Conflict and Negotiation - PowerPoint PPT Presentation

Loading...

PPT – Conflict and Negotiation PowerPoint presentation | free to download - id: 3c27a6-MDllO



Loading


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation
Title:

Conflict and Negotiation

Description:

Conflict and Negotiation John Daly University of Texas (512) 471-1948 daly_at_mail.utexas.edu Basic Forms of Conflict POTENTIAL NEGATIVE EFFECTS Decreased performance ... – PowerPoint PPT presentation

Number of Views:426
Avg rating:3.0/5.0
Slides: 198
Provided by: utexasEdu9
Learn more at: http://www.utexas.edu
Category:

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: Conflict and Negotiation


1
Conflict and Negotiation
John Daly University of Texas (512)
471-1948 daly_at_mail.utexas.edu
2
Understanding Conflict
Conflict is an expressed struggle (communication)
between interdependent parties who perceive
incompatible interests/goals, scarce resources,
and interference from the other. It emerges when
disagreements, differences, annoyances,
competition, or inequities threaten something
important to one or both parties. It is neither
good nor bad only the results can have good or
bad outcomesa
Hocker Wlmot, Interpersonal Conflict Beer
Stief, The Mediators Handbook
3
Understanding Conflict
When two men in business always agree, one of
them is unnecessary William Wrigley
4
Understanding Conflicts
  • There are different sorts of conflicts
  • Substantive
  • Procedural
  • Affective

Disagreements
Conflicts
Conflict is common (Managers spend 20 of time
managing conflict)
5
Basic Forms of Conflict
FORM
CORE MEANING
Goal conflict
Incompatible preferences
Cognitive conflict
Incompatible thoughts
Affective conflict
Incompatible feelings
Procedural conflict
Incompatible views on process
6
THECONFLICT PROCESS
Persons Conceptualization of Conflict
7
POTENTIAL NEGATIVE EFFECTS
  • Decreased performance
  • Reduces cohesion
  • Dissatisfaction
  • Aggression hostility
  • Anxiety
  • Wasted time
  • Wasted energy
  • Reduced efficiency

8
POTENTIAL POSITIVE EFFECTS
  • Identifies issues of import to others
  • Leads to new ideas Stimulates creativity
  • Resolution of underlying problems
  • Enhancement of group vitality and development
  • Intergroup conflict can increase within-group
    cohesion
  • Aids individuals, groups, and organizations in
    establishing identity
  • Releases tension serves as a safety valve
  • Facilitation of needed change

9
WHY CONFLICT OCCURS
  • Worker needs/values clash
  • Personality
  • Poorly defined job responsibilities
  • Scarce resources
  • Job design
  • Different people have different information
  • History
  • Differing goals
  • Organizational structure
  • Culture differences

10
CONFLICT INTENSIFIES WHEN
  • Issues are important
  • Issues require large changes
  • Major losses are predicted
  • Too many threats have been made
  • Public attention
  • High investment in status quo
  • Participants are involved
  • Participants have history
  • Surprises
  • Unilateral
  • Negative Affect

11
Symptoms of Internal Conflicts
  • Rapid escalation of minor conflicts
  • Self-imposed isolation
  • Breakdowns in communications
  • Use of intimidation
  • Formation of cliques
  • Manipulative behaviors
  • Unproductive and destructive criticisms

12
Causes of Internal Conflicts
  • Lack of consensus-building skills
  • Disagreements on agendas and priorities
  • Power imbalances within the team
  • Differences in communication styles
  • Inability to detect the onset of conflict
  • Lack of conflict-managing skills
  • Ambiguous roles and responsibilities

13
Some Faulty Assumptions About Organizational
Conflict
  • Conflict is avoidable
  • Conflict is the result of personality problems
    within the organization
  • Conflict produces inappropriate reactions by the
    persons involved
  • Conflict creates a polarization within the
    organization

14
Progressive Stages of Conflict
Latent Conflict
Perceived Conflict
Felt Conflict
Manifest Conflict
Conflict Aftermath
15
Understanding Conflict
Use Different Styles When Handling Conflict
16
When I have a conflict at work, I do the
following
1 2 3 4 5 1. I give in to the wishes of
the other party. 1 2 3 4 5 2. I try to
realize a middle-of-the-road solution. 1 2 3 4
5 3. I push my own point of view. 1 2 3 4
5 4. I examine issues until I find a
solution that really satisfies me and the other
party. 1 2 3 4 5 5. I avoid a
confrontation about our differences. 1 2 3 4
5 6. I concur with the other party. 1 2 3
4 5 7. I emphasize that we have to find a
compromise solution. 1 2 3 4 5 8. I
search for gains. 1 2 3 4 5 9. I stand
for my own and others goals and interests. 1 2
3 4 5 10. I avoid differences of opinions
as much as possible. 1 2 3 4 5 11. I try
to accommodate the other party. 1 2 3 4 5
12. I insist we both give in a little. 1 2 3 4
5 13. I fight for a good outcome for
myself. 1 2 3 4 5 14. I examine ideas
from both sides to find a mutually optimal
solution. 1 2 3 4 5 15. I try to make
differences seem less severe. 1 2 3 4 5
16. I adapt to the other partys goals and
interests. 1 2 3 4 5 17. I strive
whenever possible towards a fifty-fifty
compromise 1 2 3 4 5 18. I do everything
to win. 1 2 3 4 5 19. I work out
solutions that serves my own as well as the
others interests as much as possible. 1 2 3
4 5 20. I try to avoid a confrontation with
the other
Source De Dreu, et. Al. J. Org Behav, 2001
17
20
16
12
8
Avoiding
Accommodating (Yielding)
Compromising
Collaborating (Problem Solving)
Competing (Forcing)
18
CONFLICT MANAGEMENT STYLES
Collaborating (Problem Solving)
Accommodating (Yielding)
Concern For Other (cooperative)
Compromising
Competing (Forcing)
Avoiding
Concern for Self (assertive)
19
What is your preferred style of managing
conflict? ___ avoiding ___ accommodating
(yielding) ___ collaborating (problem
solving) ___ competing (forcing) ___
compromising How does that style help you
successful manage conflict? Does it hinder
you? If so, how?
20
COMPROMISING
  • Point out to the other person that if you both
    will make a few concessions, the conflict can be
    resolved quickly
  • Point out that if the disagreement is to be
    resolved, some sacrifices must be made by both of
    you
  • Use when
  • Goals are important but not worth the effort or
    potential disruption of more assertive modes
  • Opponents with equal power are committed to
    mutually exclusive goals
  • It is desirable to achieve temporary settlements
    to complex issues
  • Time pressures necessitate expedient solutions
  • Collaboration or competition is unsuccessful
  • Agreement enables each party to be better off, or
    at least not worse off, than without an agreement
  • Achieving a total win-win agreement is not
    possible

