1 Negotiation Negotiation BATNA A process in which two or more parties exchange goods or services and attempt to agree on the exchange rate for them.BATNAThe Best Alternative To a Negotiated Agreement; the lowest acceptable value (outcome) to an individual for a negotiated agreement
2 Bargaining Strategies Distributive BargainingNegotiation that seeks to divide up a fixed amount of resources; a win-lose situationIntegrative BargainingNegotiation that seeks one or more settlements that can create a win-win solution
3 Distributive versus Integrative Bargaining Bargaining Distributive Integrative Characteristic Bargaining BargainingGoal Get as much of pie Expand the pieas possibleMotivation Win-Lose Win-WinFocus Positions InterestsInformation Low HighSharingDuration of Short term Long termrelationships
5 The Negotiation Process BATNAThe Best Alternative To a Negotiated Agreement; the lowest acceptable value (outcome) to an individual for a negotiated agreement
6 Issues in NegotiationThe Role of Mood and Personality Traits in NegotiationPositive moods positively affect negotiationsTraits do not appear to have a significantly direct effect on the outcomes of either bargaining or negotiating processes (except extraversion, which is bad for negotiation effectiveness)Gender Differences in NegotiationsWomen negotiate no differently from men, although men apparently negotiate slightly better outcomesMen and women with similar power bases use the same negotiating stylesWomen’s attitudes toward negotiation and their success as negotiators are less favorable than men’s
7 Why American Managers Might Have Trouble in Cross-Cultural Negotiations Italians, Germans, and French don’t soften up executives with praise before they criticize. Americans do, and to many Europeans this seems manipulative. Israelis, accustomed to fast-paced meetings, have no patience for American small talk.British executives often complain that their U.S. counterparts chatter too much. Indian executives are used to interrupting one another. When Americans listen without asking for clarification or posing questions, Indians can feel the Americans aren’t paying attention.Americans often mix their business and personal lives. They think nothing, for instance, about asking a colleague a question like, “How was your weekend?” In many cultures such a question is seen as intrusive because business and private lives are totally compartmentalized.
8 Third-Party Negotiations MediatorA neutral third party who facilitates a negotiated solution by using reasoning, persuasion, and suggestions for alternativesArbitratorA third party to a negotiation who has the authority to dictate an agreement.
9 Third-Party Negotiations (cont’d) ConciliatorA trusted third party who provides an informal communication link between the negotiator and the opponentConsultantAn impartial third party, skilled in conflict management, who attempts to facilitate creative problem solving through communication and analysis
11 Use CompetitionWhen quick, decisive action is vital (in emergencies); on important issuesWhere unpopular actions need implementing (in cost cutting, enforcing unpopular rules, discipline)On issues vital to the organization’s welfareWhen you know you’re rightAgainst people who take advantage of noncompetitive behavior
12 Use CollaborationTo find an integrative solution when both sets of concerns are too important to be compromisedWhen your objective is to learnTo merge insights from people with different perspectivesTo gain commitment by incorporating concerns into a consensusTo work through feelings that have interfered with a relationship
13 Use AvoidanceWhen an issue is trivial, or more important issues are pressingWhen you perceive no chance of satisfying your concernsWhen potential disruption outweighs the benefits of resolutionTo let people cool down and regain perspectiveWhen gathering information supersedes immediate decisionWhen others can resolve the conflict effectivelyWhen issues seem tangential or symptomatic of other issues
14 Use AccommodationWhen you find you’re wrong and to allow a better position to be heardTo learn, and to show your reasonablenessWhen issues are more important to others than to yourself and to satisfy others and maintain cooperationTo build social credits for later issuesTo minimize loss when outmatched and losingWhen harmony and stability are especially importantTo allow employees to develop by learning from mistakes
15 Use CompromiseWhen goals are important but not worth the effort of potential disruption of more assertive approachesWhen opponents with equal power are committed to mutually exclusive goalsTo achieve temporary settlements to complex issuesTo arrive at expedient solutions under time pressureAs a backup when collaboration or competition is unsuccessful
