159542775 Chap 11 Organizational Behavior

CONFLICT AND NEGOTIATION IN THE WORKPLACECopyright © 2008 McGraw-Hill Higher Education Page 13-1 Question 1: C--Conflict is defined as: A: any event where two parties demonstrate their dislike of each other. B: any occasion where both parties perceive each other as a threat to achieving the other party’s goals. C: a process in which one party perceives that its interests are being opposed or negatively affected by another party. D: any event where one party acts in a way that prevents another party from achieving its goals. E: a process in which each party tries to learn the resistance point of the other party. Question 2: B--The process in which one party perceives that its interests are being opposed or negatively affected by another party is called: A: mediation B: conflict C: negotiation D: dialogue E: conflict management Question 3: D--The conflict process begins: A: when one party intends to interfere with the other’s goals. B: when one party does something that actually interferes with the other party’s goals. C: after the first party does something that causes the second party to take a similar hostile action. D: when scarce resources or other conditions exist that potentially cause conflict. E: when both parties are informed by a third party that they have a potential conflict. Question 4: A--In the conflict process, what immediately precedes conflict outcomes? A: Manifest conflict B: Conflict emotions C: Sources of conflict D: Conflict perceptions E: Both conflict emotions and perceptions immediately precede conflict outcomes Question 5: B--In the conflict process, what immediately follows conflict perceptions and emotions? A: Sources of conflict B: Manifest conflict C: Conflict outcomes D: Conflict management E: Both conflict outcomes and conflict management immediately follow conflict perceptions and emotions Question 6: E--Which of the following is NOT explicitly labeled in the conflict process model? A: Manifest conflict B: Conflict perceptions C: Conflict emotions Copyright © 2008 McGraw-Hill Higher Education C: conflict emotions. D: conflict outcomes and conflict emotions, but not sources of conflict. E: conflict outcomes, conflict emotions, and sources of conflict. Question 8: E--Constructive conflict exists: A: when the conflict is viewed as a personal attack on each person in the relationship. B: when an employee disagrees with his or her supervisor regarding what tasks should be performed as part of the job. C: when the conflict is emotionally charged. D: when all of these exist. E: when none of these exists. Question 9: A--According to the literature on organizational conflict, constructive conflict: A: is a positive application of conflict in organizations. B: is one of the most common outcomes of conflict. C: is the only conflict management style that has high assertiveness and low cooperativeness. D: is the main source of conflict in organizations. E: should never be used as a conflict management strategy. Question 10: B--Constructive conflict: A: is the same as socioemotional conflict. B: encourages people to think about different points of view. C: is a source of conflict based on the physical layout of the office. D: is the main source of groupthink and denial of external problems. E: is none of these. Question 11: B--Constructive conflict: A: is the opposite of task-related conflict. B: encourages employees to re-examine their basic assumptions about a problem and its possible solution. C: is one of the dysfunctional outcomes of conflict. D: is the most common outcome of arbitration. E: sometimes replaces manifest conflict in the conflict process. Question 12: A--A large computer company was well known for the frequent debate among employees regarding various issues. Employees weren’t afraid to disagree with their colleagues and to clearly argue their point. Although the discussions would sometimes get loud, employees never spoke angrily at each other and the discussants would always end the meeting in friendship. This computer company has many instances of: A: constructive conflict B: win-lose orientation Page 13-2 D: Conflict sources E: Conflict zone Question 7: E--The conflict process model includes: A: conflict outcomes. B: sources of conflict. C: avoiding conflict management style D: socioemotional conflict E: cooperation Question 13: D--The conflict escalation cycle: A: rarely occurs in organizational settings. B: helps employees to move from socioemotional to constructive conflict. C: helps the conflicting parties to remove the Question 20: A--Which of the following sources of conflict. statements about organizational D: includes the situation where behaviors during conflict is FALSE? manifest conflict communicate the A: Job and occupational specialization tend to perception of conflict to the other party. minimize conflict. E: is all of these. B: Some conflict increases organizational Question 14: B--The two main forms of effectiveness. conflict are: C: In constructive conflict, the parties view the A: manifest and hidden conflict as something ‘out there’ to resolve. B: constructive and socioemotional D: Decision ambiguity can increase the potential C: pooled and sequential for conflict. D: problem-solving and forcing E: Conflict tends to increase when resources are E: superordinate and subordinate scarce. Question 15: E--Conflict management refers Question 21: E--Salespeople at Widget Ltd to interventions that: complain that they lose sales A: try to increase the amount of conflict among bonuses when the production employees. department is out of stock of a B: successfully remove conflict from the particular item. This sometimes organization. causes customers to buy elsewhere C: remove manifest conflict as well as negative rather than wait for the next conflict outcomes even though the sources of production run. Meanwhile, conflict remain in place. production employees complain that D: convince employees that conflict should be salespeople don’t appreciate the avoided. need to minimize inventory costs, for E: alter the level and form of conflict in ways which production staff is rewarded. that maximize its benefits and minimize its This is mainly an example of conflict dysfunctional consequences. due to: Question 16: C--Which of the following best A: ambiguity describes socioemotional conflict? B: communication problems A: One party perceives that another party might C: pooled task interdependence oppose its interests. D: differentiation B: The conflict is between two individuals rather E: goal incompatibility than departments or organizations. Question 22: C--Two departmental C: The conflict episodes are viewed as personal managers are most likely to attacks rather than attempts to resolve