Understanding Conflict and Negotiation Skills

Understanding Conflict and Negotiation Skills Dr. Rajendra Suwal Management and Leadership Development Specialist

Questions: • What is conflict? • How can conflict be managed successfully? • What is negotiation? • What are the different strategies involved in negotiation?

What is conflict? • ConflictOne party perceives its interests are being opposed or set back by another party • Conflict occurs whenever: • Disagreements exist in a social situation over issues of substance. • Emotional antagonisms cause frictions between individuals or groups.

Conflict • ConflictOne party perceives its interests are being opposed or set back by another party

The Relationship between Conflict Intensity and Outcomes Positive Outcomes Neutral Too littleconflict Appropriateconflict Too muchconflict Negative Low ModerateIntensity High

Functional vs. Dysfunctional Conflict Functional Conflictserves organization’s interests Dysfunctional Conflictthreatens organization’s interests Can we think of all organizational outcomes in these term?

Antecedents of Conflict • Incompatible personalities or value systems - culture • Overlapping or unclear job boundaries • Competition for limited resources • Inter-department/inter-group competition • Inadequate communication • Unreasonable deadlines • Organizational complexity

Desired Conflict Outcomes • Agreement:strive for equitable and fair agreements that last • Stronger Relationships:build bridges of goodwill and trust for the future • Learning:greater self-awareness and creative problem solving

Tips for Employees Having a Personality Conflict • All employees need to be familiar with and follow company policies for diversity, anti-discrimination, and sexual harassment • Communicate directly with the other person to resolve the perceived conflict • Avoid dragging co-workers into the conflict • If dysfunctional conflict persists, seek help from direct supervisors or human resource specialists

Tips for Managers Whose Employees are Having a Personality Conflict • All employees need to be familiar with and follow company policies for diversity, anti-discrimination, and sexual harassment • Investigate and document conflict • If appropriate, take corrective action • If necessary, attempt informal dispute resolution • Refer difficult conflict to human resource specialists or hired counselors for formal resolution attempts and other interventions Can a boss and employee have a personality conflict? McGraw-Hill

Stimulating Functional Conflict: Devil’s Advocacy Decision Program • A proposed course of action is generated • A devil’s advocate is assigned to critique the proposal • The critique is presented to key decision makers • Any additional information relevant to the issues is gathered • The decision to adopt, modify, or discontinue the proposed course of action is taken • The decision is monitored

Stimulating Functional Conflict: The Dialectic Decision Method • A proposed course of action is generated • Assumptions underlying the proposal are identified • A conflicting counterproposal is generated based on different assumptions • Advocates of each position present and debate merits of their proposals before key decision makers • The decision to adopt, either position or some other position is taken • The decision is monitored

Five Conflict-Handling Styles Integrating (Problem Solving) Obliging (satisfy others) High Compromising Concern for Others Dominating Avoiding Low High Low Concern for Self

Alternative Dispute Resolution (ADR)Techniques Alternative Dispute Resolution (ADR)avoiding costly lawsuits by resolving conflicts informally or through mediation or arbitration Facilitation Conciliation Peer review Ombudsman Mediation Arbitration

Negotiation – What is it? ‘Negotiation is an explicit voluntary traded exchange between people who want something from each other’ Gavin Kennedy • ‘The process by which we search for the terms to obtain what we want from somebody who wants something from us’ • Gavin Kennedy To negotiate is to trade something we have for something we want. Anon Confer with others to reach a compromise or agreement. Concise Oxford Dictionary

Negotiation • Negotiationtake-and-give process between conflicting interdependent parties • Distributive negotiation:Single issue; fixed-pie; win-lose. • Integrative negotiation: More than one issue; win-win.

