Negotiation

How can we deal positively with conflict?

Conflict A disagreement between people on:
Substantive issues regarding goals, allocation of

resources, distribution of rewards, policies and procedures, and job assignments. Emotional issues arising from feelings of anger, distrust, dislike, fear, and resentment, as well as personality clashes.

Conflict that is well managed can help promote high performance, creativity, and innovation.
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How can we deal positively with conflict?

Functional conflict Moderately intense conflict. Constructive and stimulates people toward greater work efforts, cooperation, and creativity. Dysfunctional conflict Low-intensity and very high-intensity conflict. Destructive and hurts task performance.

How can we deal positively with conflict?

Causes of conflict:
Role ambiguities Resource scarcities

Task interdependencies
Competing objectives Structural differentiation

Unresolved prior conflicts

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A Challenge
Please Write a One Sentence Definition of
N E G O T I A T I O N.

Defining Negotiation (1 of 2)
Negotiation is getting what you want from the other person -- no matter what. We all know how bargaining works. You ask for a lot, and wind up settling for something in the middle.

Defining Negotiation (2 of 2)
Negotiation is an attempted trade-off between getting what you want and getting along with people. Negotiation is a discussion between people, with the goal of reaching an agreement on issues, and separating the parties when neither party has the power to get its way.

Negotiation Questions
What aspects of the negotiation will indicate it is proceeding well or poorly? What will tell you that it is time to caucus? What signs will you use to decide when a change in negotiators is necessary? What constitutes a "successful" negotiation?

How can we negotiate successfully?

Negotiation is the process of making joint

decisions when the parties involved have different preferences.

All negotiation situations are susceptible to

conflict and require exceptional

communication skills.
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 Negotiation goals and approaches Substance goals

Concerned with outcomes Tied to the content issues of negotiation

Relationship goals
Concerned with processes Tied to the way people work together

Effective negotiations occur when

Issues of substance are resolved. Working relationships are maintained or improved.
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Negotiation -- Remember
Two elements are essential: Reasonableness and Flexibility.

The Basic Components

1. Preparation
2. Objectivity

3. Strategy
4. Technique

Basic Components (1 of 2)
1. Preparation: Prepare for negotiation if you want to succeed.
2. Objectivity: Assess your strengths, weaknesses, and goals. Successful negotiators make a point to "accentuate the positive."

Basic Components (2 of 2)

3. Strategy: Plan a realistic course of action based on sound preparation and objective appraisal of resources. 4. Technique: Combine a wide range of skills; draw on experience and selfdiscipline.

 Criteria for effective negotiation: Quality

Negotiating a wise agreement that is truly satisfactory to all sides.

Cost
Negotiating efficiently, using minimum resources and time.

Harmony
Negotiating in a way that fosters interpersonal relationships.
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 Types of negotiation: Distributive negotiation

Focuses on claims made by each party. Leads to win-lose outcomes.

Principled (or integrative) negotiation

Goal is to base the outcome on the merits of individual claims. Leads to win-win outcomes.
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 Gaining integrative agreements: Separate the people from the problem. Focus on interests, not on positions. Generate many alternatives before deciding what to do. Insist that results are based on some objective standard.
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 Common negotiation pitfalls: Falling prey to the myth of the fixed pie. Non-rational escalation of conflict. Overconfidence and ignoring others needs. Too much telling and too little hearing.

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Approaches to avoiding negotiation pitfalls: Mediation

Involves a neutral third party who tries to

improve communication among negotiating parties and keep them focused on relevant issues.

Arbitration Involves a neutral third party who acts as a judge and issues a binding decision.
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Approaches to avoiding negotiation pitfalls:

Alternative dispute resolution
Utilizes mediation and/or arbitration but only after direct attempts to negotiate agreements among conflicting parties have failed. Often uses an ombudsperson as a neutral third party.
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 Ethical issues in negotiation High ethical standards should be maintained. Profit motive and the competitive desire to win sometimes lead to unethical behavior. Unethical negotiating behavior can lead to short-term gains but long-term losses.

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Conflict Resolution Options

Avoidance Capitulation/submission/surrender Suppression Accommodation Problem solving (e.g. conciliation, negotiation, mediation, facilitation) Escalation/acceleration/growth/rise Confrontation/argument

Problem Solving Options

Conciliation: neutral 3rd party assists disputants by acting as go-between Arbitration: neutral 3rd party acts as judge Negotiation: parties confer to arrive at mutually satisfactory solution Mediation: neutral 3rd party assists parties in their own negotiations Facilitation: neutral 3rd party assists in group discussions

Everyone Negotiates
Buying a car, house or other object for which the price may not be fixed Establishing a salary, workplace tasks, office conditions, etc. Organizing team tasks or priorities Allocating household tasks Deciding how to spend a free evening

Conventional Negotiations
Focus on winning Assert positions/personal preferences Concede stubbornly Seek compromises based on arbitrary divisions (e.g. split the difference) Engage in threats, bluffs/tricks/deceipts or other negotiation tactics

When is the Interest-Based Approach Appropriate?

Other party is willing to problem-solve There is sufficient trust and informationor a willingness to develop them On-going relationships are important Commitment to carry out the agreement is needed Quality agreement is more important than an expedient one

When is the Interest-Based Approach Unnecessary?

On-going relationships are not important Negotiation is viewed as strictly distributive (e.g. buying a car) Lack of commitment to problem-solving on the part of one or more parties One or more parties see the negotiation as involving fundamental rights (but some contention about this)

An Alternative: Interest-Based Negotiations

Separate the people from the problem Focus on interests, not positions Invent options for mutual gain Insist on objective criteria

Principle 1: Separate the People from the Problem

Disentangle the people from the problem Deal with the people problem: acknowledge perceptions, emotions Listen actively Speak to be understood Speak about yourself, not them

Principle 2: Focus on Interests, Not Positions

Positions: What disputants say they want in a negotiation: a particular price, job, work schedule, change in someone elses behavior, revised contract provision, etc. Interests: Underlying desires or concerns that motivate people in particular situations (May sometimes be the same as their positions!)

