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Outcomes-Based Learning Modules in

Human Behavior in
Organization
(for internal use of Burauen Community College)

Prepared by:
Robyn Dame N. Dichosa, LPT
John Eric R. Go
General Education, Faculty

General Education Department

Module 3
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Organizational Conflict, Negotiation, Change,

and Development
Learning outcome based on the syllabus:
LO3. Explain and discuss the concepts of organizational conflict and negotiation as well as the
organizational change and development through a case study

Learning Objectives:
At the end of the module, the following learning objectives will be attained by the students with
at least 75% accuracy:
1. The students will be able to discuss the concept of organizational conflict, its types and
sources.
2. The students will be able to explain the negotiation process and how it is used as tool for
conflict resolution
3. The students will be able to elucidate the concept of organizational change and
development.

Direct Instruction

Organizational Conflict
Every organization, regardless of the size, type, and age, faces conflict. Just like change,
conflict is a natural phenomenon that is inevitable in an environment filled with diverse
individuals and groups. According to DuBrin (2019), conflict refers to the opposition of persons or
forces giving rise to some tension, or to a disagreement between two or more parties who are
interdependent. Conflict happens when there is doubt or questioning, opposition, incompatible
behavior, controversy, or antagonistic interaction. In the context of an organization, conflict is
when (1) one party opposes another party or (2) one party tries to block another party from
reaching his goals (Champoux, 2010). There are several studies which argue that conflict covers
a broad range of events. As such includes disagreement, debates, disputes, and active efforts to
prevent a party from getting what he wants. Conflict does not only occur when two or more
parties are in disagreement or have mutually exclusive goals e.g. two groups wanting to use the
same conference room at the same time; it can also occur at an individual level especially in
times when a person has to decide between two incompatible choices. For example, a person
might have to choose between accepting a job transfer and remaining in town with family and
friends. Refusing to transfer could mean a job loss, whereas accepting the transfer would mean
less contact with family and friends.

Functional Vs Dysfunctional Conflict

Based on contemporary perspective, there are two types of conflict and they are grouped
according to their effects. Not all conflicts are harmful, there are some that are beneficial.
Functional conflict supports the goals of the group and improves its performance, and is thus a
constructive form of conflict. For example, a debate among members of a work team about the
most efficient way to improve production can be functional if unique points of view are discussed
and compared openly. In contrast, there is also a type of conflict that inflicts more harm than
good. Dysfunctional conflict hinders group performance as it is destructive by nature. For
instance, there's is a competition for control and power among the members, as such causes
distraction to task at hand.
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Types of Conflict

Another way to understand conflict is to know what is the disagreement is all about. It is
important to pinpoint what might have caused such disagreement. Is it about goals? Is about
people? Or is it about what's the right thing to do? According to researchers, there are three
categories of conflicts: Relationship conflict, Task conflict, and Process conflict.

1. Relationship Conflict
Conflicts in interpersonal relationships are dysfunctional as demonstrated by studies.
Friction and interpersonal hostilities inherent in relationship conflicts increase personality
clashes and decrease mutual understanding, which hinders the completion of
organizational tasks (Judge & Stephens, 2018). One symptom that relationship conflict
exists within the group is when, during a meeting, two people say to each other
frequently, “Please let me finish. I’m still speaking.” Among the three types, relationship
conflicts appear to be the most psychologically exhausting. Because the disagreement is
rooted on one's personality, it becomes more distracting for the persons involved
because they can only do so much about it. After all, we can't change personalities of our
co-workers, neither they can change it in an instant. Change on the personality is only
possible when the person becomes willing to accept criticism. That is the only time he
can reflect and rectify what's unpleasant.
2. Task Conflict
Task conflict relates to the content and goals of the work. While in most cases
conflicts are destructive, sometimes it can yield positive outcomes for the organization.
Several pieces of research suggest that conflicts in terms of tasks and processes are
correlated to higher group performance. In fact, a close examination revealed that task
conflict among top management teams was positively associated with performance. Task
conflict allows people in the organization address important issues.