21
COMPETING (FORCING)
  • Pursue your goals regardless of the other
    persons concerns
  • Make the first move, gain control, and maximize
    chances of obtaining your demands
  • Prolong discussion until the other person gives
    in to your approach for handling the problem
  • Use when
  • Quick, decisive action is vital (e.g.,
    emergencies)
  • Unpopular actions on important issues must be
    implemented (e.g., cost cutting, enforcing
    unpopular rules, discipline)
  • You know you are right regarding issues vital to
    the organizations welfare
  • People will take advantage of noncompetitive
    behavior
  • Need to protect yourself

22
COLLABORATING (PROBLEM SOLVING)
  • Determine where each of you stands identify
    options available to meet both parties needs
  • Suggest combining your ideas with the other
    persons ideas to make an even more workable idea
  • Express concern for the differences between you
    let the other person know you want a resolution
    that satisfies both of you
  • Use when
  • An integrative solution must be found because
    both sets of concerns are too important to be
    compromised high interdependency
  • Your objective is to learn
  • Potential for long-run mutual benefit
  • Parity in power
  • Insights from people with different perspectives
    should be merged
  • Commitment can be gained by incorporating
    concerns into a consensus
  • It is desirable to work through feelings that
    have interfered with a relationship

23
AVOIDING
  • Downplay the seriousness of the problem Lets
    not waste time with the matter.
  • Tell the other person that the problem does not
    concern you
  • Explain that there is no point in trying to
    resolve a conflict between two people with such
    basically different personalities
  • Use when
  • An issue is trivial or more important issues are
    pressing
  • You lack sufficient information
  • You perceive no chance of satisfying your
    concerns
  • Potential disruption outweighs the benefits of
    resolution
  • People must cool down to regain perspective
  • Other party has more power
  • Gathering information supersedes immediate
    decision
  • Others can resolve the conflict more effectively
  • Issues seem tangential or symptomatic of other
    issues

24
ACCOMMODATING (YIELDING)
  • Offer to handle the problem any way the other
    person wants
  • Go along with whatever the other person requests,
    rather than get into the difficulties of direct
    confrontation
  • Use when
  • You find you are wrong or you are outmatched and
    losing (minimizes losses)
  • You wish to allow a better position to be heard
  • You wish to learn
  • You need to defuse a potentially explosive
    situation
  • You wish to show your reasonableness
  • Conflict is primarily personality-based
  • Issues are more important to others than to you
  • You wish to satisfy others
  • You need to maintain cooperation and harmony
  • It is desirable to build social credits for later
    issues
  • It is desirable to allow others to develop by
    learning from mistakes

25
Understanding Conflict
Resolving Conflicts
26
Some Ineffective Techniques for Dealing with
Conflict
Nonaction Doing nothing in hopes that a conflict
will disappear Secrecy Attempting to hide a
conflict or an issue that has the potential to
create conflict Administrative orbiting Delaying
action on a conflict by buying time Due process
non-action A procedure set up to address
conflicts that is so costly, time-consuming, or
personally risky that no one will use
it Character assassination An attempt to label
or discredit an opponent
27
Some Presumptions About Normal Conflict
  • Each party has goals they believe are important
    and reasonable
  • Each side has something they want to say and be
    heard
  • Emotions can block rational thinking
  • The more stressed parties become, the more they
    will highlight points of disagreement
  • Both parties cannot talk at the same time

28
Should You Get Involved in a Conflict?
  • Is the conflict affecting my performance or my
    teams performance?
  • there is strong debate over an issue?
  • there are subgroups forming over the issue?
  • one or more team members is acting undesirably?
  • team progress is being held up?
  • What are the consequences if conflict is not
    resolved?
  • for me?
  • for the team?
  • for others?
  • Am I comfortable and skillful about engaging in
    the conflict
  • Who else needs to be involved in managing
    conflict

29
From S. Beebe
30
Understanding Conflict
Establish Common Ground by Setting Ground
Rules - how you want to talk to each other
about issues - confidentiality - reprisals -
time commitments and logistics - importance of
keeping commitments
Hocker Wlmot, Interpersonal Conflict
31
Understanding Conflict
Establish Common Ground by Emphasizing
Commonalities - values - preferences -
similarities
Hocker Wlmot, Interpersonal Conflict
32
Understanding Conflict
Establish Common Ground by Emphasizing Mutual
Purpose - discover mutual purpose - create a
mutual purpose
33
Understanding Conflict
  • Fractionate
  • In conflicts, issues get lumped and tend to
    expand. You need to break the conflict issue
    into manageable units and generate ways to solve
    these individual issues
  • What part of the problem is most important to
    you right now?
  • That is certainly an important related issue,
    but we will have better luck taking them one at a
    time. What was the first one again?
  • Okay, now, we have many concerns on the table.
    We will go through them all. Lets start with the
    most straightforward ones first. Lets begin with
  • Whew! We have a bundle of issues before us. Can
    either of you see ways we can group them into 3
    or 4 major issues to take one at a time?

