2. Presentation Flow
• Introduction
• High PerformanceTeam
• View of Conflicts
• Types of Conflicts
• Conflict Process
• Negotiation – Introduction
• Bargaining Strategies
• Negotiation Process
• Individual Differences in Negotiation
• Third Party Negotiation
3. Introduction
• Conflict and negotiations are aspects of running a
business
• Business owners face continuous conflicts with partners,
managers and employees
(eg:- DUMA DUMA case in ASSAM)
• Negotiations are often necessary to reach an amicable
solution for an organisation
6. TraditionalView on Conflict
• A workplace without any conflict was assumed to be a happy
and productive.
• Lack of openness and trust between workers and
management.
• Conflict was regarded as
o Dysfunctional
o Destructive and
o Irrational
7. InteractionistView of Conflict
• The belief that conflict is not only a positive force in a group
but also an absolute necessity for a group to perform
effectively.
• Example:The vary famous “divide and rule” policy of British
Raj in India.
8. Types Of Conflicts
• Functional Conflict:
Supports the goal of the group, improves performance.
Example: “Employee of the Month competition” in organizations
• Dysfunctional Conflict:
Conflict that hinders group performance. Example: Demerger of
Sony Ericsson.
1.Task Conflict (Failure of first Moon mission
under Dr. APJ Abdul Kalam)
2. Relationship Conflict (separation of Ambani brothers)
3. Process conflict (Failure to deliver products by e-commerce
websites)
10. Stage- I Potential Opposition
• Communication : Lack of clear transfer of information
• Structure:The size and specialization of the group.
• Personal variables: Conflicts due to personality, emotion
and values
11. Stage- II Cognition and
Personalization
• Perceived Conflict: Awareness by one or more parties of
the existence of conditions that create opportunities for
conflicts to arise.
Eg – RatanTata and NoelTata at the time Cyrus Mistry
was made chairperson ofTATA Group.
• Felt Conflict: Emotional involvement in a conflict that
creates anxiety, tenseness, frustration or hostility.
13. Stage – IV Behavior
• This stage include statements, actions and reactions.
• Conflict intensity continuum
14. Stage –V Outcomes
• Functional outcomes : Conflict results in improvement in
group’s performance.
• Dysfunctional outcomes: It hinders group performance.
15. CONFLICT MANAGEMENT
Conflict ResolutionTechniques
•Develop superordinate goals
•Expanding the supply of critical resources
•Solving problems
Conflict Stimulation
•Bringing outside individuals into the group
•Altering the organization’s structure
•Stimulating competiton
17. Bargaining Strategies
• Distributive Bargaining- Negotiation that seeks to divide
up a fixed amount of resources; a win/lose situation.
• Integrative Bargaining- Negotiation that seeks one or
more settlements that can create a win/win situation.
19. Preparation and
Planning
Definition of
Ground Rules
Clarification and
Justification
Bargaining and
Problem Solving
Closure and
Implementation
1- Preparation & Planning
 Focus -
• Nature of Conflict?
• History leading to this Negotiation?
• Who all are Involved?
• Perceptions of Conflicts?
• Goals?
 Assess other party’s goals
 Develop a strategy
- BATNA
20. Preparation and
Planning
Definition of
Ground Rules
Clarification and
Justification
Bargaining and
Problem Solving
Closure and
Implementation
2- Definition of Ground Rules
Ground
Rules
Who will do ?
Where will it take place ?
Issues?
Outcome -
Initial Proposal or demands exchanged
21. Preparation and
Planning
Definition of
Ground Rules
Clarification and
Justification
Bargaining and
Problem Solving
Closure and
Implementation
3- Clarification and Justification
• In this phase, both parties explains, amplify, clarify, bolster and
justify their demands.
• Informing each other on issues.
4- Bargaining and Problem Solving
• Give-and-take
• Breaking Deadlocks
• Win-Win situation
22. Preparation and
Planning
Definition of
Ground Rules
Clarification and
Justification
Bargaining and
Problem Solving
Closure and
Implementation
5- Closure and Implementation
• Formulating an agreement
• Ensuring Implementation
• Reviewing your negotiating experience
23. Individual Differences in Negotiation
“Are some people better negotiators than others ??”
Yes or No
Personality Mood/emotions Culture Gender
Factors Influencing Individual Negotiation
24. PersonalityTraits in
negotiation
• Extrovert people not successful in distributive negotiation.
• Disagreeable Introvert effective in Distributive negotiation.
• More socialite people not concerned with outcomes are
poor negotiator.
Moods/Emotions in
Negotiation
• Positive mood have better negotiation outcomes in
integrative negotiation.
• Anxiety and super excitement appears to have negative
impact on negotiation.
• Angry negotiators have upper hand in negotiation.
25. Culture in
negotiation
• Negotiators from different countries negotiate
differently.
• Indian negotiator less willing to disclosed information.
Gender
differences in
negotiations
• Men and women negotiate in same manner.
• But gender did affect negotiation outcomes.
• Women more cooperative and pleasant.
26. Third Party Negotiations
Mediator
• Neutral third party facilitating a negotiated solution by using reasoning,
persuasion and suggestions for alternatives.
• Used in labor and management negotiations , corporate negotiations.
• Example-Reliance industry de-merger
Arbitrator
• Third party to a negotiation who has the authority to dictate an agreement.
• Either voluntary or compulsory
• Mostly result in settlement
• Used in family law matters, civil actions involving claims for damages or money
• Example- Settlement of $13 Million Lawsuit of Red Bull
27. Conciliator
• A trusted third party who provides an informal communication link
between the negotiator and the opponent.
• Discuss differences
• Alternate solutions are provided and discussed.
• Example- Cheque bouncing cases, petty offences, motor accidents
claims cases.
Make sure that goal stays at paramount in discussions and are not overshadowed by other issues.
Extraverted people tend to share more info than they shd also they cooperate rather disagreeing. which results on negative impact in distributive negotiation.. But these ppl are good in integerative negotiation.
During negotiation if negotiator has +ve mood with counter parts like offering of refreshment, telling jokes
Investment banker can respond to offers more quickly.
Men are tough and negotiate better. While studies shows that when women negotiate for themselves in less aggressive manner and when they are negotiating on behalf of others there behavior is assertive.
If party is dissatisfied than conflict may resurface at a later time.