Impact of Negotiation and Conflict Management on Business

This study investigates the negotiation behavior of entrepreneurs and the impact of negotiation and conflict management on business. It explores conflict management strategies and the importance of negotiation in resolving conflicts. The study aims to analyze the major causes of conflicts, investigate negotiation methods, analyze the impact of negotiation and conflict management on business, and identify appropriate conflict management strategies. The research design is mixed, using both qualitative and quantitative data collection methods.

HOW ENTREPRENEURS NEGOTIATE AND THE IMPACT OF NEGOTIATION AND
CONFLICT MANAGEMENT ON THE BUSINESS
Abstract
Despite of remarkable improvement on conflict management through the implementation
of various approaches across the world, conflicts issues on business are in high number of work-
related conflicts. The conflicts are inevitable part of an organization but what is important is how
the organization determines the root cause of the conflicts and manages them effectively. The
study investigates the negotiation behaviour of the entrepreneurs with focusing on how
negotiation and conflicts influence the business. A mixed research design adopted for this
research. The focus group interview has identified that conflict management has been regarded
as highly essential for organization due to the fact the conflict can not be avoided in
organization.
Keywords: Conflict management, Business, negotiation, Impact, Analysis
Introduction
The concept of conflict management has been observed in the business world for a long time
and the managers are working to reduce the impact of conflicts on the overall project or the
business. The conflicts in the team arise with the presence of two or more individuals working in
an organization. The research is aimed to identify the impact of conflicts on the overall business
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within the entrepreneurship. Several researchers have explored the impact of conflict
management on the businesses that may damage the reputation of the organization as a whole
(Cascio, 2018). The study in hand has observed the impact of negotiation and conflict
management on the business with respect to the overall organizational performance and the
business profitability. It is necessary for the managers to carry out the conflict management and
to have the good negotiation skills that may reduce the chances of conflicts and resolve in the
real time.
The following study has mainly highlighted aspects of conflicts in the construction industry
that may cause a disturbance in the overall project. Moreover, it has provided with the
relationship between conflict management strategies that could secure and improve the
organizational performance. Additionally, the study has emphasized on developing the strategies
that can resolve the conflicts in the business. The study of (Kerzner, 2017) as highlighted some
of the various ways in terms of interactive and non-interactive conflict management strategies
that can assist the managers to resolve the conflict management issues and resolve the issues
within the team members of any project in the business.
Conceptual Background
Conflict among the employees is very common and develops the complex issues within
the business and its operations. Additionally, (Nicholas & Steyn, 2017) have argued that the
conflicts have a high negative impact on the employees in terms of their satisfaction and
organizational performance. It is essential for the management to resolve the issues and develop
effective techniques for the higher job satisfaction of the employees that can increase the
organizational performance as a whole according to the study (Bryson, 2016).
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Research Problem
The significance of conflicts within the organization has been observed for a very long
time that is creating hurdles and has been imposing negative results on the organizational
performance. Frequent agitation by workers for enhanced working conditions and several other
interests have resulted in a decline in performance. According to the study of (Caputo, Ayoko &
Amoo, 2018) negotiating is associated with the culture, which affects the directions in which the
person behaves during negotiations. Therefore, it is necessary to comprehend the culture of the
entrepreneurs for understanding their negotiation and conflict management strategies. Thus, this
study is set to provide empirical evidence and contribute by enhancing the quality of evidence
for a positive relationship between the impact of negotiation and conflict management skills of
entrepreneurs on business performance.
Aim of the Study
The aim of the current research is to assess the issues that impact on negotiation and conflict.
Management on the business including the following objectives.
 To analyze the major causes of conflicts in the industry.
 To investigate the ways of negotiation by managers in the businesses.
 To analyze the impact of negotiation and conflict management on business.
 To identify the most appropriate conflict management strategies in the industry.
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Research Questions
The research questions of the study have been mentioned below that are aimed to be answered in
the following study.
Q1. What are the major causes of conflicts in the industry?
Q2. What are the ways of negotiation by managers in the businesses?
Q3. What is the impact of negotiation and conflict management on business?
Q4. What are the appropriate conflict management strategies in the industry?
Significance of Study
The study is highly significant for investigating the major causes and reasons for the
conflicts among the team of an organization that may create a hurdle for the overall
organizational performance. The strategies that have been identified in the following study for
conflict management has a huge impact towards the creation of better environment and overall
organizational performance (De Dreu, Kluwer, Euwema, & Vegt, 2017). The study is highly
essential for the managers to develop higher negotiation skills for the effective practice of
conflict management. The significance of study is to improve the issues of negotiation in
organization where employee communicate with other people.