Yarbrough Wilmot, Mediation at Work
34
Understanding Conflict
Reframe Your Language Avoid adversarial
language conflicts
strugglesproblemschallenges
negotiation
discussions
positions
viewpoints
Why does John have to nit-pick our
agreement _______________________________________
_______________ __________________________________
____________________
Yarbrough Wilmot, Mediation at Work
35
Understanding Conflict
Reframe Your Complaints Into Requests
Complains threaten people requests are things
they can work with He is sexist I want a
higher visibility job assignment She betrayed
me I want clearer expectations on projects
You never let me alone _________________________
_________________________________________________
____________________________
Yarbrough Wilmot, Mediation at Work
36
Understanding Conflict
Reframe Into Super-ordinate Goals
Take a dispute and reframe it into interests the
parties share She is always making the
decisions How can we keep everyone
meaningfully involved in decision-making?
You keep saying you cant pay me anymore and
keep the company running ________________________
__________________________________________________
______________________________
Yarbrough Wilmot, Mediation at Work
37
Understanding Conflict
Use Neutral Language
Name the behaviors, consequences, or subjects
without characterizing them Your desk is a
disgraceful mess One issue is how neat the
office should be Dont your dare trespass on
my property again Property boundaries are an
issue
I wont cooperate with your underhanded, shoddy
business practices! _____________________________
__________________________________________________
_________________________
38
Understanding Conflict
Resist Counter-arguing
Our natural tendency is to respond, in-kind.
Dont. Remember your goal
39
Understanding Conflict
Raise the Issue in a Sensitive Manner
  • Be willing to describe their emotion You seem
    (upset, irritated, anger)
  • Affirm their emotion (You have a right to be
    upset if you thought I was being too pushyId
    feel the same way of I thought you being too
    pushy)
  • Use X-Y-Z (When you do X, in situation Y, I feel
    Z)
  • When you raise your voice
  • When we are trying to talk
  • I feel overwhelmed

40
Understanding Conflict
Start with points of agreement
Always go through the issues and identify points
of agreement. Reinforce those agreements
constantly. Save the points of disagreement until
the end.
41
Understanding Conflict
Work to assume good will
  • What is my role in the problem what have I
    caused?
  • Why would a normal person do (ask) what this
    person is doing (asking)?

People have good reasons to do what they do
Patterson, et al. 2002
42
Understanding Conflict
Understand and then act
  • What do I really want? For me? For others? For
    the relationship?
  • What would I do right now if I really wanted the
    result?
  • What do I not want?
  • How do I insure that what I do not want does not
    occur?
  • Remember the costs focus on rewards

Patterson, et al. 2002
43
Understanding Conflict
Separate Facts from Stories, Intuitions, and
Biases
  • What do you really know?
  • What are the facts?
  • How do I separate facts from stories and
    intuitions?

Patterson, et al. 2002
44
Understanding Conflict
Depersonalize
Insure that the conflict is about issues, not
people dont view the other person as an
opponent. Watch the vocabulary Your idea is
really stupid Im not sure I understand the
idea I dont like the tone of your
voice Help me out, can you explain this to me
again
45
Check each of the words below that gets and
emotional reaction from you. That is, when you
see or hear these words, you react in a less than
neutral manner.
  • You should
  • Youve Failed
  • Slow Poke
  • Why Cant You
  • You Must
  • You Do This All The Time
  • What You Need Is
  • You Never
  • You Claim
  • You Always
  • Thoughtless
  • You Have To
  • Every Time You
  • Do It Now
  • You Work For Me

46
Understanding Conflict
Manage the Setting
Dont engage in conflict when tired, pressured,
or feeling hostile. Choose a setting that aids
you in leveling the intensity of conflict. Timing
is everything. When tension arises, move to
procedural issues
47
Understanding Conflict
Involve a Third Party
A mutually agreed 3rd party can aid both sides in
handling conflict
48
Understanding Conflict
Dont Make Them Defensive
  • Dont evaluate (I feel you criticized me)
  • Dont control them (I feel manipulated)
  • Dont act superior (You told me you knew more
    than I did and more than you really did)
  • Dont see only your side (Im right my idea is
    the only truth)

49
Understanding Conflict
Make a Public Concession Early-On
  • make it clear you are making the concession as a
    good will effort
  • state that your goal is to reduce conflict
  • invite reciprocity

50
Understanding Conflict
Emphasize an Integrative Style
  • Avoidance Dont address the conflict explicitly
    (ignore, shift to different issue)
  • Distributive Confrontational get the other
    side to concede
  • demand
  • persistently argue
  • take control of conversation
  • Integrative Cooperative behavior to pursue
    mutually favorable resolution

51
Understanding Conflict
Creative Thinking
  • The two solution rule Come up with at least two
    suggestions that you could personally live with
  • Try an unexpected approach..shake things up
    (e.g., lets imagine all the solutions that
    wouldnt work)
  • Take other players perspectives

52
Negotiating
53
What is negotiation?
An interaction between two or more
interdependent parties in which at least one
party tries to influence at least one other party
to behave in a particular way
54
Preconceptions Realities
  • Preconception I can only negotiate in
    environments in which it is explicitly allowed
    (e.g. car, house, job).
  • Preconception To be successful, I must
    negotiate tough and try to intimidate the other
    side. I will often have to behave unethically.
  • Preconception When the other side gains, I
    usually lose and vice versa.
  • Preconception Negotiation skills only apply to
    business-type situations.
  • Preconception I dont have what it takes to be
    a good negotiator.
  • Preconception Negotiation takes more work than
    simply going along

