This power point is talking about Manage difficult negotiation assist the the student in the course of negotiation skills

1. CHAPTER SIX
Managing Difficult Negotiations:
Third-Party Approaches
Introduced By Dr.Hisham Al-huthaifi
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2. Adding Third Parties to the
Two-Party Negotiation Process
 Negotiations are often tense and difficult, and can lead to frustration and anger
 Negotiation over critical issues may reach an dead-end
 Third-party intervention may be the only way to get negotiations back on track
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3. Benefits of Third-Party Intervention
 Benefits
 Creating breathing space or a cooling-off
period
 Reestablishing or enhancing communications
 Refocusing on the substantive issues
 Rrepairing tenses relationships
 Establishing time limits and deadlines
 Rescue sunk costs
 Increasing satisfaction with the conflict
resolution process and its outcomes
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4. When Do Third Parties Help?
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5. When Is Third-Party Involvement
Appropriate?
 Third-party intervention is appropriate when negotiators believe they can no
longer manage the situation on their own
 When one negotiator requests intervention, that process must be acceptable to the
other parties
 If only one party recognizes a need for third-party intervention, he or she may have
to persuade the other party to agree
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6. Types of Third-Party
Intervention
Third-party intervention may be formal or informal
 Formal interventions are designed intentionally,
in advance and they follow a set of rules or
standards
 Informal interventions are incidental to the
negotiation
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7. Formal Intervention Methods
There are three fundamental types of formal third-party interventions:
 Arbitration
 Mediation
 Process consultation
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8. Arbitration
 Arbitration resolves a disagreement by having a
neutral third party impose a decision
 There are several forms of arbitration
 Voluntary arbitration –parties are not required to
comply with the decision
 Binding arbitration—parties are required to comply
with the decision
 Interest arbitration—a new contract is submitted
 Grievance arbitration—refers to decisions about the
interpretation of existing contracts
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9. Mediation
 Mediation seeks to have the parties themselves
develop and endorse the agreement
 It has been called a form of “assisted
negotiation”
 It can help reduce or remove barriers to
settlements, adding value to the negotiation
process
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10. When Is Mediation Effective?
 Mediation effectiveness can be viewed from a
variety of perspectives:
 The mediator-parties relationship,
 The relationship between the parties,
 The issues and the parties themselves
 Mediation appears to be more effective in
situations marked by moderate levels of conflict
 Mediation is less effective as a strategy when
parties differ on important issues or have major
differences in their expectations for a settlement
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11. Process Consultation
 “A set of activities on the part of a consultant
that helps the client to perceive, understand, and
act upon the process events which occur in the
client’s environment”
 The objective is to defuse the emotional aspect
of conflict and improve communication between
the parties
 Process consultants focus only on improving
communication and conflict management
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12. Process Consultation Behaviors
 The first step is often to separate the parties and
interview them individually
 The consultant structures a series of dialogues or
confrontations between the parties
 The process consultant encourages the
negotiators to confront their differences
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13. Timing of the Intervention
Three general stages:
 Prevention of conflict
Intervention prevents conflict from
occurring
 Resolving conflict
Conflicts that have emerged are managed
 Containing conflict
Ongoing conflicts that are a challenge to
resolve are contained
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Hill/Irwin
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