4. Process Conflict
Process conflict is found out to be associated with delegation and roles. Conflicts over
delegation often revolve around the perception that some members as shirking, and
conflicts over roles can leave some group members feeling marginalized. Process conflict
has the tendency to become highly personalized and quickly devolve into relationship
conflicts. Arguing about how things should be done takes away time from actually doing it.
More often, arguments and debates about roles and responsibilities seem to go nowhere.

Sources and Antecedents of Conflict

Conflict is pervasive in organizations, in fact, most managers spend approximately 20 to
30 percent of their work activities directly or indirectly resolving conflict. The sources,
antecedents, or outright causes of conflict are numerous, and the list is dynamic; new potent
source of conflict emerge at any time at any given situation. According to DuBrin (2019), there
are six illustrative sources of workplace conflict.
1. Perceived Adverse Changes
A high-impact source of conflict is a change in work methods, conditions of work, or
employment opportunities that the people involved perceive negatively. One example is
Downsizing in which workers are laid off in exchange of automated job systems to reduce
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costs and increase efficiency. Continuous downsizing, even when business conditions
improve, can precipitate labor versus management conflict. Labor unions see such as an
attack against the job security, whereas the management perceive it as rightsizing leading to
an efficient, competitive firm that is enticing for investors.
2. Line versus Staff Differentiation
The dichotomy between line workers and staff is also a major form of conflict. The
difference in the nature of each work position is the root of the conflict. Line units deal with
the primary purposes of the firm, such as the sales group in a business firm. Staff units deal
with the secondary purposes of the firm, such as the environmental protection unit in a
business firm. For instance, a human resources professional (staff) might advise top
management (line) about the adverse consequences of downsizing following a merger.
Nevertheless, this professional does not have the authority to halt the downsizing.
3. Sexual Harassment
Sexual Harassment is prevalent in the organizations around the globe. Many employees
have experience being sexually harassed by their boss, manager, coworker, customer, or
even vendor. Sexual harassment is defined as the unwanted sexually oriented behavior in the
workplace that results in discomfort and/or interference with the job. There's is no a grey are
when it comes to sexual harassment as both genders are susceptible to such. It has also
many faces; it can be in the form of sexual favors or advances in exchange of tangible
employment action such as hiring, firing, and promotion. Moreover, sexual harassment can
also be implied or indirect. Sexual harassers create an intimidating, hostile, or offensive
working environment. For example, doing insensitive gestures and uttering sexist
remarks/comments.
4. Factional Groups and Intragroup Conflict
Another factor that precipitates conflict is the presence of factions or subgroups with
different points and different loyalties within the organization. Factional group conflict or
referred to as intragroup conflict arises because of the problems existing inside the group
among its members. It can stem from various sources, such as diverse opinions and
perspectives, general conflicts, incivility, personality differences, and bullying (DuBrin, 2019).
Factions are most prevalent every time merging and joint-venture occur. Because the
merging or joining parties send their respective representatives or groups, competition and
disagreements are likely to happen due to the differences in their background. For example,
in the event that an issue or bottleneck broke out the other group might have an approach
that is immensely different or contrasting to that of their counterpart. This happens because
most of the time what the group utilizes is an approach is based on the practices of their
respective home company.
5. Competing Work and Family Demands
Life outside work has become a major challenge that the workforce is confronted with.
Balancing the demands of career and family is an intense dilemma for every employee.
According to DubRin (2019), work–family conflict occurs when the individual has to perform
multiple roles: worker, spouse, and often, parent or guardian of a dependent parent. Imagine
having planned to attend your child’s championship soccer game and then being ordered at
the last minute to attend a late-afternoon meeting. Work–family conflict works in two
directions: Work can interfere with the family, and the family can interfere with work. Both
men and women of the workplace suffer the consequences of their desire to be successful in
both life and career. This means that they want to find balance and that is to be productive at
work without compromising their time for their loved ones.
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6. Incivility, Personal Clashes, Bullying, and Abusive Supervision