The collection and analysis of the primary data collected from the entrepreneurs have
added value to the overall study and has provided with their views and remarks regarding the
dependent and independent variables of the following study (Broome B. J., 2017).
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Literature Review
Conflict Management
Conflicts occurs when there are differences between opinions of people. There are multiple
reasons of conflicts in a workplace which includes alterations of views, different beliefs,
communication gap, etc. (Caputo, Ayoko, & Amoo, 2018).
According to (Masuda & Kostopoulos, 2016) conflict can be prevented by taking prompt
actions to the conflicting issues and by addressing the issues first place. The negotiation that help
for organization to improve conflict between people because they are properly communicate with
other to resolve the issues between them.
Conflicts can be managed and avoided by taking necessary steps. Such practice of
identifying and handling the issues fairly is called conflict management. Conflict can be
managed when it can be resolved the issues of negotiation by adopting new style that manage
avoidance.
It is said that issues may occur when people work together. People who know how to resolve
conflict are required in an organization. There are basically five styles presented by (Caputo,
Ayoko, & Amoo, 2018) to manage conflict that are: accommodating, avoiding, collaborating,
competing, and compromising.
In accommodating strategy, a manager needs to cooperate with team. This may result in
going against manager’s own beliefs and views but this style is effective if cooperation and
effective solution are presented. In avoiding one must simply avoid the main issue for the
conflict. In this strategy manager or the employee who is having a conflict just suppose that
issues will resolve on their own. This strategy might be effective if the employees want space,
but it can also be defective as the issue can escalate if not discussed (Maiti & Choi, 2018).
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Collaborative strategy refers to integration of ideas to resolve an issue. The aim is to find an
optimal solution for the issue. Competing strategy is a win-lose situation in which one party loses
and other wins. This can be effective in emergency situations. In compromising either side have
to let go out of issue or put aside their differences.
Negotiation
Negotiation is a technique through which people settle their differences (Pauly, Scherer, &
Palazzo, 2015). Negotiations are an essential part of the organization. In this process, arguments
and disputes are avoided through mutual agreement. In any conflict or disagreement, the
employee or the individual wants the best possible outcome for the issue or for the company or
organization they represent. Since the aim is to reach a constructive outcome, individuals must
negotiate and may reach a mutual agreement that leads to a certain outcome which can be
beneficial for the company. It involves a sensible discussion on which both the parties accept the
results (Zhu & David, 2018). In this method both the parties try to persuade each other to accept
their solutions and come on the same page to find an optimal solution on which everyone agrees.
The method of negotiation involves various stages which include: preparations, clarification of
goals, discussion, negotiate to achieve a win-win result, agreement on a mutual decision and
implementation. It is the responsibility of the higher management to resolve issues of employees
working in the lower levels. (Lu, Kong, Ferrin, & Dirks, 2017) Resolving issues by negotiation
proves helpful as negotiation is a win-win proposal and employees often wants to put their
demands and claims forward. By negotiating among the employees, management also fulfills
their requirements and also satisfy the employees.
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Importance of Negotiation and Conflict Management for Business
Conflict can be in any workplace or organization as it the part of the working environment.
Conflict arises when employees with different state of minds are working together. Conflicts are
good in a way as when an individual is having a conflict with someone or with something; it
means that individual contains an opinion of his/her own which is a good thing but it can escalate
and result in a bad situation if not discussed or addressed properly. The practice of conflict
management is necessarily required in all organizations as conflicts can happen anywhere in any
situation even on small things like borrowing a pen and not returning it afterwards. Companies
need managers who can understand the situations and acts accordingly. Resolving issues is not
an easy task, the person resolving the issue have a neutral mind and must not be biased.
Understanding the issue sensibly and communicating it effectively is the key to solve a conflict
(Broome B. J., 2017). Negotiations can be made to avoid or to solve a conflict as negotiations
include mutual agreement on which both the parties will agree and proceeds towards a
productive outcome. Negotiation can prove effective if both the parties listen to the situation
with open minds and act to resolve the issue and not try to prove themselves right. Conflict
management and negotiations go hand in hand as both the techniques try to solve an issue among
employees. Conflicts can arise at any level and it needs to be resolved as to avoid any quarrel.
