Negotiation

LIFE IS A NEVER ENDING PROCESS OF ONE CONFLICT AFTER ANOTHER
CONCEPT
The disagreement between two or more individuals or groups over an issue of mutual interest.
Sources
1.Goal Incongruency 2.Organizational Change 3.Personality Clashes
4.Difference in Value Sets

5.Threats to Status 6. Perceptual Difference
Is Conflict Desirable ?
HIGH B
LEVEL OF PERFORMANCE
A C
LOW LEVEL OF CONFLICT HIGH
Classification of Conflicts
1.Intrapersonal Conflict
The conflict within oneself. It results from role ambiguity

Types a) Approach- Approach
b) Approach-Avoid
c) Avoid-Avoid
2.Interpersonal Conflict
The conflict between two individual. It results when someone threatens the self concept of another.
3.Interagroup Conflict
The conflict within the group. 4.Intergroup Conflict The conflict between the groups
The Conflict Process

1.Potential Opposition or Incompatibility (Latent Conflict)
Presence of potential conflict inducing force/s is/are necessary to trigger conflict.

Forces
a. Communication b. Structure c. Personal Variable
2. i) Cognition (Percieved Conflict)
The forces must be perceived as threatening if conflict is to develop.

ii) Personalization (Felt Conflict) Individuals become emotionally involved and parties experience feelings of threat ,hostility, fear or mistrust.
3.Intensions The individuals decide on the action that is to be taken to deal with the conflict by discovering the intensions behind the same.
Five Conflict Handling Intensions
1.Avoiding
The desire to withdraw from or suppress a conflict
2.Dominating/Competing A desire to satisfy ones interest, regardless of the impact on the other party to the conflict
3.Accomodating The willingness of one party in a conflict to place the opponents interests above his or her own.
4.Compromising
A situation in which each party to a conflict is willing to give up something
5.Problem Solving/Collaborating
A situation in which the parties to a conflict each desire to satisfy fully the concerns of all parties
Dimensions of Conflict-Handling Intensions

High Cooperative Behavior
Accommodating
Problem Solving
External Focus (Concern for others)
Compromising
Avoiding
Dominating
Low Uncooperative Low Behavior (Unassertive Behavior)
Internal Focus (Concern for Self)
High (Assertive Behavior)
4.Behavior
It is an attempt by one party to implement its intensions. It takes the form of statements, actions and reactions. 5.Outcomes These are the consequences that result from interaction among conflicting parties.
Conflict Management
The use of resolution and stimulation techniques to achieve the desired level of conflict.
Techniques
Conflict Resolution Techniques
1.Problem Solving- Open Discussion 2.Superordinate Goals- Creating shared goal 3.Expansion of Resources
4.Avoidance
5.Smoothing - playing down differences while emphasizing common interests
6. Compromise
7. Authoritative Command- Using formal authority

8. Altering Human Variables- Behavioral Change Training 9. Altering Structural Variable-Job redesign, transfer etc.
Conflict Stimulation Techniques

1. Communication
2. Bringing in Outsiders
3. Restructuring Organization 4. Appointing a Devils Advocate -Designating a critic to purposely argue against the majority positions held by the group.
NEGOTIATION
It is a process in which one party agrees to exchange a product or service with another party in return for something
Approaches to Negotiation
1.Distributive Bargaining Negotiation that seeks to divide up a fixed amount of resources; a win lose situation.
As Aspiration Range
Settlement Range
Bs Aspiration Range
As Target Point
Bs Resistance Point
As Resistance Point
Bs Target Point
2. Integrative Bargaining
Negotiation that seeks one or more settlements that can create a win-win solution
Distributive Vs Integrative Bargaining

Features
1.Available Resources 2.Primary Motive
Distributive
Fixed I win, You lose
Integrative
Variable I win,You win Convergent Long Term
3.Primary Interest Opposed to Each Other 4.Focus of Relationship Short Term
Negotiation Process
1.Preparation & Planning BATNA (Best Alternative To A Negotiated Agreement) The agreement that satisfies high priority objectives 2.Defining Rules 3.Clarification & Justification 4.Bargaining & Problem Solving 5.Closure & Implementation
Preparation & Planning

Negotiator should understand : the nature & background of the conflict Circumstances that have lead up to the negotiation Identify the goals he wants to achieve for his party Attempt to identify the goals that the other party is seeking Develop strategy Offer a proposal equivalent to or more attractive than their BATNA ( Best Alternative To a Negotiated Agreement)
Defining Rules
Arrive at the negotiation table Discuss basic rules & procedures to be followed The person who will represent the party is identified The issues that should be discussed The order in which they should be taken up The time limit for each issue Strategy to be adopted in case of deadlock
Parties put forward their demands & proposals
Clarification & Justification

Study each others demands Attempts to clarify any doubts May explain the rationale for certain demands Present documents in support of their position Involves justification of the demands but is not necessarily confrontational
Bargaining & Problem Solving

Initial list of demands is often intentionally made lengthy as each party will expect to sacrifice some of its demands in the form of concessions Should try to arrive at an integrative solution that benefits both of them The negotiator should
Be willing to listen to the members of the other party & understand their concerns Avoid words & phrases that aggravate the situation Set aside critical issues for later
Should break up if conflict intensifies & meet later
Closure & Implementation