The irreconcilable differences of individual’s disposition and personality are another
culprits of workplace conflicts. An employee's actuations towards the other as being rude,
uncivil, bully, or having lack of regard trigger disagreement and tension among employees.
Incivility does not only affect relationships, it also leads to unproductivity and loss of focus
among affected employees. Rampant incivility is proven to make the days in office tenser
especially if left unchecked. It can cause deliberated slacking off among disgruntled
employees, and worse can cause serious health problems. Moreover, uncivil behavior creates
problematic organizational climate in which can result in aggressive behavior, high turnover,
and lost customers for the company. What's is more is that it breeds a vindictive attitude by
reciprocating the uncivil treatment of others; it may also create divisiveness in a team,
destroy collaboration, and diminish a sense of psychological safety. On the same note,
supervisors who are immersed in abusing their control and power create a space for conflict
to spread. Abusive response to the poor performance of a subordinate, limited self-control,
and hostile outbursts are pinned to have negative outcomes.
Resolving Conflict through Negotiation
Although conflict can be essential for growth, change, and improvement, it can also be the
reason for the demise of an organization. Intentionally avoiding conflict while it’s just around the
corner or simply denying its existence is detrimental, hence, the need for resolution before it
blows out of proportion and the management can't do something about it anymore. There are
lots of approaches as to how conflict should be handled, one of which is through negotiation. A
discussed by McShane and Glinow (2018), negotiation is a process in which two or more
conflicting parties attempt to resolve their divergent goals by redefining the terms of their
interdependence. In simpler terms, negotiation happens when those people who are in
disagreement of something tries to meet halfway or find a common ground to stand. Apparently,
negotiation is not exclusive to selected people in the organization, employees at all levels can
negotiate with anyone under any circumstance they think is appropriate.
There are two ways on how negotiation works: (1) a win-lose orientation where one party
necessary loses when the other party gains; (2) win-win orientation in which both parties
mutually gain something from each other. The former (win-lose orientation) is formally known as
the Distributive Approach; it usually utilized when there's only one problem/issue at hand e.g.
product price or starting salary. On the other hand, win-win or also known as Integrative
approach is common when multiple issues are open for discussions. Consider the example of
buyer who tries to bargain the price, payment, and delivery schedule of a product from a seller.
In this case, the buyer and seller do not only deal with one aspect but rather with many aspects.
The Negotiation Process
1. Preparation and Planning
Negotiation starts with the most important part of the process—preparation and planning.
It is important that before engaging in a negotiation, the person must do his homework which
is to research and gather information. Effective negotiations are always accompanied with
structured and well-supplemented pieces of information. Questions such as: What’s the
nature of the conflict? What’s the history leading up to this negotiation? Who’s involved and
what are their perceptions of the conflict? should be asked. It is also important that the goals
both major and minor ones are considered in the planning, and should be carried along the
entire process of bargaining. For instance, your goal is to get a significant cost reduction from
your keyboard supplier, make sure this goal stays paramount in discussions and doesn’t get
overshadowed by other issues. The possible goals and interest of the other party you are
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negotiating with should be assessed as well. Upon doing so, you will be able to come up with
counter proposals and arguments you can use during the negotiation. Once you’ve gathered
your information, develop a strategy. You should determine you’re and the other side’s best
alternative to a negotiated agreement, or BATNA. Your BATNA determines the lowest value
acceptable to you for a negotiated agreement. Let’s say you are selling your product at 150
pesos as its retail price, but your potential buyers bargain for lower price for purchasing
greater quantity. Prior to your engagement in the negotiation you have forecasted that the
bargaining will happen, thus, you have computed for a lower yet acceptable price that you
can offer; by saying acceptable it means a value that is relatively lower than the original
value but is still profitable or favorable on your end. Because you are equipped yourself with
the necessary information and have prepared for possible scenarios, your confidence will be
built and it is most likely that you'll have the control over the negotiation process.