Managers need to resolve issues by negotiation.
It can be resolved the issues by negotiation through implementing conflict resolution
strategies to enhance quality of services. It including to use proper time management, creating
strategies and also avoiding being provoked in terms of emotional response.
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Impact of Negotiation and Conflict Management on the Business
Conflict can have a very bad impact on the organization, especially on its productivity as by
having conflicts, employees may feel disturbed and might not work effectively. Managers need
to be trained in resolving the conflict as it is important for the productivity. Conflict management
can have a positive impact on the organization as it increases the productivity by resolving issues
of the employees. When issues are resolved, it strengthens the relationship between the
employees and the organization (Grant, 2016) As employees may feel confident and it also
increases their job performance (Wong, & et.la., 2018) and they develop a state of trust in the
organization that the organization is paying attention to their issues and problems. Negotiation
serves as another factor to resolve issues and affect the employees positively and indirectly
having an impact on the productivity. Negotiations are often made on a higher level like
finalizing business deals and coming to a mutual decision to have a win-win situation. But
negotiations can be made on the lower level as well when discussing the contradicting views and
beliefs of the employees. Negotiation and conflict management are two important factors of the
organization which can satisfy the employees and management and can have a win-win situation.
Any organization where conflicts occurs, it needs to work on their management as those issues
will be a concern for company. Employees feel satisfied when their issues are being addressed
and they feel as a part of the organization and this result in the increment in the confidence level
and this increases their efficiency. Hence, negotiation and conflict management is very much
needed especially when the workforce is diverse relating to different social and ethical
backgrounds. It is the need in today’s time of globalization that companies requires diverse
workforce but it brings various conflicts regarding their backgrounds. Therefore, the
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management of the company should be considerable and sensible enough to cater all those
issues.
< Figure 1>
Methodology
Introduction
The research methodology is an important part of the study that highlights the method that has
been used in the following study in hand. The succeeding section of the study has highlighted the
research design, philosophy, and approach of the study. Moreover, the section has also identified
the tools of analysis for following study. The focus group interview has identified that conflict
management has been regarded as highly essential for organization.
Research Philosophy
According to Veal, 2017 The research philosophy represents the philosophical framework of the
following. Since the study has been designed on the basis of the mixed methodology to identify
the impact of negotiation and conflict management on the business the most suitable philosophy
to be used is pragmatism.
Research Approach
According to Giacomantonio, Femke, & Carsten, 2018 The research approach refers to the flow
of investigation. Hence, the study has been formulated to investigate the impact of conflict
management and has developed the hypothesis of the study; the researcher has used the
deductive approach for carrying out the following study.
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Research Design
The research design refers to the data extraction method that has been used in the study. The
following study has been designed to collect the responses from the respondents through survey
questionnaire whereas, the study has also been carried out using the secondary sources of
literature and other major sources for gaining the qualitative data. Hence, the following study has
used the mixed methods that have included the aspects of both qualitative and quantitative data.
Data Collection Method
The data collection method refers to the medium of collecting data that has been used in the
following study (Creswell & Creswell, 2017). The qualitative data collection methodology is
applied. In this data will be collected from focus groups whereas the study has also gained the
secondary data for the analysis and meeting the study objectives to assess the impact of
negotiation and conflict management on the business.
Sample Size and Target Population
For present study the population selected is employees who are working in construction
companies. The sample size taken is 50 respondents and the data has been collected from them
through questionnaire.
Research Instruments
The research instrument that has been used in the following study is correlation and regression
using SPSS tool to determine the nature of the relationship and gauge the impact of negotiation
and conflict management on business performance. The analysis has been performed through the
SPSS software for getting the most significant results of the following study. Moreover, the
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analysis of qualitative data has been done through the process of thematic analysis. If SPSS was
used in other studies it would have been reliable in generating precise results.
Limitation of Study
The researcher has faced limitation to get the access to the managers in the industry and to
persuade them to take part in the research process by giving their valuable responses. Moreover,
the biggest limitations were that of the cost and time of the study that has been allocated for the
study.
Ethical Consideration
The study that has been carried out is ensured to be unique and includes the most appropriate
information that has been collected from the primary and secondary sources. Moreover, the data
collected from the respondents have not been violated and has been used for the purpose of
research only.
