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Use Negotiation to Manage Conflict. Win-Win Tactics (integrative bargaining). Integrative vs. Distributive Negotiation. Pemberton Payoff Matrix. Country Market. Close Sunday. Open Sunday. -40,000. +20,000. Corner. Corner. Close Sunday. Country. +20,000. Country. +40,000. Corner

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use negotiation to manage conflict
Use Negotiation to Manage Conflict
  • Win-Win Tactics(integrative bargaining)
pemberton payoff matrix
Pemberton Payoff Matrix

Country Market

Close Sunday

Open Sunday

-40,000

+20,000

Corner

Corner

Close Sunday

Country

+20,000

Country

+40,000

Corner

Store

Corner

+40,000

Corner

-20,000

Open Sunday

-40,000

Country

Country

-20,000

**THE GOAL IS TO MAXIMIZE PROFITS OVER THE

NEXT 12-WEEK PERIOD

win win vs win lose process
Win-Win vs. Win-Lose Process
  • Cooperative gains exceed competitive gains
  • Win-Win Settles More Quickly
  • Win-Win Is Friendlier
  • Win-Win Shares Information Earlier
  • Win-Win Uses More Positive Body Language
  • Win-Win Is Quieter, Less Confrontational
  • Win-Win increases credibility and trust
key stages in win win process
Key Stages in Win-Win Process
  • Identify and define the problem
    • Separate the people from the problem
  • Understand the problem fully--identify interests and needs
    • Focus on interests, not positions
  • Generate multiple alternative solutions
    • Consider BATNA
  • Evaluate and select alternatives
    • Use objective standards for evaluation
negotiation preparation
Interests: People want?

ID Relevant parties, clarify interests, probe for underlying interests

YOUR interests and theirs

Options

Options to meet interests, Maximize joint gain

Alternatives (BATNA)

My alternate, select and improve, Their alternates, Their BATNA

Legitimacy

External standards, Fairness of process, Attractive explanation

Communication

My assumptions, Reframe to help them understand

Relationship

Separate people/problem, Build good relationship

Commitment

ID issues to be included, plan steps to agreement

Negotiation Preparation
focus on interests not positions
Focus on Interests, not Positions
  • Some distinctions:
    • Issue: Topic of negotiation.
    • Position: One party’s solution to an issue.
    • Interest: One party’s concern about an issue.
  • For a wise solution
    • Reconcile interests, not positions.
  • How do you identify interests?
    • Ask!
  • Talk about interests
    • Mutual, conflicting, unmatched.
invent options for mutual gain
Invent Options for Mutual Gain
  • Separate inventing from deciding
    • Brainstorm, nominal groups, surveys
  • Broaden your options
    • Expand the pie (more for everyone)
    • Log-roll (tradeoff where your desires differ)
    • Use nonspecific compensation
    • Cut costs for compliance
    • Bridge solution
  • Look for mutual gain
  • Make their decision easy
options
Look for ways to work together to make more

Similar skills and resources:

Economies of scale, cheaper to produce for two, combine purchase power for better discount

Different skills and resources

Create what neither of you can on own.

Options for joint benefit

Rather than separate or independent benefit, joint sponsorship

Value in differences

Risk: some like, others hate. One side more easily bear or insure against

Timing: different clocks, what is impossible this month is ok next, or unaffordable next year is ok this.

Perceptions: what others think. Third parties, public victory if needed, other get something they really want.

Marginal value: have some, want less, so trade.

Options
options forms
1. Create options to meet interests

Your interests

Their interests

Possible options

2. Find ways to maximize joint gains

Inventory of skills and resources: me and them

Combine similar resources to produce value

Combine different resources to produce value

Options Forms
alternatives forms
1. Think of my alternatives to a negotiated agreement

My key interests

What could I do to satisfy my interests if we do not reach an agreement?

Alternatives, Pros, Cons

2. Select and improve my BATNA

Really?

Do to improve BATNA

3. Identify alternatives open to the other side

Their key interests

What could they do to satisfy their interests if we do not reach agreement?

Alternatives, pros, cons

4. Estimate their BATNA

What would I do in their shoes?

How legitimately make their BATNA less attractive?

Harder to pursue?

Influencing perceptions of unwise or costly?

Alternatives Forms
legitimacy
Legitimacy
  • External (Objective) standards
  • Fairness of process
  • Attractive explanation
insist on using objective criteria
Insist on Using Objective Criteria
  • Deciding on the basis of will is costly
  • The case focusing objective criteria
  • Developing objective criteria
  • Negotiating with objective criteria
  • It’s company policy
batna
BATNA
  • Brainstorm options
  • Improve on options
  • Select the best
  • Improve it again
  • Select a tripwire
  • Their BATNA ?
      • Diminish in negotiation?
separate the people from the problem
Separate thePeople from the Problem
  • Negotiators are people first
  • Two kinds of interests: Substance, Relationship
  • Separate the relationship from the substance; deal directly with the people problem
  • Perception
  • Emotion
  • Communication
  • Prevention
communication forms
1. Question my assumptions and identify things to listen for

Intentions and perceptions

Phrases that question assumptions.

2. Reframe to help them understand

Your perspective

How might they hear it?

Reframing

Communication Forms
relationship forms
1. Separate people issues from substantive issues

Describe your relationship

Substantive issues and problems

Substantive options and remedies

Relationship issues and problems

Ways to improve relationship

2. Prepare to build a good working relationship

What might be wrong now?

Cause?

Lack of trust?

Feel coerced?

Disrespected?

Get upset?

What can I do?

Understand them

Demonstrate reliability

Focus on persuasion

Show acceptance and respect

Balance emotion and reason

Relationship Forms
commitment forms
1. Identify the issues to be included in the agreement

Overall purpose of negotiation

Expected product

Specific purpose of next meeting

Tangible product of next meeting

Plan the steps to agreement

Decision makers: names of those who will sign

Implementation: Info agreement should include about what happens next

Steps to get binding agreement

Commitment Forms