Discussion

Chapter1ppt.pptx

Home >Business & Finance homework help >Management homework help >Discussion

Chapter 1 THE NATURE OF NEGOTIATION

© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

1-1

Introduction

Negotiation is something

that everyone does,

almost daily

1-2

Negotiations

Negotiations occur for several reasons:

To agree on how to share or divide a limited resource

To create something new that neither party could attain on his or her own

To resolve a problem or dispute between the parties

1-3

Approach to the Subject

Most people think bargaining and negotiation mean the same thing; however, we will be distinctive about the way we use these two words:

Bargaining: describes the competitive, win–lose situation

Negotiation: refers to win–win situations such as those that occur when parties try to find a mutually acceptable solution to a complex conflict

1-4

Three Important Themes

The definition of negotiation and the basic characteristics of negotiation situations

Interdependence, the relationship between people and groups that most often leads them to negotiate

Understanding the dynamics of conflict and conflict management processes which serve as a backdrop for different ways that people approach and manage negotiations

1-5

Characteristics of a Negotiation Situation

There are two or more parties

There is a conflict of needs and desires between two or more parties

Parties negotiate because they think they can get a better deal than by simply accepting what the other side offers them

Parties expect a “give-and-take” process

1-6

Characteristics of a Negotiation Situation

Parties search for agreement rather than:

Fight openly

Capitulate

Break off contact permanently

Take their dispute to a third party

Successful negotiation involves:

Management of tangibles (e.g., the price or the terms of agreement)

Resolution of intangibles (the underlying psychological motivations) such as winning, losing, saving face

1-7

Interdependence

In negotiation, parties need each other to achieve their preferred outcomes or objectives.

This mutual dependency is called interdependence

Interdependent goals are an important aspect of negotiation

Win–lose: I win, you lose

Win–win: Opportunities for both parties to gain

1-8

Interdependence

Interdependent parties are characterized by interlocking goals

Having interdependent goals does not mean that everyone wants or needs exactly the same thing

A mix of convergent and conflicting goals characterizes many interdependent relationships

1-9

Types of Interdependence Affect Outcomes

Interdependence and the structure of the situation shape processes and outcomes

Zero-sum or distributive – one winner

Non-zero-sum or integrative – mutual gains situation

1-10

Alternatives Shape Interdependence

Evaluating interdependence depends heavily on the alternatives to working together

The desirability to work together is better for outcomes

Best available alternative: BATNA (acronym for Best Alternative to a Negotiated Agreement)

1-11

Mutual Adjustment

Continues throughout the negotiation as both parties act to influence the other

One of the key causes of the changes that occur during a negotiation

The effective negotiator needs to understand how people will adjust and readjust and how the negotiations might twist and turn, based on one’s own moves and the other’s responses

1-12

Mutual Adjustment and Concession Making

When one party agrees to make a change in his/her position, a concession has been made

Concessions restrict the range of options

When a concession is made, the bargaining range is further constrained

1-13

Two Dilemmas in Mutual Adjustment

Dilemma of honesty

Concern about how much of the truth to tell the other party

Dilemma of trust

Concern about how much should negotiators believe what the other party tells them

1-14

Value Claiming and Value Creation

Opportunities to “win” or share resources

Claiming value: result of zero-sum or distributive situations where the object is to gain largest piece of resource

Creating value: result of non-zero-sum or integrative situation where the object is to have both parties do well

1-15

Value Claiming and Value Creation

Most actual negotiations are a combination of claiming and creating value processes

Negotiators must be able to recognize situations that require more of one approach than the other

Negotiators must be versatile in their comfort and use of both major strategic approaches

Negotiator perceptions of situations tend to be biased toward seeing problems as more distributive/competitive than they really are

1-16

Value Claiming and Value Creation

Value differences that exist between negotiators include:

Differences in interests

Differences in judgments about the future

Differences in risk tolerance

Differences in time preferences

1-17

Conflict

Conflict may be defined as a:

“sharp disagreement or opposition” and includes “the perceived divergence of interest, or a belief that the parties’ current aspirations cannot be achieved simultaneously”

1-18

Levels of Conflict

Intrapersonal or intrapsychic conflict

Conflict that occurs within an individual

We want an ice cream cone badly, but we know that ice cream is very fattening

Interpersonal conflict

Conflict is between individuals

Conflict between bosses and subordinates, spouses, siblings, roommates, neighbors, etc.

1-19

Levels of Conflict

Intragroup Conflict

Conflict is within a group

Among team and committee members, within families, classes etc.

Intergroup Conflict

Conflict can occur between organizations, ethnic groups, warring nations, feuding families, or within splintered, fragmented communities

These negotiations are the most complex

1-20

Dysfunctions of Conflict

Competitive, win–lose goals

Misperception and bias

Emotionality

Decreased communication

Blurred issues

Rigid commitments

Magnified differences, minimized similarities

Escalation of conflict

1-21

Functions of Conflict

Makes organizational members more aware and able to cope with problems through discussion.

Promises organizational change and adaptation.

Strengthens relationships and heightens morale.

Promotes awareness of self and others.

Enhances personal development.

Encourages psychological development—it helps people become more accurate and realistic in their self-appraisals.

Can be stimulating and fun.

1-22

FIGURE 1.3 The Dual Concerns Model

1-23

Styles of Conflict Management

1. Contending (also called competing or dominating)

Actors pursue own outcomes strongly, show little concern for other party obtaining their desired outcomes

2. Yielding (also called accommodating or obliging)

Actors show little interest in whether they attain own outcomes, but are quite interested in whether the other party attains their outcomes

3. Inaction (also called avoiding)

Actors show little interest in whether they attain own outcomes, and little concern about whether the other party obtains their outcomes

1-24

Styles of Conflict Management

4. Problem solving (also called collaborating or integrating)

Actors show high concern in obtaining own outcomes, as well as high concern for the other party obtaining their outcomes

5. Compromising

Actors show moderate concern in obtaining own outcomes, as well as moderate concern for the other party obtaining their outcomes

1-25

Discussion

image2.jpg

image1.tiff