Negotiation & Conflict Resolution


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Negotiation & Conflict Resolution

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  • When preparing to negotiate a settlement, we generally think in terms of distributing the risk of loss among the parties.
  • Day-to-day / Managerial Negotiations Such types of negotiations are done within the organization and are related to the internal problems in the organization. It is in regards to the working relationship between the groups of employees. Usually, the manager needs to interact with the members at different levels in the organization structure. For conducting the day-to-day business, internally, the superior needs to allot job responsibilities, maintain a flow of information, direct the record keeping and many more activities for smooth functioning. All this requires entering into negotiations with the parties internal to the organization.
  • Commercial Negotiations Such types of negotiations are conducted with external parties. The driving forces behind such negotiations are usually financial gains. They are based on a give-and-take relationship. Commercial negotiations successfully end up into contracts. It relates to foregoing of one resource to get the other.
  • Legal Negotiations These negotiations are usually formal and legally binding. Disputes over precedents can become as significant as the main issue. They are also contractual in nature and relate to gaining legal ground.
  • Prepare, prepare, prepare. Enter a negotiation without proper preparation and you've already lost. Start with yourself. Make sure you are clear on what you really want out of the arrangement. Research the other side to better understand their needs as well as their strengths and weaknesses. Enlist help from experts, such as an accountant, attorney or tech guru. Pay attention to timing. Timing is important in any negotiation. Sure, you must know what to ask for. But be sensitive to when you ask for it. There are times to press ahead, and times to wait. When you are looking your best is the time to press for what you want. But beware of pushing too hard and poisoning any long-term relationship. Leave behind your ego. The best negotiators either don't care or don't show they care about who gets credit for a successful deal. Their talent is in making the other side feel like the final agreement was all their idea. Ramp up your listening skills. The best negotiators are often quiet listeners who patiently let others have the floor while they make their case. They never interrupt. Encourage the other side to talk first. That helps set up one of negotiation's oldest maxims: Whoever mentions numbers first, loses. While that's not always true, it's generally better to sit tight and let the other side go first. Even if they don't mention numbers, it gives you a chance to ask what they are thinking. If you don't ask, you don't get. Another tenet of negotiating is "Go high, or go home." As part of your preparation, define your highest justifiable price. As long as you can argue convincingly, don't be afraid to aim high. But no ultimatums, please. Take-it-or-leave-it offers are usually out of place.
  • Anticipate compromise. You should expect to make concessions and plan what they might be. Of course, the other side is thinking the same, so never take their first offer. Even if it's better than you'd hoped for, practice your best look of disappointment and politely decline. You never know what else you can get. Offer and expect commitment. The glue that keeps deals from unraveling is an unshakable commitment to deliver. You should offer this comfort level to others. Likewise, avoid deals where the other side does not demonstrate commitment. Don't absorb their problems. In most negotiations, you will hear all of the other side's problems and reasons they can't give you what you want. They want their problems to become yours, but don't let them. Instead, deal with each as they come up and try to solve them. If their "budget" is too low, for example, maybe there are other places that money could come from. Stick to your principles. As an individual and a business owner, you likely have a set of guiding principles — values that you just won't compromise. If you find negotiations crossing those boundaries, it might be a deal you can live without. Close with confirmation. At the close of any meeting — even if no final deal is struck — recap the points covered and any areas of agreement. Make sure everyone confirms. Follow-up with appropriate letters or emails. Do not leave behind loose ends.
  • This type of manager must learn to be more collaborative. Autocratic managers have a tendency to miss seeing the big picture. When these types of managers fail to negotiate effectively, the results of their efforts often suffer. While autocratic types may believe they are skilled negotiators, they often are not because they lack the ability to listen and to empathize.
  • Since negotiation often implies conflict (something these types of managers avoid at all costs), it is critical for them to take responsibility for forcing a certain amount of compromise. This is the only way they will be able to lead others effectively.
  • Negotiation & Conflict Resolution

    1. 1. Negotiation Skills and Conflict Resolution
    2. 2. What’s Conflict? Is a process that begins when one party perceives that another party has negatively affected, or is about to negatively affect, something that the first party cares about. Encompasses a wide range of conflicts that people experience in organizations Incompatibility of goals Differences over interpretations of facts Disagreements based on behavioral expectations
    3. 3. When Conflict Occurs? Conflict occurs whenever:- Disagreements exist in a social situation over issues of substance Emotional antagonisms cause frictions between individuals or groups
    4. 4. Transitions in Conflict Thought
    5. 5. Traditional View The belief that all conflict is harmful and must be avoided. Causes: • Poor communication • Lack of openness • Failure to respond to employee needs Causes: • Poor communication • Lack of openness • Failure to respond to employee needs
    6. 6. Interactionist View The belief that conflict is not only a positive force in a group but that it is absolutely necessary for a group to perform effectively.
