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VCU MGMT 310 - Chapter 16 Conflict and Negotiation

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Chapter 16 Conflict and Negotiation Affective conflict: Conflict in which individuals tend to attack each other’s personalities throughcriticism, threats, and insults.Arbitrator: An individual who listens to both sides of a disagreement and makes a final decisionbased on the arguments.Bargaining zone: The range of settlements within which it is better for both parties to agree thannot to agree.Best alternative to a negotiated agreement, or BATNA: The course of action that a person willtake if a negotiation ends in an impasse.Claim value: The process by which a negotiator attempts to gain benefits or concessions for his or her position.Cognitive conflict: Conflict that results from disagreements over work-related issues such as meeting schedules, work assignments, processes, or the task itself.Conflict: An emotional or cognitive response that occurs when interests, perspectives, and behaviors of one individual or group explicitly differ from those of another individual or group.Create value: The process of expanding the opportunities or issues that can be evaluated in a negotiation. By expanding the issues, there is a greater likelihood that each party will achieve some level of satisfaction.De-escalation: The reduction or elimination of conflict.Distributive negotiations: Single-issue negotiations that are assumed to be part of a “fixed pie” where one person’s gain is the other person’s loss.Escalation: An increase in conflict that occurs when one person’s negative behaviors encourage or foster another person’s negative behaviors.Groupthink: Extreme consensus during a decision-making process.Integrative negotiations: Negotiations that focus on multiple issues to “expand the pie” and actively seek alternative solutions that satisfy both parties.Interests: The underlying reasons or needs of each party involved in an issue.Intergroup conflict: Conflict that occurs between two or more groups.Interpersonal conflict: Conflict that occurs between two or more individuals who are members of the same group.Mediator: An individual who does not make a final decision but works with each party to find some common ground on which both parties can agree.Negative bargaining zone: The zone that exists when negotiators’ acceptable positions do not overlap and no settlement will be acceptable to both parties.Negotiation: A process by which two parties attempt to reach agreement on an issue by offering and reviewing various positions or courses of action.Package reservation value: The lowest value that a negotiator would be willing to accept for a package offer.Positive bargaining zone: The zone that exists when negotiators’ acceptable positions overlap.Realistic conflict theory: A theory that proposes that limited resources will lead to conflict between groups.Reservation value: The lowest offer a negotiator is willing to accept. It is the point at which a negotiator is indifferent between accepting a proposed offer and rejecting it in favor of pursuing his or her BATNA.Social identity theory: A theory that proposes that group members of an in-group will seek to find negative aspects of an out-group to enhance their self-image.Social categorization: attempt to define the norms of the in group in a way that favors the ingroup at the expense of the out group.Social identification: attempt to adopt the identity of a group we have categorized ourselves as belonging to. Social comparison: occurs as a response to rivalry and competition between groups. Zone of possible agreement, or ZOPA: The set of all possible deals that would be acceptable toboth parties. The ZOPA is the space between one party’s reservation value and the other party’s reservation value.Different Responses to conflict:- Avoidance : avoiding conflict causes long term frustration- Accomodating: try not to upset the other person, those who accommodate are sometimestaken advantage of- Compromising: reach an agreement quickly because prolonged conflict can cause bitter feelings, using this approach can result in less effective solutions- Forcing: reach an agreement that satisfies your needs rather than the needs of the other person because staying committed to an issue is more important than upsetting someone else. - Collaborating: Solve a problem together, this is often the only approach that will solve a problem because both parties are committed to the solution.Affective conflict may lead to:- Anger- Distrust- Frustration- Stress- Low morale- Withdrawal- Decreased satisfactionCognitive conflict may lead to:- Creativity- Challenge of the status quo - Personal development- Learning- Increased motivation- Greater awareness of the problemMistakes in negotiations:1. Irrational escalation of commitment: one party stays committed to their course of action and does not want to admit failure. 2. Anchoring and adjustment: first offers have the power to anchor the negotiation and determine the outcome.3. Framing: the manner in which options are presented can alter the ways in which negotiators perceive the options. 4. Availability of information: negotiators may use available but not reliable information when assessing alternatives. 5. Negotiator overconfidence: inflated sense of confidence in their choices. Negotiating across cultures: Individualism V Collectivism: Individualists promote autonomy of the individual and reward individual accomplishments. Collectivist cultures promote interdependence of group members and thereby reward groups of people and support collective interests above individual rights.Egalitarianism v HierarchyEgalitarianism cultures are more comfortable with confrontation, negotiators can improvetheir status if they choose. Hierarchical cultures are less willing to confront the other party directly, because this would mean a lack of respect for those of a higher social status.Low v High context norms for communicationLow: information is explicit and the meaning is clear High: information is embedded in the context of the message and its meaning must be inferred to be


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VCU MGMT 310 - Chapter 16 Conflict and Negotiation

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