Chapter 10 Conflict and Negotiations

Phase 2: Determine your BATNA

"best alternative to a negotiated agreement" know your alternatives=looking at deal more critically. BATNA is also important indicator when determining how much power you hold, and will help you reject unfavorable deals. If deal is better than your BATNA, take it. Party with the best BATNA has the best negotiating position, so try to improve your BATNA whenever possible by exploring alternatives. Once you determine your BATNA, determine the person you're negotiating withs

role ambiguity

Guidelines for doing the job are unclear, you don't know what's expected of you. Ex. don't know if you should hire a low-priced local trainer of an expensive well-known one.

compromise

middle-ground style, individuals have some desire to express their own concerns and get their way but still respect the other person's goals. Both sides sacrifice something valuable to them MIDDLE cooperation and competitiveness

consider majority rule

only if the participants feel that it is fair. Becomes ineffective if used repeatedly with the same people winning

medium level of task-related conflict

optimal, healthy debates of ideas take place

Organizational Structure

organizational structure of company may be confusing

consider the role of mood

positive moods lead to more creative problem solving and helps to avoid conflict

conflict

process that involves people disagreeing

conflict management

resolving disagreements effectively

Personality Differences

self explanatory

in-group bias

tendency to favor the group to which one belongs "us vs. them" mentality

Distributive Approach

traditional fixed pie approach in which negotiators see the situation as a pie that they have to divide between them. Each tries to get more of the pie to win. Fixed pie is a common mistake because it limits creative solutions.

interpersonal conflict

type of conflict between two people due to competiton, personality or value differences important to keep conflicts centered around ideas instead of individual differences

role conflict

type of intrapersonal conflict - having two different job descriptions that seem mutually exclusive Ex. can arise if you're head of one team, member of another

avoidance

uncooperative and unassertive conflict-handling style. seek to avoid conflict by denying that is it there Ex. "I don't think there's any problem." LOW level of cooperation and LOW level of competitiveness

outcomes of conflict

upsets parties in the short run - can have both positive and negative outcomes

competition

want to reach their goal regardless of what others say or feel. May lead to poor relationships with others LOW cooperation and HIGH competitiveness

Task Interdependence

when accomplishment of your goal requires reliance on others to perform their tasks. Ex. when you're tasked with creating advertising for your product, you're dependent on the creative team to design the words and layouts, the photographer to create the visuals, and so on

negotiation

when two or more parties work toward an agreement

Phase 5: Closure

you and the other party have either come to an agreement on the terms, or one party has decided that the final offer is unacceptable and therefore must be walked away from. What would it have taken for us to form the agreement? Consider follow up calls on why the deal was given to competitor

Negotiation Strategies

Distributive Approach, Integrative Approach

Toolbox: Best BATNA practices

1. Brainstorm a list of alternatives that you might conceivably take if the negotiation doesn't lead to a favorable outcome for you 2. Improve on some of the more promising ideas and convert them to actionable alternatives 3. Identify the most beneficial alternative to be kept in reserve as a fall-back during the negotiation 4. Remember that your BATNA may evolve over time, so keep revising it. 5. Don't reveal your BATNA to the other party, because if your BATNA turns out to be worse, the other party's offer may go down

HOW CAN YOU STIMULATE CONFLICT

1. Encourage people to raise issues and disagree with you or the status quo without fear of reprisal. 2. Assign a Devil's Advocate to stimulate alternative viewpoints. 3. Create a competition among teams, offering a bonus to the team that comes up with the best solution to a problem. Ex. have two product development teams compete on designing a new product and reward the team that achieves highest customer satisfaction rating 4. Build some ambiguity into the process. Ex. freeing individuals to come up with their own ideas on how to complete their tasks

TOOLBOX: Avoiding Common Mistakes in Negotiation

1. Letting Your Ego get in the way: think about why the other person would want to accept the deal, also benefits them 2. Having Unrealistic expectations: establish big enough goals to include the key interests of each party and resolve the specific impasse we are facing. 3. Failing to Negotiate the first offer: try to negotiate the salary instead of always taking the first offer. 4. Getting overly emotional: anger hurts the process, make sure to have good facial expressions so you are more likely to be trusted. 5. Letting Past Negative Outcomes Affect the Present Ones: be aware of the tendency that the past repeats itself so you can overcome it. Examine issues at hand and don't let the past affect you.