55
Why didnt I negotiate?
Some poor excuses 1) I didnt know it was an
option. 2) I feel uncomfortable negotiating.
3) My counterpart has no authority.
More defensible rationale 4) I don't want to
undermine my relationship. 5) I approve of the
norm against negotiating. 6) The issue is too
trivial or unimportant.
56
What Makes A Good Negotiator?
  • Good Negotiators
  • Assertive
  • Rational
  • Decisive
  • Constructive
  • Intelligent
  • Poor Negotiators
  • Weak
  • Emotional
  • Irrational
  • Too Conciliatory

Are there gender differences in negotiator
effectiveness?
57
Organizational Questions
  • Are there more than two parties?
  • Is there more than one issue?
  • Are the parties monolithic?
  • Is ratification required?
  • Are the negotiations private or public?
  • Is third-party intervention possible?
  • Is the game repetitive?
  • Is an agreement required? Are threats possible?
  • Are there time constraints or time-related
    costs?
  • Are contracts binding?
  • What are the group norms?

58
(No Transcript)
59
  • What are the responsibilities of a negotiator?
  • Obtain the best deal he or she canthe biggest
    share of the pie.
  • Seek all the joint gains or mutual gains
    availablemake sure the pie is as large as it
    can possibly be.
  • Help manage the relationship between the parties
  • Help manage the relationship between the
    negotiating team and its constituents.

60
Preparing to Negotiate
61
BATNA Negotiating Power An Illustration From
the Internet anactual radio conversation of a
US naval ship with Canadian authorities off the
coast of Newfoundland in October, 1995.
Americans Please divert your course 15 degrees
to the North to avoid a collision. Canadians
Recommend you divert YOUR course 15 degrees to
the South to avoid a collision. Americans
This is the Captain of a US Navy ship. I say
again, divert YOUR course. Canadians No.
I say again, you divert YOUR course. American
s This is the aircraft carrier USS Lincoln,
the second largest ship in the United States
Atlantic fleet. We are accompanied by three
destroyers, three cruisers and numerous support
vessels. I demand that you change your course 15
degrees north, that's one five degrees north, or
counter-measures will be undertaken to ensure the
safety of this ship. Canadians This is
a lighthouse. Your call.
62
  • Preparation is Everything
  • Know what you want
  • Know what the other side wants
  • Know what you can give on
  • Know what the other can give on
  • Know what you can get without negotiating
  • Know the image the other person wants to
    maintain
  • Know you shared interests

63
Negotiation Preparation
I want
I can give
You want
You can give
64
Approaches to Negotiation
65
  • Positional Negotiation
  • a position is a single answer or solution to a
    problem, one which the other party may or may not
    be able to accept

Negotiation Approaches
  • Interest-Based Negotiation
  • an interest is a need or concern regarding a
    problem or issue, which might be solved or
    resolved by a variety of solutions, some of which
    will be acceptable to both parties

66
Positional Negotiating
  • Use when
  • resources are limited
  • there is competition over the resources
  • the resources are assumed to be fixed
  • a party wants to maximize his/her share
  • interests are not interdependent, are
    contradictory, or are mutually exclusive
  • current or future relationships have a lower
    priority than immediate substantive gain

67
Positional Negotiating
  • Assumptions
  • the pie is limited
  • you should get the biggest piece or (when
    powerless) minimize losses
  • a win for me a loss for you
  • we are opponents
  • there is a best solution.mine!
  • I must stay on the offensive
  • a concession is a sign of weakness

68
Positional Negotiating
  • Characteristics
  • Large initial demands open with an extreme
    position
  • Low level of disclosure
  • Use tactics to keep the other party off balance
    (e.g., bluffing, threats)
  • Argue merits of your position, defending it from
    attack by the other party
  • Discredit the positions and claims of the other
    party
  • Trade concessions Each concession should be
    matched with a concession from the other side
  • Incremental concessions
  • Hard on peopledifficult for relationship

69
Positional Negotiating
  • How to do positional bargaining
  • Preparation
  • Determine your bottom line (Reservation Price)
    If you cannot achieve a price that is at least
    as good as your RP, you should not agree to a
    deal
  • Know your BATNA (Best alternative to negotiated
    alternative) This is your most preferred course
    of action if negotiations break down Try to
    improve it
  • Try to figure out the opponents bottom line
    Try to figure out their BATNA
  • Set a goal or aspiration that is optimistic but
    not absurd
  • Determine opening offer It should be a)
    significantly better than your reservation price
    (leaving room for concessions) and b) not so
    extreme that you lose credibility
  • Think of what objective standards might be
    acceptable to the other party

70
Positional Negotiating
  • Parties propose solutions to one another and
    make offers and counteroffers until they reach a
    solution that is acceptable to both