the experience conflict with each other problem. when they ______ communicate with D: Two people adopt a win-win rather than a each other and their two win-lose orientation. departments have _______ E: None of these describes socioemotional interdependence. conflict. A: frequently, high Question 17: B---Socio-emotional conflict B: seldom, low usually causes people to: C: seldom, high A: use logical analysis to resolve the conflict. D: frequently, low B: reduce communication and information E: Communication and interdependence do not sharing with the other party. affect conflict between departments. C: rethink their assumptions and beliefs about Question 23: A--Ambiguous rules, scarce the issue that is the source of conflict. resources and task interdependence D: do all of these things. are: E: do none of these things. A: sources of potential conflict Question 18: D--Emotional intelligence and B: strategies used in the inquisition approach to team cohesiveness are two ways to: third-party conflict resolution A: minimize constructive conflict C: three of the main conflict management styles Copyright © 2008 McGraw-Hill Higher Education Page 13-3 B: C: D: E: engage in third-party conflict resolution increase socioemotional conflict minimize socioemotional conflict add more cycles to the conflict escalation cycle Question 19: B--Constructive conflict is less likely to turn into socioemotional conflict when team members: A: learn how to argue more forcefully with each other. B: have higher emotional intelligence. C: have high differentiation. D: have competitive team norms. E: use a forcing style of conflict resolution. Copyright © 2008 McGraw-Hill Higher Education D: indicators of effectiveness in third-party conflict resolution E: situational influences on negotiations Question 24: C--Incompatible goals, differentiation and ambiguous rules are: A: indicators of effectiveness in third-party conflict resolution. B: situational influences on negotiations. C: sources of potential conflict. D: strategies used in the inquisition approach to third-party conflict resolution. E: none of these. Question 25: D--Which of the following most likely produces the highest risk of conflict? A: Ambiguous rules and low task interdependence. B: Precise rules and resource scarcity. C: Plentiful resources and high goal compatibility. D: Scarce resources and high task interdependence. E: None of these has any effect on the risk of conflict. Page 13-4 Question 26: B--Which of the following sources of conflict is typically associated with mergers and acquisitions? A: Task interdependence B: Differentiation C: Goal incompatibility D: Scarce resources E: Ambiguity Question 27: B--Employees in engineering and marketing often disagree with each other, mainly because they hold divergent beliefs and attitudes due to their unique backgrounds, experiences, and training. The most apparent source of conflict here is: A: task interdependence. B: differentiation. C: goal incompatibility. D: scarce resources. E: ambiguity. Question 28: AThe potential for conflict is higher in a multicultural workforce because of which two sources of conflict? A: Communication problems and differentiation B: Task interdependence and ambiguity C: Scarce resources and communication problems D: Task interdependence and goal incompatibility E: Goal incompatibility and scarce resources Question 29: D---GlobalCo formed a task force consisting of eight employees from four culturally diverse countries who have not previously met. The task force must work closely together for a month to solve a troublesome customer problem. These employees have similar technical training, but they have different religious beliefs, different languages, and different standards of living. If these employees experience conflict, this conflict might be caused by: A: task interdependence. B: differentiation. C: communication problems. D: all of these factors. E: differentiation and communication problems, but not task interdependence Question 30: C--The potential for conflict between two employees would be highest under conditions of: A: pooled interdependence B: total independence C: reciprocal interdependence D: anticipatory interdependence E: sequential interdependence Copyright © 2008 McGraw-Hill Higher Education B: C: D: E: have less task interdependence. no longer have a superordinate goal. have more communication problems. both differing values and beliefs as well as more communication problems. Question 33: D--Communication is a potential source of conflict because: A: two parties tend to use stereotypes to understand each other when they lack the opportunity to communicate. B: ineffective communication often leads to an escalation in the conflict cycle. C: perceptions of conflict reduce a person’s motivation to communicate in the future. D: all of these reasons. E: none of these reasons. Question 34: C--A win-win orientation exists when a person or team believes that: A: one party necessarily loses if the other gains, so a forcing style should be applied. B: a combination of all interpersonal styles of conflict management must be applied to reach a mutually beneficial solution. C: a mutually beneficial solution may be found if both parties apply a collaborative orientation. D: both parties must apply an yielding interpersonal style to resolve the conflict effectively. E: Non of these statements apply to a win-win orientation. Question 35: D--Which of the following interpersonal conflict management styles has some degree of win-lose orientation? A: Forcing B: Yielding C: Avoiding D: All of these has some degree of win-lose orientation. E: None of has any degree of win-lose orientation. Question 36: B--The problem-solving interpersonal style of conflict has: A: high assertiveness and low cooperativeness B: high assertiveness and high cooperativeness C: low assertiveness and high cooperativeness D: low assertiveness and low cooperativeness E: medium assertiveness and medium cooperativeness Question 37: E--Which conflict management style has low cooperativeness and low assertiveness? A: Forcing B: Inquisition C: Compromising D: Arbitration E: Avoiding Question 38: C--Conflict management styles are defined in terms of their: Page 13-5 Question 31: A--In organizational conflict, scarce resources are typically identified as: A: a source of conflict B: a form of task interdependence C: a third-party conflict resolution strategy D: a form of differentiation E: scarce resources are unrelated to any part of organizational conflict Question 32: E--Conflict potential tends to be higher with the organization’s cultural diversity because employees: A: have differing values and beliefs. Copyright © 2008 McGraw-Hill Higher Education A: B: C: D: E: consequences for