Arrive at an agreement that is mutually acceptable Is the result of several rounds of discussions & reciprocal concessions Negotiation agreement is formally written & signed by both the parties Followed by the establishment of procedures to implement & monitor the implementation of the agreement
Issues in the Negotiation Process

Biases in decision making Personality traits Cultural differences Third party negotiation
1.Biases Assuming there exists only win-lose solution Frustrations arising from belief that the initial demands made by opponent are his final demands Making decisions based on whatever information available rather than looking for relevant information A know-it-all attitude & making commitments without considering their feasibility Believing women negotiators are soft & make more concessions 2.Personality Traits
The studies have shown that negotiation strategies as well as the outcomes of negotiations are unaffected by an individuals personality traits.
3.Cultural Differences
1.France More combative, indifferent.
2.Chinese & Japanese Negotiate at length, long term relationship 3.Americans Impatient, end up quickly 4.North Americans Rely on objectives facts and logic, adhere to timelines Subjective feelings & emotions Use examples but no importance to timelines
5.Arabs
6.Russians
4.Third Party Negotiation

Mediator
Uses logical reasoning & persuasion techniques Suggests alternative solutions
Arbitrator
Has authority to enforce his decisions Chosen voluntarily or imposed by law Always result in settlement
Conciliator
Informal communication link Trusted Tries to find solution that is acceptable
Consultant
Skilled person, uses conflict management techniques Encourages them to understand each other, develop a +ve attitude & build long term relationships Motivates parties to find creative solutions Acts as a facilitator while the parties attempt to find a solution
Intergroup Relations
If the organization is to function efficiently & effectively, the activities of all the different groups which specialize in different functions must be properly coordinated
Factors Affecting Intergroup Relations
1.Interdependence
The extent to which a group is dependent on another group determines the degree of interaction & the type of relations that exist between them
GOAL
Pooled interdependence
A
B C
Sequential interdependence Reciprocal interdependence
2.Task Uncertainty Routine Tasks standardized operating procedures to be followed Non Routine Tasks customized approach for each task
Obtain information from various groups Faced with unique problems that require one of a kind response
The latter tend to interact more frequently than the former
3.Orientation of Time & Goal

Due to increasing specialization & differentiation of tasks, the nature of the tasks performed differs greatly from one work group to another Differing goals & objectives create problems in coordination
Managing Intergroup Relations 1.Rules & Procedures

Formally establish Simplest & least expensive Minimizes the need for interaction & verbal communication Works only when all possible interactions can be anticipated The type of interaction must frequently occur to make it worth the while
2.Hierarchy
When rules & procedures do not help in resolving differences it may be resolved by a common superior
It consumes valuable time of top management Parties have no choice but to abode with the decision
3.Planning
Goals are clearly specified, members of all groups know what is expected of them As each group carries out its responsibilities, intergroup conflict decreases & coordination increases
Will fail if goals cannot be clearly defined
4.Liaison Roles
A capable person is assigned Ensures effective communication & coordination between 2 interdependent groups Success depends on the ability of the person to skillfully resolve disputes, promote communication & establish amicable relations between the conflicting groups Will fail if information flow is too high & interaction is too frequent
5.Task Forces
To solve complex problems that demand multiple perspectives in order to arrive at a proper solution A temporary group that exist only till the problem is solved Useful when a project requires coordination among many groups, for a short duration
6.Teams
To address day to day operational issues permanent teams are set up Are cross-functional in nature & consist of members from various departments Have dual responsibilities ( own department & team)
7.Integrating Departments
Used in situations where relationships between groups are too complex for the above methods Permanent departments which seek to integrate the various groups Useful when groups have conflicting goals, face non-routine problems & when intergroup decisions have considerable impact on organizational performance

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LIFE IS A NEVER ENDING PROCESS OF ONE CONFLICT AFTER ANOTHER

4.Difference in Value Sets

LOW LEVEL OF CONFLICT HIGH

The conflict within oneself. It results from role ambiguity

The Conflict Process

Presence of potential conflict inducing force/s is/are necessary to trigger conflict.

a. Communication b. Structure c. Personal Variable

2. i) Cognition (Percieved Conflict)

The forces must be perceived as threatening if conflict is to develop.

Five Conflict Handling Intensions

A situation in which each party to a conflict is willing to give up something

Dimensions of Conflict-Handling Intensions

External Focus (Concern for others)

Low Uncooperative Low Behavior (Unassertive Behavior)

Internal Focus (Concern for Self)

High (Assertive Behavior)

7. Authoritative Command- Using formal authority

Conflict Stimulation Techniques

Distributive Vs Integrative Bargaining

3.Primary Interest Opposed to Each Other 4.Focus of Relationship Short Term

Preparation & Planning

Parties put forward their demands & proposals

Clarification & Justification

Bargaining & Problem Solving

Should break up if conflict intensifies & meet later

Closure & Implementation

Issues in the Negotiation Process

4.Third Party Negotiation

Factors Affecting Intergroup Relations

Sequential interdependence Reciprocal interdependence

The latter tend to interact more frequently than the former

3.Orientation of Time & Goal

Managing Intergroup Relations 1.Rules & Procedures

Will fail if goals cannot be clearly defined

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