A
B
C
X
Y
1
8
5
2
4
3
9
7
6
10
Z
Negotiating Range
X Party As target Y Party As resistance
point Z Party As acceptable options
A Party Bs resistance point B Party Bs
target C Party Bs acceptable options
71
Bargaining Zone Analysis
B5
S5
S2
S3
S4
S1
B1
B2
B3
B4
200K 225K
232K
260K
zopa
S1 The listing price is 260K.
B1 Thats much higher than I can afford. But I
could manage 200K
S2 You must be joking! I mean, I could go as
low as 250K, but.
B2 Well, what if I were to come up to 212K?
S3 Well, if you are able to move quickly on
this, I guess I could sell for 244K
B3 Thats kind of you, but still high compared
to comparables. How about 219?
S4 No, but were getting closer... My wifell
kill me--but what if we say 240K?
B4 It would really be hard for me to go any
higher than 224K
S5 I shouldnt do this...but were so close.
Why not split the difference at 232K?
B5 Well.alright, you have yourself a deal!
72
Positional Negotiating
  • How to do positional bargaining
  • Negotiation Session
  • Start with high opening position (that can be
    justifieddont lose your credibility by too
    extreme an opening)
  • Use offers/counteroffers to get bargaining range
  • Arrive at a compromise
  • A good predictor of the final outcome is the
    mid-point between each partys opening bid,
    provided this falls within the ZOPA.
  • People are more sensitive to your willingness to
    make concessions than they are to the
    reasonableness of your opening bid
  • People are more sensitive to the rate of
    concessions than they are to the magnitude of
    those concession

73
  • Have some planned concessions (some ready for
    deadlocks a sequence for making them at closing
    this is rewards other)
  • Use the norm of reciprocity to your advantage.
    Avoid making unilateral concessions
  • Offer a reason for each concession
  • Be patient. Dont give in too easily. Make each
    concession painful stress that your ability to
    concede is limited
  • Be wary of fair solutions proposed by the
    other side. Note that we are all self-interested
    in choosing fairness norms.
  • Trade in different currencies (price, quality,
    time guarantees). The more you have, the more
    bargaining power you have you can make false
    concessions by trading in unimportant currencies
  • Use imposition from above (boss requires me to
    go no further). You would like to but your
    company wont permit it
  • Never gloat or reveal your true reservation
    price after a deal!

74
Cialdinis Tactics of Influence
Reciprocation--We should repay, in kind, what
another person has provided us. 1)
Favors and gifts 2) Reciprocal
concessions a) negotiation norm b)
rejection-then-retreat a.k.a. door-in-the-face
  • When negotiating
  • Leave yourself room to make concessions.
  • Dont accept extreme first offers as a legitimate
    starting point.
  • Determine your reservation price in advance.
  • Anticipate the feeling of obligation that comes
    with accepting favors or gifts ask yourself
    whether you think it is relevant.

75
Cialdinis Tactics of Influence
Commitment and Consistency--Once we make a choice
or take a stand, we will encounter personal and
interpersonal pressures to behave consistently
with that commitment. 1) public commitments
(e.g., statement of principles) 2) minimal
commitments (e.g., foot-in-the-door
tactic) 3) large commitments (e.g., low-ball
tactic)
  • When negotiating
  • Remember that any kind of commitment, however
    small may cause you to feel pressure to remain
    consistent.
  • Be careful when choosing to endorse a
    principle.
  • Remember that even innocent requests can be
    leveraged into large commitments.
  • Again, choose a reservation price in
    advance--and stick to it!

76
Cialdinis Tactics of Influence
Social Proof--We view a behavior as correct in a
given situation to the degree that we see others
performing it. 1) We are especially
susceptible in unfamiliar situations. 2) We
more often follow the example others similar to
ourselves.
  • When negotiating
  • Be on your guard dont mindlessly follow the
    example of others.
  • Do your homework prepare so that you are
    familiar with the relevant norms of appropriate
    behavior. Role-play if needed.
  • Remember that standard industry practices, past
    precedents, etc. can be persuasive rationale to
    your counterpart.

77
Cialdinis Tactics of Influence
Liking--We prefer to say yes to people we know
and like. Factors that facilitate liking
include a) physical attractiveness b)
similarity c) compliments d)
familiarity e) cooperation f) humor
  • When negotiating
  • Be likeable!
  • Cultivate a positive relationship.
  • Be wary of insincere attempts to leverage liking.

78
Cialdinis Tactics of Influence
Authority--We are more likely to accede to the
request of a perceived authority
figure. 1) Authority is a powerful
source of influence! (Milgram study) 2)
Symbols of authority include titles, clothing,
and other trappings
  • When negotiating
  • Dont allow yourself to be intimidated!
  • Be authoritative prepare thoroughly, dress and
    act the part.
  • Leverage the authoritative power of others
    (e.g., studies, experts)

79
Cialdinis Tactics of Influence
Scarcity--Opportunities seem more valuable when
they are less available. 1) People react
against threats to their freedom to choose. 2)
This can be manipulated through a) time
limits b) limited supply c) decreasing
supply d) competition
  • When negotiating
  • Set your reservation price in advance!
  • If you have a weak BATNA, try to improve it If
    you have a strong BATNA, let your counterpart
    know! (careful, this could backfire).

80
How Bill Collectors Negotiate The pause. People
are uneasy about silence. When people pause,
customers are likely to offer a proposal to
pay Dont ask, tell. We need to know when we
can expect this payment. Request the full
amount owed. Negotiate from the full amount down
Interview with Kim Cattani in Effective
telephone techniques, 2001, Dartnell Corporation,
sample issue p. 4.
81
  • Some tactical moves in positional bargaining
  • make the first offer (it anchors the
    negotiation)
  • dont accept the first offer
  • do homework about the alternative available to
    the other (principles of alternatives)
  • dont disclose your limits (low or high)
  • dont disclose your desires (principle of least
    interest)
  • discover a weakness (flaw) with the product and
    use that do lower the value
  • ask why? for the price
  • act stupid
  • use status
  • hint at long term, large and frequent business
  • use multiple levels of authority (at every
    level, negotiation happens)
  • frame the range of negotiation (we will only
    talk about X)
  • sell in units, buy as total
  • patience is everything (time pressure forces
    negotiation)
  • use limits set by others that you cannot
    change

