ENGM 742 Engineering Management and Labor Relations

ENGM 742: Engineering Management and Labor Relations • Conflict and Negotiation

• What comes to mind when you think about “conflict”?

Introduction to Conflict • Conflict: – Natural and inevitable outcome of the close interaction of people who may have • Diverse opinions and values • Pursue different objectives • Have varying access to information and resources within an organization. – Conflict is not necessarily bad: • Too much conflict can be a bad thing • Conflict challenges the status quo • Conflict encourages new ideas and approaches • Conflict can lead to change • Occurs in all relationships (individual-individual or group-group)

• Sources of Intergroup Conflict: – Goal Incompatibility: • Greatest cause of intergroup conflict • Diverse objectives within departments of organization – Differentiation: • Skill sets, personalities, and cultures may vary among departments – Task Interdependence: • Departments depend on eachother for materials, resources, information… as we learned from communication, as interdependence increases, potential for conflict increases. – Limited Resources: • Struggle between departments for organizational resources such as budget, personnel, facilities, etc. POWER and POLITICS are used to handle differences and manage CONFLICT.

Two Perspective on Conflict Traditional Approach Pluralistic Approach – Conflict is bad and should be eliminated or resolved – Conflict is good and should be encouraged; however, conflict must be managed – Conflict need not occur – Conflict is inevitable – Conflict results from breakdowns in communication and lack of understanding, trust, and openness between groups – Conflict results from a natural struggle for limited rewards, competition, and potential frustration of goals – People are essentially good; trust, cooperation, and goodness are givens in human nature – People are not essentially bad, but are driven by self-seeking and competitive interests that cause conflict

Tactics for Enhancing Collaboration • Collaboration Tactics – an alternative to using Politics when conflict exists: – Create integration devices • Bridging the gap, joint problem-solving teams – Constructive Confrontation and Negotiation • Bargaining to create a Win-Win vs. Win-Lose – Schedule intergroup consultation • Mediators, 3 rd party consultants – Practice member rotation • Cross-functional learning (skills, values, culture) – Create shared mission and superordinate goals • Common cause to rally around

Method of Conflict Resolution • ‘Getting To Yes’ (Harvard Negotiation Project, 1980’s) – Best selling book on negotiation – Don’t bargain over positions. Instead, do the following… 1. Separate people from problem • Ex: Negotiate on issues, not personalities 2. Focus on interests, not positions • Ex: Find common ground in interests, build from there 3. Invent options for mutual gain • Ex: Find way to increase the size of the pie 4. Insist on objective criteria • Ex: create objective metrics for evaluation: schedule, cost, etc.

Personal Conflict Management Styles • Thomas-Kilmann Conflict Mode Assessment: – Short personal evaluation of conflict management style – Identifies five common conflict management modes – Characterizes conflict management modes along two dimensions: 1. Assertiveness – the extent to which the individual attempts to satisfy his/her own concerns 2. Cooperativeness – the extent to which the individual attempts to satisfy the other person’s concerns. – Five conflict management modes: • Competing, Collaborating, Compromising, Avoiding, Accomodating – Situation and time dependent, however, these are tendencies.

Thomas-Kilmann Conflict Mode Graph Avoiding Assertive Competing Collaborating - Unassertive and Uncooperative - Goal is to delay - Does not immediately pursue their own concerns or those of another Satisfying one-self - Do not address the conflict Unassertive Compromising Avoiding - Avoiding can be considered as diplomatically sidestepping an issue, postponing an issue until a better time, or simply withdrawing from threatening Accommodating situation. Uncooperative Cooperative Satisfying others

Thomas-Kilmann Conflict Mode Graph Competing Collaborating Assertive - Assertive and uncooperative - Goal is to win - Use whatever power is appropriate to win one’s own position Satisfying one-self Unassertive Compromising - Stand up for your rights to defend a position you feel is correct. Avoiding Accommodating Uncooperative Cooperative Satisfying others

