9.Negotiation and Conflict Resolution

8/7/2019 9.Negotiation and Conflict Resolution

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negotiation is a discussion between two or more disputants

who are trying to work out a solution to their problem.

Negotiation is a dialogue between two or more people orparties, intended to reach an understanding, resolve point

of difference, or gain advantage in outcome of dialogue, to

produce an agreement upon courses of action, to bargain for

individual or collective advantage, to craft outcomes to

satisfy various interests of two person/ parties involved innegotiation process. Negotiation is a process where each

party involved in negotiating tries to gain an advantage for

themselves by the end of the process. Negotiation is

intended to aim at compromise.

What is negotiation?


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Goals: what do you want to get out of the negotiation? What do you think the otherperson wants?

Trades: What do you and the other person have that you can trade? What do you eachhave that the other wants? What are you each comfortable giving away?

Alternatives: if you don't reach agreement with the other person, what alternatives doyou have? Are these good or bad? How much does it matter if you do not reachagreement? Does failure to reach an agreement cut you out of future opportunities? Andwhat alternatives might the other person have?

Relationships: what is the history of the relationship? Could or should this historyimpact the negotiation? Will there be any hidden issues that may influence thenegotiation? How will you handle these?

Expected outcomes: what outcome will people be expecting from this negotiation?What has the outcome been in the past, and what precedents have been set?

The consequences: what are the consequences for you of winning or losing thisnegotiation? What are the consequences for the other person?

Power: who has what power in the relationship? Who controls resources? Who stands tolose the most if agreement isn't reached? What power does the other person have todeliver what you hope for?

Possible solutions: based on all of the considerations, what possible compromises might

there be?


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Shell identified five styles/responses to negotiation.Accommodating: Individuals who enjoy solving the other partys problems andpreserving personal relationships. Accommodators are sensitive to the emotionalstates, body language, and verbal signals of the other parties. They can, however,feel taken advantage of in situations when the other party places little emphasison the relationship.Avoiding: Individuals who do not like to negotiate and dont do it unless

warranted. When negotiating, avoiders tend to defer and dodge theconfrontational aspects of negotiating; however, they may be perceived as tactfuland diplomatic.Collaborating: Individuals who enjoy negotiations that involve solving toughproblems in creative ways. Collaborators are good at using negotiations tounderstand the concerns and interests of the other parties. They can, however,create problems by transforming simple situations into more complex ones.Competing: Individuals who enjoy negotiations because they present anopportunity to win something. Competitive negotiators have strong instincts for allaspects of negotiating and are often strategic. Because their style can dominatethe bargaining process, competitive negotiators often neglect the importance ofrelationships.Compromising: Individuals who are eager to close the deal by doing what is fairand equal for all parties involved in the negotiation. Compromisers can be usefulwhen there is limited time to complete the deal; however, compromisers oftenunnecessarily rush the negotiation process and make concessions too quickly.


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Emotions play an important part in the negotiation process, although

it is only in recent years that their effect is being studied.

Emotions have the potential to play either a positive or negative role

in negotiation. During negotiations, the decision as to whether or not

to settle, rests in part on emotional factors.

Negative emotions can cause intense and even irrational behavior, and

can cause conflicts to escalate and negotiations to break down, but

may be instrumental in attaining concessions.

On the other hand, positive emotions often facilitate reaching an

agreement and help to maximize joint gains.


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1) Learn to flinch.

The flinch is one of the oldest negotiation tactics but one of the least used. A flinch is a visiblereaction to an offer or price. The objective of this negotiation tactic is to make the other people feel

uncomfortable about the offer they presented. Here is an example of how it works.

A supplier quotes a price for a specific service. Flinching means you respond by exclaiming, "You want

how much?!?!" You must appear shocked and surprised that they could be bold enough to request that

figure. Unless the other person is a well seasoned negotiator, they will respond in one of two ways; a)

they will become very uncomfortable and begin to try to rationalize their price, b) they will offer an

immediate concession.

2) Recognize that people often ask for more than they expect to get.This means you need to resist the temptation to automatically reduce your price or offer a discount.

3) The person with the most information usually does better.

You need to learn as much about the other person's situation. This is a particularly important

negotiation tactic for sales people. Ask your prospect more questions about their purchase. Learn

what is important to them as well as their needs and wants. Develop the habit of asking questions

such as;"What prompted you to consider a purchase of this nature?"

"Who else have you been speaking to?"

"What was your experience with?"

"What time frames are you working with?"

"What is most important to you about this?"

It is also important to learn as much about your competitors as possible. This will help you defeat

possible price objections and prevent someone from using your competitor as leverage.


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4) Practice at every opportunity.Most people hesitate to negotiate because they lack the confidence. Develop thisconfidence by negotiating more frequently. Ask for discounts from your suppliers. As aconsumer, develop the habit of asking for a price break when you buy from a retailstore. Here are a few questions or statements you can use to practice your negotiationskills:

"You'll have to do better than that.""What kind of discount are you offering today?""That's too expensive." Wait for their response afterwards.Learn to flinch.

