Conflict and Negotiation in Organisation

What is conflict?

Conflict is an inescapable part of organizational life and cannot be removed or eliminated totally. All organizations have to face it, control it or manage it in a way that serves their purpose. Both in human societies as well as in organizational framework conflict refers to any clash, fight or a struggle when involved persons or groups find themselves in some incompatible situations.

Conflict is now being viewed more realistically and much more positively. The scholars today describe conflict as both inevitable as well as necessary. It is understandable when individuals or groups in organizations take recourse to some conflict for expressing their grievances, attitudes or feelings. It is the way any of them engage in conflict that makes all the difference. Whether the conflict is within the organization or between a nation and another, the overall context and solutions are almost the same.

Irreconcilable conflicts are resolved by the simple tactics of “let us live together” and if that doesn’t happen then its outright battle till end. Reconcilable conflicts are resolved by applying the principles of good communication. These are effective persuasion, conviction, problem-solving abilities and applying soft-skill methods and approaches.

Defining conflict

As series of definitions of what exactly is a conflict are available today. A few are noted here:

“Conflict is a process that begins with one party perceives that another party has negatively affected, or is about to negatively affect, something that the first party cares about”.

                                                              Stephen P. Robbins

“The interaction of interdependent people who perceive opposition of goals, aims, and values, and who see the other party as potentially interfering with realization of these goals”.

                                                                                                  Putnam and Poole

We can broadly define conflict as the experience between or among parties that their goals or interests are incompatible or in opposition. In a simplified manner, the meaning of conflict refers to – serious disagreement and continuous argument on a matter of common interest.

     A few features of a conflict: Along with the meaning of a conflict it is necessary to get into some of the noticeable features of a conflict. These are:

                      i.        It is just opposite of cooperation.

                    ii.        It is often described as a dynamic process, that is, conflict goes by a series of steps or stages and a part of the process of change.

                   iii.        It is a situation that calls for serious attention and resolution through negotiation.

     Functions of conflict: The general perception about conflict is essentially of two kinds:

                      i.        All conflicts are bad

                    ii.        Conflicts can be eliminated from an organization

           Organization and managers have come to realize that both assumptions are wrong. There is increasing recognition that at least some kinds of conflict reveal a healthy nature of the organization. Conflict may not be so visible in unequal relations because the strong can easily sup press the weak. There is conflict because there are differences of interest. Although we normally think of conflict as bad, it is not only real but also natural to human relationships.

Today, Organizational Behavior says:

o   Conflict leads to change;

o   Change leads to adaptation

o   And adaptation leads to success and survival

     Positive functions of conflict: In general, we may refer to some of the positive consequences of conflict in organizations.

1.     Release of tension

2.    Change for better

3.    Better decision making

4.    Creative and analytical thinking

5.    Finding solutions to problem

6.    Pinpointing strengths and weaknesses by group dynamism 

    Dysfunctions of conflict: Just the opposite ways of positive functions, conflicts give rise to a series of undesirable consequences. A few of the major abnormalities and impairment resulting from conflicts are:

1.     Very high level of strain and tension

2.    Mutual distrust and rumors all around

3.    Low productivity

4.    Desertion by employees

5.    Corporate dysfunction

6.    Apathy and lack of direction

Origins of Conflict

Origins of conflict, which are also forms of conflict are usually placed under five headings. These are: Intrapersonal Interpersonal Inter-group Organizational and Inter-organizational conflict. Such situations certainly do happen and mistrust and misunderstandings develop simply because people have failed to resolve the problem by talking to each other. Let us now try to identify the essential characteristics of different forms of conflict. 

      Intrapersonal Conflict: This is communication of a person with himself or herself and the processing of feedback through an inner dialogue. Whenever any kind of conflict surface within the mind, the person tends to get confused and lost. In an organization, such conflicts in the mind of a responsible manager can lead to organizational dysfunction. An effective manager must,, at the same time, apply moral and ethical judgments to achieve conflict resolution and prepare to interact with others in the organization as well as outside.

One has to be particularly sensitive about three major elements of intrapersonal conflict. First, emotions, then frustrations and the goal conflict.  Whenever conflicts arise, a manager can be fairly certain that emotions are also surfacing in the mind of involved persons. Success in resolving conflict conflicts in often attributable to a manager’s ability to work through the emotions of the involved persons. Secondly, frustrations occur owing to differences between the organizations values and the individual values. If there is a clash between the two, frustrations occur leading to chaos and problems of adjustment.

Whenever the goals of the organization and the goals of each employee fail to match, conflict gets rooted in the form of interpersonal struggle. Any organization passing through problems of existence will witness a state of goal conflict for employees from higher to lower levels. The organization may not be solely responsible for its sudden plight but both frustration and goal conflict will be noticeable all around.