16 Conflict Conflict Defined A process that begins when one party perceives that another party has negatively affected, or is about to negatively affect, something that the first party cares aboutThat point in an ongoing activity when an interaction “crosses over” to become an interparty conflictEncompasses a wide range of conflicts that people experience in organizationsIncompatibility of goalsDifferences over interpretations of factsDisagreements based on behavioral expectations
17 Transitions in Conflict Thought Traditional View of ConflictThe belief that all conflict is harmful and must be avoidedCausesPoor communicationLack of opennessFailure to respond to employee needs
18 Transitions in Conflict Thought (cont’d) Human Relations View of ConflictThe belief that conflict is a natural and inevitable outcome in any groupInteractionist View of ConflictThe belief that conflict is not only a positive force in a group but that it is absolutely necessary for a group to perform effectively
19 Functional versus Dysfunctional Conflict (Positive)Functional ConflictConflict that supports the goals of the group and improves its performanceDysfunctional ConflictConflict that hinders group performance(Negative)
20 Types of Conflict Task Conflict Relationship Conflict Process Conflict Conflicts over content and goals of the workRelationship ConflictConflict based on interpersonal relationshipsProcess ConflictConflict over how work gets done
22 Stage I: Potential Opposition or Incompatibility CommunicationSemantic difficulties, misunderstandings, and “noise”StructureSize and specialization of jobsJurisdictional clarity/ambiguityMember/goal incompatibilityLeadership styles (close or participative)Reward systems (win-lose)Dependence/interdependence of groupsPersonal VariablesDiffering individual value systemsPersonality types
23 Stage II: Cognition and Personalization Perceived Conflict Awareness by one or more parties of the existence of conditions that create opportunities for conflict to ariseFelt Conflict Emotional involvement in a conflict creating anxiety, tenseness, frustration, or hostilityConflict DefinitionPositive FeelingsNegative Emotions
24 Stage III: Intentions Intentions Cooperativeness Assertiveness Decisions to act in a given wayCooperativenessAttempting to satisfy the other party’s concernsAssertivenessAttempting to satisfy one’s own concerns
26 Stage III: Intentions (cont’d) CompetingA desire to satisfy one’s interests, regardless of the impact on the other party to the conflictCollaboratingA situation in which the parties to a conflict each desire to satisfy fully the concerns of all partiesAvoidingThe desire to withdraw from or suppress a conflict
27 Stage III: Intentions (cont’d) AccommodatingThe willingness of one party in a conflict to place the opponent’s interests above his or her ownCompromisingA situation in which each party to a conflict is willing to give up something
28 Stage IV: Behavior Conflict Management The use of resolution and stimulation techniques to achieve the desired level of conflict
30 Conflict Management Techniques Conflict Resolution TechniquesProblem solvingSuperordinate goalsExpansion of resourcesAvoidanceSmoothingCompromiseAuthoritative commandAltering the human variableAltering the structural variables
31 Conflict Management Techniques Conflict Resolution TechniquesCommunicationBringing in outsidersRestructuring the organizationAppointing a devil’s advocate
32 Stage V: Outcomes Functional Outcomes from Conflict Increased group performanceImproved quality of decisionsStimulation of creativity and innovationEncouragement of interest and curiosityProvision of a medium for problem-solvingCreation of an environment for self-evaluation and changeCreating Functional ConflictReward dissent and punish conflict avoiders
33 Stage V: Outcomes Dysfunctional Outcomes from Conflict Development of discontentReduced group effectivenessRetarded communicationReduced group cohesivenessInfighting among group members overcomes group goals
34 Chapter Check-up: Conflict By standing on the printer, what conflict resolution technique might this man (Tom Alexander) be employing?Authoritative commandSuperordinate goalExpansion of resourcesCompromiseBy shifting the focus of the meeting to the overall organizational competitiveness being threatened because of the excess strength being built into the printers, he directed the attendees to a superordinate goal of the organization remaining competitive.
35 Chapter Check-up: Conflict Suppose you are a staunch Democrat and your uncle is a Republican. Every time he sees you, he tries to pick a fight about politics and “those stupid liberals.” According to this chapter, what conflict handling intention should you use in dealing with him?CompetingCollaboratingAccommodatingAvoidanceDiscuss with your neighbor under what circumstances (if any) you should shift to an accommodating intention (when talking with your uncle).
36 Chapter Check-up: Negotiation Discuss the concepts of BATNA and resistance point with your neighbor. What similarities are there between the two? Differences?