the organization. arbitrariness and firmness. assertiveness and cooperativeness. differentiation and interdependence level of process control and level of decision control. Page 13-6 Question 39: C--Which of the following interpersonal conflict management styles has mostly or completely a win-win orientation? A: Forcing B: Yielding C: Problem-solving D: Avoiding E: Both yielding and problem solving have mostly or completely a win-win orientation. Question 40: D--Which conflict management style is most appropriate when the parties do not have perfectly opposing interests and have enough trust to share information? A: Forcing B: Yielding C: Avoiding D: Problem-solving E: Compromising Question 41: A--Which conflict management style may be necessary when it is apparent that the other party will take advantage of information sharing and other cooperative strategies? A: Forcing B: Yielding C: Avoiding D: Problem-solving E: Compromising Question 42: B--The yielding conflict management style should be used: A: never. B: when the issue is much less important to you than to the other party. C: when the other party has much less power than you do. D: when the issue is important to both parties. E: under almost all circumstances. Question 43: D--Compared to those with an individualist value, employees with a strong collectivist value tend to manage disagreements through: A: forcing. B: third-party conflict resolution. C: arbitration. D: avoidance or problem solving. E: compromising and forcing. Question 44: D--According to research on gender and conflict management styles, women tend to adopt the _____ style, whereas men tend to adopt the ______ style. A: forcing, collaborative B: avoiding, compromising C: yielding, forcing D: problem-solving, forcing E: yielding, avoiding Copyright © 2008 McGraw-Hill Higher Education D: Encouraging employees to emphasize departmental rather than organizational goals. E: Requiring employees to learn more about each other in special sessions. Question 46: B---Which of the following actions does NOT emphasize superordinate goals to reduce conflict? A: Representatives from the two departments must jointly visit a client to hear about its concerns. B: Hiring employees with a technical specialty and developing their career paths within that specialty. C: Keeping all employees informed of the company’s successes and difficulties in the marketplace. D: Introducing profit sharing or other organizationally based rewards for all employees. E: The CEO speaks with employees from several departments together about current challenges from competitors. Question 47: D---Maintenance employees and drivers at ABC Bus Company were constantly bickering with each other. However, the conflict subsided when another bus company opened for business to compete with ABC and ABC executives warned employees that the competitor could force lay-offs at ABC if productivity and customer service didn’t improve. Which of the following conflict management strategies was operating here? A: The Company clarified rules and procedures. B: The Company reduced interdependence between the parties. C: The Company reduced differentiation between the parties. D: The Company introduced superordinate goals for both parties. E: The Company helped the parties to understand each other better. Question 48: E--Direct communication minimizes conflict by: A: reducing task interdependence. B: reducing reliance on stereotypes about the other party. C: improving understanding of the other party’s circumstances. D: doing all of these things. E: reducing reliance on stereotypes AND improving understanding of the other party’s circumstances Question 49: A---Improving communication and understanding should occur: A: only after differentiation between the two sides has been reduced. Page 13-7 Question 45: D---NOT reduce conflict between employees and work teams? A: Reducing the amount of task interdependence. B: Increasing the resources available. C: Clarifying the responsibilities and authority of each employee. E: Talking circles have no effect on conflict in organizations. Question 51: E----A major game software firm experienced conflict between the young Internet-savvy employees who designed the games and the older computer-illiterate executives who ran the company. The company hired team leaders who could work with the executives but were computer literate and therefore respected by the development staff members. By hiring these team leaders as liaisons between the executives and employees, the company would: A: increase conflict between developers and executives by reducing communication. B: reduce conflict by clarifying rules and procedures. C: increase conflict by increasing task interdependence. D: reduce conflict by creating superordinate goals. E: reduce conflict by reducing task interdependence. Question 52: E---Increasing inventories between sequential work units tends to reduce potential conflict by: A: reducing resource scarcity B: reducing differentiation C: increasing the required level of communication between employees in sequential units D: reducing ambiguity in resource allocation E: reducing task interdependence Question 53: B---The bargaining zone model states that: A: the physical space around the negotiations affects the negotiation outcome. B: the negotiation process moves each party along a continuum with an area of potential Copyright © 2008 McGraw-Hill Higher Education B: before differentiation between the two sides has been reduced. C: only when the conflicting parties use the compromising conflict resolution style. D: task interdependence is low. E: only when both parties have a win-lose orientation. Question 50: D---Talking circles manage conflict among employees mainly through which of these strategies? A: They help employees to clarify rules and procedures. B: They reduce interdependence among employees. C: They reduce resource scarcity among employees. D: They reduce differentiation between the parties. Question 57: E--In a purely win-lose situation, the bargaining zone states that the opposing parties: A: usually apply a collaborative approach to resolving their differences. B: begin negotiations by describing their resistance point for each item on the agenda. C: rarely know each other’s initial point. D: tend to move from their target point to their initial point very quickly. E: try to discover the other side’s resistance point so they can determine how much they can gain without breaking off negotiations. Question 58: B--Which of these conditions is most likely to weaken your strength in a win-lose bargaining situation? A: You have more people at the bargaining table than the other party. B: You have to complete negotiations quickly to meet your time deadline. C: The