      Interpersonal Conflict: Interpersonal conflict occurs between an individual and another individual or between an individual and a group. Examples are many: two employees or two managers vying for the same promotion or a lucrative posting; a job related fight between two that raises behavioral complaints against each other; professional tussle between two creative talents, clash of ideas between two research scientists and so on.

Incompatibility between two creates tensions, opposition, even to the extent of not talking to each other. Analysis of such conflicts clearly depicts that each participant has some self-interest in the outcome of the confrontation. The work performance in an organization demands a right kind of ‘chemistry’ among all employees and executives. If this climate is missing, the members stop communicating or interacting.

     Inter-group conflict: Conflict occurring between groups or teams within an organization is termed as inter-group conflict. Strange as it is, inter-group rivalry, competition or confrontation may enhance group unity or performance, loyalty to own group and create a sense of belongingness. There are quite a few good effects no doubt but inter-group conflicts mostly lead to negative consequences, if not handled most carefully.

Many times it may be beneficial to encourage competition between groups to increase group performance, efficiency and higher productivity. But inter-group conflict must be managed highly tactfully so that it does not degenerate into dysfunctional conflict. 

     Organizational conflict: Many f the conflicts are of an unpredictable nature and might not have happened in the past. Many are normal of almost everyday occurrence like when differences in status and power are not mutually accepted in the hierarchical system of the organization. In other context, this might happen when different parts of an organization start perceiving their needs, feeling and interests in a contrary manner.

     Inter organizational conflict: Inter organizational conflict (conflict internally in an organization) demands the ability to face conflict issues by the managers, seniors and subordinates in good measure. All this certainly and ultimately refer to communication power and skills in relating to and between people. A willingness to listen, trust, use and apply a variety of communication abilities in diverse circumstances will enable the organization and its managers to resolve conflicts and achieve organizational objectives.

Nature and variety of conflict in organization
 

Lack of communication can be source of conflict. Most of the failures in organizations are ascribed to communication gaps. Also, using ambiguous, confusing or threatening messages can increase conflict levels.

     a)    Interpersonal and inter-group conflicts: These occur between individuals and among groups in the some organization. Both are associated with positive as well as negative outcome. There has to be appropriate defence mechanisms inside an organization to cope with difficult individuals or groups whenever the situation turns into source of conflict and embarrassment.

     b)   Functional and dysfunctional conflict: Many organizations have today come to appreciate the value of functional conflict when it encourages healthy, constructive competition between departments or units of the company. Functional conflict can produce new ideas, better creativity and assertive growth among individuals.

       Moreover, they get motivated to perform in a way that goes to increase efficiency and productivity, which are essentially result and profit oriented. 
      On the contrary, dysfunctional conflicts are just opposite, they cause harm to the organizational structures and working processes. Any such conflict will be dangerous and unhealthy creating hostilities among groups and individuals.

     c)     Task and goal conflict: These occur when several departments or units are not working together and fail to join hands for achieving common goals. And whenever the tasks are not properly coordinated there would be conflicts and bitterness. The marketing department is more concerned about sales but production fails to keep pace with increasing market demands for the product r the service.

Similarly, advertising and public relations continue to fight and forget that tasks may be different but aims and objectives are exactly the same.

     d)    Values, perception and incompatibilities: These can be source of conflict as most people have their own sets of values and perceptional attitudes. Whenever disagreements arise they start moving in different direction to serious incompatibilities. They are unable to adjust to each other’s views and opinions. Intermixing of people from different cultural background, education, age and social strata create obstacles to immediate adjustment between each other. This has been particularly noticed in IT sector and a few other new industries in India when younger people with high ambitions started to join the main stream urban societies.

     e)    Status and role in hierarchy: These are conflict areas of common occurrence. Some top executives in organizational hierarchy may enjoy higher status and they wield all the power at their command. Many others suffer from a feeling of powerlessness and tend to shirk responsibilities. Managers, supervisor and other employee feel similarly in such situations. They feel neglected as they are in no way able to influence the decision making process. Senior managers are of the view that whatever they get are parts of their entitlement and no questions to be raised on these accounts. These include status, benefits, perks and whatever. All others at the lower hierarchy do not agree. There is constant friction, bitterness and resentment.