Data Analysis
This section includes the analysis of the data collected through survey questionnaire and focus
group interview. For this purpose, the survey interview has been analyzed by dividing into
themes whereas questionnaire has been analyzed by conducting regression and correlation
analysis.
Results from Focus Groups
The researcher has carried out interviews with employees representing different professionals.
The researcher has not disclosed the identity of the respondents to maintain anonymity. Thematic
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analysis has been used by the researcher for analyzing the responses that has been received from
the professionals.
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Conflict Management Strategy and its Impact on Business Performance
One of the respondents answered,
“In my opinion conflict management is essential because we cannot deny the fact that each
organization has certain members with a difference of opinion. This requires effective conflict
management at all organizational levels”
The focus group interview has identified that conflict management has been regarded as
highly essential for the organization due to the fact the conflict can not be avoided and
organizations must have a mechanism through which conflicts can be de-escalated. The literature
has also supported this notion. The organizations must have an effective management process for
pertaining conflicts due to the fact that conflicts cannot be avoided and lack of conflict
management might hinder business performance (Welford, 2016). Therefore, the findings of the
research have been justified by the existed literature.
One of the respondents said,
“Business performance is directly linked with conflict management because of the fact that if the
interest of conflicting parties is being addressed; they will tend to provide high standard
performance in the organization”
The findings of the focus group interview have also determined that the organizations are
highly required to have an ability to understand the concerns of the parties. It can also impact the
overall business performance as if the conflicting parties are employees of the organization, the
management must have to ensure that their concerns are being equally addressed. It has been
supported by the literature as well. It has been identified that conflict management is highly
significant as the employees and other organizational members often have a difference of
opinions which can lead towards conflict; therefore, the conflict management is essential to fairly
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consider the concerns and managing them by a channel of communication, dialogue, and
discourse (Mamic, 2017). Therefore, the findings of the research have been justified by the
literature found.
Negotiation and Stakeholders’ Interest and Impact on Business Performance
One of the participants from the focus group stated,
“Negotiation is the major factor which is associated with influencing other people to do what we
want them to do with effective dialogue. It is, in my opinion, is essential for the organization to
demonstrate that the final decision will be in their best interest” (Pauly, Scherer, & Palazzo,
2015)
The negotiation is the art of influencing the stakeholder of the dialogue by stating their best
interest in any decision making process. It is also significant for making the stakeholders
understand their best interest while keeping organizations’ own strategic objectives intact (Grant,
2016). In this way, the management is responsible for stating that the stakeholders’ interest or the
interest of the conflicting parties in a manner that leads towards higher performance. The
primary findings from the focus group interview have also provided the notion that if
stakeholders’ interest is being mentioned by the management; they will tend to perform better
and in the best interest of the organization.
One of the respondents said,
“The business performance is highly dependent upon how we manage to negotiate with not only
our internal stakeholders but also our external stakeholders. Like our customers, our suppliers
or even other external parties and while engaged in that dialogue we have to consider their
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interests and it can then ultimately impact the outcomes of our action and business
performance”
The focus group findings have identified that the performance of the organization is
dependent upon effective negotiation with both the internal and external stakeholders of the
organization. It has been due to the fact that the businesses are in constant dialogue with not only
its internal stakeholders but also external stakeholders which requires an efficient and persuasive
way of dealing at times of decision making or when the conflict arises. It has been supported by
the previous research conducted. It has been identified that organizations must have to have an
ability to negotiate with all the external and internal stakeholders in order to make sure that they
perform in the best interest of the organization (Hunger, Hoffman, & Bamford, 2018). Therefore,
the findings of the research have been justified by the literature findings.
