TWU GLOBALLDSR 400:
MANAGING CONFLICT
Unit #3A: Introduction to Negotiation
©brendaleesasaki2020
LET’S TALK ABOUT CONFLICT, ACCOUNTABILITY & NEGOTIATION1. Are there conflicts that can never be resolved? Explain your answer.
2. “How do we deal with our differences? How do we deal with our deepest differences, given the human propensity for conflict and the human genius at devising weapons of enormous destruction? That's the question.” So why do you think there is so much conflict in the world?
3. What do you think are the greatest global conversations we are having right now in 2020?
4. “When we're involved in conflict, it's very easy to lose perspective. It's very easy to react. Human beings — we're reaction machines. And as the saying goes, when angry, you will make the best speech you will ever regret.” Has this ever happened to you? Explain.
WHAT IS NEGOTIATION?What words or concepts do you think of when you hear the word negotiation?
HERE ARE SOME DEFINITIONS
Fisher & Ury define it this way:
“Negotiation is a back and forth communication designed to reach an agreement when you and the
other side have some interests that are shared and others that are
opposed (as well as some that may be different).”
In her negotiation textbook The Mind and Heart of the
Negotiator, Leigh Thompson refers to negotiation as a
“interpersonal decision-making process” that is “necessary
whenever we cannot achieve our objectives single-handedly.”
And in their book Judgment in Managerial Decision Making, Max H. Bazerman and Don A. Moore write, “When two or more parties need to
reach a joint decision but have different preferences, they negotiate.”
Everyone wants to participate in decisions that
affect them; fewer and fewer people will accept
decisions dictated by someone else.
Typically there are “two ways to negotiate:
soft or hard.
SOFT NEGOTIATOR
The SOFT NEGOTIATOR wants to avoid
personal conflict and so make
concessions readily to reach an
agreement. He or she wants an
amicable resolution; yet often ends up
exploited and feeling bitter.
Photo by Christina @ wocintechchat.com on Unsplash
HARD NEGOTIATOR
The HARD NEGOTIATOR sees any situation as a contest of wills in which the side that takes the more extreme positions and holds out longer
fares better.
He or she wants to win; yet often ends up
producing an equally hard response that
exhausts the negotiator and his or her resources
and harms the relationship with the other
side.
Photo by Charles Deluvio on Unsplash
PRINCIPLED NEGOTIATOR
The method of principled negotiation suggests that you look
for mutual gains whenever possible, and that where your interests conflict, you should insist that the result be based on some fair standards independent of the will
of either side.”
“The method of principled negotiation is hard on the merits, soft
on the people. It employs no tricks and
no posturing.”
PRINCIPLED NEGOTIATOR
Principled negotiation shows you how to obtain
what you are entitled to and still
be decent.
It enables you to be fair while protecting
you against those who would take
advantage of your fairness.
PRINCIPLED NEGOTIATION= WIN-WIN
IT’S A NEGOTIATION!FILM: INTOLERABLE CRUELTY (2003)
THE PROBLEM:
TYPICAL POSITIONAL BARGAINING
DOESN’T WORK
In typical bargaining, each side takes a position, argues for it, and makes concessions to reach a compromise. Or they end up in a battle where no one wins and everyone is frustrated.
So why is this approach flawed?
SO WHAT’S THE
ALTERNATIVE TO
POSITIONAL BARGAINING?
Since we all want o have a part of decision-making…and since we have different desired outcomes…what makes a good negotiation?
In principled negotiation, we use these three criteria to judge whether a negotiation is good:
1. It should produce a wise agreement if agreement is possible.
2. It should be efficient.3. It should improve or at least not
damage the relationship between the parties.”
3 CRITERIA TO JUDGE A GOOD NEGOTIATION
1. WHAT IS A WISE AGREEMENT?
A wise agreement can be defined as one that meet the legitimate interests of each side to the
extent possible, resolves conflicting interests fairly, is
durable, and takes community interests
into account.
BUT OFTEN WE PRODUCE UNWISE OUTCOMES
Arguing over positions produces UNWISE OUTCOMES.
When negotiators bargain over positions, they tend to lockthemselves into those positions.
The more you clarify your position and defend it against attack, the more committed you become to it and less willing to let it go and consider alternatives.
BUT OFTEN WE PRODUCE UNWISE OUTCOMESYour ego becomes identified with your position. You now have a new interest in “saving face” making it less likely that any agreement will wisely reconcile the parties’ original interests.”
“The more attention is paid to positions, the less attention is devoted to meeting the underlying concerns of the parties.”
Agreement then becomes less likely.
2. ARGUING OVER POSITIONS IS INEFFICIENT
In positional bargaining you try to improve the chance that any settlement is favorable to you by starting with
an extreme positions…
“…By stubbornly holding to it, by
deceiving the other party as to your true views, and by making small concessions only as necessary to keep
the negotiation going.”
3. WHAT ABOUT THE ONGOING RELATIONSHIP?
“Arguing over positions
ENDANGERS AN ONGOING
RELATIONSHIP –positional
bargaining becomes a
contest of will and strains and
sometimes shatters the relationship between the
parties.”
WHEN THERE ARE SEVERAL PARTIES INVOLVED…
“When there are many parties, positional bargaining is even worse – the more
people involved in a negotiation, THE MORE
SERIOUS THE DRAWBACKS to
positional bargaining.
But being nice is no answer either.
Many people recognize the high cost of hard positional bargaining,
particularly on the parties and their
relationship.”