82
  • Some tactical moves in positional bargaining
  • make last minute claims (when the other side
    assumes the negotiation is done)
  • be aggressive and emotional
  • use deadlines

83
Using Time in Positional Negotiation
Two sorts of time pressure in negotiation Time
costs penalties negotiators pay for continued
negotiation (e.g., opportunity costs, cost of
bargaining agents (e.g., attorneys), strikes) -
when you face larger time costs, you get a
smaller share of the negotiated outcome (lower
aspirations, more concessions, opponent threatens
delay when they know the costs) Principle Dont
let the other side know your time costs Time
constraints a final deadline beyond which
agreement I no longer possiblewhen one leaves,
there is no more negotiation (budget calendars,
tenure clocks, timed explosives) - when you you
believe seller has time constraints, you are more
likely to offer more Principle If you know
there is a final deadline, let the other side know
84
Other findings on time and negotiation People
prefer to space out good outcomes over time and
dispense with bad outcomes quickly. People who
get impatient with delays give more away thus,
if you can force an impasse, the other side may
concede more.
85
Interest-Based Negotiating
  • Starts with building and/or preserving the
    relationship(s)
  • Parties educate each other about their needs,
    and then jointly problem solve on how to meet
    those needs
  • Begins with agreements-in-principle general
    levels of agreement that outline the parameters
    within which the final agreement will be forged
  • There are many kinds of interests
  • substantive the resources at stake (e.g.,
    money, time, people, goods)
  • procedural needs for specific kinds of behavior
    or the way something is done
  • psychological needs referring to how one feels,
    how one is treated, the conditions of the
    relationship
  • values shared values that can be agreed upon to
    guide the continuation of the relationship

86
Interest-Based Negotiating
  • Use when
  • interests are interdependent
  • it is unclear there is a fixed pie when all
    options to increase the pie are exhausted
  • future relationships matter (i.e., interests
    other than substantive are important)
  • joint exploration of individual interests can
    result in shared interests
  • when more than two parties are involved

87
Interest-Based Negotiating
  • Assumptions
  • the pie is not limited
  • the goal is win/win
  • the needs of all parties must be addressed to
    reach agreement
  • we are cooperative problem-solvers
  • the values that guide us really matter
  • the relationship is important
  • there are probably several satisfactory solutions

88
Interest-Based Negotiating
  • How to do interest-based bargaining
  • Preparation
  • Identify your interests/needs and the values at
    stake
  • Speculate on the other partys interests/needs
    and valuesnot their positions
  • Consider the interests that both sides in the
    negotiation are trying to satisfy. Include both
    tangible and intangible interests. Consider each
    issue in terms of interests
  • Identify your BATNA (Best Alternative To
    Negotiated Alternative)
  • what will you have if you dont reach agreement?
  • will what you have if you dont reach agreement
    be better than what you get if you do reach
    agreement?
  • Try to understand the others BATNA

89
Interest-Based Negotiating
  • How to do interest-based bargaining
  • Preparation
  • Consider the relative attractiveness of outcomes
    to both you and your counterpart. Consider
    constructing a point scheme. Which issues that
    are congruent? Which might be tradable?
  • Think about differences (in beliefs, risk
    preferences, time preferences, and production
    capabilities or talents) that might provide joint
    gain. Add issues to the mix or construct a
    contingent contract, if necessary
  • Set in advance a reservation price or a
    minimally acceptable package.
  • Think in advance about possible multiple issue
    packages that will be attractive to both you and
    your counterpart
  • Plan your opening. Think about supporting
    arguments that address your counterparts
    interests and might also be perceived as fair.

90
Interest-Based Negotiating
  • How to do interest-based bargaining (contd)
  • Negotiation Session
  • Begin with the relationship (rapport and tone)
    Build trust and share information in the early
    stages of negotiation
  • State the purpose of the negotiation
  • Become a master questioner. Ask questions of
    your counterpart to help you determine their
    interests. Listen to their answers
  • Begin by educating each other on interests
    (disclose and listen) delay talking about
    solutions
  • Be firm about concerns be flexible about
    positions

91
Interest-Based Negotiating
  • Questions to discover interests
  • What is important to you?
  • Can you help me understand why thats important?
  • What concerns you about the situation?
  • How does ____ affect you?
  • ____ matters a lot to you---is that right?
  • Is there something you think that (the other
    party) doesnt understand about your situation?

From Beers Stief, 1997
92
Interest-Based Negotiating
  • How to do interest-based bargaining (contd)
  • Negotiation Session
  • Define problem jointly, to meet both parties
    needs. How can we ___ and also ___?
  • Search for shared values
  • Find agreement at the highest level of
    abstraction
  • Look for ways to expand the pie (create value
    before you claim value)
  • Consider making multiple offers simultaneously
    Do you prefer package x or package y?
  • Jointly problem solve on how to meet both sets
    of needs

93
Interest-Based Negotiating
  • How to do interest-based bargaining (contd)
  • Negotiation Session
  • Generate multiple options for settlement if you
    get stuck, go back and review what peoples
    interests are
  • Evaluate the options (how well do they meet
    needs?) Remember your BATNA
  • Select/modify options based on which ones meet
    needs most (look for the elegant solution)
  • Develop a plan to implement who, what, where,
    when, why, how?
  • After youve reached a tentative agreement,
    dont stop there. Search for possible
    post-settlement settlements that would make both
    sides better off

94
Interest-Based Negotiating
  • How to do interest-based bargaining (contd)
  • Negotiation Session (contd)
  • separate people from the problem or issue
  • focus on interests, not positions
  • invent options for mutual gain
  • insist on using objective criteria

