1. 1 Agenda Amanda Project Amanda Project Read your role (15 minutes) Read your role (15 minutes) Three parties meet (20 minutes) Three parties meet (20 minutes) Slides Slides Prosando video Prosando video Group Time Group Time

2. 2 Adding Third Parties to the Two-Party Negotiation Process Negotiations are often tense and difficult, and can lead to frustration and anger Negotiations are often tense and difficult, and can lead to frustration and anger Negotiation over critical issues may reach an impasse Negotiation over critical issues may reach an impasse Third-party intervention may be the only way to get negotiations back on track Third-party intervention may be the only way to get negotiations back on track

3. 3 Benefits and Liabilities of Third-Party Intervention Benefits - Can be valuable in: Benefits - Can be valuable in: Creating breathing space or a cooling-off period Creating breathing space or a cooling-off period Reestablishing or enhancing communications Reestablishing or enhancing communications Refocusing on the substantive issues Refocusing on the substantive issues Remedying or repairing strained relationships Remedying or repairing strained relationships Increasing satisfaction with the conflict resolution process and its outcomes Increasing satisfaction with the conflict resolution process and its outcomes

4. 4 Benefits and Liabilities of Third-Party Intervention Limitations and liabilities Limitations and liabilities The involvement of third parties may be viewed as a failure of the negotiation process between parties The involvement of third parties may be viewed as a failure of the negotiation process between parties Intervention by a third party may signal that the parties have failed to build relationships or can’t manage their own interdependencies Intervention by a third party may signal that the parties have failed to build relationships or can’t manage their own interdependencies Each type of third-party intervention has its own particular advantages and disadvantages depending on the context Each type of third-party intervention has its own particular advantages and disadvantages depending on the context

5. 5 Types of Third-Party Intervention Third-party intervention may be formal or informal Formal interventions are designed intentionally, in advance and they follow a set of rules or standards Formal interventions are designed intentionally, in advance and they follow a set of rules or standards Informal interventions are incidental to the negotiation Informal interventions are incidental to the negotiation

6. 6 Formal Intervention Methods There are two fundamental types of formal third- party interventions: Arbitration Arbitration Mediation Mediation

7. 7 Arbitration Arbitration resolves a disagreement by having a neutral third party impose a decision Arbitration resolves a disagreement by having a neutral third party impose a decision There are two common forms of arbitration There are two common forms of arbitration Binding arbitration—parties are required to comply with the decision Binding arbitration—parties are required to comply with the decision Grievance arbitration—refers to decisions about the interpretation of existing contracts Grievance arbitration—refers to decisions about the interpretation of existing contracts

8. 8 Arbitration Arbitration may have negative effects: Arbitration may have negative effects: The narcotic effect The narcotic effect When arbitration is anticipated, negotiators may also lose interest in the process of negotiating (will just wait for arbitration to begin) When arbitration is anticipated, negotiators may also lose interest in the process of negotiating (will just wait for arbitration to begin)

9. 9 Arbitration Arbitration may have negative effects (cont.): Arbitration may have negative effects (cont.): The biasing effect The biasing effect Arbitrators must be careful not to systematically favor one side and they must maintain an image of fairness and impartiality Arbitrators must be careful not to systematically favor one side and they must maintain an image of fairness and impartiality The decision-acceptance effect The decision-acceptance effect Arbitrated disputes may engender less commitment to the settlement than alternative forms of dispute resolution (e.g., mediation) Arbitrated disputes may engender less commitment to the settlement than alternative forms of dispute resolution (e.g., mediation)

10. 10 Mediation Mediation seeks to have the parties themselves develop and endorse the agreement Mediation seeks to have the parties themselves develop and endorse the agreement It has been called a form of “assisted negotiation” It has been called a form of “assisted negotiation” It can help reduce or remove barriers to settlements, adding value to the negotiation process It can help reduce or remove barriers to settlements, adding value to the negotiation process Some similarity in this regard to the post-settlement settlement process Some similarity in this regard to the post-settlement settlement process

11. 11 Mediation When to use mediation The parties need to be open to receiving help—a phenomenon known as ripeness The parties need to be open to receiving help—a phenomenon known as ripeness The parties participate voluntarily—they are not forced to enter into the process The parties participate voluntarily—they are not forced to enter into the process The mediator must be acceptable to all the parties to the dispute The mediator must be acceptable to all the parties to the dispute

12. 12 Mediator Models, Choices and Behaviors Stages in the mediation process can be roughly grouped into four categories: Stages in the mediation process can be roughly grouped into four categories: Premediation preparation Premediation preparation Mediator gets to know the parties, explains process Mediator gets to know the parties, explains process Beginning stages of the mediation Beginning stages of the mediation Mediator manages the exchanges of proposals Mediator manages the exchanges of proposals Middle stages of the mediation Middle stages of the mediation Mediator becomes more active to find an agreement acceptable for both parties Mediator becomes more active to find an agreement acceptable for both parties Ending stages of the mediation Ending stages of the mediation Mediator brings parties together to endorse agreement Mediator brings parties together to endorse agreement

13. 13 Mediation Disadvantages Disadvantages Lack of impetus or initiative to adhere to any particular settlement or to settle at all Lack of impetus or initiative to adhere to any particular settlement or to settle at all Possible perpetuation of the dispute, perhaps indefinitely Possible perpetuation of the dispute, perhaps indefinitely

14. 14 Informal (e.g., Amanda) Intervention Styles Inquisitorial intervention Inquisitorial intervention Exerts high control over the process and the decision Exerts high control over the process and the decision Asks questions, controls who speaks, invents solution Asks questions, controls who speaks, invents solution Adversarial intervention (U.S. Courts: Judge) Adversarial intervention (U.S. Courts: Judge) Exerts high control over decision but not the process Exerts high control over decision but not the process Passively listens then makes decision Passively listens then makes decision