CHV1- Negotiations

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Interdependence
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Company view and employee view; labor union and management in the workplace; the entities need each other to achieve their objectives. Union, Employees, and Management all need each other.
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Communication
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it’s about a feedback loop (there is a sender and a receiver in communication)
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Nonverbal communication
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content, tone, volume, silence; 75-85% of communication is non-verbal
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Availability of Information
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top of the mind or tip of the tongue; close in terms of brain (what you know, experience, etc); easily retrieved
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What has to be discussed? (Required topics)
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Regular hours, wages, Work hours, Overtime, Discipline procedures, Paid and nonpaid time off, Union security, Layoffs and recalls, Seniority (benefits that go along with seniority), Work rules, Work assignments (the meat of an agreement)
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Distributive Bargaining
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Prevails still today as the main type of bargaining; Fixed pie (only so many pieces of candy to give out); Win/lose; Competitive stance; Aka: Position-based or anchored
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Value claiming
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In distributive bargaining, value claiming is doing whatever is necessary to take the reward, the bigger share or the largest piece possible; This bargainer has a position and stays close to it
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Integrative bargaining
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Interest based concept, a type of principled bargaining; Win/Win; Expand opportunities and options; Collaboration and not competition; Movement through mutually agreeable tradeoffs; Ongoing relationship is kept in mind; Generate best solution of both sides
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Surface Bargaining
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Going through the motions; No intention to reach an agreement; This opposes ULP (Take it or leave it; Failing to make counterproposals; Refusing to meet at reasonable times; Leaving out information needed)
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(Biases)”like me” bias
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tendency to find attractive others who have similar traits
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(Biases) Cognitive dissoncance
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uncomfortable, so some choice must be made; related to confirmation bias
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(Biases) Satisficing
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good enough or doing just well enough (satisfaction and sacrificing) (settling)
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(Biases) Endowment effect
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Tendency to overvalue something that you own or believe you posses
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(Biases) Overconfidence
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Tendency to believe that ability to be correct or accurate is greater than is actually true
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Framing
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Focusing, shaping and organizing the context of a situation, event or thing; Glass half full or empty?; Can change over time… or situation; May be a label
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Example of framing
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you are spending an hour with me tonight vs. you are gaining a great review of knowledge tonight (loss versus gain)
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Conciliation
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Process by which a third party assists union and management to reach a voluntary settlement. Alternately, “method of nonbinding dispute resolution involving a third party who tries to help disputing parties reach a mutually agreeable decision. Compromise. Actively trying to help the two find middle ground. No decision-making power.
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Mediation
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a procedure for resolving collective bargaining impasses by which a mediator with no formal authority acts as a facilitator and go-between. Middle man, Coach, facilitator; Ask questions that help the two parties clarify what they are thinking, bridge; May suggest ideas for solutions
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Arbitration
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process that uses a neutral third party to make a decision. “Arbitrator chooses a solution to the dispute”; Decision-maker, binding; Mini-judge, analysis of information; Action and power
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T/F–Negotiation is about influence
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True
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T/F–Planning is not important; watching for our own biases and those of the other side during the process makes us less effective
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False; Planning is very important; watching for our own biases and those of the other side during the process makes us more effective
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Alternative dispute resolution (_____, _____, & _____) are back-ups to a negotiated agreement.
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conciliation, mediation and arbitration
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A/an ______ conflict occurs in the form of a fundamental disagreement over ends or goals and the means for accomplishment. (a) relationship (b) emotional (c) substantive (d) procedural
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C
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The indirect conflict management approach that uses chain of command for conflict resolution is known as______. (a) hierarchical referral (b) avoidance (c) smoothing (d) appeal to common goals
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A
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Conflict that ends up being “functional” for the people and organization involved would most likely be______. (a) of high intensity (b) of moderate intensity (c) of low intensity (d) nonexistent
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B
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One of the problems with the suppression of conflicts is that it______. (a) creates winners and losers (b) is often a temporary solution that sets the stage for future conflict (c) works only with emotional conflicts (d) works only with substantive conflicts
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B
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When a manager asks people in conflict to remember the mission and purpose of the organization and to try to reconcile their differences in that context, she is using a conflict management approach known as______. (a) reduced interdependence (b) buffering (c) resource expansion (d) appeal to common goals
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D
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The best time to use accommodation in conflict management is______. (a) when quick and decisive action is vital (b) when you want to build “credit” for use in later disagreements (c) when people need to cool down and gain perspective (d) when temporary settlement of complex issues is needed
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B
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Which is an indirect approach to managing conflict? (a) buffering (b) win-lose (c) workflow interdependency (d) power asymmetry
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A
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A lose-lose conflict is likely when the conflict management approach focuses on______. (a) linking pin roles (b) altering scripts (c) accommodation (d) problem-solving
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C
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Which approach to conflict management can be best described as both highly cooperative and highly assertive? (a) competition (b) compromise (c) accommodation (d) collaboration
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D
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Both______goals should be considered in any negotiation. (a) performance and evaluation (b) task and substance (c) substance and relationship (d) task and performance
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C
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The three criteria for effective negotiation are______. (a) harmony, efficiency, and quality (b) quality, efficiency, and effectiveness (c) ethical behavior, practicality, and cost-effectiveness (d) quality, practicality, and productivity
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A
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Which statement is true? (a) Principled negotiation leads to accommodation. (b) Hard distributive negotiation leads to collaboration. (c) Soft distributive negotiation leads to accommodation or compromise. (d) Hard distributive negotiation leads to win-win conflicts.
