Appreciate Conflict Positive and negative Use Correct Conflict Management Styles Avoid, Accommodate, Compete, Compromise, Collaborate Improve Communication Listen Well Speak Clearly Understand IndividualDifferences Men and Women, Ethnicity Personality Avoid Biases Cognitive biases, framing Use Negotiation Win-win (integrative) Win-lose (distributive) Use Mediation 3rd party, voluntary compliance Ways to Manage Conflict
Characteristics of a Negotiation or Bargaining Situation • Two or more individuals, groups, organizations • Conflict of interest • Voluntary process using influence to get a better deal • Prefer to search for agreement than fight, capitulate, break off contact, go to higher authority. • Expect give and take, move positions toward one another. • Intangibles and tangibles
When you’d lose the farm When you’re sold out (raise prices instead) When the demands are unethical When you don’t care When you don’t have time When they act in bad faith When waiting would improve your position When you’re not prepared *from Levinson, Smith, Wilson (1999). Guerrilla Negotiating. When You Shouldn’t Negotiate*
Importance of Planning • Effective strategizing, planning, and preparation are the most critical precursors for achieving negotiation objectives • Goals • Strategy • Plan
Negotiation Goals • Determine goals: what you want to achieve • Substantive: Goals, goal priorities, multi-goal packages, possible trade-offs. • Procedural: Agendas, bargaining histories • Tangible (rate, price, terms, language) AND • Intangible (precedent, defend principle, reputation, etc.) • Effects of goals on choice of strategy • Need “high but attainable,” concrete, specific, measurable goals • Our goals often linked to other’s goals (i.e., issues) • Issues, Positions, Interests • Boundaries/limits to what goals can be (attainable) • Short term vs long term? Relationship-oriented goals
Strategy • “The overall plan to accomplish one’s goals in a negotiation, and the action sequences that will lead to the accomplishment of those goals” • Strategy, tactics, planning • Strategy: long-term, overall approach • Tactics: short-term, adaptive moves • Planning: action component • Strategic options: Substantive Outcome Important? Relational Outcome Important? *Integrative (win-win). The others are Distributive (win-lose).
Defining the issues Assembling issues and defining the bargaining mix Defining interests Defining limits Defining one’s own objectives (targets) and opening bids (where to start) Defining the constituents to whom one is accountable Understanding the other party and its interests and objectives Selecting a strategy Planning the issue presentation and defense Defining protocol—where and when the negotiation will occur, who will be there, agenda, etc. Getting Ready to Implement Negotiation Strategy-- The Planning Process
Unequivocal Increase sales by 25% Give me support at the sales meeting By 3 pm this afternoon By the 15th of next month Equivocal Increase sales Speak on behalf of and vote for my new pricing policy at the sales meeting ASAP Next month Brief Guide to Requests • Requests are speech acts that call another person into action: “I request that you __(intended result)__ by __(deadline__.” • Requests should be unequivocal.
Collecting No’s • Formulate and make requests intended to produce “No” as response • “No” is a success • Assertive , learn to ask for things directly, discover real limits to a reasonable or unreasonable request. • People generally say “yes” to requests • (6 to 1) • More and more unreasonable, short deadline • Decline requests: “maybe”, etc. Why? • What excuses are used? Accepted? • How persistent must you be to get a yes? • What would you have to do to get a “yes”?
Use Negotiation to Manage Conflict • Win-win(integrative bargaining) • Win-lose(distributive bargaining) • Mediation (3rd party, voluntary compliance) • Arbitration (3rd party, mandatory compliance)
Pemberton Payoff Matrix Country Market Close Sunday Open Sunday -40,000 +20,000 Corner Corner Close Sunday Country +20,000 Country +40,000 Corner Store Corner +40,000 Corner -20,000 Open Sunday -40,000 Country Country -20,000 **THE GOAL IS TO MAXIMIZE PROFITS OVER THE NEXT 12-WEEK PERIOD