1. Negotiation and Conflict Resolution
Module 12
Negotiation and Conflict Resolution
PowerPoint Presentation by Charlie Cook Copyright © 2005 South-Western. All rights reserved.

2. Negotiation as a Form of Conflict Management
Conflict is ubiquitous and negotiation is only one of many ways to deal with difference
Ways of resolving conflict:
Forcing behavior
Smoothing
Avoidance
Negotiating
Third-party assistance
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Class Note: Negotiation and Conflict Resolution

3. Dealmaking: Building Blocks of Negotiation
Building blocks of dealmaking process are:
Parties
Issues
Interests
Dealmaking can resemble market transaction where parties pursue individual gain or can be one where parties pursue mutual gain
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Class Note: Negotiation and Conflict Resolution

4. Dealmaking (cont’d) Negotiation takes place between and among parties
Parties can be people negotiating on their own behalf or be agents acting on behalf of others
Negotiations among parties affected by:
Relationships between parties
Number of parties
Negotiator characteristics
Organization context
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Class Note: Negotiation and Conflict Resolution

5. Dealmaking (cont’d)
Issues are the matters over which parties disagree and seek to reach agreement on
Most common distinction people make about issues concerns number of them
Issues can differ in terms of specificity and clarity
Issues are not etched in stone; issues can change during negotiation
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Class Note: Negotiation and Conflict Resolution

6. Dealmaking (cont’d)
Interests are what parties seek to advance in negotiations
Substantive interests relate directly to what’s being negotiated
Negotiators should be as specific as possible about articulating interests
Parties value interests and issues differently
A major challenge in negotiating is talking about interests
Copyright © 2005 South-Western. All rights reserved.
Class Note: Negotiation and Conflict Resolution

7. Dealmaking (cont’d)
Bargaining power is the capacity to achieve agreement on one’s own terms
Sources of power:
Ability to reward or coerce another party to make particular concessions
“Best alternative to a negotiated agreement” (BATNA)
Bargaining power also derives from how negotiators use the power and influence they have
Copyright © 2005 South-Western. All rights reserved.
Class Note: Negotiation and Conflict Resolution

8. Dealmaking (cont’d)
Dealmaking is the means by which parties work out their differences over issues and pursue their interests
Two basic processes of negotiating:
Distributive negotiations—parties view each other as adversaries
Integrative or mutual gains negotiations—parties focus on interests, not positions, and search for options that meet interests
Copyright © 2005 South-Western. All rights reserved.
Class Note: Negotiation and Conflict Resolution

9. Dealmaking (cont’d)
Identifying mutual gains requires open sharing of interests, then searching for agreements that meet both parties’ needs
Ways to meet mutual needs:
Finding new resources
Logrolling
Nonspecific compensation
Cost cutting
Bridging
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Class Note: Negotiation and Conflict Resolution

10. Dealmaking (cont’d) Negotiator’s dilemma:
Pursuing distributive negotiation tactics makes it unlikely we will move to a process of option creation that leads to mutual gain
Pursuing integrative negotiation tactics means we still face the issue of how to distribute the new value created
Copyright © 2005 South-Western. All rights reserved.
Class Note: Negotiation and Conflict Resolution

11. Dealmaking (cont’d) Shadow negotiations:
Where parties position themselves and each other for the negotiation
Where negotiators work out the personal dynamic of their exchange
Where negotiators vie for control over who sets the terms of the discussion or whose interests will be heard
Copyright © 2005 South-Western. All rights reserved.
Class Note: Negotiation and Conflict Resolution

12. Assisted Negotiations
Assisted negotiation is more akin to mediation
Mediators assist negotiators by helping parties manage dilemmas and difficulties
Mediators can:
Cool things down and keep parties focused on issues
Explore for areas of flexibility without causing a party to make a public commitment to a deal
Create options that the two parties have not seen
Help parties explore consequences of no agreement
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Class Note: Negotiation and Conflict Resolution

13. Assisted Negotiations (cont’d)
Challenges of assisted negotiation:
Tendency to want to tell people what to do rather than assist them to resolve their own differences
The question of neutrality; absolute neutrality is virtually impossible in organizations
When parties reach an impasse in negotiations, it’s often difficult to help them come to an agreement
Copyright © 2005 South-Western. All rights reserved.
Class Note: Negotiation and Conflict Resolution

14. Costs and Customers Relevant to Lakeside-Tonicron Joint Venture
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The Press: Dealcrafting: The Substance of Three-Dimensional Negotiations
Table 12.1

15. Timing and Restraints on Lakeside-Tonicron Sales
Copyright © 2005 South-Western. All rights reserved.
The Press: Dealcrafting: The Substance of Three-Dimensional Negotiations
Table 12.2

16. Focusing on Differences as the Material for Joint Gains
Cost/ revenue structure
Capability
Interest and priority
Agenda management
Forecast or belief about the future
Attitudes toward risk
Attitudes toward time
Tax status
Accounting treatment and reporting sensitivity
The Press: Dealcrafting: The Substance of Three-Dimensional Negotiations
Copyright © 2005 South-Western. All rights reserved.

17. Breakthrough Bargaining Strategies
Power moves
Offer incentives
Put a price on the status quo
Enlist support
Process moves
Seed ideas early
Reframe the process
Build consensus
Appreciative moves
Help others save face
Keep the dialogue going
Solicit new perspectives
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The Press: Breakthrough Bargaining