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C
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Another name for integrative negotiation is______. (a) arbitration (b) mediation (c) principled negotiation (d) smoothing
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C
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When a person approaches a negotiation with the assumption that in order for him to gain his way, the other party must lose or give up something, which negotiation pitfall is being exhibited? (a) myth of the fixed pie (b) escalating commitment (c) overconfidence (d) hearing problem
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A
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In the process of alternative dispute resolution known as______, a neutral third party acts as a “judge” to determine how a conflict will be resolved. (a) mediation (b) arbitration (c) conciliation (d) collaboration
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B
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Discuss three conflict situations faced by managers.
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Managers can be faced with the following conflict situations: vertical conflict—conflict that occurs between hierarchical levels; horizontal conflict—conflict that occurs between those at the same hierarchical level; line-staff conflict—conflict that occurs between line and staff representatives; role conflict—conflict that occurs when the communication of task expectations is inadequate or upsetting.
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List and discuss the major indirect conflict management approaches.
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The major indirect conflict management approaches include the following: appeals to common goals—involves focusing the attention of potentially conflicting parties on one mutually desirable conclusion; hierarchical referral— using the chain of command for conflict resolution; organizational redesign—including decoupling, buffering, linking pins, and liaison groups; use of myths and scripts—managing superficially through behavioral routines (scripts) or to hide conflict by denying the necessity to make a tradeoff in conflict resolution.
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Under what conditions might a manager use avoidance or accommodation?
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You should acknowledge that different styles may be appropriate under different conditions. Avoidance is the extreme form of nonattention and is most commonly used when the issue is trivial, when more important issues are pressing, or when individuals need to cool off. An accommodation strategy is used when an issue is more important to the other party than it is to you, or to build social credits.
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Compare and contrast distributive and integrative negotiation. Which is more desirable? Why?
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Distributive negotiation focuses on staking out positions and claiming portions of the available “pie.” It usually takes the form of hard negotiation—the parties maximize their self-interests and hold out to get their own way—or soft negotiation—one party is willing to make concessions in order to reach an agreement. Distributive negotiation can lead to competition, compromise, or accommodation, but it tends to be win-lose oriented in all cases. Integrative negotiation focuses on the merits of an issue and attempts to enlarge the available “pie.” It may lead to avoidance, compromise, or collaboration. It tends to be more win-win oriented and seeks to satisfy the needs and interests of all parties.
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Discuss the common pitfalls you would expect to encounter in negotiating your salary for your first job, and explain how you would best try to deal with them.
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When negotiating the salary for your first job, you should attempt to avoid the common pitfalls of negotiation. These include falling prey to the myth of the “fixed pie”; nonrational escalation of conflict, such as trying to compare the proposed salary to the highest offer you have heard; overconfidence; and ignoring other’s needs (the personnel officer probably has a fixed limit). While the initial salary may be very important to you, you should also recognize that it may not be as significant as what type of job you will have and whether you will have an opportunity to move up in the firm
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What is the nature of conflict in organizations?
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Conflict appears as a disagreement over issues of substance or emotional antagonisms that create friction between individuals or teams
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Conflict situations in organizations occur
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at intrapersonal, interpersonal, intergroup, and interorganizational levels.
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When kept within tolerable limits, conflict can be a source of
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creativity and performance enhancement; it becomes destructive when these limits are exceeded.
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T/F– Moderate levels of conflict can be functional for performance, stimulating effort and creativity.
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True
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T/F– Too little conflict is dysfunctional when it leads to complacency; too much conflict is dysfunctional when it overwhelms us.
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True
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How can conflict be managed?
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Most typically, conflict develops through a series of stages, beginning with antecedent conditions and progressing into manifest conflict
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Unresolved prior conflicts set the stage for
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future conflicts of a similar nature.
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Indirect conflict management strategies include appeals to
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common goals, hierarchical referral, organizational redesign, and the use of mythology and scripts
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Direct conflict management strategies
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engage different tendencies toward cooperativeness and assertiveness to styles of avoidance, accommodation, compromise, competition, and collaboration.
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Win-win conflict is achieved through
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collaboration and problem solving.
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Win-lose conflict is associated with
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competition and authoritative command.
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Lose-lose conflict results from
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avoidance, smoothing or accommodation, and compromise.
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What is the nature of negotiation in organizations?
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Negotiation is the process of making decisions and reaching agreement in situations in which the participants have different preferences.
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Managers may find themselves involved in various types of negotiation situations, including
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two-party, group, intergroup, and constituency negotiation.