Be pleasant and persistent but not demanding. Condition yourself to negotiate at everyopportunity will help you become more comfortable, confident and successful.

5) Maintain your walk away power.It is better to walk away from a sale rather than make too large a concession or give a

deep discount your product or service. Salespeople often tell that this negotiationstrategy gives them the most leverage when dealing with customers. However, it isparticularly challenging to do when you are in the midst of a sales slump or slow salesperiod. But, remember that there will always be someone to sell to.

Negotiating is a way of life in some cultures. And most people negotiate in some wayalmost every day. Apply these negotiation strategies and you will notice a difference inyour negotiation skills almost immediately.


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Conflict may be defined as a struggle or contest

between people with opposing needs, ideas,

beliefs, values, or goals.


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Step 1: Prepare for resolution

Acknowledge the conflict The conflict has to be acknowledged before it can bemanaged and resolved. The tendency is for people to ignore the first signs ofconflict, perhaps as it seems trivial, or is difficult to differentiate from the normal,healthy debate that teams can thrive on. If you are concerned about the conflict inyour team, discuss it with other members. Once the team recognizes the issue, itcan start the process of resolution.

Discuss the impact As a team, discuss the impact the conflict is having on teamdynamics and performance.

Agree to a cooperative process Everyone involved must agree to cooperate in toresolve the conflict. This means putting the team first, and may involve settingaside your opinion or ideas for the time being. If someone wants to win more than

he or she wants to resolve the conflict, you may find yourself at a stalemate.

Agree to communicate The most important thing throughout the resolutionprocess is for everyone to keep communications open. The people involved need totalk about the issue and discuss their strong feelings. Active listening is essentialhere because to move on you need to really understand where the other person iscoming from.


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Step 2: Understand the Situation

Once the team is ready to resolve the conflict, the next stage is to understand thesituation, and each team member's point of view

Clarify positions Whatever the conflict or disagreement, it's important to clarifypeople's positions. Whether there are obvious factions within the team who support aparticular option, approach or idea, or each team member holds their own unique view,each position needs to be clearly identified and articulated by those involved.

EXAMPLE: Sally and Tom believe the best way to market the new product is through aTV campaign. Mary and Beth are adamant that internet advertising is the way to go;whilst Josh supports a store-lead campaign.

List facts, assumptions and beliefs underlying each position What does each groupor person believe? What do they value? What information are they using as a basis forthese beliefs? What decision-making criteria and processes have they employed?Sally and Tom believe that TV advertising is best because it has worked very well in the

past. They are motivated by the saying, "If it ain't broke, don't fix it."Mary and Beth are very tuned-in to the latest in technology and believe that to stayahead in the market, the company has to continue to try new things. They seekchallenges and find change exhilarating and motivating. Josh believes a store-leadcampaign is the most cost-effective. He's cautious, and feels this is the best way to testthe market at launch, before committing the marketing spend.

Analyze in smaller groups Break the team into smaller groups, separating people whoare in alliance. In these smaller groups, analyze and dissect each position, and the

associated facts, assumptions and beliefs.


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Step 3: Reach agreement

Now that all parties understand the others' positions, the team must

decide what decision or course of action to take. With the facts and

assumptions considered, it's easier to see the best of action and reach

agreement.

In our example, the team agrees that TV advertising is the best

approach. It has had undeniably great results in the past and there is

no data to show that will change. The message of the advertising will

promote the website and direct consumers there. This meets Mary and

Beth's concern about using the website for promotions: they assumed

that TV advertising would disregard it.


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Dealing with conflict immediately avoid the temptation to ignore it.Being open if people have issues, they need to be expressedimmediately and not allowed to fester.Practicing clear communication articulate thoughts and ideas clearly.Practicing active listening paraphrasing, clarifying, questioning.Practicing identifying assumptions asking yourself "why" on a regularbasis.Not letting conflict get personal stick to facts and issues, notpersonalities.Focusing on actionable solutions don't belabor what can't bechanged.Encouraging different points of view insist on honest dialogue andexpressing feelings.Not looking for blame encourage ownership of the problem andsolution.Demonstrating respect if the situation escalates, take a break andwait for emotions to subside.Keeping team issues within the team talking outside allows conflictto build and fester, without being dealt with directly.


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Increased understanding: The discussion needed to resolve conflictexpands people's awareness of the situation, giving them an insight

into how they can achieve their own goals without undermining those

of other people.

Increased group cohesion: When conflict is resolved effectively, team

members can develop stronger mutual respect, and a renewed faith intheir ability to work together.

Improved self-knowledge: Conflict pushes individuals to examine

their goals in close detail , helping them understand the things that

are most important to them, sharpening their focus, and enhancingtheir effectiveness.

9.Negotiation and Conflict Resolution

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