1. Crisis And Conflict Management

2. Conflict Negotiation Lecture 31

3. Managing Conflict: Performance Conflict Complacency ManagedIntense High Low

4. Definitions Negotiation – A process in which two or more parties attempt to reach acceptable agreement in a situation characterized by some level of disagreement.

5. KEY STEPS ¶Analyze Situation – Identify your needs – Importance—Is it worth it? – Zero-sum – Strength of position – Future Interactions? ËAnalyze other party(ies) – Real needs, interests – Strengths/Weaknesses – Their styles/approach ÌSelect Appropriate Approach – Conflict Style – Negotiation (Integrative, Distributive)

6. The Negotiation Process Developing a strategy Defining ground rules Clarification and justification Bargaining and problem solving Closure and implementation 6

7. How to Negotiate Five steps to negotiation: – Developing a strategy. – Definition of ground rules. – Clarification and justification. – Bargaining and problem solving. – Closure and implementation. Identify BATNA: – Best Alternative To a Negotiated Agreement. 7

8. Staking Out the Bargaining Zone Buyer’s aspiration range Seller’s aspiration range Bargaining Zone Buyer’s target point Seller’s resistance point Buyer’s resistance point Seller’s target point $400$475$525$600 8

9. Getting to Yes Separate the people from the problem. Work on the issues at hand, rather than getting involved in personality issues between the parties. Focus on interests, not positions. Try to identify what each person needs or wants, rather than coming up with an unmovable position. Look for ways to achieve mutual gains. Rather than focusing on one “right” solution for your position, brainstorm for solutions that will satisfy the needs of both parties. Use objective criteria to achieve a fair solution. Try to focus on fair standards, such as market value, expert opinion, norms, or laws to help guide decision making. 9

10. Competition(forcing)Collaboration Compromise AvoidanceAccommodation Satisfy Other? (Cooperativeness) UncooperativeCooperative SatisfySelf? Aggressive Passive (Manager exerting authority) (Marriage Counselors/Labor mediation) (Union-Management) (Most common approach) (Acquiescent Parent) Styles of Conflict Resolution

11. INTEGRATIVE NEGOTIATION Conditions – Generally best – Win-Win is possible – Opponent is willing

12. DISTRIBUTIVE NEGOTIATING Conditions – Zero-sum game – Opponent is distributive – You have the power – Relationship not critical

13. DISTRIBUTIVE STRATEGIES Identify target and resistance points – Goal? – Start moderately high/low, make concession, get stingy – View initial offers as a starting point Persuasion Leverage Power: Facts, Experience, position Fairness Emotions Closed Manage Perceptions

14. INTEGRATIVE NEGOTIATION Conditions – Generally best – Win-Win is possible – Opponent is willing Key? Integrative Strategies?

15. INTEGRATIVE NEGOTIATION Integrative Strategies – Openness – Trust – Flexibility – Begin Positively – Focus on the Issue – Remain Rational – Use objective criteria

16. Competition(forcing)Collaboration Compromise AvoidanceAccommodation Satisfy Other? (Cooperativeness) UncooperativeCooperative SatisfySelf? Aggressive Passive (Manager exerting authority) (Marriage Counselors/Labor mediation) (Union-Management) (Most common approach) (Acquiescent Parent) Styles of Conflict Resolution

17. CHOOSING A STYLE Competition (forcing) – Time is an important constraint – Issue is unpopular/action must be taken – Commitment is not critical – Competitive others – You have the power Collaboration – Too important for compromise – Time pressures are minimal – All want win-win – Communication-based

18. CHOOSING A STYLE Avoidance – Issue is trivial – Costs/disruptions outweigh benefits – Problem may solve itself – Based on personal differences Accommodation – Issue is more important to the other party – Stockpile Credits – Minimize loss Compromise – Equal power with exclusive goals – Temporary solution to a complex issue – Tight time constraints

19. Summary Managing Conflict Negotiation Key steps Styles of Conflict Resolution Choosing a style

20. Thank you 20