Respected Organization Settles Conflict Through Distributive Bargaining Approach
Conflict can be considered as a cancer to an organization. Practically, if conflict is not handled carefully, it will weaken the organization. The falls of many great nations were initially ignited by a feeling of dissatisfaction. This feeling of dissatisfaction is when conflict started to occur. By definition, conflict exists when one party perceives that another party has negatively affected, or is about to negatively affect, something that the first party cares about. Conflict is perceived differently by traditional viewer and interactionist viewer. Traditional view of conflict sees conflict as harmful and must be avoided. Meanwhile, interactionist view of conflict, which is the current view, accepts conflict as something that is necessary for an organization to keep up good performances. In brief, conflict seems to be more functional than dysfunctional. It improves rather than hinders performance.
Basically to assume that conflict will benefit an organization, one needs to understand thoroughly the five stages of conflict process. The first stage deals with the identification of the potential opposition or incompatibility. This is the stage where the antecedent conditions of conflict; namely, communication, structure and personal variables have to be identified. Communication primarily deals with the problem in understanding the semantic difficulties, misunderstandings and ‘noise.’ At workplace, when these problems appeared especially in supervisory situations, grouses will mount. In turn, it becomes sources of conflict. Sometimes, structure affects the relationship between two or more people. This notion of structure as the antecedent of conflict is due to the established rules and procedures attached to the other person position. For example, Mr. John, a car dealer, cannot close his sale because Mr. Chong, the bank loan officer, cannot process Mr. John’s customer loan application. Mr. Chong found that there are terms and conditions that make the customer not eligible to get the loan. Personal variables concern the differences in the value systems of individuals involved as well as the contradicting personality types.
The second stage of conflict is the stage where conflict is defined. Based on the individual and organizational factors, one can expect whether conflict occur or not. This awareness is also called perceived conflict. When conflict takes place, the situation is termed felt conflict situation, whereby, emotions are greatly involved. In stage three, the focus is on the intentions of the conflict. By knowing the intentions, one is able to handle the conflict accordingly. Competing, collaborating, compromising, avoiding and accommodating are the five conflict-handling intentions that can be the bases for identifying the right approaches to encounter the conflict. In the fourth stage, focus should be on what effect the conflict has on the party’s behavior. Also matter is on what other’s reactions will be on that party’s behavior. In the final stage of conflict process, which is also known as the outcome stage, one can see whether it is a functional or dysfunctional conflict.
Conflict should not be left untreated. To overcome it, negotiation is mandatory. Thus, good negotiation skills have to be applauded. In this case, the supervisor or the manager or anybody representing the management has to be well equipped with skills and knowledge of doing negotiation or bargaining. Two forms of negotiation are distributive bargaining and integrative bargaining. Distributive bargaining is a win-lose concept. This approach is used by a negotiator who has the mission to win all or majority of the shares. To fulfill his goal, he or she needs to apply the BATNA concept – Best Alternatives To a Negotiated Agreement. He or she has to prepare himself or herself with best available information. He or she has to think of the maximum and minimum acceptable value or outcome. Integrative bargaining is more toward win-win concept. This approach, however, is not as popular as the previous approach.
To be a solid organization, the leader has to navigate the organization to control the related industry. In this case, the organization has to apply the distributive bargaining approach when doing business with its counterparts or opponents. In the meantime, it also has to ensure that its employees are exercising the distributive bargaining when it concerns their well being in the organization. It has to take care the quality of work life of its employees to ensure full working commitment. Once the organization is internally strong, it will become a well respected organization.
By Jakaria Dasan
School of Business and Economics
Universiti Malaysia Sabah
Basically to assume that conflict will benefit an organization, one needs to understand thoroughly the five stages of conflict process. The first stage deals with the identification of the potential opposition or incompatibility. This is the stage where the antecedent conditions of conflict; namely, communication, structure and personal variables have to be identified. Communication primarily deals with the problem in understanding the semantic difficulties, misunderstandings and ‘noise.’ At workplace, when these problems appeared especially in supervisory situations, grouses will mount. In turn, it becomes sources of conflict. Sometimes, structure affects the relationship between two or more people. This notion of structure as the antecedent of conflict is due to the established rules and procedures attached to the other person position. For example, Mr. John, a car dealer, cannot close his sale because Mr. Chong, the bank loan officer, cannot process Mr. John’s customer loan application. Mr. Chong found that there are terms and conditions that make the customer not eligible to get the loan. Personal variables concern the differences in the value systems of individuals involved as well as the contradicting personality types.
The second stage of conflict is the stage where conflict is defined. Based on the individual and organizational factors, one can expect whether conflict occur or not. This awareness is also called perceived conflict. When conflict takes place, the situation is termed felt conflict situation, whereby, emotions are greatly involved. In stage three, the focus is on the intentions of the conflict. By knowing the intentions, one is able to handle the conflict accordingly. Competing, collaborating, compromising, avoiding and accommodating are the five conflict-handling intentions that can be the bases for identifying the right approaches to encounter the conflict. In the fourth stage, focus should be on what effect the conflict has on the party’s behavior. Also matter is on what other’s reactions will be on that party’s behavior. In the final stage of conflict process, which is also known as the outcome stage, one can see whether it is a functional or dysfunctional conflict.
Conflict should not be left untreated. To overcome it, negotiation is mandatory. Thus, good negotiation skills have to be applauded. In this case, the supervisor or the manager or anybody representing the management has to be well equipped with skills and knowledge of doing negotiation or bargaining. Two forms of negotiation are distributive bargaining and integrative bargaining. Distributive bargaining is a win-lose concept. This approach is used by a negotiator who has the mission to win all or majority of the shares. To fulfill his goal, he or she needs to apply the BATNA concept – Best Alternatives To a Negotiated Agreement. He or she has to prepare himself or herself with best available information. He or she has to think of the maximum and minimum acceptable value or outcome. Integrative bargaining is more toward win-win concept. This approach, however, is not as popular as the previous approach.
To be a solid organization, the leader has to navigate the organization to control the related industry. In this case, the organization has to apply the distributive bargaining approach when doing business with its counterparts or opponents. In the meantime, it also has to ensure that its employees are exercising the distributive bargaining when it concerns their well being in the organization. It has to take care the quality of work life of its employees to ensure full working commitment. Once the organization is internally strong, it will become a well respected organization.
By Jakaria Dasan
School of Business and Economics
Universiti Malaysia Sabah
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