negotiations are held at your head office. D: Your team has learned about the other party’s main negotiating goals. E: All of these factors weaken your bargaining strength. Question 59: B--Which of the following statements about time deadlines and passage in negotiations is FALSE? A: Negotiators who experience time pressures are less likely to use a collaborative conflict management style. B: Negotiators become less committed to reaching an agreement as they devote more time to it. C: Negotiators make more concessions as the negotiations approach an inflexible deadline. D: Effective negotiators keep their own time limits flexible. E: As the amount of time invested in a negotiation increases, negotiators tend to become more motivated to settle the Page 13-8 overlap. C: the best negotiations occur in a neutral territory. D: negotiators must try to move the other party from a win-lose orientation towards a win-win orientation. E: win-lose negotiations typically begin by each party communicating its resistance point. Question 54: C--The bargaining zone model identifies: A: the best location to hold negotiations. B: the conditions under which the other party will hold out for a better offer. C: the relative locations of various bargaining positions between the parties. D: all of these. E: none of these. Question 55: B--Initial, target, and resistance represent three elements in: A: the conflict process model. B: the bargaining zone model. C: the types of third-party conflict resolution. D: the sources of conflict. E: the conflict escalation cycle. Question 56: E--Negotiators implicitly or explicitly consider three bargaining positions, including: A: win-win, win-lose, lose-lose B: resistance, concessions, time C: win-win, timely, target D: initial, concessions, final E: initial, target, resistance Copyright © 2008 McGraw-Hill Higher Education negotiations. Question 60: C--Which of the following tends to make negotiators more competitive and less willing to give concessions? A: Representatives from both sides are interspersed around a circular table. B: The parties spend time socializing and learning about each other before beginning negotiations. C: The audiences of each party directly observe the negotiations. D: All of these tend to make negotiators more competitive and less willing to give concessions. E: All of these tend to make negotiators more competitive and less willing to give concessions. Question 61: B--When negotiators have an audience watching their progress in the negotiations, the audience’s negotiator: A: is more likely to give in to the other party’s demands. B: pays more attention to saving face. C: tends to feel more cooperative towards the other party. D: tends to be more willing to make concessions to the other party. E: tends to tends to feel more cooperative AND are more willing to make concessions to the other party. Page 13-9 Question 62: D--What effect does making concessions have on negotiations? A: Concessions enable the parties to move towards the area of potential agreement. B: Concessions symbolize each party’s motivation to negotiate in good faith. C: Concessions communicate to the other party the relative importance of negotiating items. D: Concessions have all of these effects on negotiations. E: Concessions have none of these effects on negotiations. Question 63: E--Negotiators tend to be more effective when: A: they discuss issues rather than people. B: they spend a lot of time clarifying and asking questions about the other party’s offer. C: they tell the other party how lucky the other party is to have such a generous deal. D: they do all of these things. E: they discuss issues rather than people AND spend a lot of time clarifying and asking questions about the other party’s offer. Question 64: A--Effective negotiators: A: set negotiation goals for themselves B: talk more than listen C: rarely make any concessions D: do all of these things. E: set negotiation goals for themselves AND rarely make any concessions. Question 65: A--Which of the following is a third-party conflict resolution strategy with high process control and high outcome control? A: Inquisition B: Arbitration C: Mediation D: Imposition E: All third-party conflict resolution strategies have high process and outcome control. Question 66: B---Third-party interventions are defined in terms of their: A: arbitrariness and firmness. B: level of process control and level of decision control. C: assertiveness and cooperativeness. D: differentiation and interdependence E: consequences for the organization. Question 67: E---Which of the following is a third-party conflict resolution strategy with low process control and low outcome control? A: Inquisition B: Arbitration C: Mediation D: All of these have low process control and low outcome control. E: None of these has low process control and low outcome control. Question 68: C---Which third-party conflict resolution strategy manages the process and context of interaction between the disputing parties but Copyright © 2008 McGraw-Hill Higher Education Question 69: A---Managers tend to prefer which of the following types of thirdparty intervention? A: Inquisitor B: Competitor C: Mediator D: Arbitrator E: Abstainer Question 70: A---Two team members who disagree over their work schedule approach their team leader to help resolve the conflict. Based on your knowledge of third-party conflict resolution, the team leader should: A: help the employees to resolve their own conflict, with the team leader serving as a mediator to help them to clarify their differences and common interests in the dispute. B: ask the employees to determine the information the team leader should receive, then make the decision based only on that information. C: tell each employee to present a solution, then the team leader would randomly choose one of them. D: select the best schedule with the information that the team leader decides to request from the employees. E: tell the employees that their personal leave has been cancelled this year because they couldn’t agree on such a trivial issue. Question 71: B--For everyday disputes between two employees, managers should use ______ as a third-party intervention: A: inquisition B: mediation C: arbitration D: retaliation E: negotiation Question 72: C---If the parties cannot resolve their differences through direct dialogue and negotiation, the next step in alternative dispute resolution is to: A: go to court seeking damages. B: arbitrate the dispute. C: involve a mediator. D: rely on inquisition. E: try to bury the problem. Page 13-10 does not impose a solution on the parties? A: Inquisition B: Arbitration C: Mediation D: All of these E: None of these Copyright © 2008 McGraw-Hill Higher Education Page 13-11 Written answer