    7. 7. Resolution Focused View Focused more on productive conflict resolution Encouraging limited levels of conflict Finding a method for resolving conflicts productively in order to decrease the disruptive influence The belief that conflict is a natural and inevitable outcome in any group
    8. 8. Intra-personal Conflict Actual or perceived pressures from incompatible goals or expectations. Approach-approach conflict. Avoidance-avoidance conflict. Approach-avoidance conflict. Intra-personal Conflict Occurs between two or more individuals who are in opposition to one another
    9. 9. Intra- Organizational Conflicts Functional (or constructive) conflict Results in positive benefits to individuals, the group, or the organization. Likely effects. • Surfaces important problems so they can be addressed. • Causes careful consideration of decisions. • Causes reconsideration of decisions. • Increases information available for decision making. Provides opportunities for creativity. Dysfunctional (or destructive) conflict Works to the disadvantage of individuals, the group, or the organization Likely effects: • Diverts energies. • Harms group cohesion. • Promotes interpersonal hostilities Creates overall negative environment for workers
    10. 10. Inter-organizational conflict Occurs in the competition and rivalry that characterize firms operating in the same markets. Occurs between unions and organizations employing their members. Occurs between government regulatory agencies and organizations subject to their surveillance. Occurs between organizations and suppliers of raw materials.
    11. 11. The Conflict Process
    12. 12. Stage I: Potential Opposition or Incompatibility Communication Semantic difficulties, misunderstandings, and “noise” Structure Size and specialization of jobs Jurisdictional clarity/ambiguity Member/goal incompatibility Leadership styles (close or participative) Reward systems (win-lose) Dependence/interdependence of groups Personal Variables Differing individual value systems Personality types
    13. 13. Stage II: Cognition and Personalization Perceived Conflict Felt Conflict Conflict DefinitionConflict DefinitionConflict DefinitionConflict Definition Positive FeelingsPositive FeelingsPositive FeelingsPositive FeelingsNegative EmotionsNegative EmotionsNegative EmotionsNegative Emotions
    14. 14. Stage III: Intentions Intentions: Decisions to act in a given way. Cooperativeness: Attempting to satisfy other party’s concerns Assertiveness: Attempting to satisfy one’s own concerns
    15. 15. Dimensions of Conflict-Handling Intentions
    16. 16. Stage III: Intentions (cont’d) Competing A desire to satisfy one’s interests, regardless of the impact on the other party to the conflict. Collaborating A situation in which the parties to a conflict each desire to satisfy fully the concerns of all parties. Avoiding The desire to withdraw from or suppress a conflict.
    17. 17. Stage III: Intentions (cont’d) Accommodating The willingness of one party in a conflict to place the opponent’s interests above his or her own. Compromising A situation in which each party to a conflict is willing to give up something.
    18. 18. Stage IV: Behavior Conflict Management The use of resolution and stimulation techniques to achieve the desired level of conflict.
    19. 19. Conflict-Intensity Continuum
    20. 20. Stage V: Outcomes Functional Outcomes from Conflict Increased group performance Improved quality of decisions Stimulation of creativity and innovation Encouragement of interest and curiosity Provision of a medium for problem-solving Creation of an environment for self-evaluation and change Creating Functional Conflict Reward dissent and punish conflict avoiders.
    21. 21. Stage V: Outcomes Dysfunctional Outcomes from Conflict Development of discontent Reduced group effectiveness Retarded communication Reduced group cohesiveness Infighting among group members overcomes group goals
    22. 22. THE TEAM THAT WASN’T Case Study
    23. 23. Characters Jack Derry – CEO Eric Holt – Director of Strategy Randy Louderback – Sales & Marketing Ray LaPierre - Manufacturing Maureen Turner - Design Carl Simmons - Distribution
    24. 24. DEFINITION A process in which two or more parties exchange goods or services and attempt to agree on the exchange rate for them  A give-and-take decision-making process  It is a collection of behaviours that involves communication, sales, marketing, psychology, sociology, assertiveness and conflict resolution.
    25. 25. Types of Negotiation  DISTRIBUTIVE  INTEGRATIVE
    26. 26. Distributive Negotiation  When two parties with opposing goals compete over set value The key question in a distributed negotiation is “Who will claim the most value?” A Zero Sum exchange in which whatever one side gains, the other side loses
    27. 27. Integrative Negotiation  When two groups integrate interests, create value, invest in the agreement (win- win scenario). The key questions is “How can the resource best be utilized?”
    28. 28. Distributive Solution Interest Based Solution
    29. 29. Characteristics of Negotiation  It requires two parties  It is a continuous process  Needs EFFECTIVE communication
    30. 30. Types Of Negotiation In Organizations
    31. 31. Managerial Negotiations Types Parties Involved Examples Day-to-day/ Managerial Negotiations 1. Different levels of Management 2. In between colleagues 3. Trade unions 4. Legal advisers 1. Negotiation for pay, terms and working conditions. 2. Description of the job and fixation of responsibility. 3. Increasing productivity.