2. Definition of Ground Rules

Once plans and strategies are already laid down, the next thing on the list is to set the
rules and procedures of the negotiation itself. It means that you have to identify the people,
place, time, methods, and resources that should be involved. This is also where you must set
the extent and limit of the entire negotiation process to avoid going off the rails.
3. Clarification and Justification
When you have exchanged initial positions, you and the other party will explain, amplify,
clarify, bolster, and justify your original demands. One common mistake about this stage that
people fell trap into is taking offense of the other party's intent for clarification. Both parties
should welcome inquiries or questions, or even interrogation during a negotiation. There's no
need to be confrontational or aggressive, instead use it as an opportunity to educate each
other on any issue or misunderstanding to avoid impasse.
4. Bargaining and Problem Solving
The very essence of the whole negotiation lies on this step as this is where the actual give-
and-take happens. Both parties aRere in pursuit of coming up a middle ground and making
concession. Relationship is the biggest factor here, therefore, it should always be taken into
consideration. If you could “win” a negotiation but push the other side into resentment or
animosity, it might be wiser to pursue a more compromising style. On the other hand, if
preserving the relationship will make you seem easily exploited, you may consider a more
aggressive style.
5. Closure and Implementation
The final step in the negotiation process is formalizing your agreement and developing
procedures necessary for implementing and monitoring it. For major negotiations—from
labor–management negotiations to bargaining over lease terms—this requires hammering out
the specifics in a formal contract. For other cases, closure of the negotiation process is
nothing more formal than a handshake.
Bargaining Strategies
According to Judge and Robins (2018), there are two general approaches to negotiation—
distributive bargaining and integrative bargaining. Distributive bargaining is a negotiation
that seeks to divide up a fixed amount of resources; a win–lose situation. One of its salient
feature is that it operates under zero-sum conditions which means that what party A gains is a
loss of party B. For example, you see a used car advertised for sale online that looks great. You
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go see the car. It’s perfect, and you want it. The owner tells you the asking price. You don’t want
to pay that much. The two of you negotiate. Every dollar you can get the seller to cut from the
car’s price is a dollar you save, and every dollar the seller can get from you comes at your
expense. Being aggressive enough to make the first offer is a tactical move for someone
engaged in a distributive bargaining. Making the first offer shows power; individuals in power are
much more likely to make initial offers, speak first at meetings, and thereby gain the advantage.
On the other hand, integrative bargaining is a negotiation process that seeks one or more
settlements that can create a win-win solution. This bargaining provides both party with gains in
equal terms, thus, establishing trust and long-term relationships. Consider an example in which
two siblings are negotiating over an orange. Sibling A wants the orange because he wants to
drink juice, whereas sibling B only wants the orange peel for baking a cake. Instead of fighting
who can have the whole orange, both of them come to a settlement wherein sibling A takes the
fruit while sibling B takes the orange peel. In this way none of them lost anything to anyone as
they both got what they want.
The exhibit below illustrates and summarizes how the two approaches in bargaining differ in
terms of goals and motivation, focus, interests, information sharing, and duration of relationship.

Source: Robbins, S.P. and Judge, T.A. (2018). Essentials of Organizational Behavior (14th ed).

