•CHAPTER ONE
•The Nature of Negotiation
•Introduction
Negotiation is something
that everyone does, almost
daily
•Negotiations
Negotiations
occur for several reasons:
•To
agree on how to share or divide a limited resource
•To
create something new that neither party could attain on his or her own
•To
resolve a problem or dispute between the parties
•Approach to the Subject
Most
people think bargaining and negotiation mean the same thing; however, we will
be distinctive about the way we use these two words:
•Bargaining:
describes the competitive, win-lose situation
•Negotiation: refers to win-win situations such as those
that occur when parties try to find a mutually acceptable solution to a complex
conflict
•Three Important Themes
1.The definition of negotiation and
the basic characteristics of negotiation situations
2.Interdependence, the relationship
between people and groups that most often leads them to negotiate
3.Understanding the dynamics of
conflict and conflict management processes which serve as a backdrop for
different ways that people approach and manage negotiations
•Characteristics
of a Negotiation Situation
•There
are two or more parties
•There
is a conflict of needs and desires between two or more parties
•Parties
negotiate because they think they can get a better deal than by simply
accepting what the other side offers them
•Parties
expect a “give-and-take” process
•Characteristics
of a
Negotiation Situation
Negotiation Situation
•Parties
search for agreement rather than:
–Fight openly
–Capitulate
–Break off contact permanently
–Take their dispute to a third
party
•Successful
negotiation involves:
–Management of tangibles (e.g.,
the price or the terms of agreement)
–Resolution of intangibles (the
underlying psychological motivations) such as winning, losing, saving face
•Interdependence
In
negotiation, parties need each other to achieve their preferred outcomes or
objectives
•This
mutual dependency is called interdependence
•Interdependent
goals are an important aspect of negotiation
•Win-lose: I win, you lose
•Win-win: Opportunities for both
parties to gain
•Interdependence
•Interdependent parties are characterized by
interlocking goals
•Having interdependent goals does not mean
that everyone wants or needs exactly the same thing
•A mix of convergent and conflicting goals
characterizes many interdependent relationships
•Types of
Interdependence
Affect Outcomes
Affect Outcomes
•Interdependence
and the structure of the situation shape processes and outcomes
–Zero-sum or
distributive – one winner
–Non-zero-sum or
integrative – a mutual gains situation
•Alternatives
Shape Interdependence
•Evaluating interdependence depends heavily on
the alternatives to working together
•The desirability to work together is better
for outcomes
•Best available alternative: BATNA (acronym for Best Alternative to a
Negotiated Agreement)
•Mutual Adjustment
•Continues
throughout the negotiation as both parties act to influence the other
•One
of the key causes of the changes that occur during a negotiation
•The
effective negotiator needs to understand how people will adjust and readjust
and how the negotiations might twist and turn, based on one’s own moves and the
other’s responses
•Mutual
Adjustment and Concession Making
•When
one party agrees to make a change in his/her position, a concession has been
made
•Concessions
restrict the range of options
•When
a concession is made, the bargaining range is further constrained
•Two Dilemmas in
Mutual Adjustment
Mutual Adjustment
•Dilemma
of honesty
–Concern about how much of the
truth to tell the other party
•Dilemma
of trust
–Concern about how much should
negotiators believe what the other party tells them
•Value Claiming
and Value Creation
•Opportunities
to “win” or share resources
–Claiming value: result of zero-sum or distributive situations
where the object is to gain largest piece of resource
–Creating value: result of non-zero-sum or integrative
situation where the object is to have both parties do well
•Value Claiming
and Value Creation
•Most
actual negotiations are a combination of claiming and creating value processes
–Negotiators must be able to
recognize situations that require more of one approach than the other
–Negotiators must be versatile in
their comfort and use of both major strategic approaches
–Negotiator perceptions of
situations tend to be biased toward seeing problems as more
distributive/competitive than they really are
•Value Claiming
and Value Creation
Value
differences that exist between negotiators include:
•Differences
in interest
•Differences
in judgments about the future
•Differences
in risk tolerance
•Differences
in time preferences
•Conflict
Conflict
may be defined as a:
"sharp disagreement or opposition"
and includes "the perceived divergence of interest, or a belief that the
parties' current aspirations cannot be achieved simultaneously"
•Levels of Conflict
•Intrapersonal
or intrapsychic conflict
–Conflict that occurs within an
individual
•We want an ice cream cone badly,
but we know that ice cream is very fattening
•Interpersonal
conflict
–Conflict is between individuals
•Conflict between bosses and
subordinates, spouses, siblings, roommates, etc.
•Levels of Conflict
•Intragroup Conflict
–Conflict is within a group
•Among team and committee members,
within families, classes etc.
•Intergroup
Conflict
–Conflict can occur between
organizations, warring nations, feuding families, or within splintered,
fragmented communities
–These negotiations are the most
complex
•Dysfunctions of Conflict
1.Competitive, win-lose goals
2.Misperception and bias
3.Emotionality
4.Decreased communication
5.Blurred issues
6.Rigid commitments
7.Magnified differences, minimized
similarities
8.Escalation of conflict
•Functions and Benefits of Conflict
1.Makes organizational members more
aware and able to cope with problems through discussion.
2.Promises organizational change
and adaptation.
3.Strengthens relationships and
heightens morale.
4.Promotes awareness of self and
others.
5.Enhances personal development.
6.Encourages psychological
development—it helps people become more accurate and realistic in their
self-appraisals.
7.Can be stimulating and fun.
•The Dual Concerns Model
•Styles of Conflict Management
1. Contending
–Actors pursue
own outcomes strongly, show little concern for other party obtaining their
desired outcomes
2. Yielding
–Actors show
little interest in whether they attain own outcomes, but are quite interested
in whether the other party attains their outcomes
3. Inaction
–Actors show
little interest in whether they attain own outcomes, and little concern about
whether the other party obtains their outcomes
•
•Styles of Conflict Management
4. Problem solving
–Actors show high concern in
obtaining own outcomes, as well as high concern for the other party obtaining
their outcomes
5. Compromising
–Actors show moderate concern in
obtaining own outcomes, as well as moderate concern for the other party
obtaining their outcomes