Principle 3: Invent Options for Mutual Gain

Focus on the variety of ways for issues/ interests (yours/theirs) might be addressed? Avoid assuming theres a single solution Separate brainstorming from evaluation of options Dont assume zero-sum conditions Think creatively

Principle 4: Insist on Objective Criteria

Fair standards: market value, precedent, blue book value, professional standards, best practice, industry average, equal treatment, etc. Fair procedures: e.g. last best offers, taking turns, drawing lots

Negotiating Steps
Develop ground rules Jointly identify issues Explore interests Develop objective standards Brainstorm options Evaluate options using standards Try to reach consensus decision

Adapting General Principles to Specific Negotiations

Pacing: fast or slow? Formality: high or low? Oral or written agreements: which are more binding and inclusive? Bluntness of communication: direct or indirect? Time-frame: short or long term? Who negotiates: Equals or most competent?

Sources of Negotiation Problems

Perceptual errors Unrealistic expectations about likely outcomes Unwillingness or inability to engage in real negotiations Perceived non-negotiability of some disputes

CHAPTER SIX Communication

Communication in Negotiation
Communication processes, both verbal and nonverbal, are critical to achieving negotiation goals and to resolving conflicts.
Negotiation is a process of interaction Negotiation is a context for communication subtleties that influence processes and outcomes

Basic Models of Communication

Communication is an activity that occurs between two people: a sender and a receiver A sender has a meaning in mind and encodes this meaning into a message that is transmitted to a receiver A receiver provides information about how the message was received and by becoming a sender and responding to, building on, or rebutting the original message (processes referred to as feedback)

Distortion in Communication
1. Senders and receivers
The more diverse their goals or the more antagonistic they are in their relationship, the greater the likelihood that distortions and errors in communication will occur

2. Transmitters and receptors

The choice of transmitter can affect outcomes
Some messages may be better spoken, others written Poor eyesight, faulty hearing, etc. diminish the ability of a receiver to receive a message accurately

Distortion in Communication
3. Messages
The symbolic forms by which information is communicated The more we use symbolic communication, the more likely the symbols may not accurately communicate the meaning we intend

4. Encoding
The process by which messages are put into symbolic form Senders are likely to encode messages in a form which receivers may not prefer

Distortion in Communication
5. Channels
The conduits by which messages are carried from one party to another Messages are subject to distortion from channel noise or various forms of interference

6. Decoding
The process of translating messages from their symbolic form into a form that makes sense When people speak different languages, decoding involves higher degrees of error

Distortion in Communication
7. Meanings
The facts, ideas, feelings, reactions, or thoughts that exist within individuals and act as filters for interpreting the decoded messages Those filters can introduce distortions

8. Feedback
The process by which the receiver reacts to the senders message Absence of feedback can contribute to significant distortions Feedback can distort communication by influencing the offers negotiators make

What Is Communicated during Negotiation?

Offers, counteroffers, and motives Information about alternatives Information about outcomes Social accounts
Explanations of mitigating circumstances Explanations of exonerating circumstances Reframing explanations

Communication about process

How People Communicate in Negotiation

Use of language
Logical level (proposals, offers) Pragmatic level (semantics, syntax, style)

Use of nonverbal communication

Making eye contact Adjusting body position Nonverbally encouraging or discouraging what the other says

How People Communicate in Negotiation

Selection of a communication channel
Communication is experienced differently when it occurs through different channels People negotiate through a variety of communication media by phone, in writing and increasingly through electronic channels or virtual negotiations Social presence distinguishes one communication channel from another.
the ability of a channel to carry and convey subtle social cues from sender to receiver

Four Biases that Threaten E-mail Negotiations

1. Temporal synchrony bias
Tendency for negotiators to behave as if they are in a synchronous situation when they are not
Tendency to do risky things during e-mail that would not be used in a face-to-face encounter Tendency to use a negative emotional style Overlooking the role of situational factors

2. Burned bridge bias

3. Squeaky wheel bias

4. Sinister attribution bias

How to Improve Communication in Negotiation

Use of questions: two basic categories
Manageable Cause attention or prepare the other persons thinking for further questions:
May I ask you a question?

getting information
How much will this cost?

generating thoughts
Do you have any suggestions for improving this?

How to Improve Communication in Negotiation

Use of questions: two basic categories
Unmanageable questions Cause difficulty
Where did you get that dumb idea?

give information
Didnt you know we couldnt afford this?

bring the discussion to a false conclusion

Dont you think we have talked about this enough?

How to Improve Communication in Negotiation

Listening: three major forms
1. Passive listening: Receiving the message while providing no feedback to the sender 2. Acknowledgment: Receivers nod their heads, maintain eye contact, or interject responses 3. Active listening: Receivers restate or paraphrase the senders message in their own language

How to Improve Communication in Negotiation

Role reversal
Negotiators understand the other partys positions by actively arguing these positions until the other party is convinced that he or she is understood Impact and success of the role-reversal technique
1. Effective in producing cognitive changes and attitude changes 2. When the positions are compatible, likely to produce acceptable results; when the positions are incompatible, may inhibit positive change 3. Not necessarily effective overall as a means of inducing agreement between parties

Special Communication Considerations at the Close of Negotiations

Avoiding fatal mistakes
Keeping track of what you expect to happen Systematically guarding yourself against self-serving expectations Reviewing the lessons from feedback for similar decisions in the future

Achieving closure
Avoid surrendering important information needlessly Refrain from making dumb remarks