Problem Positional Bargaining: Which Game Should You Play
SoftParticipants are friends.The goal is agreement.Make concessions to cultivate the relationship.Be soft on the people and the problem.Trust others.Change your position easily.Make offers.Disclose bottom line.Accept one sided losses to reach agreement.Search for the single answer.Insist on agreement.Try to avoid contest of wills.Yield to pressure.
HardParticipants are advisories.The goal is victory.Demand concessions as a condition of the relationship.Be hard on the problem and the people. Distrust others.Dig into your position.Make threats.Mislead as to your bottom line.Demand one-sided gains as the price of agreement.Search for the single answer.Insist on your position. Try to win a contest of will.Apply pressure.
IS THERE AN ALTERNATIVE?
If you do not like the choice between hard and soft positional bargaining, you can change the game.
“The game of negotiating takes place at two levels. At one level, negotiation addresses the SUBSTANCE; at another, it focuses on the PROCEDURE for dealing with the substance.”
“This method, called PRINCIPLED NEGOTIATION. It can be summarized in
four principles.
These four principles define a straightforward method of negotiation that
can be used under almost any circumstance.
Each principle deals with the basic element of negotiation, and suggests what you
should do about it.
4 PRINCIPLES OF NEGOTIATION
THE 4 PRINCIPLES OF NEGOTIATION
“PEOPLE: separate the
people from the problem.”
“INTERESTS: focus on
interests, not positions.”
“OPTIONS: invent multiple options looking for mutual gains before deciding
what to do.”
“CRITERIA: insist that the
result should be based on some
objective standard.”
Problem Positional Bargaining: Which Game Should You Play
SolutionChange the Game –Negotiate on Principles
SoftParticipants are friends.
The goal is agreement.
Make concessions to cultivate the relationship.
Be soft on the people and the problem.
Trust others.
HardParticipants are advisories.The goal is victory.
Demand concessions as a condition of the relationship.
Be hard on the problem and the people.
Distrust others.
Principled Participants are problem solvers. The goal is a wise outcome reached efficiently and amicably.
Separate the people from the problem.
Be soft on the people and hard on the problem.
Proceed independent of trust.
Soft Hard Principled
Change your position easily.
Make offers.
Disclose bottom line.
Accept one sided losses to reach agreement.
Search for the single answer.
Dig into your position.
Make threats.
Mislead as to your bottom line.
Demand one-sided gains as the price of agreement.
Search for the single answer.
Focus on interests not positions.
Explore interests.
Avoid having a bottom line.
Invent options for mutual Gain.
Develop multiple options to choose from; decide later.
Soft Hard Principled
Insist on agreement.
Try to avoid contest of wills.
Yield to pressure.
Insist on your position.
Try to win a contest of will.
Apply pressure.
Insist on using objective criteria.
Try to reach a result based on standards independent of will.
Reason and be open to reason; yield to principle, not pressure.
WHAT’S A B.A.T.N.A.?
A bottom line in negotiation is the line we draw in the sand and stay stubbornly stuck, not wanting to move or give-in. But that does not serve our interests well.
BATNA: Best Alternative to a Negotiated Agreement is the process of deciding BEFORE a negotiation what it is you really want, what you might be willing to give up and what you would walk away with and feel like your interests and outcomes have been protected.
BATNA helps protect us from accepting an agreement you should reject and rejecting an agreement you feel pressured to accept.
3 STAGES OF NEGOTIATION
THE 3 STAGES OF NEGOTIATION#1. ANALYSIS
During the analysis stage you are simply trying to diagnose the situation – to gather information, organize it, and think about it.
You will want to consider the people problems of partisan perceptions, hostile emotions, and unclear communication, as well as to identify your interests and those of the other side.
THE 3 STAGES OF NEGOTIATION#2. PLANNING
During the planning stage you deal with the same four elements a second time, both generating ideas and deciding what to do. Ø How do you propose to handle the
people problems? Ø Of your interests, which are the most
important? Ø And what are some realistic objectives?
THE 3 STAGES OF NEGOTIATION#3. DISCUSSION
During the discussion stage, when the parties communicate back and forth, the same four elements are the best subjects to discuss.”
LET’S TAKE A DEEP BREATHAND REVIEW NEGOTIATION 101…
Let’s review… Negotiation 101
Photo by Charles Deluvio on Unsplash
Define negotiation
Hard v. Soft v. Win-Win Photo by Christina @ wocintechchat.com on Unsplash
Photo by Jon Tyson on Unsplash
What do we called the method of negotiation that is
a win-win?
PRINCIPLED Negotiation
3 criteria to judge a good agreement
Photo by Tony Hand on Unsplashlash
1. Wise2. Efficient3. Ongoing
Relationship
Photo by Sincerely Media on Unsplash
Four Keys to Principled Negotiation
1. People2. Interests3. Options4. Criteria
BestAlternativeTo aNegotiatedAgreement
Photo by jose aljovin on Unsplash
What is a B.A.T.N.A?
Photo by Diego PH on Unsplash
An open mind is not an empty one.
William Ury
GETTING TO YESUnless otherwise stated, all
material from this lecture are curated from the textbook, Getting
to Yes: Negotiating Agreement Without Giving In (2011).
Fisher, R., Ury, W.L. & Patton, B. (2011). Getting to yes: Negotiating agreement without giving in. New York, NY: Penguin Group USA, Inc.
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AND ROYALTY FREE.