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Topic 6


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Topic 6

  1. 1. Multiple Parties, Coalitions, and TeamsPresented By: Presented To:•Ahmed Fekry •Dr. Hassan Wagih•Tarek Mohamed•Ashraf Tawfik ESLSCA 39B•Ramzy Halim
  2. 2. Difference between 2 party & Multiparty Negotiation?Two Party Negotiation :Refers to a process in which two individuals work together to formulate agreements about the issues in dispute.
  3. 3. Difference between 2 party & Multiparty Negotiation?Multiparty Negotiation: Group of three or more parties each representing his or her interests are involved to negotiate in a certain issue and it could be one of the following :
  4. 4. Levels of Analysis in Multiparty Negotiation Multiparty  Coalitions
  5. 5. Levels of Analysis in Multiparty Negotiation Principle-Agent  Constituencies
  6. 6. Levels of Analysis in Multiparty Negotiation Team negotiation  Intergroup
  7. 7. Multiparty Negotiation More than 3 Individuals , teams or groups having different interests & each representing his own interest, however they attempt to resolve perceived differences More parties discussing more issues with more interests. Planning became difficult , social interaction more complex. Agenda to be discussed will be more complex.
  8. 8. Key Challenges of Multi Party1. Dealing with Coalitions: Coalitions is a subgroup of 2 or more individuals who join together in using their resources to affect the outcome of a decision in a mixed motive situation involving at least three parties. Coalitions benefits : minimize conflicts and maximize controls over other members.
  9. 9. 2- Formulating Trade-Offs• Integrative agreements are more difficult to fashion in multiparty negotiations because Trade-Offs are more complex. Issues may be linked, making trade-offs between issues are difficult to construct, the below diagram represent the 2 ways of achieving the Integrative trade-off: 1. Circular Logrolling : 2. Reciprocal Trade Offs:  Require each group member  Fashioned between 2 to offer another member a members of larger group concession on one and it’s more traditional issue, while receiving a form of exchanging concession from another presents between only group member on another two group members, issue. however circular logrolling between more than two members.
  10. 10. 3- Voting & Majority Rule Voting is the procedure of collecting individual preferences for alternatives on issues & selecting the most popular alternative as the group choice “ Majority rule “ Despite its democratic appeal , majority rule fails to recognize the strength of individual preferences. Groups negotiation by “ Unanimity rule “ reach more efficient outcomes but it is time-consuming. Paradoxes of voting demonstrated at “ Condorcet paradox “ when the winners of majority rule elections will change as a function of the order in which alternatives are proposed.
  11. 11. Voting & Majority RuleStrategic voting : The problem of indeterminate group choice is further compounded by the temptation for members to strategically misrepresent their true preferences so that a preferred option is more likely to be favored by the group.Consensus agreements : Consensus agreements imply that parties agree publicly to a particular settlement , even their private views may be in conflict.
  12. 12. 4- Communication Breakdown Most of People take communication for granted in their interactions with multiple parties. Multiparty negotiation, communication is complex as a result of communicating with a lot of people with different interests & issues. • Private Caucusing Sender • Biased Interpretation. • Perspective taking Failures • Indirect Speech Acts. • Multiple Audience Receiver Problem.
  13. 13. Case After the glorious revolution of January 25, A number of parties have emerged in different terms of references and interests. The number reached more than 60 parties(Multi party) . And the idea of coalitions and alliances appeared in preparation to run for parliament for the year 2011-2012. The negotiations started between them and each team starts to studying gains and losses as a result of this alliance or coalition. The largest coalition is an example of the Democratic Alliance for Egypt, who led it the party of freedom& justice and the Wafd Party, brought together 34 political parties
  14. 14. Soon, tensions emerged between those parties on the division ofcake and quickly withdrew several parties, one of the top was theWafd Party , the Nasery Party ,Elnoor Party and several otherparties and settled the number of 11 party in this coalition.
  15. 15.  The result of this coalition for freedom and justice achieved 222-seats and 22 seats to others of the Democratic Alliance is affiliated with the freedom and justice. We note that the Wafd Party,thought that alone will bring him coming off a larger number of seats but did not achieve and got a little 39 seats on by 7.5%, which is a very small number relative to its calculations.
  16. 16. What are the Key Strategies for Multiparty Negotiations?• Know who will be at the table• Manage the Information & systemize proposal making• Use Brainstorming Wisely• Develop & assign Process Roles• Stay at the table• Strive fro equal participation• Allow for some points of agreement, even if only on process• Avoid the Equal Shares Bias• Avoid the Agreement Bias• Avoid Sequential bargaining Win-Win
  17. 17. What is Coalition?Temporary agreement between two or more parties (individualsor groups) in order to achieve common goal.Why Coalition is important? People who pool their resources and work together are generally more powerful and more able to advance their interests, than those who do not. Coalition members may be able to resist certain threats or even begin to make counter P1 threats.What are the ChallengesChallenge Strategy of working in Coalition and how can Coalitions may formwe improve it to build a successful Coalition? Early Contact Optimal Size Trust & Temptation Verbal Commitment Win-Win Dividing The Pie Fairness in Dividing
  18. 18. Constituent Relationships When negotiating party is embedded within an organization, several peripheral players may have an indirect stake in the outcome and may influence the negotiation. Constituents can be used to exert pressure on the other side of the table. Three types of constituencies:A) Superiors: have authority over principals.B) Subordinates: are under the authority of principals.C) Constituencies: for whom the principals is responsible and accountable.