Persuasive Strategy and Integrative Negotiation
One of the respondents said,
“Persuasion is like an art in the negotiation process as it is associated with how you induce a
person to do what has been desired. In simple words, you can make the other party act in a
manner which can ultimately lead towards higher business performance and profit”
The findings of the focus group interview have identified that persuasion strategy of
negotiation is linked with influencing the actions of other people and aligning those actions with
the organizational strategic objectives. The previously conducted studies also supported this
notion. The management is responsible for persuading the actions of the employees for achieving
its strategic objectives so that higher revenue could be obtained through their actions (Rahaman,
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Choe, & Park, 2017). Therefore, the findings of the research have been justified by the literature
findings
One of the respondents stated,
“I believe that integrative negotiation is essential than the non-integrative negotiation as it
allows us to consider how we can think systematically for the purpose of fair judgment which can
ultimately lead towards higher trust amongst organizational members inclining them to perform
better and in the best interest of the organization” (Currie, Tom, Bill, & Paul, 2017)
The main findings of the focus group have revealed that entrepreneurs have been inclined
more towards the integrative strategy of negotiation because of the fact that it helps to
incorporate trust in the organization and its actions. If employees believe that organization can
negotiate the final decisions with the inclusion of fairness and understanding, they would tend to
have high-level trust in the organization and its decision-making process The research has also
professed that integrative potential is associated with making both parties agree with fifty-fifty
compromises that can further allow the individuals to indulge themselves in various multiple
tasks in order to remain creative and analytical and be able to manage interpersonal conflicts
effectively. Therefore, the primary findings of the research have all provided the same notion
that persuasive and integrative negotiation strategies are essential for the organization to gain
profit and achieve higher business performance.
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Quantitative Analysis
The researcher has carried out survey among the employees who are part of the companies. The
survey has been carried out among 50 survey participants. The survey questionnaire comprises of
two parts as in demographic details and questions linked with the research topic.
Correlation Analysis
Correlation analysis is described as the method or the statistical technique for determining the
association between two variables. Different statistical techniques are used to identify how one
variable is associated with another one. It has also been identified in the previously conducted
study that it was found that correlation analysis is commonly used by researchers while
validating their study through statistical tests (Chatfield, 2018). The following study has used
correlation analysis in order to determine the impact of conflict management and negotiations on
business performance. The previous sections of the study have focused on understanding the
concept of conflict management and negotiations and they influence the overall performance of
the business.
The table below shows the results of correlation analysis carried out through SPSS. The number
of entrepreneurs used for obtaining results was 50. The table above shows sample size (N),
Pearson Correlation and Significance value. The Pearson correlation shows the association
between two variables which should be above 60% to validate it as highly significant. The table
above shows that correlation of conflict management with business performance is 72.4% and
correlation of negotiations with business performance is 98.7% which indicates that the
association is highly significant and performance of the business is influenced by conflict
management and negotiation activities. It can be validated from the other study conducted where
similar results were obtained (Broome B. J., 2017).
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< Table 1>
The table 1 shows significance value which should ideally be less than 0.05 so that it can be
evaluated that there is strong significance between the variables. The table of correlation
analysis above shows that the significance value is 0.000 which shows that there is strong
significance between conflict management and negotiation with business performance. The
findings of the study validate the results of the study conducted by other researches. It has been
indicated that it is necessary for enhancing the performance of the firm to ensure that conflicts
are resolved (Currie D. G., 2017).
Regression Analysis
<Table 2>
< Table 3>
The Table2 model summary and Table3 ANOVA show results obtained by regression analysis. It
is defined as the relationship between independent and dependent variable. The first table above
shows model summary which indicates that it is fit for carrying out the tests and the variables are
accepted. R shows the value of 98.7% indicating interrelation between conflict management,
negotiation, and business performance. The R-square is 97.5% which indicates how independent
variables of the study can predict the dependent variable that is a business performance in this
case. The adjusted R-square value shows the variance observed in the model which is 97.4% in
this case. The last value shown in the table above of ANOVA is sig-value which shows that there
is a significant relationship between the dependent and independent variable which is conflict
management, negotiation, and business performance.
< Table 4>
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The Table4 shown above is also an important indicator of regression analysis. The table of
coefficients above indicate significance value of 0.000 which is less than 0.005 hence; it reveals
that there is a strong and significant relationship between conflict management, negotiation, and
business performance. On the basis of the existing studies and the results obtain of this research;
it was evident that conflict management and negotiation helps in enhancing the overall
productivity as well as the performance of firms because if the interest of individuals is not
secured and conflicts are not managed internally, so the organisation has to suffer. Furthermore,
the results of correlation and regression analysis show that since there is the strong and
significant impact of negotiation and conflict management on business performance, therefore,
firms should design a system where internal conflicts of a firm are handled efficiently.