questions Question 1 The newly hired CEO of an advertising agency noticed that employees were constantly arguing and debating with each other over design and ad copy. This cantankerous behavior was quite different from the more reserved and polite interactions that occurred in the CEO’s previous organization in the consumer products industry. To correct this problem, the CEO established a new motto (‘Serving Clients in Harmony’) and actively discouraged employees from the spirited debates that occurred in the past. Some key staff members left the company over the next few months, saying that the company was losing its creative edge. However, the CEO was able to bring in new employees who were more discreet and subtle in their discussions with colleagues. Discuss the merits of the CEO’s actions. ANSWER: The first issue that students should consider is whether the previous conflicts were constructive or socioemotional. Some key staff members left the company soon after, saying that the company was losing its creative edge. This suggests that the conflict was constructive and not socioemotional. In other words, the design employees were engaging more in constructive conflict than in destructive conflict. When answering this question, students should also explain that conflict management does not always involve reducing conflict, as was done by this CEO. The answer should explain that constructive conflict is beneficial. It helps people to recognize problems, to identify a variety of solutions and to better understand the issues involved. It enables people to offer new perspectives of reality. Question 2 The president of Creative Toys, Inc., read about cooperation in Japanese companies and has vowed to bring this same philosophy to the company. The goal is to avoid all conflict, so that employees would work cooperatively and be happier at Creative Toys. Discuss the merits and limitations of the president’s policy. ANSWER: This question addresses the idea that conflict can be both good and bad for organizations. To effectively manage conflict, organizational leaders must find interventions that alter the level and form of conflict in ways that maximize its benefits and minimize its dysfunctional consequences. Constructive conflict is a form of conflict that benefits decision making. This constructive conflict helps people to recognize problems, to identify a variety of solutions, and to better understand the issues involved. Conflict is also a catalyst for change and improved decision making. It occurs when people raise new perspectives of issues and these emerging views are debated. Under certain conditions, conflict between work teams is beneficial to the extent that it builds commitment to the team. Of course, not all conflict is beneficial. When managed poorly, conflict encourages organizational politics by motivating people to attack or undermine the activities of their adversaries. This socioemotional conflict results in frustration, job dissatisfaction, and stress. Unbridled conflict may cause employees to escape from the situation through turnover or absenteeism. Question 3 Organizational behavior research is discovering that it is difficult to separate constructive conflict from socioemotional conflict. However, it is possible to minimize socioemotional conflict during constructive conflict episodes. Describe two strategies that would help a team of employees to reduce the level of socioemotional conflict while the team is engaging in constructive conflict. Your answer should also briefly explain why each strategy may be effective. ANSWER: The textbook describes three strategies. Students need to describe any two of these. Note that students might identify other plausible solutions (these three do not necessarily represent all possible ways to minimize socioemotional conflict). Therefore, the marker needs to carefully consider other answers. Emotional Intelligence. Socioemotional conflict is less likely to occur, or is less likely to escalate, when team members have high levels of emotional intelligence. Emotionally intelligent employees Copyright © 2008 McGraw-Hill Higher Education Page 13-12 are better able to regulate their emotions during debate, which reduces the risk of escalating perceptions of interpersonal hostility. People with high emotional intelligence are also more likely to view a co-worker’s emotional reaction as valuable information about that person’s needs and expectations, rather than as a personal attack. Cohesive Team. Socioemotional conflict is suppressed when the conflict occurs within a highly cohesive team. The longer people work together, get to know each other, and develop mutual trust with each other, the more latitude they give to each other to show emotions without being personally offended. Strong cohesion also allows each person to know about and anticipate the behaviors and emotions of their teammates. Another benefit is that cohesion produces a stronger social identity with the group, so team members are motivated to avoid escalating socioemotional conflict during otherwise emotionally turbulent discussions. Supportive Team Norms. Various team norms can hold socioemotional conflict at bay during constructive debate. When team norms encourage openness, for instance, team members learn to appreciate honest dialogue without personally reacting to any emotional display during the disagreements. Other norms might discourage team members from displaying negative emotions toward co-workers. Team norms also encourage tactics that diffuse socioemotional conflict when it first appears. For instance, research has found that teams with low socioemotional conflict use humor to maintain positive group emotions, which offsets negative feelings team members might develop toward some co-workers during debate. Question 4 Canuck Airlines International (CAI) is the result of five airlines that merged over six years. These airlines had energetic leaders who established distinct operating procedures and demanded absolute loyalty from their employees. When the airlines merged into CAI, employees continued their allegiance to their former airline by identifying themselves with its color — blue for Pacific Airlines, orange for Northern Air, green for EastAir, and so on. Coffee break groups began to form around color codes rather than work groups. Employees who transferred to different work units were routinely asked what color they came from. In some areas, color heritage decided a promotion, explained a botch-up, or was offered as a reason why things couldn’t change. Discuss this incident in terms of the sources and consequences of conflict in organizational settings. ANSWER: This question is a condensed description of what actually happened at Canadian