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Effective negotiation occurs when both _____ goals (dealing with outcomes) and _____ goals (dealing with processes) are achieved.
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substance; relationship
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_____ problems in negotiation can arise when people become manipulative and dishonest in trying to satisfy their self-interests at any cost.
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Ethical
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What are the different strategies for negotiation?
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The distributive approach to negotiation emphasizes win-lose outcomes; the integrative or principled approach to negotiation emphasizes win-win outcomes.
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In ¬¬¬¬¬_____ negotiation the focus of each party is on staking out positions in the attempt to claim desired portions of a “fixed pie.”
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distributive
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In _____ negotiation, sometimes called principled negotiation, the focus is on determining the merits of the issues and finding ways to satisfy one another’s needs.
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integrative
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The success of negotiations often depends on avoiding common pitfalls such as
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the myth of the fixed pie, escalating commitment, overconfidence, and both the telling and hearing problems.
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When negotiations are at an impasse, third-party approaches such as _____ and _____ offer alternative and structured ways for dispute resolution.
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mediation and arbitration
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Common causes of conflicts in organization
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Unresolved prior conflicts, role ambiguities, resourse scarcities, task interdependencies, domain ambiguities, structural differentiation
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(Common Causes of Conflicts in Organizations) Unresolved prior conflicts
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When conflicts go unresolved, they remain latent and often reemerge in the future as the basis for conflicts over the same or related matters.
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(Common Causes of Conflicts in Organizations) Role ambiguities
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When conflicts go unresolved, they remain latent and often reemerge in the future as the basis for conflicts over the same or related matters.
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(Common Causes of Conflicts in Organizations) Role ambiguities
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When people aren’t sure what they are supposed to do, conflict with others is likely; task uncertainties increase the odds of working at cross-purposes at least some of the time.
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(Common Causes of Conflicts in Organizations) Resource scarcities
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When people have to share resources with one another and/or when they have to compete with one another for resources, the conditions are ripe for conflict.
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(Common Causes of Conflicts in Organizations) Task interdependencies
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When people must depend on others doing things first before they can do their own jobs, conflicts often occur; dependency on others creates anxieties and other pressures.
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(Common Causes of Conflicts in Organizations) Domain ambiguities
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When people are unclear about how their objectives or those of their teams fit with those being pursued by others, or when their objectives directly compete in win-lose fashion, conflict is likely to occur.
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(Common Causes of Conflicts in Organizations) Structural differentiation
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When people work in parts of the organization where structures, goals, time horizons, and even staff compositions are very different, conflict is likely with other units.
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Accommodation (smoothing)
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involves playing down differences and finding areas of agreement.
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Arbitration
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a neutral third party acts as judge with the power to issue a decision binding for all parties.
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Authoritative command
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a formal authority such as manager or team leader simply dictates a solution and specifies what is gained and what is lost by whom
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Avoidance
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involves pretending a conflict does not really exist.
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Bargaining zone
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is the range between one party’s minimum reservation point and the other party’s maximum.
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Collaboration
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involves recognition that something is wrong and needs attention through problem solving.
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Competition
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one party achieves a victory through force, superior skill, or domination
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Compromise
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occurs when each party gives up something of value to the other.
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Conflict
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occurs when parties disagree over substantive issues or when emotional antagonisms create friction between them.
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Conflict resolution
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occurs when the reasons for a conflict are eliminated.
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Distributive negotiation
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focuses on positions staked out or declared by the parties involved, each of whom is trying to claim certain portions of the available pie.
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“Hard” distributive negotiation
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takes place when each party holds out to get its own way. This leads to competition, whereby each party seeks dominance over the other and tries to maximize self-interests. The hard approach may lead to a win-lose outcome in which one party dominates and gains. Or it can lead to an impasse.
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“Soft” distributive negotiation
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takes place when one party is willing to make concessions to the other to get things over with. In this case one party tries to find ways to meet the other’s desires. A soft approach leads to accommodation, in which one party gives in to the other, or to compromise, in which each party gives up something of value in order to reach agreement
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Dysfunctional conflict
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works to the group’s or organization’s disadvantage.
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Effective negotiation
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occurs when substance issues are resolved and working relationships are maintained or improved.
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Emotional conflict
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involves interpersonal difficulties that arise over feelings of anger, mistrust, dislike, fear, resentment, and the like.
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Functional conflict
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results in positive benefits to the group.
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Integrative negotiation
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focuses on the merits of the issues, and the parties involved try to enlarge the available pie rather than stake claims to certain portions of it.
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Intergroup conflict
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occurs among groups in an organization.
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Interorganizational conflict
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occurs between organizations
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Interpersonal conflict
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occurs between two or more individuals in opposition to each other.
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Intrapersonal conflict
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occurs within the individual because of actual or perceived pressures from incompatible goals or expectations.
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Mediation
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a neutral third party tries to engage the parties in a negotiated solution through persuasion and rational argument.
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Negotiation
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is the process of making joint decisions when the parties involved have different preferences.
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Substantive conflict
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involves fundamental disagreement over ends or goals to be pursued and the means for their accomplishment.

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