< Figure 2>
The last question in negotiation section was the approach towards negotiation in a situation
involving conflict. The question was intended towards determining the importance of negotiation
to resolve conflicts in the organization. These responses were intended towards highlighting the
approach of the employees towards negotiation in a situation involving conflicts. 44% of the
employees highlighted that negotiation ensures that conflicts is resolved and the construction
project goals are achieved successfully. 40% of the employees indicated that negotiation helps in
getting people aligned towards a single goal and vision. It helps in aligning the employees with
the organizational goals. 16% of the employees indicated that negotiation helps in restricting the
impact of the conflicts on the organization and employees. The result shown in Fig. 3
<Figure 3>
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Discussion
Conflict management is highly significant for the entrepreneurs to identify the main causes of the
conflict and managing it sensibly, efficiently and fairly so that higher business performance
could be achieved. It is due to the fact that the entrepreneurs are responsible for achieving higher
organizational performance whereas their effective decision-making process can be hindered if
the conflicts within and outside the organization are escalated. Therefore, the findings of the
research paper have identified that entrepreneurs are inclined towards considering effective
negotiation and conflict management strategies such as persuasion and integrative negotiation.
The primary findings of this research article have also professed that Entrepreneurs negotiate by
considering the interest of the stakeholders in order to influence them to take decision and
perform in the best interest of the organization. Therefore, the triangulation of both quantitative
and qualitative findings has inclined to achieve the main aim and objectives of the research
article.
The conflict in any organization is inevitable; the main causes of the conflict are difference
of opinions, ideas, knowledge and decision making approach. Therefore, for entrepreneurs
working in construction industry, it is highly important to consider negotiation as the main way
of managing conflict. The findings of this research article have also revealed that entrepreneurs
consider the win-win solution for any pertaining conflict in the organization. The issue can be
addressed by negotiating with the parties and reaching the decision that includes the benefit of all
parties to the conflict. The primary findings of the research article have also opined that
negotiation is highly essential for the organization to consider because it can impact the overall
business performance by helping the entrepreneurs in the construction industry to build better
relationships within and outside their organization.
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From the study it is found that many employees said that conflict management is essential
for organization as it helps in identifying issues and problems faced by employees. It is evaluated
that lack of conflict hinder organization efficiency. Moreover, through correlation it is stated that
there is strong significance between conflict management and business performance. Thus, it is
essential to have conflict to enhance performance of firm. Furthermore, by analyzing data it can
be stated that many employees said that if conflicts are addressed high performance standards are
maintained. This is supported by regression statistics as it shows R square 98.7% indicate strong
relation between productivity and conflict.
As per discussion, it has been justified through literature review to understand about that
Negotiation is an essential part of the organization. In this process arguments and disputes are
avoided by compromising and mutual agreement. During conflict, Employee or individual wants
the best possible outcome for the issue or for the company or organization they represent. On the
other hand, it also analyzes the question data collection method to find out the accurate results or
outcome through SPSS tool which gathered information about negotiation issues that how it
impacts on the organization.
Alongside it, most of employees said that organization should negotiate in favor of them.
This is because it influences their behavior in positive way. Employees said that business
performance is impacted while negotiating with internal as well external stakeholders. In
addition to it, in quantitative analysis it is identified that almost every employee said that there is
little impact on their performance due to conflict but it helps in solving problems and issues.
Moreover, it enables in developing strong relationship with managers and colleagues.
Empirical research- Conflict Management Methods of Managers: An Empirical Study of the
Turkish Tourism Industry: By Muharrem Tuna and Faith Turkmen 2014
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In study conducted it is evaluated that manager solve conflicts mostly by compromising
and integration method. In this integration method is effective one. It is because it avoids
negative behavior. Also, characteristics of managers highly influence selection of proper method.
Moreover, from research it is concluded that female managers are likely to solve conflicts in
effective way. It is because they possess high traits and power. The experience of manager also
plays a vital role in dealing with conflict. By comparing the results with present study, it can be
evaluated that solving conflict helps in enhancing performance. Furthermore, selection of
method by manager is depends on their experience, traits, etc.
Conclusion
Based on the accumulated findings of the following study, it has been observed that there are two
major variables of the following study that are negotiation skills and the conflict management of
the businesses. The study has been divided into different sections to achieve the aim of the study.
The aims and objectives of the following study been achieved through the collection of primary
data from the respondents that have been followed by the statistical analysis of the data. The data
analysis and interpretation have gained the results of the following study and has provided with
the concluding remarks that the managers in the construction industry need to have good
negotiation skills that can allow them to have the effective conflict resolution in the businesses.
Moreover, it has resulted that the conflict management is one of the essential parts of the
organisation that needs to be managed by the managers to ensure the higher organizational
performance and productivity.
