Conflict Management and Negotiation

1. Conflict Management and Negotiation By Professor Simon Burtonshaw-Gunn – licensed under the Creative Commons Attribution – Non-Commercial – Share Alike License http://creativecommons.org/licenses/by-nc-sa/2.5/

2. School of the Built Environment MSc Construction Management People Management in the Built Environment Presentation 2: Negotiation Professor Simon Burtonshaw-Gunn

3. Presentation 2: Negotiation • Approaches to Negotiation • Negotiation process • Conducting a negotiation – opening, bargaining and closing • Successful negotiation

4. Negotiation Negotiation is a means of communicating with the aim of reaching a mutual agreement but is used for more complex communication where there is some uncertainty over the outcome. It is simply a process whereby two parties come together to confer with a view to concluding a jointly acceptable agreement. Such an approach can be used in conflict resolution or group decision making or problem solving.

5. Negotiation • Negotiation involves two main elements: • Purposeful persuasion – whereby each party attempts to persuade the other to accept its case by marshalling arguments , backed by factual information and analysis. • Constructive compromise – whereby both parties accept the need to move closer towards each other’s position, identifying the parameters of common ground within and between their positions, where there is room for concessions to be made while still meeting the needs of bath parties. • Gennard and Judge (2003)

6. Negotiation In looking at the Negotiation process, there are two basic approaches Distributive bargaining Integrative bargaining What you think that these mean?

7. Negotiation In looking at the Negotiation process, there are two basic approaches Distributive bargaining - negotiation about the distribution of finite resources. One party’s gain is the others loss: a win – loose or zero sum equation Integrative bargaining – this is about joint problem solving, aiming to find a mutually satisfactory solution , win-win. The aim is not just to get the best outcome (loose-loose) but to fulfil the needs of all parties as far as possible

8. Negotiation The Negotiation process: • Preparation - data gathering and analysis, identifying key issues, planning strategy and tactics, preparing the meeting • Opening - presentation of each side’s case • Bargaining – identifying common ground, making concessions: moving together • Closing – final offer, conclusion

9. Negotiation Preparing a negotiations strategy: • Set objectives for the negotiation • Gather information • Identify potential areas of conflict • Identify potential areas of movement • Formulate a negotiating strategy – ideal outcome, realistic outcome, fall-back position, sticking points

10. Negotiation Preparing for the Meeting: • Purpose – What is the purpose or objective of the meeting? Is it about investigation or are you intending to finalize the negotiation • Plan – where will the meeting be held? How should the room be laid out? What facilities will be required? • Pace – About 5% of any meeting time should be given to breaking the ice and making introductions, before getting down to business • Personalities – with whom are you meeting? Are they experienced negotiators?

11. Negotiation Conducting the negotiation: • Opening presentation • Fact-finding • Identifying common ground • Use of negotiating strategy and bargaining power • Considering • Making concessions • The negotiating team approach • Effective communication skills • Leadership

12. Negotiation Successful negotiation characteristics: • They avoid direct conflict • They consider a wide range of options • They hold back counter proposals rather than responding immediately • They use emollient verbal techniques: “would it be helpful if we. . . ” • They summarize on behalf of all involved • They advance single arguments insistently and avoid long winded, multiple reason arguments (From John Hunt ‘Managing People at Work’)

13. Negotiation Negotiation model. . . Please see Handout of the Thomas - Kilmann Conflict Model and how this is related to the model on the next slide

14. Negotiation Negotiation model. . . Collaborating: by seeking to find and understand solutions for all parties (a win/win strategy) Forcing: satisfying own needs at the expense of the others, usually results in hostility and resentment High Compromising Assertion Avoiding: potential conflict is a common approach best used when the issue or unimportant or when time is limited Accommodating: satisfying the needs of other parties at the expense of your own needs Low Low High Co-operation Published in Organizational Behaviour and Human Performance Volume 16 by Thomas L. Ruble and Kenneth W. Thomas, ‘Support for a two-dimensional model of conflict behaviour’.

15. Negotiation Closing. . . • In closing the negotiation the following items needs to be considered: • Balance of Pros and Cons • Upside and downside costs • Cost analysis close • “Strawberry or Vanilla” • Assumptive

16. School of the Built Environment MSc Construction Management People Management in the Built Environment Presentation 2: Negotiation Professor Simon Burtonshaw-Gunn