INTERGROUP RELATIONS

Hierarchy
Effective in resolving inter group differences . Consumes valuable time of the top management Conflicting parties remain no choice then to abide by the decision given.

Planning
In this method goals of each groups are clearly specified As each group has its own responsibility inter group conflict decreases & coordination increases

MANAGING INTERGROUP RELATIONS

Liaison roles
A capable person is assigned a liaison role & has to ensure effective communication & coordination. The success of this method depends on the ability of the person The method is likely to fail when the information flow between the departments is too high & the interaction between the group is too frequent to be handled by the person

MANAGING INTERGROUP RELATIONS

Task forces
A temporary group that exists only till the problem is solved. Formed by selecting representatives from different departments. Useful when a project requires coordination among many groups for a short duration. Commonly used to solve political dispute. After giving a effective solution task force is disbanded

MANAGING INTERGROUP RELATIONS

Teams
Permanent teams are set to deal with day today problems. Teams are cross functional & consists of members from various departments Duel responsibility,towards their departments & towards team but the priority is given towards the problems first then their regular responsibilities. After resolving the problem successfully team members return to their own departments

MANAGING INTERGROUP RELATIONS

Integrating departments
Used when relationship between the groups are too complex Permanent departments which seeks to integrate various groups Useful when groups have conflicting goals,face nonroutine problems & when the decision of group has impact in the organizational performance. Used when organizations are downsizing Are set up to ensure coordination among the groups.

Thank you