When Negotiations Occur
1. To agree on how to share or divide a limited resource
2. To create something that neither party could do on his or her own
3. To resolve a problem or dispute between the parties
How to approach
1. a. Bargaining: win-lose situation
b. Negotiation: win-win situation
2. While give-and-take process is important, negotiation is a very complex social process;
many of the most important factors that shape a negotiation result do not occur during the
negotiation; they occur before the parties start to negotiate, or shape the context around the
negotiation
3. Three sources draw our insights into negotiation
- Our experience
- Media (TV, Radio, Newspaper)
- The wealth of social science research
Characters of a negotiation situation
1. There are 2 or more parties (2 or more individuals, groups, and organization)
2. There is a conflict of needs and desires between 2 or more parties
3. The parties negotiation by choice
4. When we negotiate, we expect a “give-and-take” process that is fundamental to the
definition of negotiation itself. It could be move toward the "middle" of the position, called
a compromise
5. The parties prefer to negotiate and search for agreement rather than to fight openly, have
one side dominate and the other capitulate, permanently break off contact, or take their
dispute to a higher authority to resolve it. It occurs when the parties prefer to invent their
own solution for resolving the conflict, when there is no fixed or established set of rules or
procedures for how to resolve the conflict, or when they choose to bypass those rules
6. Successful negotiation involves the management of tangibles and also the resolution of
intangible
- Intangibles (it often rooted in personal values and emotions)
a. the needs to “win,” beat the other party, or avoid losing to the other party
b. the need to look “good,” “competent,” or “tough” to the people you represent
c. the need to defend an important principle or precedent in a negotiation
d. the need to appear “fair”, or “honorable” or to protect one’s reputation
Interdependence
The parties need each other in order to achieve their preferred objectives or outcomes. They must coordinate with each other to achieve their own objectives, or they choose to work together because the possible outcome is better than they can achieve by working on their own.
* The relationships between parties:
1. Independent
2. Dependent
3. Interdependent
* Types of interdependent affect outcome
1. Competitive situation: zero-sum or distributive situation
- When the goals of two or more people are interconnected so that only one can achieve the goal
2. Mutual-gains situation: non-zero-sum or integrative situation
- When parties’ goals are linked so that one person’s goal achievement helps others to achieve their goals.
* Alternatives shape interdependence
- Parties choose to work together because the possible outcome is better than what may occur if they do not work together
Mutual Adjustment
- It introduces the ways parties begin to set goals and objectives for themselves in a negotiation and adjust to goals stated by other party in order to emerge with an agreement that is satisfactory to both
* Mutual adjustment and concession making
* Two dilemmas in mutual adjustment
1. the dilemmas of honesty: concerns how much of the truth to tell the other party
2. the dilemmas of trust: concerns how much should negotiators believe what the other party tells them
Value claiming and value creation
1. Claim value: to do whatever is necessary to claim the reward, gain the lion’s share, or gain the largest piece possible.
2. Create value: to find a way for all parties to meet their objectives, either by identifying more resources or finding unique ways share and coordinate the use of existing resources
* The implications for most actual negotiations are a combination of claiming and creating value processes
1. Negotiators must be able to recognize situations that require more of one approach than the other
2. Negotiators must be versatile in their comfort and use of both major strategic approach
3. Negotiators perceptions of situations tend to be biased toward seeing problems as more distributive/competitive than they really are
* The key differences among negotiators
1. Differences in interests: negotiators seldom value all items in a negotiation equally
2. Differences in judgments about the future: people differ in their evaluation of what something is worth or the future value of an item
3. Differences in risk tolerance: people differ in the amount of risk they are comfortable assuming
4. Differences in time preference: negotiators frequently differ in how time affects them
Conflict
- A shape disagreement or opposition, as of interest, ideas, etc. and includes the perceived divergence of interest, or a belief that the parties’ current aspirations cannot be achieved simultaneously.
* Levels of conflict
1. Intrapersonal or intrapsychic conflict
2. Interpersonal conflict
3. Intragroup conflict
4. Intergroup conflict
* Functions and dysfunctions of conflict
1. conflict is an indication that something is wrong, broken, or dysfunctional
2. conflict create largely destructive consequences
* The elements that contribute to conflict’s destructive image:
1. Competitive, win-lose goals
2. Misperception and bias
3. Emotionality
4. Decreased communication
5. Blurred issues
6. Rigid commitments
7. Magnified differences
8. Escalation of the conflict
* Conflict diagnostic model
- to measure factors that make conflict easy or difficult to manage
* Effective conflict management
1. two-dimensional framework (dual concerns model)
a. concern about their own outcomes(horizontal dimension)
b. concern about the other’s outcomes (vertical dimension)
2. five strategies
a. contending (competing or dominating)
b. yielding (accommodating or obliging)
c. inaction (avoiding)
d. problem solving (collaborating or integrating)
e. compromising
By Debby (YiYu Chen)
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