Organizational Change
If there is one constant in an organization today, it is change. As new technologies are
rolled out faster than ever, changes in the environment is rapidly evolving as well. As a result,
there's an influx of new requirements and demands almost daily. Similarly, there are changes in
the workforce and the expectations of workers, leading to thoughtful consideration of previously
“radical” ideas, such as family medical leave, telecommuting, and job sharing (Denhardt et.al.,
__). Both new and long-running organizations suffer the same challenges brought about by these
inevitable changes. The impact of change has been a subject of debate whether it implies
positive or negative outcomes for the organization. Some would view change as a reset button
where they can have new beginnings, new learnings and experiences, and most especially new
opportunities for growth and development. Others, however, perceive these changes as threat
more than an opportunity. Organizations find them dreadful because they are compelled to move
away from what they have been used to; they are called on to make adjustments and adaptive
measures which all boil down to one concern-- financial implication.
While the dichotomy with regard to change is valid, the positive outcomes inherent to
adapting to change are far greater than its downsides. Resistance to change means rejecting the
thought of progress. Most of the companies that failed to move along with the changes within
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their environment were left behind in the darkness and crucified. Organizations operate as open
systems that need to keep pace with their relentlessly fluctuating external environment. There's
is no grey area in confronting with these changes, it's either you embrace it or you don't survive.
If an organization or an employee aims to be a success change should then be recognized as an
integral part of organizational life.
Forces for Change
As discussed Judge and Stephens (2018), change often occurs along one (or more) of six
dimensions:
1. The changing nature of the workforce. Almost every organization must adjust to a
multicultural environment, demographic changes, immigration, and outsourcing.
2. Technology is continually changing jobs and organizations. It is not difficult to imagine the
idea of an office becoming an antiquated concept in the near future. For example, sophisticated
technologies such as robotics and automated job systems cause major revamp in the process
and operation of the company. Tasks are modified but at the expense of downsizing the human
workforce.
3. Economic shocks also have a huge impact on organizations. During the great recession of
2007 to 2009, millions of jobs were lost worldwide, home values dropped dramatically, and many
large, well-known corporations like Merrill Lynch, Countrywide Financial, and Ameriquest
disappeared or were acquired. Recovery has occurred in many countries, and with it, new job
prospects and investments. Other countries, like Greece and Spain, struggle to regain their
economic footing, limiting the economic viability of many Greek and Spanish organizations.
4. Competition is changing. Competitors are as likely to be across the ocean as across town.
Successful organizations are fast on their feet, capable of developing new products rapidly and
getting them to market quickly. In other words, they are flexible and require an equally flexible
and responsive workforce. Competition causes change because organizations are forced to
create new strategies, innovate product and services, and climb greater heights to keep them
afloat.
5. Social trends don’t remain static. Consumers who were strangers now meet and share
product information in chat rooms and blogs. Organizations must therefore continually adjust
product and marketing strategies to be sensitive to changing social trends. Consumers,
employees, and organizational leaders are increasingly sensitive to environmental concerns.
“Green” practices are quickly becoming expected rather than optional.
6. World politics has been a dark horse and not even globalization’s strongest proponents
could have imagined the change in recent years. We’ve seen a major set of financial crises that
have rocked global markets, a dramatic rise in the power and influence of China, and intense
shakeups in governments across the Arab world. Throughout the industrialized world, businesses
—particularly in the banking and financial sectors—have come under new scrutiny.
Organizational Development
Change provides opportunity for growth and development, and it is the company's
prerogative whether to take the leap or not. Organizational development is a long-term,
systematic, and prescriptive approach to planned organizational change. Although it uses a
system-wide view, it can focus on single subsystems of an organization (Champoux, 2010). There
are various directions that organizational development is gearing towards. Aside from enhancing
congruence among organizational structure, processes, strategy, people, and culture; it is also
aimed at developing new and creative organizational solutions and capacity.
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Organizational Development is led by either an external or internal consultant. The role of