    32. 32. Commercial Negotiations Types Parties Involved Examples Commercial Negotiations 1. Management 2. Suppliers 3. Government 4. Customers 5. Trade unions 6. Legal advisors 7. Public 1. Striking a contract with the customer. 2. Negotiations for the price and quality of goods to be purchased. 3. Negotiations with financial institutions as regarding the availability of capital
    33. 33. Legal Negotiations Types Parties Involved Examples Legal Negotiations 1. Government 2. Management 3. Customers 1. Adhering to the laws of the local and national government.
    34. 34. HARVARD TYPES OF NEGOTIATION. Positional negotiation Principled negotiation Situational negotiation
    35. 35. 1) Prepare, prepare, prepare 2) Pay attention to timing 3) Leave behind your ego. 4) Ramp up your listening skills. 5) If you don't ask, you don't get 10 Techniques for Better Negotiation
    36. 36. 6. Anticipate compromise 7. Offer and expect commitment 8. Don't absorb their problems 9. Stick to your principles 10. Close with confirmation.
    37. 37. Dealing with Difficult People %$ %#@*@
    38. 38.  Speak more quietly than them.  Have more space in between your words than them.  If they interrupt, pause for a few seconds after they finish.  Be critical of foul language.  Do not rise to a bait if they attack or blame you.  Ignore all threats.
    39. 39. Negotiation Ethics
    40. 40. The Negotiation Process
    41. 41. The Process
    42. 42. Phase 1: Prep and Plan Do your Home work Focus on the objective Develop Strategy Identify your BANTA
    43. 43. Phase 2: Definition of ground rules Define rules and procedures eg: Who will do the negotiation What constraints are applicable What procedure to follow if an impasse is reached
    44. 44. Phase 3: Clarification and Justification After the Exchange of information in the form of demands Need not be confrontational Addressing the importance and the genesis of their needs
    45. 45. Phase 4: Bargaining and Problem Solving Actual give and take Both parties try to hash out an agreement Concessions will have to be made
    46. 46. Phase 5: Closure and Implementation Formalizing the agreement Hammering out the specifics in a formal contract In short just end it with a smile and a handshake
    47. 47. Do’s and Don'ts Don’t appear needy Don’t take it personally Don’t force it Be prepared to walk away Do your research Ask for what you feel is yours Practice, Practice, Practice
    48. 48. CHARACTERISTICS OF AN EFFECTIVE NEGOTIATOR He should be a good learner and observer. Should know the body language of the people at the negotiation process. Should be open and flexible and yet firm. Exercise great patience, coolness and maturity. Should possess leadership qualities.
    49. 49. Should control emotions and not show his weaknesses. Should bargain from the position of strength. Should know and anticipate the pros and cons of his each move and its repercussions. Should know how to create the momentum for the negotiations and must know when to exit and where to exit by closing the talks successfully.
    50. 50. Should build trust and confidence. Should be confident and optimist. Should have clear cut goals and objectives. If necessary, he should provide a face saving formula for his counter party. Should be able to grasp the situation from many dimensions. Should know human psychology and face reading
    51. 51. Should not be a doubting Thomas. Should plan and prepare thoroughly with relevant data and information to avoid blank mind in the process. Should radiate energy and enthusiasm and must be in a position to empathize with his opponents. Should be a patient listener.
    52. 52. To develop these skills and use them effectively, you must know: what negotiation means and the various forms it can take that negotiating, in the fullest sense, means forging long- term relationships the role that the individual personalities play in negotiating that you must take a variety of approaches to negotiation, since no single set of principles will suffice in all circumstances
    53. 53. Negotiating and long-term relationships Good negotiators are the people who understand how to build key relationships how to identify what people need how to give them what they need and how to get what they want in return, all in a way that seems effortless.
    54. 54. Negotiating and individual personalities Autocratic managers typically hold the view that they are going to get what they want when they interact with subordinates, because their inherent authority precludes the need to negotiate. These managers do not realize that, in the process of handing out orders, they are engaged in a kind of one-sided negotiation that can antagonize others, with the result that the tasks they wish to see completed may be carried out improperly or not at all.
    55. 55. The Accommodating manager is more concerned with what others want than with their own needs. In order to avoid conflict, they do not negotiate at all and often end up overriding their own interests.
    56. 56. Issues in Negotiation The Role of Mood & Personality Traits in Negotiation Positive moods positively affect negotiations Traits do not appear to have a significantly direct effect on the outcomes of either bargaining or negotiating processes (except extraversion, which is bad for negotiation effectiveness)
    57. 57. Gender Differences in Negotiations Women negotiate no differently from men, although men apparently negotiate slightly better outcomes. Men and women with similar power bases use the same negotiating styles. Women’s attitudes toward negotiation and their success as negotiators are less favorable than men’s.
    58. 58. Video Case - POTC
    59. 59. Video Case – The Mummy
    60. 60. NEGOTIATION TIPS 1) Do not underestimate your power. 2) Do not assume that other party knows your weaknesses. 3) It is a mistake to assume you know what the other party wants. 4) Never accept the 1st offer. 5) Don’t fear to negotiate. 6) Listen !!