Briefly describe the “social issues” that are some of the most difficult aspects of negotiating that keep firms such as PointCast

Briefly describe the “social issues” that are some of the most difficult aspects of negotiating that keep firms such as PointCast from reaching agreement.

The chapter opens with a description of PointCast, one of the Silicon Valley’s hottest start-ups on the 1990s, in merger negotiations with Rupert Murdoch’s News Corporation. Though media speculation valued PointCast at $750 million, Murdoch offered a package of $450 million that PointCast rejected. Subsequent decisions to go public also failed and ultimately, PointCast was sold for $7 million. The missed opportunity is often cited as one of the biggest mistakes in Internet history and is largely credited to the social issues of ego and corporate pride which created conflict in the initial merger negotiations. Apparently PointCast CEO Christopher Hassett believed the hype about his firm and was unwilling to alter his perception during negotiations. Social issues can get in the way of fruitful negotiations and produce painful lessons.

138. Name the three types of conflict and briefly describe each.

Conflict is the process that involves people disagreeing. The three types of conflict include intrapersonal conflict (which arises in a person due to uncertainty about what is wanted or expected or when you feel inadequate to perform a task), interpersonal conflict (which is conflict between individuals sometimes due to personality or competition differences), and intergroup conflict (which occurs between groups like union and management or different departments within the same firm).

139. Describe the inverted-U relationship that exists between conflict and performance.

Conflict in an organization is not always bad. Research tends to suggest that both low and high levels of conflict lead to lower performance. Moderate conflict, on the other hand, leads to higher levels of performance. The moderate conflict is viewed as optimal because it creates a situation where there is healthy debate on ideas, stimulating, for example, creativity. In general, personal conflict is never healthy, but others, like task conflict can be beneficial to the firm.

140. Describe two root causes of conflict at work.

Six root causes of workplace conflict are: organizational structure, limited resources, task interdependence, incompatible goals, personality differences and communication problems.

An organizational structure like a matrix can present workplace conflict because it has each manager reporting to two bosses while a bureaucratic structure has different levels of people with different power creating high-power and low-power clashes.

Limited resources like money create conflict around budget time when an increase in one department’s budget will necessitate a decrease in a second department’s budget.

Task interdependence creates conflict when the output of one individual is the input of another. If the first individual delays his output, he has negatively impacted another.

Incompatible goals create conflict when two parties believe their goals to be mutually exclusive and then end up being connected in some manner. For example, compensation systems often reward salespeople for the amount of sales they make regardless of the production department’s ability to fill those orders.

Personality differences are the most common basis of conflict in the organization. Type A and Type B personalities often do not mix when work needs to be completed on a deadline.

Communication problems also create conflict. Dealing with people who do not return phone calls can be very trying for many individuals.

141. What are two positive and two negative outcomes of conflict?

Positive conflict outcomes include: considering a broader range of ideas resulting in a stronger idea; bringing forward assumptions that may be inaccurate or invalid; increasing participation or creativity; and clarifying individual views.

Negative outcomes of conflict include: increased stress and anxiety which decreases productivity and satisfaction; the feeling of defeat or detachment that some people experience which lowers their morale; and the development of a climate of distrust which hinders teamwork and cooperation.

142. What are some of the factors that increase the risk for you to experience workplace violence on the job?

Two general categories of situations increase your risk of experiencing workplace violence: dealing with people and being in high-risk situations.

In dealing with people, circumstances like caring for others either emotionally or physically, interacting with frustrated customers, supervising other and denying requests others make of you increases your chances of experiencing workplace violence.

Being in high-risk situations like dealing with valuables and money; handling weapons; working with drugs, alcohol or those under the influences of either of them; and working nights and weekends increases your chances of experiencing workplace violence.