Interdepartemental negotation behavior in manufacturing organizations

The goal of this study was to examine individual, relational, and organizational determinants of negotiation behavior (problem solving, contending, yielding, and avoiding) between planning and marketing departments in manufacturing organizations. Results from a study among 41 managers and 85 planning and marketing employees within 11 firms showed that individual personality, perceived interdepartmental interdependence, and organizational strategy were each related to the negotiation behavior of department members. Desirable negotiation behavior—specifically, the problem‐solving approach—was more likely when individuals were extraverted and agreeable, when employees perceived high interdepartmental interdependence, and when organizations did not have a low‐cost strategy. Contending was more likely when individuals were extraverted and disagreeable, and yielding was more likely when department members perceived a power advantage vis‐à‐vis the other department. All four styles of negotiation behavior were more likely the less the organizations had a low‐cost strategy. These findings provide guidance to organizations in their efforts to encourage constructive negotiation behavior between departments