Airlines International (since acquired by Air Canada). It illustrates how mergers lead to conflict. Specifically, conflict occurred at the airline because of differing values and beliefs among employees. They had learned different operating procedures and developed unique corporate values from their premerger airlines. Employees in each airline probably had worked together, so they felt more comfortable interacting with each other than with employees from different airlines. There are not many details about the consequences of the color-coded conflict at Canuck Airlines International. However, we can see how conflicting parties feel an antagonism towards each other that can escalate into serious conflict episodes. Opponents develop negative stereotypes of each other, further reinforcing a competitive orientation towards resolving their differences. Conflict among employees can undermine the company’s ability to serve customers and operate effectively. Conflict may lead to more absenteeism and higher turnover. In this incident, it is evident that conflict also resulted in biased decisions (e.g. promotions) and possibly lack of information sharing. Question 5 A few years ago, a clothing manufacturer was expanding rapidly, so the CEO hired several executives from large corporations. Unfortunately, the new executives clashed with the current executives regarding business strategy. The CEO explained: ‘We ended up with an old team and a new team and they weren’t on the same wavelength.’ Identify the source(s) of conflict in this situation and identify two strategies to minimize this conflict in the future. ANSWER: This question is a condensed version of actual events at a clothing manufacturer. The quotation was an actual statement from the CEO. This incident illustrates how conflict can occur through differentiation. The brief incident does not provide detail, but it is evident that the old and new team members had different points of view on issues. They had distinct backgrounds - big business versus long-term experience with the smaller clothing firm. Students might also note that Copyright © 2008 McGraw-Hill Higher Education Page 13-13 the old and new teams experienced conflict due to high task interdependence (they probably worked reciprocally) and resource scarcity (they probably fought over how to invest or make market decisions with a limited budget). Ambiguous rules probably also allow for conflict here. It is unlikely that they had different goals because all executives probably experience similar rewards and career objectives. The most important solution to minimize this conflict in the future is to reduce differentiation. This might occur by hiring executives with more background similarities to the existing executives. (However, students who have read Chapters 8 through 10 should also note the problems with this in terms of team decision making.) If diverse executives are hired, the organization might consider team-building activities that generate a common bond among executives. With respect to resource scarcity and task interdependence, it is probably difficult to increase resources or separate the new from the older executives. Ambiguity is also inherent in top-level decisions, so there is no easy solution to this source of conflict. Question 6 Employees at a specialty steel company are divided into the ‘hot end’ and the ‘cold end’ of the production process. The hot end forms the steel rods that make their way down the line to the cold end, where they are packed for shipment to clients. Employees at the cold end are primarily responsible for quality control because they are the last ones to see the product before it leaves the plant. Their performance is measured by an index of customer complaints and returns, so they are motivated to reject any rods that don’t meet quality standards. But employees at the hot end of the production line earn bonuses based on their output and rejection rate. The fewer rods rejected by employees at the cold end, the fatter the bonuses of employees at the hot end. This creates conflict between the hot-end and cold-end employees. Hot-end employees complain that their cold-end colleagues are too fussy about product quality. Cold-end employees don’t like the hot-end employees questioning their quality control decisions. Discuss the source(s) of conflict in this situation and recommend a solution to this conflict. ANSWER: This incident illustrates the effects of goal incompatibility on conflict between work groups. The cold-end employees have clear goals to maintain quality and they receive feedback (and possibly rewards) based on customer complaints. Thus, they are motivated to reject as many steel rods as necessary to prevent customers from complaining. However, this conflicts with the goals assigned to the hot-end employees. Their goal is to make the product faster and more efficiently and they are rewarded for the number of units produced. However, their output is reduced for each rod rejected by the cold-end employees. Thus, conflict occurs as one group’s goals interfere with the other group’s goals. The incident may also suggest that there is poor communication and significantly different values and beliefs here. Each group seems to be located in a different location — at the hot and cold end of the process, respectively — so the lack of opportunity to communicate could lead to distorted perceptions of the other group. It also seems that the hot-end employees perform different tasks than the cold-end employees. The former are more involved in the manufacturing process whereas the latter are more involved in packaging and shipping activities. Differentiation could further contribute to the conflicts described here. There are a variety of possible solutions to this conflict. Perhaps the best option is to reduce goal incompatibility. This can be done by having all production employees share a common reward determined by production output and quality. If the two groups lack interaction, then a secondary strategy would be to design the production process in a way that increases interaction. For example, the process could be designed in a U-shape rather than a straight line so that people at the end of the process see and talk to those at the beginning of the process. Lastly, some students might suggest that the hot-end and cold-end employees exchange jobs. If multi-skilling were possible, then this would also potentially reduce conflict in this situation. Question 7 Why do leaders of culturally diverse teams require better conflict management skills? Copyright © 2008 McGraw-Hill Higher Education Page 13-14 ANSWER: An increasingly diverse workforce requires more effort to manage potential conflict resulting from the greater