an OD consultant is to provide expertise to the organization. More often, a doctor-patient
relationship is emulated as the consultant is brought into the organization to figure out what are
the problems with the patient (company). Subsequently, the consultant prescribes a course of
action for the company to follow. Here both the diagnostic role and the prescriptive role lie
largely with the consultant, making the relationship particularly dependent on a complete and
accurate flow of information between the consultant and the client and on the accuracy of the
consultant’s recommendation and the ability (and willingness) of the client to follow that
recommendation (Denhardt et.al., 2020).
Learning Activities:
Learning Activity 1- Knowledge Level Assessment
1. This type of conflict supports the goals of the group and improves its performance, and is
thus a constructive form of conflict.
A. Relationship conflict
B. Task conflict
C. Dysfunctional conflict
D. Functional conflict
2. ___________ conflict hinders group performance as it is destructive by nature.
A. Relationship conflict
B. Task conflict
C. Dysfunctional conflict
D. Functional conflict
3. In what stage of negotiation process does as person set the extent and limit of the entire
negotiation process to avoid going off the rails.
A. Definition of ground rules
B. Clarification and justification
C. Preparation and planning
D. Bargaining and problem solving
E. Closure and implementation
4. Which of the following is not part of the six dimensions in which change often occurs?
A. The changing workforce
B. Economic shocks
C. Social trends
D. Neither of the choices
5. The very essence of the whole negotiation lies on this step as this is where the actual give-
and-take happens.
A. Definition of ground rules
B. Clarification and justification
C. Preparation and planning
D. Bargaining and problem solving
E. Closure and implementation
6. Another factor that precipitates conflict is the presence of factions or subgroups with
different points and different loyalties within the organization.
A. Sexual harassment
B. Factional groups and intragroup conflict
C. Line versus staff differentiation
D. Perceived adverse changes
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7. This stage is where parties involved exchange initial positions as well explanations that
will amplify, clarify, bolster, and justify the original demands.
A. Definition of ground rules
B. Clarification and justification
C. Preparation and planning
D. Bargaining and problem solving
E. Closure and implementation
8. _____________ bargaining is a negotiation that seeks to divide up a fixed amount of
resources; a win–lose situation.
A. Collective bargaining
B. Distributive bargaining
C. Integrative bargaining
D. Neither of the choices
9. _____________bargaining is a negotiation process that seeks one or more settlements that
can create a win-win solution.
A. Collective bargaining
B. Distributive bargaining
C. Integrative bargaining
D. Neither of the choices
10.This refers to the opposition of persons or forces giving rise to some tension, or to a
disagreement between two or more parties who are interdependent.
A. Negotiation
B. Conflict
C. Bargaining
D. Organizational Development

Learning Activity 2: Interpretive Exercise

Mutual Gains Bargaining. Choose only one from the following pressing issues below and try to
come up a solution (win-win) by applying integrative bargaining.
1. Management wants to control costs by not giving cost-of-living adjustments in the
upcoming year. The employee group believes that a cost-of-living adjustment is absolutely
necessary for its welfare.
2. The marketing team claims it could sell 250,000 units of a toaster wide enough to toast
bagels if the toasters could be produced at $13 per unit. The manufacturing group says it
would not be feasible to get the manufacturing cost below $18 per unit.
3. Best Buy would like to build in a new location, adjacent to a historic district in one of the
oldest cities in North America. The members of the town planning board would like the tax
revenue and jobs that the Best Buy store would bring, but they still say they do not want a
Best Buy store adjacent to the historic district.
Learning Activity 2: Interpretive Exercise
How Do Relationships Affect Conflict? Think back over the past 5 years and recall conflicts
that you had with three different people: (1) a personal friend, (2) a classmate, and (3) a family
member. Respond to the following questions:
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1. What happens to conflicts as relationships become closer, more personal, and more
interdependent?
2. Did you find that as relationships become closer and more interdependent, there are more
opportunities for conflict, the more trivial complaints become significant ones, and feelings
become more intense? Explain.
3. What type of resistance are you encountering during conflict or have you experienced in
the past?

References
Champoux, J.E. (2011). Organizational behavior: Integrating individuals, groups, and
organizations (4th ed). Routledge.
Denhardt, R.B., Denhard, J.V., Aristigueta, M.P., and Rawlings, K. (2020). Managing human
behavior in public and nonprofit organizations (5th ed). CQ Press.
DuBrin, A.J. (2019). Fundamentals of organizational behavior. Academic Media Solutions.
Gupta, A. (2010, April 26). Individual behavior in organization. Practical
Management.http://practical-management.com/Organization-Development/Individual-
Behavior-in-Organization.html
Robbins, S.P. and Judge, T.A. (2018). Essentials of Organizational Behavior (14th ed). Pearson.