Negotiation/Conflict Resolution Assignment

NEGOTIATION SEVENTH EDITION

• ROY J. LEWICKI  • DAVID M. SAUNDERS  • BRUCE BARRY

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NEGOTIATION 7e Lewicki ▪ Saunders ▪ Barry

Chapter 1

THE NATURE OF NEGOTIATION

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INTRODUCTION

Negotiation is something  that everyone does, almost  daily

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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

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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

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THREE IMPORTANT THEMES

1. The definition of negotiation and the basic  characteristics of negotiation situations

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

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

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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

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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 1-8Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

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

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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

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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

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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)

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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

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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

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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

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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

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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

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VALUE CLAIMING AND VALUE CREATION

Value differences that exist between negotiators  include:

• Differences in interest • Differences in judgments about the future • Differences in risk tolerance • Differences in time preferences

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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"

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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, etc.

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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, warring  nations, feuding families, or within splintered,  fragmented communities  These negotiations are the most complex

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DYSFUNCTIONS OF CONFLICT

1. Competitive, win‐lose goals 2. Misperception and bias 3. Emotionality 4. Decreased communication 5. Blurred issues 6. Rigid commitments 7. Magnified differences, minimized similarities 8. Escalation of conflict

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FUNCTIONS OF CONFLICT

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

2. Promises organizational change and adaptation. 3. Strengthens relationships and heightens morale. 4. Promotes awareness of self and others. 5. Enhances personal development. 6. Encourages psychological development—it helps 

people become more accurate and realistic in their  self‐appraisals.

7. Can be stimulating and fun.

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THE DUAL CONCERNS MODEL

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STYLES OF CONFLICT MANAGEMENT

1. Contending  Actors pursue own outcomes strongly, show little  concern for other party obtaining their desired outcomes

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

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

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STYLES OF CONFLICT MANAGEMENT

4. Problem solving  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

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