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Recommendations
Based on the findings of the study through the primary and secondary data, it has been analysed
that the variables have a strong positive relationship between the variables and the managers
shall use the strategies of conflict management to ensure the good organisational performance
and the successful completion of the projects. Moreover, it has been recommended that the use
of effective negotiation skills shall be there in the managers to ensure that there are minimum
conflicts between the employees of the business that could affect the organisational productivity.
Future Implication
The following study has been carried out using the responses of 50 entrepreneurs in the
construction industry. Moreover, it is based on the analysis of the data using the regression and
correlation analysis. The future studies may be carried out using a higher number of sample sizes
and can also use some other industry or can also perform the case study method using any
particular case for carrying out the analysis of the negotiation and conflict management to gain
effective results.
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Appendices
Appendix 1: Questionnaire
26

How entrepreneurs negotiate and the impact of negotiation and conflict management on
the business
Name:
Gender
 Male
 Female
Age
 25-30 years
 31-36 years
 37-42 years
 43 years and above
Please rate your responses by  the value that you think is more appropriate:
Strongly Disagree Disagree Neutral Agree Strongly Agree
1 2 3 4 5
Questions 1 2 3 4 5
Conflict Management
1. Conflict management is essential
for incorporating strategies that
help to limit the negative aspects of
the conflict
2. The lack of appropriate conflict
management strategies can decline the
organizational performance
3. The integrative strategy of negotiation can be
beneficial for understanding the conflicts of all the
parties
4. Conflict management is about handling a conflict
in a fair, efficient and sensible manner to ensure the
high-level performance of the organization
Negotiations
27

5. Negotiation can help the entrepreneurs to resolve
the point of difference amongst employees by
initiating effective dialogue
6. Negotiation is important for satisfying the interest
of the conflicting parties in the organization to
achieve desired results
7. The main aim of negotiations is to enhance business
outcomes and its effectiveness in organizational
setting
8. The persuasive strategy of negotiation can be more
beneficial for influencing the parties to do as per
desired by the management of the organization
9. What is your approach towards negotiation in a
situation involving conflict?
Business Performance
10. Persuasion strategy leads towards higher business
profits
11. The collective bargaining in conflict management
can be beneficial for a business to achieve its
performance objectives related to employee
performance
12. Negotiations can allow the business to gain higher
performance by influencing the stakeholders to act
according to organizational strategic goals and
objectives
13. Conflict management and negotiation are two
factors that can help business to identify the cause
of the conflicts and manage them through efficient
dialogue
Appendix 2: Focus Group Interview Questions
- How in your opinion Conflict management is essential business performance?
- Which conflict management strategy, in your opinion, is more appropriate
and why?
28

- As negotiation requires effective dialogue, how do think that it can affect the
stakeholder’s interest and ultimately organizational performance?
- How and why the persuasive strategy of negotiation is more effective for
achieving strategic objectives of the organization?
- Do you think that business performance can be effectively increased by
collective bargaining? If yes, then why?
Figures and Tables
Figure1. Conceptual model
29

Figure 2. Regression analysis
Figure 3. Approach towards negotiations structure
Table 1
Correlation
Analysis
Conflict
Management
Negotiation Business
Conflict Management Person correlation
Sig.(2-tailed)
N
1
50
.707**
.000
50
.724**
.000
50
30

Negotiation Person correlation
Sig.(2-tailed)
N
.707**
.000
50
1
50
.987**
.000
50
Business performance Person correlation
Sig.(2-tailed)
N
.724**
.000
50
987**
.000
50
1
50
** Correlation is significant at the level 0.01(2-tailed)
Table 2
Model
Summary
Model R R square Adjusted R square Std. error of
the estimate
1 .987a .975 .974 .15565
a. Predictors : (Constant), negotiation, Conflict management
Table 3
ANOVA
Model
Model Sum of
square
df Mean
square
F Sig.
1 Regression
Residual
Total
44.173
1.139
45.311
2
47
49
22.086
.024
911.614 .000b
a. Dependent variable: Business performance
b. Predictors :( constant). Negotiation. Conflict management
Table 4
Table of
Coefficienta
Model Unstandardized
coefficient
Standardized
coefficient
t S
i
g
.
B Std. errors beta
1 (constant)
Conflict management
Negotiation
-.171
.066
.910
.048
.042
.031
.052
.950
-3.594
1.597
29.044
.001
.121
.000
31

a. Dependant variable: Business performance
32