12 High Concern for Other’s Interests Concern for Own Interests Low High Conflict Handling Behaviors CollaborationCompetition Compromise Avoidance Accommodation
13 Distributive Versus Integrative Bargaining Distributive Integrative Characteristic: Approach: Approach: Goal: Get as much of aExpand the pie; look for fixed pie as possiblewin/win options Motivation:Win-Lose (self serving)Win-Win (mutual gain) Focus:PositionsInterests InformationLowHigh Sharing: Duration of Short term Long term relationships: Key Assumptions:Adversarial and hostileCollaborative and open problem solving Role of Trust:It’s for suckers!It’s the only real currency!
14 Negotiation Negotiation: Process whereby two or more parties attempt to agree on the exchange rate for goods or services. BATNA The Best Alternative To a Negotiated Agreement; the lowest acceptable value (outcome) for someone for a negotiated agreement.
15 The Negotiation Process E X H I B I T 13 – 5
16 Staking Out the Bargaining Zone E X H I B I T 13 – 4
17 Issues in Negotiation Role of Mood and Personality Traits: –Positive moods positively affect negotiations –Traits appear to have little significant effect on the outcomes of either bargaining or negotiating processes (except extraversion, which is bad for negotiation effectiveness) Gender Differences: –Women negotiate no differently from men, although men apparently negotiate slightly better outcomes. –Men and women with similar power bases use similar negotiating styles. –Women’s attitudes toward negotiation and their success as negotiators are less favorable than men’s.
18 Italians, Germans, and French don’t soften up executives with praise before they criticize. Americans do, and to many Europeans this seems manipulative. Israelis are accustomed to fast-paced meetings and so have no patience for American small talk. Indian executives are used to interrupting one another. When Americans listen without asking for clarification or posing questions, Indians may conclude the Americans aren’t paying attention. Americans often mix their business and personal lives. They think nothing about asking a colleague questions like, “How was your weekend?” (it’s a cultural ritual for Americans). In some cultures such a question is intrusive because business and private lives are kept totally separate. Many Americans live by the motto: “It’s not personal, it’s business,” whereas many other cultures live by the motto: “It’s not business until first it’s personal.” Source: Adapted from L. Khosla, “You Say Tomato,” Forbes, May 21, 2001, p. 36. Issues in Negotiation (cont.)
19 Stage IV: Outcomes Functional Outcomes from Conflict: –Increased group performance –Improved quality of decisions –Stimulation of creativity and innovation –Encouragement of interest and curiosity –Provision of a medium for problem-solving –Creation of an environment for self-evaluation and change Creating Functional Conflict: –Reward dissent and sanction avoiders of functional conflict
20 Stage IV: Outcomes (cont.) Dysfunctional Outcomes from Conflict: –Development of discontent –Reduced group effectiveness –Retarded communication –Reduced group cohesiveness –Infighting among group members overcomes group goals Minimizing Dysfunctional Conflict: –Emphasize common goals and objectives –Eliminate elements of relationship that bread distrust