differentiation and communication problems that exist among employees in this type of workforce. Employees from different cultural backgrounds have difficulty understanding or accepting each other’s beliefs and values towards organizational decisions and events. With respect to communication problems, people tend to feel uncomfortable or awkward interacting with colleagues from different cultures. Consequently, they are less motivated to engage in dialogue with them. This is one reason why minorities are often excluded from key organizational information and are less willing to disclose their own ideas and opinions to others. With limited communication, people rely more on stereotypes to fill in missing information. They also tend to misunderstand each other’s verbal and non-verbal signals, further escalating the conflict. Question 8 Two business units operate out of different buildings in a large city. They offer distinct products customers and have their own budgets. However, they must share training facilities located headquarters, also located in the city. This often creates conflict because both business units tend want the training facilities at the same time. Describe the source(s) of conflict that are apparent this situation and describe two potential solutions that would minimize this conflict. to at to in ANSWER: Students should immediately note that these business units have pooled interdependence with respect to the training facilities. This is a relatively low level of interdependence, but it does require interdependence just the same. Scarce resources are clearly a source of conflict here because both groups want the same resource at the same time. Conflict also seems to occur because of ambiguous rules regarding the allocation of this resource. Some students might suggest that the two business units have incompatible goals - each wants to train its own employees - but this is a somewhat weaker source of conflict here compared with scarce resources and task interdependence. Differentiation is also a weak factor here. One solution to this conflict is to increase resources. Specifically, the organization might justify developing more space to accommodate both business units. Another solution is to clarify rules regarding use of the existing resource. In this situation, the organization might specify the times that each business unit may use the training facilities or it might develop a sign-up system with rules that prevent each unit from taking too much of the facility. Question 9 NewTel is a telephone company with a policy of filling positions through promotions rather than hiring from outside. Until recently, the company had a strong engineering focus and tended to promote people into senior executive positions from the engineering areas. Consequently, almost all of the company’s 14 senior executives joined the company over 20 years ago in junior engineering positions. There is increasing pressure on NewTel to become more marketing and service oriented, so four people were hired one year ago from consumer products and retail firms to fill new senior executive positions in marketing and service management. The external hires were necessary because employees were not sufficiently qualified. Now there are signs of tension among senior executives, particularly during budget deliberations where there is limited discretionary spending on new corporate activities. The four new hires have been frustrated in their attempts to have the company put more money into marketing and customer services instead of technology investment. Explain why conflict has occurred among senior executives at NewTel. ANSWER: This incident is an example of conflict due to differentiation. The newly hired senior managers have significantly different backgrounds, training and experiences than the current senior managers. The new hires apparently do not have any training in engineering, they have not worked in the telephone industry and they have a strong marketing and customer service orientation whereas existing senior managers apparently have more of a technological emphasis and value system. Another source of conflict is scarce resources. The newly hired senior managers are in dispute with the long-term managers over how much money to put into marketing and customer services. With limited discretionary spending, putting more money into these new ventures would seem to limit the amount of funds available to make other capital investments. This also relates to a third source of Copyright © 2008 McGraw-Hill Higher Education Page 13-15 conflict: goal incompatibility. The goals of the newly hired managers are quite distinct from those held by long-term senior managers at NewTel. Finally, the conflict occurs because both the new and the old senior managers have an interdependent relationship. They probably have a reciprocal level of interdependence in many work activities because information is passed back and forth. However, the budget conflict is primarily a pooled interdependence situation. Even though pooled interdependence creates the lowest conflict potential, conflict is likely to occur where resources are scarce. Question 10 NewTel is a telephone company with a policy of filling positions through promotions rather than hiring from outside. Until recently, the company had a strong engineering focus and tended to promote people into senior executive positions from the engineering areas. Consequently, almost all of the company’s 14 senior executives joined the company over 20 years ago in junior engineering positions. There is increasing pressure on NewTel to become more marketing and service oriented, so four people were hired one year ago from consumer products and retail firms to fill new senior executive positions in marketing and service management. The external hires were necessary because employees were not sufficiently qualified. Now there are signs of tension among senior executives, particularly during budget deliberations where there is limited discretionary spending on new corporate activities. The four new hires have been frustrated in their attempts to have the company put more money into marketing and customer services instead of technology investment. What conflict management strategies could be applied at NewTel to minimize dysfunctional conflict among these senior executives? ANSWER: Some sources of conflict cannot be changed structurally. For example, it isn’t possible to give every executive what he or she wants because the budget is limited. The level of interdependence for budget issues is already at the lowest level (pooled) and the strategic nature of senior management work would make the use of integrators inappropriate. The main strategy to reduce conflict in this