Thomas-Kilmann Conflict Mode Graph Accommodating Assertive Competing - Unassertive and cooperative Collaborating - Goal is to yield to others - Neglects their own concerns to satisfy the concerns of the other person Satisfying one-self - Element of self-sacrifice Compromising Unassertive - Might take the form of selfless generosity or charity, obeying another person’s order when one would prefer not to, or yielding to another persons point of view Avoiding Accommodating Uncooperative Cooperative Satisfying others

Thomas-Kilmann Conflict Mode Graph Compromising - Moderately assertive and Moderately Cooperative Competing Collaborating Assertive - Goal is to find a middle ground - Gives up more than competing, but less than collaborating - Might mean splitting differences, exchanging concessions, or seeking a quick middle-ground position Satisfying one-self Unassertive Compromising Avoiding Accommodating Uncooperative Cooperative Satisfying others

Thomas-Kilmann Conflict Mode Graph Collaborating Competing Collaborating Assertive - Assertive and cooperative - Goal is to find a win-win solution - Works with the other person to find some solution which fully satisfies the concerns Satisfying of both persons one-self Compromising Unassertive - Means digging into an issue to identify underlying concerns of the two individuals - Might take the form of exploring a disagreement to learn from each other’s Avoiding insights, concluding to resolve some Uncooperative condition, which would otherwise have them competing for resources. Accommodating Satisfying others Cooperative

Personal Conflict Management • Thomas-Kilmann Conflict Mode Graph Competing Collaborating Assertive Integrative Dimension Satisfying one-self Compromising Distributive Dimension Unassertive Accommodating Avoiding Uncooperative Cooperative Satisfying others

What is Negotiation? Negotiation a field of knowledge that focuses on gaining the favor of people from whom we want things. Herb Cohen

We negotiate when • We decide which movie to see with our significant other • We decide which city to live in with our spouse • We look to buy a car • We try to get a raise • We try to get into a class that is full

More formally defined, we negotiate when • Two or more parties must make a decision about their interdependent goals. • Parties are committed to a peaceful means of resolving a dispute. • There is no clear or established method for making a decision among multiple alternatives.

Mis. Perceptions power in of negotiation • Extreme claims, followed by small, slow concessions • Bluffing and lying • Threats or warnings • Belittling the other party’s alternatives • Good cop, bad cop • Take-it-or-leave-it offers • Personal insults or ruffling feathers From Common hard-bargaining tactics by R. H. Mnookin

Negotiation Traps to Avoid • Anchoring – Works because people make insufficient adjustments – a good first offer can serve as an anchor • Framing – – Time horizons Aggregation is less painful Fairness Losses vs. gains • Understood loss aversion • Inflation vs. salary cut

When do you need a third party? • Deadlock or impasse • Unproductive tension and hostility • Anger and resentment overwhelm negotiators • Mistrust and suspicion are high

Third-Party Intervention • The goal of third-party intervention is to resolve a dispute. – Mediators influence process – Arbitrator determine outcome

What can a third-party do to assist? • • • Reduce of tension Control the number of issues Enhance communication Establish common ground Highlight the desirability of certain decision criteria • Determine the outcome of a dispute

Mediator vs. Arbitrators • Mediators seek to have the parties themselves develop and endorse the agreement. • Arbitrators are most interested in outcomes and have the power to render a binding decision.

5 Cures for Negotiation Breakdowns 1. Reduce Tension – Acknowledge Other’s feelings – Separate Parties – reciprocal de-escalation (a mutual good faith gesture) 2. Improve communication – Role reversal – Perspective Taking 3. Controlling Issues – – reduce the number of parties and substantive issues state principles fractionate big issues (unbundle) depersonalize

5 Cures for Negotiation Breakdowns 4. Establish Commonalities – – super ordinate goals common enemies agree on rules and procedures provide integrative frameworks 5. Make preferred option more desirable – – framing a “yes able” proposal de-emphasize demands and threats sweeten the offer use objective criteria (Thompson, L. , 2001 & Lewicki, R. J. , 1999 & 2001)