Negotiation and Conflict Management NBC534M

1. Negotiation and Conflict ManagementNBC534M 21 - 27 June 2009 Emily M Brown

2. Introduction • In Africa - especially Southern Africa - we have seen the vital role that global negotiating is playing among nations. • Of importance in this course would be to review the elements required in effective negotiations, regardless of the culture involved. • Each negotiator in the negotiating process has to influence the other in positive constructive ways.

3. A world-class negotiator is important because ….. • The emergence of a global economy For example, this morning you might arrived for class in a vehicle with Firestone tyres, wearing a Bulova Swiss watch. Neither of these products is Namibian. • The multitude of international businessarrangements Your organisation might be engaged in various partnerships, not only with local but also international organisations.

4. Negotiating Defined • Would you agree with the statement that ‘life is a series of endless negotiations’? • “Negotiating is the process of communicating back and forth for the purpose of reaching a joint agreement about differing needs or ideas.” (Acuff, F.L. 2008:6)

5. Negotiating Defined cont. … • Negotiation is about persuasion rather than the use of crude power. • Negotiating takes into account the feelings and views of the other party in the process. • Therefore, negotiating is a collection of behaviours which involves communication, sales, marketing,psychology, sociology, assertiveness and conflict resolution.

6. Negotiating Defined cont. … • Samovar and Porter (2001) quote Harris and Moran (1966:40) who suggest that “Negotiation is a process in which two or more entities (individuals) discuss common and conflicting interests in orderto reach an agreement of mutual benefit”.

7. Cultural Diversity in Negotiation Behaviours It involves: 1. Pacing: The pace at which negotiations take place is a culturally diverse characteristic of the negotiation process. 2. Negotiating Style: The manner in which people engage in negotiations is referred to as their negotiation style. For example, Americans tend to have a negotiation style that emphasises efficiency and directness.They want to get to the point. Finns and Swedes expect modernity, efficiency and new ideas.

8. Cultural Diversity in Negotiation Behaviours cont... 3. Evidence and Truth: Cultures can differ considerably in terms of what they consider to be evidence and truth. While we tend to see truth as that which is verifiable, other cultures could have other approaches. Therefore, it is important to determine in the negotiation process what form of truth would be acceptable. 4. Social Trust: In the negotiation process negotiators eventually have to trust their counterparts. Such trust can be based on

9. Cultural Diversity in Negotiation Behaviours cont... the written laws of a particular country, or it can be based on friendship, mutual respect and esteem. Therefore, cultures can be placed on a continuum of high trust to low trust. In several cultures establishing trust before conducting business is very important.

10. Methods of Negotiation • The Role of Argument • A good negotiator will understand the finer points of arguing. • In its most effective form, argumentation means that parties in a negotiation will offer each other alternatives, and then argue about the basic merits of each. • The key is to be critical (analytical) of each other’s position, but at the same time be cooperative. • Being too critical might be perceived as being uncooperative. Negotiations could break down should this happen.

11. Methods of Negotiation Cont… • The give-and-take of argument has its foundations in human communication. Both parties - through interaction - explore all the possible alternatives to a negotiated settlement. Through such an exploration they gradually move toward a mutually agreed-upon settlement.

12. Methods of Negotiation Cont… • The Role of Power • Each participant in the negotiation process has a measure of power, despite the different ranks or status of the individuals. • The professional negotiator, Herbert A. Cohen, said “Power is based on perception. If you think you don’t have it, even if you’ve got it, you don’t have it” (Bittner, J.R. 1985: 312).

13. Methods of Negotiation Cont… • The Role Prediction • Negotiators operate in an atmosphere of prediction. Every offer, statement, reply or counter-offer is made with prediction and expectation of what the other party’s reaction will be. • Example of an employee asking her employer for a raise…..

14. Methods of Negotiation Cont… • The Role Compromise • For effective communication to take place between individuals, fields of experience must overlap, especially if negotiation needs to take place. • In negotiation the field of experience of each participant in the negotiation process becomes their respective alternative to resolving the issue at hand.

15. Methods of Negotiation Cont… • Therefore, before a settlement is reached, each party would explore the other’s alternatives. • Using power, prediction and argument, the parties may reach the final compromise.

16. PRINCIPLED BARGAINING • The concept “principled bargaining” was developed by Fisher and Ury (1991). • The essence of the “principled bargaining” approach is to acknowledge to work together for mutual outcomes,where everyone is treated equitably. • According to Fisher and Ury (1991) each negotiated agreement should meet the following criteria:

17. PRINCIPLED BARGAINING CONT…. • It should be a wise agreement, if possible • It should be efficient • It should improve - or at least not damage -relationships The FOUR elements in the Fisher and Ury method are: • People: to ensure that we separate people from the problem • Interests: to focus on interests rather than positions.

18. PRINCIPLED BARGAINING CONT….. • Options: To generate a range of possibilities before choosing one • Criteria: To ensure that results are based on some objective standard. To implement the principled negotiation method, you need to: • State your case clearly and persuasively • Organise facts well

19. PRINCIPLED BARGAINING CONT…. • Be aware of the timing and speed of the talks • Assess the other’s needs properly • Be sensitive to those needs • Have patience • Not be unduly worried by conflict • Be committed to a win-win philosophy

20. PRINCIPLED BARGAINING CONT….. PURPOSE OFPRINCIPLED NEGOTIATION • The purpose of the negotiation is to satisfy the interests of the parties involved. • Sometimes these interests are not met; for example, a goal that is too rigid or choosing not to move from a position. • A negotiation based on satisfying the interests of both parties means that each will consider the view of the other. • At times you may have to settle for something less than your original goal.

21. BATNA AND WATNA - WHAT IS IT? BATNA: Standsfor the ‘Best alternative to a negotiated agreement’. When you are not able to negotiate an agreement that meets your goal, it is useful to have a BATNA ready. Remember, the reason why both parties negotiate is to achieve some= thing better than what they would achieve otherwise.

22. BATNA AND WATNA CONT… WATNA: Stands for the ‘Worst alternative to a negotiated agreement. If the person you are negotiating with is your manager or supervisor, you may have to think of a WATNA. If the other person has the legitimate power, or if you want the relationship to continue as it is, you may have to settle for less than your preferred outcome. You might have to modify your goal to maintain the relationship especially if the other

23. BATNA AND WATNA CONT… person is your boss. Sometimes your goal maybe unrealistic and you have to modify it to make it more realistic. You may even decide not to negotiate if you feel that this will not achieve something better.

24. BATNA AND WATNA CONT... • By identifying the BATNA and WATNA, you are exploring the alternatives available if negotiation is not possible. Instead of accepting an unsatisfactory outcome, you can say no to negotiation.