case would be to reduce differentiation. In the short term, this might occur through special sessions such as team building, whereby each senior executive learns to appreciate the values and experiences of others more fully. In the long term, the organization should rotate employees through various departments before they reach senior management. Question 11 Jane has just been appointed as purchasing manager of Tacoma Technologies Corp. The previous purchasing manager, who recently retired, was known for his “winner-take-all” approach to suppliers. He continually fought for more discounts and was skeptical about any special deals that suppliers would propose. A few suppliers refused to do business with Tacoma Technologies, but senior management was confident that the former purchasing manager's approach minimized the company's costs. Jane wants to try a more problem-solving approach to working with suppliers. Contrast Jane’s and her predecessor’s approach to negotiations in terms of the dimensions of interpersonal conflict management style. Then explain whether Jane’s approach will be effective or not. ANSWER: This question begins by asking students to contrasting Jane’s style with her predecessor’s style. Jane uses a problem-solving style, which means that she emphasizes high assertiveness (motivation to satisfy her own interests) as well as high cooperativeness (motivation to satisfy the other party’s interests). In contrast, the former purchasing manager probably adopted a forcing style in which he focused on high assertiveness and low cooperativeness. The best strategy when entering negotiations is to begin with a cautious win-win orientation. This means that Jane should enter the negotiations with a problem-solving style by sharing information slowly. However, she should carefully watch for evidence that the suppliers are responding with problem-solving behaviors. If suppliers do not reciprocate with a problem-solving style, then Jane should retreat somewhat from the problem-solving approach, perhaps shifting to more of a compromising style. She should return to a more problem-solving approach later, again being cautious and watching for reciprocal behaviors from suppliers. Copyright © 2008 McGraw-Hill Higher Education Page 13-16 Question 12 You are a special assistant to the commander-in-chief of a peacekeeping mission to a war-torn part of the world. The unit consists of a few thousand peacekeeping troops from Canada, France, and four other countries. The troops will work together for approximately one year. What strategies would you recommend to improve mutual understanding and minimize conflict among these troops? ANSWER: The textbook briefly refers to exactly this situation in the subsection on improving communication and understanding. It indicates that multicultural forces minimize conflict by ensuring that troops eat and socialize together. Various social activities can occur, such as mixed sports teams (although finding a common sport can be a problem!). Special dialogue sessions can help troops overcome stereotypes of each other. In these sessions, people from each representative country would discuss their backgrounds and how they think about their role in the peacekeeping activity. Question 13 Discuss two effects of time on negotiations. ANSWER: Time has two effects on negotiations. Time passage increases each party’s investment in the process and may escalate commitment to the negotiations. For example, your likelihood of withdrawing from negotiations with a potential supplier reduces with the amount of time and energy put into bargaining with that organization. Also, investing more time in negotiations tends to increase the likelihood of making concessions to ensure that an agreement is reached. The other effect of time relates to the time deadline. Negotiators with fixed time deadlines tend to make more concessions as the deadline approaches. This is particularly true where exceeding the deadline is costly (e.g. cost overruns, canceling other meetings or expensive travel costs). Question 14 Comment on the accuracy of the following statement: ‘Negotiators tend to bargain more effectively if they don’t make concessions.’ ANSWER: In its extreme form, this statement is false. While there might be a rare situation where making no concessions is appropriate, the general rule is that effective negotiators give just enough concessions to communicate sincerity and motivation to resolve the conflict. It is usually important to give some concessions because they enable the parties to move towards the area of potential agreement. Second, they symbolize each party’s motivation to bargain in good faith. Third, concessions communicate to the other party the relative importance to you of the negotiating items. The challenge is to find the optimal level of concession-making in a particular negotiating session because perceptions of toughness or weakness in concession-making vary from one person to the next, particularly across cultures. Giving too few concessions may undermine relations between the parties, particularly when they will enter other negotiations in the future. Giving too many concessions, particularly early in the proceedings, implies weakness and encourages the other party to use power and resistance. Overall, negotiators need to carefully ‘read’ the situation and know when another concession must be given to move the parties towards agreement. Question 15 Almost every day, supervisors must help employees to resolve conflicts with other employees. What third-party conflict resolution strategy do supervisors most often use and why do they tend to prefer this style? Also identify one third-party intervention that managers should apply in everyday disputes and explain why that strategy should be used most often. ANSWER: Research suggests that people in positions of authority (e.g., managers) usually adopt an inquisitional approach whereby they dominate the intervention process as well as making a binding decision. Managers like the inquisition approach because it is consistent with the decision-oriented nature of managerial jobs, gives them control over the conflict process and outcome, and tends to resolve disputes efficiently. For everyday disputes between two employees, the mediation approach is usually best because this gives employees more responsibility for resolving their own disputes. The third-party representative Copyright © 2008 McGraw-Hill Higher Education Page 13-17 merely establishes an appropriate context for conflict resolution. Although not as efficient as other strategies, mediation potentially offers the highest level of employee satisfaction with the conflict process and outcomes. Copyright © 2008 McGraw-Hill Higher Education Page 13-18