  19. 19. Constituent Relationships When negotiating party is embedded within an organization, several peripheral players may have an indirect stake in the outcome and may influence the negotiation. Constituents can be used to exert pressure on the other side of the table. Three types of constituencies:A) Superiors: have authority over principals.B) Subordinates: are under the authority of principals.C) Constituencies: for whom the principals is responsible and accountable.
  20. 20. Challenges for Constituent Relationships Identification: Constituent representatives must think about how they want to identify themselves/their side in a negotiation. Accountability: * negotiators at the bargaining table comprise the primary relationship in negotiation. * The relation parties share with their constituents is the 2nd table. * The 2nd table has a paradoxical effect on the primary table. * Representatives of constituents often are not given power to enact agreements, but in some cases the opposite can be true.
  21. 21. Strategies for improving constituent relationships Communicate with your constituents Don’t expect homogeneity of constituent views. Educate your constituents on your role & your limitations. Help your constituent do horizon thinking.
  22. 22. TEAM NEGOTIATION Consider the following situations: A husband and wife negotiate with a salesperson on the price of a new car. A group of disgruntled employees approach management about wages and working conditions. A large software company approaches a small software company about an acquisition. Why are teams so effective? Negotiators exchange much more information about their interests and priorities when at least one team is at bargaining table than when two individuals negotiate. Information exchange leads to greater judgment
  23. 23. Consider the following criteria forchoosing and evaluating teammates:1.Negotiation expertise . People with good negotiation skills may be worth their weight in gold.2.Technical expertise. It helps to have someone with technical expertise in the domain of interest.3.Interpersonal skills. It often helps to have people with good interpersonal skills on a negotiating team.
  24. 24. Information pooling Team Cohesion Cohesion is the strength of positive relations within a team, the sum of pressures acting to keep individuals in a group. Cohesive groups Perform better than less cohesive groups.
  25. 25. Information processing It is more efficient for each team member to be responsible for a particular piece of information.Common information bias. Members of groups are not privy to the same facts and information. People rely on others for information. In fact, members of product development teams rely on informal social exchanges more than technical reports for information. Teams can be more efficient by dividing the labor among members.
  26. 26. Strategies For Improving Team Negotiation Prepare together Plan schedule breaks Assess accountability
  27. 27. Preparing For Your Team-on-Team Negotiation Team-on-team negotiation can be an advantage over solo negotiation if the team prepares properly. Here are some guidelines:
  28. 28. Step 1: Individual Preparation Identify the issues. Identify your BATNA. Determine what you believe to be your team’s “worst- case’’ scenario. Determine what you believe to be your team’s “Best- cas’’ scenario. Write down these scenarios and be prepared to share them with the members of your team.
  29. 29. Step 2: Running the Preparation Meeting Who is going to run the meeting (i.e., who is going to summarize, synthesize, etc.)? What materials do you need to be effective (calculator, flipcharts, computer, etc.), and who is bringing them? What is your timeline, and who will enforce it so that the team arrives at the negotiation table prepared and refreshed?
  30. 30. Step3: as a Team, Clarify Facts and Information Develop a “position and Interests ’’ chart. Prioritize your issues. understand the reasons for your priorities. Identify what you think the other party’s priorities are. Identify what information you need from the other party. Determine your BATNA. What do you know about the other part’s BATNA? Identify your worst-case scenario (reservation price). Identify your best-case scenario (target). As you complete the preceding tasks, make a list of questions to research. Identify information that is too sensitive to reveal at any point under any condition Identify information that you are willing to share with the other team if they inquire.
  31. 31. Step 4: Strategy As a team, plan your OPENING OFFER. Choose a lead negotiator. Choose a lead strategist. Choose an accountant to run the numbers. Choose a scribe to keep track of offers. Decide on a signal to adjourn for a private caucus.
  32. 32. Principal – Agent negotiationMany advantages can be realized by using agents to represent one’s interests: Expertise : agents have more expertise in negotiation. Substantive knowledge : agent have more information than principal at certain areas. Networks and special influence . Emotional detachment : agents provide emotional detachment and tactical flexibility. Ratification : agents dose not have the authority to make or accept offers ( unless directed to do so by the principal ). Face-saving : agents can provide a face – saving buffer for principals.
  33. 33. Principal – Agent negotiationDisadvantages of Agents : Shrinking ZOPA : agents shrinks the bargaining zone in order to increase the likelihood of an impasse. Incompatible incentive structure: incentive compatibility is the only way to ensure that the agent serves principal interests. Communication distortion : it may occur as agents often do the negotiation rather than principals . “ message tuning “ refers to how senders tailor the messages to specific recipients. Loss of control : because the agent is negotiating in principal stead. Agreement at any cost : agents have an incentive to reach agreement so they may fall prey to the getting to YES bias.
  34. 34. Strategies for Working Effectively with Agents  Shop around .  Know your BATNA before meeting with your agent.  Communicate your interests to your agent without giving away your BATNA.  Capitalize on the agent’s expertise.  Tap into agents sources of information.  Discuss ratification.  Use agent to help save face.  Use your agent to buffer emotions.
  35. 35. Questions1. What is the different between two party & Multiparty negotiations?2. How do u build a successful Coalition in Multiparty negotiations?3. How to deal when the table gets crowded?4. Mention the challenges & strategies of improving Constituents?
  36. 36. Thanks for your attention