University of Melbourne · S1 2026 · FACULTY OF BUSINESS & ECONOMICS

MGMT20001 · Organisational Behaviour

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Chapter 7 of 11 · MGMT20001

Conflict and Negotiation

Conflict is a process that begins when one party perceives another has frustrated, or is about to frustrate, something it cares about — and the unit's core nuance is that it cannot be eliminated, only managed. The flagship distinction is Jehn & Mannix’s (2001) three types: moderate task conflict can help decisions early; process conflict helps only in small doses; relationship conflict almost always harms. Conflict escalates through a process (sources → perception/emotion → manifest → outcomes), and the Thomas–Kilmann model maps five handling styles on assertiveness × cooperativeness — matched to the situation, not a favourite. Negotiation splits into distributive (claim a fixed pie) and integrative (expand it), with BATNA the key preparation concept, and third parties vary by who controls process vs outcome.

In this chapter

What this chapter covers

  • 01Conflict defined — competing interests; managed, not eliminated
  • 02Jehn & Mannix (2001): task / process / relationship conflict
  • 03Sources of conflict & the four-stage conflict process
  • 04Thomas–Kilmann: five handling styles on two axes
  • 05Negotiation: distributive (claiming) vs integrative (creating) value
  • 06BATNA, ZOPA, anchoring & concessions
  • 07Third-party resolution: mediation (process) vs arbitration (outcome)
Worked example · free

Worked example: pick the conflict-handling style

Q [5 marks]. A design lead and a buying lead clash over a product range: designers want a bolder, higher-margin line; buyers are rewarded for speed and cost. Both the issue and the ongoing relationship matter. Using Thomas–Kilmann, identify the conflict type, choose the right handling style, and say why forcing or avoiding would be worse.
  • +1Type: a disagreement about the content of the work (the range plan) is task conflict — useful if it stays impersonal.
  • +1Locate on the axes: the issue matters to both and the relationship matters — high assertiveness, high cooperativeness.
  • +1Choose collaborating: high–high points to collaborating / problem-solving — the only style that genuinely creates value.
  • +1Why not forcing/avoiding: forcing (competing) makes buyers comply but disengage; avoiding lets the range plan drift — both leave value on the table.
  • +1Reframe the interests: a signature capsule line (design) inside a fast, costed core range (buying) turns a win–lose fight into a shared problem.
It's task conflict; with both the issue and the relationship at stake (high–high), collaborating is the right Thomas–Kilmann style. Forcing breeds disengagement and avoiding lets the plan drift — collaborating surfaces the underlying interests and expands the solution.
Glossary

Key terms

Jehn & Mannix (2001) conflict types
Task conflict (disagreement about the content of the work) can help decisions if moderate and early; process conflict (about how work gets done) helps only in small doses; relationship conflict (personal, emotional friction) almost always harms.
Conflict process
Sources (structural conditions) → perception & emotion → manifest behaviour → outcomes that loop back. Intervening early, at the source, is far cheaper than fighting a blown-up relationship.
Thomas–Kilmann styles
Five conflict-handling styles on assertiveness (my outcome) × cooperativeness (their outcome): competing, collaborating, compromising, avoiding, accommodating. Match the style to the situation, not a favourite.
Distributive vs integrative negotiation
Distributive divides a fixed pie (win–lose, positional, guard information); integrative trades across issues to enlarge the pie (win–win, interest-based, share information). Integrative suits ongoing, multi-issue relationships.
BATNA
Best Alternative To a Negotiated Agreement — your walk-away power. The better your BATNA, the stronger you bargain and the firmer the resistance point you can hold.
FAQ

Conflict and Negotiation FAQ

Is all conflict bad?

No — that's the wrong answer the Module-1 myth quiz probes. It depends on the type and level: a team with zero task conflict often suffers groupthink, while moderate, depersonalised debate about the work improves decisions. What you defuse is relationship conflict, not disagreement itself.

When should I use each Thomas–Kilmann style?

Locate the scenario on two axes — how much you care about your outcome (assertiveness) and theirs/the relationship (cooperativeness). High–high → collaborate; high–low → compete; low–high → accommodate; low–low → avoid; mid–mid → compromise. Then justify with the situation.

Why isn't 'collaborating' always the best style?

It's the highest-value style but it costs time and goodwill and needs trust. For a trivial issue, avoiding is efficient; under severe time pressure with equal power, compromising is realistic; in a genuine emergency or on a non-negotiable ethical line, competing/forcing is correct. The exam rewards matching style to situation.

What is BATNA and why does it matter?

Your Best Alternative To a Negotiated Agreement — the walk-away option. It sets your real bargaining power: a credible alternative (e.g. another supplier) lets you hold a firm resistance point. Pair it with ZOPA (the overlap of resistance points) and anchoring.

Study strategy

Exam move

Master the clean distinctions this topic is built on: Jehn & Mannix's three types (relationship harms; moderate task conflict helps early) and the rule that conflict is managed, not eliminated. For handling, locate the scenario on the assertiveness × cooperativeness axes and pick the Thomas–Kilmann style — then justify with the situation, never naming a favourite. For negotiation, tell distributive from integrative and define BATNA (plus ZOPA, anchoring, concessions). Run the define → apply → recommend spine on a scenario every time.

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