The only way out is to share power and delegates decision making authority to junior managers and even to lower levels of employees. There should be appropriate mechanism to work out the entire process suitably and systematically.

     f)    Competition for benefits: The employees and executives at any level of hierarchy compete for promotions, normal and special increments, status recognitions and appreciation throughout their work. As far as rewards are concerned, this is one of the most sensitive, difficult and complicated decision made in any organization. These could be healthy signs for relative improvements in performance but too much of competition for personal benefits may be highly dysfunctional.

     g)    Interorganisational conflict: Conflicts occurring between two or among more than two organizations is known as Interorganisational conflict. In most of the situations, conflict among organizations occurs primarily in the market environment. Organizations desperately attempt to create their own domains and protect them by whatever way possible. Competitions for increasing market share are a major source of organizational conflict among corporate around the world. However, they also try to control conflict by developing cooperative networks between competing organizations quite successfully. The process of cooperation involves mutual problem solving, setting apart regions or areas for each, reducing brand-war, service agreements, and re-structuring phase of interorganisational coordination.

Managing Conflict: Styles and Guidelines

      The five conflict-handling purposes are being discussed here along with one diagram of behavioral and tactical aspects of conflict management.

Avoiding style is unassertive and uncooperative but the overall approach is diplomatic. This occurs when people deliberately withdraw and are not agreeable to participate in the conflict and are unconcerned about its outcome. They may diplomatically avoid the conflict, remain silent and may even walk away rather than be a party to the conflict resolution process.

Competing style is high in assertiveness and considerably low in spirit of cooperation. Here the organization and its managers pursue aggressiveness to serve their own interest above everything else.

Compromising style aims towards creating a balance between assertiveness and cooperation. There may not be any clear winner or loser but there will be at least some degree of satisfaction on both sides. Both have to give up something and keep something in order to reach a mutual agreement.

Accommodating style is unassertive and supportive. Of course, many organizations do it when they find themselves outclassed, outmatched and losing. Organizations and many people resort to this style to maintain mutual relationship with others. The success of such style by the accommodating party depends whether the benefits received are fully appreciated and acknowledged by the other party. If organizations and managers constantly submit to wishes of others, their good intentions may be misconstrued as weakness and tendency to exploit will occur again and again.

            Collaborating style is a combination of assertiveness and supportiveness with a spirit of cooperativeness. This is a essentially a brain-storming process which leads to problem solving by fruitful discussion and cooperation with each other. It is also associated with finding out new and creative solutions to complex problems.

Guidelines for effective conflict management

          Meetings are held but conflicts and difficulties between individuals and among members of groups are seen to have caused blockage to reach an agreement or finding a positive solution to a problem. Dysfunctional communication and absence knowledge and aptitudes for interpersonal and intergroup processes stand in the way of achieving success in conflict resolution.

a)    Clarify the differences to reach an agreement – Both parties have to discuss earnestly and may find that they are not far apart from each other. Don’t get sidetracked away from the main issues related to the conflict. If necessary, large issues may be broken down into smaller, more manageable ones and problems should be dealt with one at a time. Keep in mind – we have to emphasise issues, not personalities.

b)   Exhibit your sincerity and show respect for all others – Communication is not just through words but your emotion and non verbal indications count much more. Pay close attention to what others are saying, develop active listening habits. Also, the speakers should be able to verbalize thoughts with minimum of interruption. And when you maintain respect for others, you will hesitate to use any insulting or demeaning language that makes you to regret later.

c)    Be assertive but be supportive as well – Adopt a cooperative attitude and reject any win-lose stand in your approach to the conflict. Assertive people, as we discussed earlier, are conscious about their own rights and rights of others. If they can combine supportiveness with their natural assertiveness, communication blockage will be largely filled up to the advantage of both the parties in a conflict. You will not hesitate to express your stand but do it in a direct, honest and appropriate way without violating another person’s rights, wants and feelings.

d)   Value cooperation over competition – Encourage them to voice their opinions and welcome effective contributions from the other side. Use your interpersonal skills, appreciate helpful actions and carefully ensure that the ongoing conflict stands resolved without a trace of bitterness on either side.

e)    Plan out conflict-management procedure – It’s much like crisis handling in organizations. Crisis handling or management of crisis involves three major phases: Before, During and After. Similarly, conflict handling procedure has to be dealt with as part of a planned programme action.

        The guidelines for good management of conflicts demand a high level of interpersonal communication skills. David Johnson, said that conflict can be productive rather than destructive, provided i) your relationship is stronger, you are better able to interact and work together, ii) you both like and trust each other more, iii) you both are satisfied with the results of the conflict, and iv) you both feel that you have improved your ability to resolve future conflicts in your relationship.

                                What is negotiation?  

        

Negotiation – Most of us, however, think of negotiation when we feel we should try to get something more. That is how a career aspirant negotiates with the future employer, a manager negotiates with customers or purchasers negotiate with suppliers. Simply, negotiating means taking action in order to achieve a situation which should be acceptable to both parties.  

In the work context, no business can run successfully without skilled negotiations. Tammy Lenski, the renowned professional mediator, who helps businesses worldwide with conflict management, says, “at work, every conversation is negotiation. The minute you walk into the organizations are not limited to industrial relations or to business contracts alone but also like, accident claims, between tenants and landlords, matrimonial disputes, and internal day-to-day conflicts within organization.