95
From Beer and Stief, 1997
96
In interest based negotiating you are firm about
your interests (concerns) and flexible about your
positions
97
Moving from Positional to Interest-Based
Negotiating
  • Ignore positions and keep on talking and
    listening for interests
  • Do not ask for specific solutions in the
    negotiation stick to the general
  • Do not respond to positional moves with
    counter-positions
  • Ask why a position is important to the party.
    Try to identify underlying interests
  • Verbalize and, if possible, make interests
    explicit
  • Separate substantive, procedural, and
    psychological interests contained in a stated
    position
  • Look for general principles behind positions to
    which both parties can agree
  • Reframe problem as a search for means to satisfy
    interests rather than a way to persuade the other
    party to agree to a position
  • Reframe the problem to emphasize commonality of
    interests or the possibility of joint gains. Say
    you want to look for solutions that are
    advantageous to all parties. Do not expect the
    other parties to hear you the first time you say
    it, especially if you are more powerful

98
Moving from Positional to Interest-Based
Negotiating
  • Separate the problem from the people involved
  • Ask for principles by which to evaluate
    positions offered
  • Respond with several counter-positions and
    suggest that all merit further investigation to
    see how they meet the parties interests
  • Do not negotiate the use of interest-based
    bargaining procedures using position-based
    bargaining tactics
  • If you are clearly more powerful, expect the
    other to assume you are pursuing only your
    self-interests
  • If you are clearly less powerful, you can choose
    not to behave in a dependent/powerless manner
  • If you are more powerful, dont expect the
    others to initially believe you
  • When you are close to agreement about meeting
    each others interests, look for an objective
    criteria to measure satisfaction of those
    interests
  • When there are more than two parties, exploring
    interests is very hard
  • When you can lead from the middle, you have a
    higher probability of maximizing your gains

99
Change the Game Negotiate on Merits
  • 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
  • the conflicts needs to be solved not a person
    to be manipulated
  • Focus on interests not positions
  • explore interests
  • emphasize what you have in comments
  • avoid having a bottom line
  • Invent options for mutual gain
  • develop multiple options to choose from decide
    later
  • Insist on using objective criteria
  • try to reach a result based upon standards
    independent of will
  • yield to principle not pressure

100
(No Transcript)
101
(No Transcript)
102
Classifying Issues in a Negotiation
Congruent Distributive
Integrative
win/win multiple convergent cooperative/
competitive
Outcome Number of Issues Interests Motivation
to exploit
win/win single compatible cooperative
win/lose single adversarial competitive
An agreement is called pareto efficient if no
party can be made better off without making at
least one party worse off.
103
Judging the Success of Your Negotiation
  • If agreement was possible, was it reached?
  • Is the relationship as good as it was before?
  • Was the process efficient?

104
Challenges to Negotiating Effectively
105
The Emotional Side of Negotiating
  • In a negotiation, what do people want to feel
  • good about themselves (esteem)
  • not forced
  • look good to others
  • can depend on other party
  • paid attention to
  • get a good explanation
  • they are seen as honest and good human being

106
The First Steps
Listen to them
Discover their interests
Grasp their audiences
Involve them in the process
107
Perspective Biases
  • We are unable to accurately or effectively see
    things from the other sides perspective.
  • We have a hard time taking into account
    information available to the other side.
  • We are biased to think that we are in the right
    and the our side is more appealing
  • Confirmation bias/biased assimilation
  • One-sided evidence
  • Egocentric assessments of fairness
  • We are biased to be suspicious of what the other
    side is offering.
  • Fixed pie bias/lose-lose agreements
  • Reactive devaluation (The tendency to devalue
    offers and concessions merely because they were
    made by the other side)

108
  • Overcoming Perspective Biases
  • When preparing, try to be the devil's advocate
    carefully consider the strengths of the other
    side's case, and especially the weaknesses of
    your own.
  • Do your best to investigate the information
    available to others that may influence their
    behaviors.
  • During the negotiation, critically evaluate
    concessions made by the other side, and be wary
    of your own bias to under appreciate them.

109
90 Confidence Interval
1. The number of GM cars produced in
1990 _________________ 2. IBMs assets in
1989 _________________ 3. Total number of 5
bills in circulation in 1990 _________________ 4
. Total area in square miles of Lake
Michigan _________________ 5. Total population
of Barcelona, Spain in 1990 _________________ 6.
The amount of taxes collected by the IRS in
1970 _________________ 7. The average annual
snowfall in Anchorage, AK _________________ 8.
The number of bound volumes in all 26 branches
_________________ of the San Francisco Public
Library _________________ 9. The dollar value
of outstanding consumer credit at the end of
1988 _________________ 10. The median price of
existing single-family homes in Honolulu, HI in
1990 _________________
110
90 Confidence Interval
1. The number of GM cars produced in 1990 2.
IBMs assets in 1989 3. Total number of 5
bills in circulation in 1990 4. Total area in
square miles of Lake Michigan 5. Total
population of Barcelona, Spain in 1990 6. The
amount of taxes collected by the IRS in
1970 7. The average annual snowfall in
Anchorage, AK 8. The number of bound volumes
in all 26 branches of the San Francisco Public
Library 9. The dollar value of outstanding
consumer credit at the end of 1988 10. The
median price of existing single-family homes in
Honolulu, HI in 1990
3,213,752 autos 77.7 billion 5.8 billion 67,900
sq. miles 4.16 million 195.7 billion 68.5
inches 1,749,129 vol. 728.9 billion 290,400
111
We tend to maintain an overly optimistic view
of our own attributes, motivation, and ability to
secure favorable outcomes. 1)
Overconfidence 2) Self-enhancing biases
112
Positive Illusions
Problem Most people are overconfident in
their accuracy estimating or forecasting
uncertain values, and in their own ability to get
projects accomplished and deals secured most
people have an unrealistically positive view of
their own abilities and motivations.
Solution In your preparation, try to take the
outside view by considering base rates.
Recognize your own limitations and the extent of
your own biases.
113
Anchoring Insufficient Adjustment
Our assessment of what constitutes a fair or
reasonable offer is skewed by salient values that
have been introduced in the course of
negotiating. Problem We often inadvertently
allow a salient, focal value to skew our
perception of what is fair or feasible in
negotiation more than we should. Solution
Prepare by deciding in advance your reservation
values, aspiration values, and your best guess of
your opponents reservation values. Consciously
question whether the opponents values offered in
the course of bargaining should cause you to
reevaluate. Make the first offer. It establishes
an anchor.
114
Framing Effects
Our willingness to accept deals and how we engage
in bargaining is often affected by the way in
which offers are packaged and described. Our
attitudes, desirability of outcomes, and
willingness to make concessions are influenced by
the way in which outcomes are framed--as losses
or gains, and in different mental accounts.
Thayer
115