Seven Steps to Negotiating a Higher Salary

1. Overcome your fear 2. Get the facts: what are other companies paying people of your position? 3. Build your case: what do you contribute to the company? 4. Know what you want: what to do if you dont get it, is there other alternatives besides a salary increase? Such as a higher title? 5. Begin assertively: Start discussion strong but friendly: I think im worth more... 6. Dont make the first offer: if he insists, be reasonable but leave room 7. Listen more than talk: better the boss will feel about you. get boss to agree to one in a few months if you can't meet one now

positive outcomes of conflicts

1. consideration of a broader range of ideas, resulting in a better, stronger, idea 2. surfacing of assumptions that may be inaccurate 3. increased participation and activity 4. clarification of individual views that build learning

negative outcomes of conflicts

1.increased stress and anxiety among individuals, which decreases productivity and satisfaction 2. feelings of being defeated and demeaned, which lowers individuals' morale and may increase turnover 3. a climate of mistrust, which hinder the teamwork and cooperation necessary to get work done

When all else fails: Third Party Negotiations

Alternative Dispute Resolution (ADR)- Mediation, Arbitration, Arbitration-Mediation

change the structure

Ex. have two departments report to the same executive if intergroup level. matrix structure in which individuals report to multiple people, clearly define the zone of authority

Ways to Manage Conflict

Change the structure, change the composition of the team, create a common opposing force, consider majority rule, problem solve, consider the role of mood

Which style is best

Collaborative works well a lot, but depends on situation. Better to avoid driver who cut you off instead of road rage. Managers prefer forcing, while subordinates more likely to engage in avoiding, accommodating, or compromising

Five Phases of Negotiation

Investigation, Determine your BATNA, Presentation, Bargaining, Closure

Causes of Conflict

Organizational Structure, Limited Resources, Task Interdependence, Incompatible Goals, Personality Differences, Communication Problems

Mediation

Process where an outside third party (mediator) enters the situation with the goal of assisting the parties to reach an agreement. Mediator does not resolve the charge or decision, but rather helps the parties to agree on a mutually acceptable resolution. Process is confidential. Time for a mediator when: 1. parties are unable to find a solution themselves 2. personal differences stand in the way 3. parties have stopped talking with one another 4. need a quick resolution

Incompatible Goals

Two parties think that their goals are mutually exclusive. Ex. sales manager gets bonus for sales made so he may try to offer customers expedited delivery. But the transportation manager's compensation is based on how much money the company saves on transit. Two will butt heads.

effective teams

low but increasing levels of process conflict (how we get things done), low levels of relationship conflict with a rise toward the end of the project (personal disagreements among team members)

arbitration

acts as a judge and makes a binding decision (award) to which the parties must adhere. Award is written, often used in union-management grievance conflicts

Phase 3: Presentation

assemble the information you've gathered in a way that supports your position. determines your value

5 common styles of handling conflict

avoidance, accommodation, compromisng, competition, collaboration

Integrative Approach

both parties look for ways to integrate goals under a larger umbrella. Look for ways to expand the pie so that each party gets more. Step 1. enter negotiation through cooperative stance. 2nd step is listening to develop trust and learn what everybody wants. Then all parties can explore ways to achieve the individual goals.

Limited Resources

competition among people or departments for example, for expensive resources

intrapersonal conflict

conflict that arises in a person. Ex. when you're uncertain about what is expected or wanted Ex. arises because difference in roles. Manager oversees employees work b/c he feels it's necessary, employee views it as evidence of lack of trust

intergroup conflict

conflict that takes place among different groups, such as different departments or divisions in a company, or between union and management, or between companies, such as companies who supply the same customer.

accommodation

cooperative and unassertive; giving into what the other side wants, even if it means giving up on your own personal goals. Fear speaking up HIGH cooperation LOW competitiveness

Phase 4: Bargaining

discuss their goals and seek agreement. making concessions - giving up one thing to get something else in return. Often in the areas of money, time, resources, responsibilities, or autonomy. Ex. pay higher price to receive product sooner KEY: ask questions to why the party has that constraint

communication problems

ex. lost emails, dealing with people who don't return phone calls.

difference in roles

experience conflict from inside because you're confused about how you should perform your job.

create a common opposing force

focus attention on a common enemy such as the competition.

problem solve

focus on the problem not on each other, this process recognizes the rarity of one side being completely right and the other completely wrong

Phase 1: investigation

gathering information, most ignored stage, begins with yourself: What are your goals for negotiation? What do you want to achieve? You will be faced with making choices so know what you want. Ex. negotiating for a new job, what is most valued to you? salary?coworkers I like?

arbitration-mediation

have arbitrator make decision, holds it in sealed envelope, then try to work out with mediator, if can't reach agreement, then the award becomes binding.

collaboration

high on both assertiveness and cooperation. both sides argue for their position, supporting it with facts and rationale while listening attentively to the other side. The objective is to find a win win solution to the problem in which both parties get what they want. Challenge points, not each other. Form alternatives instead of taking sides. HIGH coop and HIGH competitiveness

change the composition of the team

if between team members, separate the personalities that were at odds. -can replace the small group of members if they have widely different styles and values -if ^ not possible, then consider physical layout solution where they are seated side by side.

ADR

includes mediation, arbitration, and other ways of resolving conflicts with the help of a specially trained, neutral third party without the need for a formal trial or hearing.

lack of conflict may be an indicator that individuals do not care about their jobs or the organization, or do not feel comfortable enough with each other to bring up differences

is conflict always bad?

what if not enough conflict

key to keeping the disagreement healthy is to keep the discussion focused on the task and not the personalitites