Definition - A process in which two or more individual or groups, have both common and conflicting goals, state and discuss proposals for specific terms of a possible agreement.

Conflict and Negotiations in Industrial Relations

We will take up the subject of negotiations between the management and the employees a bit separately as such conflicts constitute one major area of disputes in business and industry. Conflicts are just the inescapable part of industrial relations. To be precise, relationship between the employer or the management and the combination of workers and employees through trade unions is what is called industrial relations.

Understandably, every business enterprise aims to make a profit. This might mean that the management will do their utmost to control cost. Hence comes the difference of interest. Unions in India have vigorously fought for benefits such as house rents leave travel, conveyance, overtime, night shift, compensations and a vast range of social and welfare measures.

We must not think of conflict as bad or condemnable. Ironically, it is only through conflict and its resolution that a just, compassionate and benevolent society can eventually emerges. In reality, a society without conflict would stagnate and decay.

The pattern of IR Conflict

        The various dimensions of conflicts which come under Industrial Relations could be many and diverse. A checklist of a few of such disputes is given here:

• Strikes, lockouts etc.
• Union recognition and inter-union rivalries.
• Wage cuts, dismissals, transfers, promotions, stoppage of increment and victimization by the management.
• Work-loads, hours of work, retirement age and retirement benefits, health insurance benefits.
• And, finally, the social needs. These include the need for belonging, self-esteem, status and appreciation. Further, the behavior of supervisors towards the juniors and the entire human relations areas that might generate frustration and dissatisfaction may lead to conflict and dispute.

          Management and labor, by all means, have a mutual interest in the progress and prosperity of the enterprise. In the contrary situation, there would be neither profits nor salaries or wages. In the height of dispute, we have examples of trade unions which have readily accepted a cut in wages to preserve employment. Many sick industries have been brought back to good health by willing cooperation of unions and workers.

Methods and Techniques of solving IR Disputes

       i.        Collective bargaining: In the course of bargaining each side may not insist upon its full demand being met in to to. Both sides will be willing to make some concessions in return for some gains or advantages. A lot will depend on the bargaining strength of the management or the unions representing workers. When negations go on. Each side will naturally try to convince the other side of the rightness of its stand. It will use all possible means, logic, statistics, law, equity, tradition and all others, to win its points at the negotiations.

     ii.        Conciliation: This is usually a voluntary process. When collective bargaining fails, there are still the possibilities of an amicable settlement of the ongoing dispute. It may still be possible for some independent third party to mediate between the employer and the union and influence or induce them to come to an agreement.

    iii.        Voluntary arbitration: Conciliation failing, the parties may decide to refer the dispute to arbitration by some respectable neutral person and abide by his decision. This is voluntary arbitration. If needed, the government may also appoint an Arbitrator. Both the management and the labor must consider themselves morally bound to abide by the Arbitrator’s award.

Compulsory Arbitration and Adjudication

In many countries, the government’s attempt to prevent active industrial conflict or at least keep the conflict under restraint. When collective bargaining and conciliation fail and when employer and workers are not willing for voluntary arbitration, the government has to step in. the laws of the land authorizing the government for action, the state can now refer the dispute to compulsory arbitration or to adjudication. In the event of a dispute referred to compulsory arbitration or adjudication, the parties cannot resort to strikes or lockouts.

It has to be conceded that compulsory arbitration or adjudication, howsoever as a last report, is not viewed as well as collective bargaining, conciliation or voluntary arbitration.

The foregoing will show that there may be many reason behind employer-employee conflicts. The more important point is that they are dependent on each other, and there are compulsions on both to come to agreement through the process of negotiation. 

 

In negotiation: few Guidelines

          All negotiators need to concentrate on a series of communication and behavioral methods which are immensely useful during the negotiation process. Here are just a few representative guidelines.

     1.     An appropriate and cordial communicating environment can contribute enormously toward the success of any negotiation. Try to form the right kind of climate from the very beginning of the meeting itself.

     2.    Both parties have to provide their stamp of sincerity in their attitudes, perceptions as well as in their expression.

     3.    Both the parties may have their true desires but it’s better to hold on, control emotions and come out judiciously at the right moment in a polite and decent manner.

     4.    Check and double check your interpersonal as well as social skill to manage your relationship with the other party.

     5.    Remember that good verbal communication and non-verbal cues such as eye contact, friendly gestures and postures can influence and motivate personas to be far more cooperative and collaborative. Both sides gain as a result of such behavior.

     6.    Never try to insult the other people by words or by non-verbal indications. At the same time, in exasperation even don’t use sarcastic comments at any moment.

     7.    And, finally, behave professionally at all times.