Manipulate the context
An auto dealer suspends a 200.00 rebate program
for a popular selling car in short supply.
Acceptable? An auto dealer imposes a 200
surcharge for the car even though the final price
will be the same. Acceptable?
Most people thought the first case was
acceptable, the second not so
Thayer
116
Break the value into smaller units
Jack will conduct a two day seminar for 9000.00.
Thirty people will attend Frame 1 Jack is being
paid 4500.00 per day. That is expensive. Frame
2 With 30 executives attending, that is only
300.00 per participants for two days (and 150
per day for each participant). That isnt very
expensive at all
Public television asks you to donate 41 cents a
day, not 150.00 a year
117
  • Imagine you are the public health director in a
    poor country where a fatal infectious disease
    threatens a small village of 600 people. You can
    inoculate every resident with only one of two
    vaccines. Which vaccine would you choose?
  • One that will save 200 lives
  • One that will result in 400 deaths

Three people chose A for every one who chose B.
The vaccines are equally effective. People feel
more comfortable when choices are framed
positively (saving lives) rather than negatively
(causing deaths)
Tversky Kahneman
118
Solution to framing Try to view outcomes
in terms of a consistent, positive frame, for
example, by translating all outcomes into dollars
or utility points. Try to encourage your
counterpart to frame outcomes in a way that is
advantageous to you.
119
  • Its a very hot day at the beach. A friend says
    he is off to buy some beer. That sounds great to
    you. He asks you
  • Whats the most youll willing to pay if the beer
    is brought at a local dive down the street?
  • Whats the most youll be willing to pay at the
    fancy resort down the block?

Dive 1.50 Resort 2.65
Average Offers
120
Endowment Effect
Condition I What is the highest price youd pay
for a ticket to the NCAA Final Four basketball
tournament (these were Duke undergraduates)?
Condition II Imagine you had a ticket to the
Final Four. What is the lowest price you would
sell it for?
Median Price
Buyers think about what else they could do with
their money Sellers focus on the pleasure they
would forgo
Condition I 150.00 Condition II 1500.00
Carmon Ariely
121
Descriptive Theory of Value Prospect Theory
1) Reference dependence people are sensitive to
losses and gains relative to their reference
state (e.g., the status quo). The reference
state can be manipulated through framing. 2)
Diminishing sensitivity people are less and less
sensitive to each additional dollar gained or
lost (i.e., the value function is concave for
gains and convex for losses). 3) Loss aversion
losses loom larger than gains (i.e., the
value function is steeper for losses
than for gains).
value
gains
losses
122
Note that the value function predicts risk
aversion for gains
risk seeking for losses
value
v(100) v(50)
v(50) gt 1/2 v(100)
-100 -50
gains
losses
50 100
v(-50) v(-100)
1/2 v(-100) gt v(-50)
123
Negotiation Strategies
124
  • Shape the structure of your situations
  • No negotiation is preordained or fixed.
  • Dont react to your counterparts' moves shape
    your own situations.
  • Mold the basic structure of the negotiation
    (e.g., involve the right people, control the
    issue agenda, introduce action-forcing events
    create linkages that bolster your bargaining
    power)
  • Actions away from the negotiating table are as
    important as what goes on at the table (e.g.,
    what influences outcomes takes place before the
    parties sit down

Adapted from Michael Watkins Breakthrough
Negotiation Don't Leave It On the Table s
described in HBSWK Pub. Date Mar 11, 2002
125
  • Organize to learn
  • Do the necessary preparation to negotiate
  • Diagnose the essential features of the situation
  • Familiarize yourself with the history and context
    and with the record of prior negotiations
  • Probe the backgrounds and reputations of their
    counterparts
  • Cope with constraints on time, expertise, money,
    data, and access to documents.
  • Continue to learn at the negotiation table as you
    carefully gauge reactions and responses while
    testing hypotheses by asking questions and
    putting offers on the table
  • Devote substantial time between at-the-table
    sessions to integration and distillation of
    insights

Adapted from Michael Watkins Breakthrough
Negotiation Don't Leave It On the Table s
described in HBSWK Pub. Date Mar 11, 2002
126
  • Become masters of process design
  • Control of the process yields control over
    outcomes
  • Think hard about the impact of process on
    perceptions of interests and alternatives, on the
    part of their counterparts and those they
    represent, and on their own side
  • Fashion and negotiate processes likely to lead in
    favorable directions (e.g., one-on-one
    negotiations are suited to some issues and group
    negotiations to others potential benefits and
    costs of setting up a secret channeldetails as
    small as the timing of a meeting or the size and
    shape of the negotiating table can make a
    difference)
  • Be reflective about the pr
About PowerShow.com