Step 1: Clarify interests • identify tangible and intangible needs Step 2: Identify options • Identify elements of value Step 3: Design alternative deal packages • Mix and match elements of value in various workable combinations • Think in terms of multiple deals Step 4: Select a deal • Analyze deal packages proposed by other party An Integrative Approach: Added-Value Negotiation Separately Step 5: Perfect the deal

Step 1: Clarify interests • Discuss respective needs • Find common ground for negotiation Step 2: Identify options • Create a marketplace of value by discussing respective elements of value Step 4: Select a deal • Discuss and select from feasible deal packages • Think in terms of creative agreement Step 5: Perfect the deal • Discuss unresolved issues • Develop written agreement • Build relationships for future negotiations An Integrative Approach: Added-Value Negotiation Jointly Step 3: Design alternative deal packages

Conventional Negotiation Tactics • Good cop/bad cop • Highball/lowball • Bluff • Threats • Nibble • Appeals to ‘reason’

Five Stages of Negotiation • Preparing objectives and strategies:At this stage, the negotiators identify the issues and range of objectives for each issue. Also, at this stage, negotiating party decides what strategy and style to adopt. • Getting Started (Discuss and exchange information): At this stage, each side presents their initial demand or case. • Building understanding: At this stage, the negotiators justify their position and try to weigh up the other's position. • Bargaining and reviewing areas of concession In which each party tries to get concessions. • Concluding and drafting agreement At this stage, final agreement is reached or the negotiations are terminated short of an agreement.

Stage 1: Preparing objectives and strategies • Three basic elements in any preparation: • Setting bargaining objectives. • Assessing the other side's case. • Assessing relative strengths and weaknesses. • Setting objectives: • Idealistic (Top Line): the best achievable outcome. • Realistic (Target): what you realistically expect to settle for. • Fall Back (Bottom Line): the lowest, still acceptable, outcome. • Assembling data/information and assessing relative bargaining strengths and bargaining weaknesses

Developing Strategies • Your opening to your closing offer • List of arguments and counter arguments – Both parties • Select the negotiation team • Role Assignment • Rehearsal

Stage 2: Getting Started (Discuss and exchange information) • Opening the negotiation: Theopening moves in a negotiation are critical, as they: • Convey information about your attitude and aspirations. • Shape the negotiation climate. • When opening the negotiations: • Introduced yourself and your team partners. • Cover the 'process' issues first. Why are we meeting, for how long? Who is going to be involved? Who is going to talk first, about what matters? • Emphasize the importance of getting agreement together from the outset. • Give your general views on the issues to be covered. Especially mention your underlying concerns. • Obtain a briefing on the other side's view. • Setting the agenda

Stage 3: Building Understanding This stage of negotiation has three components: • Getting information • Testing arguments and positions • Using timing and adjournments Key Points to remember here: • Talk less, listen and ask questions. • Never accept a first proposal. • Use adjournments to keep control over your team and discussions. • Do not use weak language. • Summarize regularly. • Avoid emotional outburst: blaming, personal attacks, sarcasm, point-scoring, interrupting and being too clever. • Practice signaling, questioning, paraphrasing, using humor, building rapport and remaining silent.

Stage 4: Bargaining and reviewing areas of concession • Taking and Giving concessions • Breaking deadlocks • Moving towards an agreement

Suggestions for Breaking Deadlocks/Impasse • Change the subject. • Brainstorm together. • Throw some wild and crazy idea on the table. • Handle the emotional subject as quickly as possible • Inform the other party of the consequences of failure to reach a negotiated solution. • Call in an outside party to act as conciliator, a mediator or an arbitrator.

Stage 5: Concluding and drafting agreement • Formulating an agreement • Ensuring implementation • Before formulating an agreement, check that all aspects have been agreed particularly dates for implementation, review or completion, and definitions of terms. • Ensure full understanding of what has been agreed by final summaries and by producing written confirmation. Keep in mind that sound closing of negotiation is never done in a hurry. • Include an implementation program as an integral part of a negotiated agreement. Such a program should define what has to be done, when and by whom.

Common Signs of Deception during Negotiation • New body movements • Touching of self/fidgeting • Hesitation • Blinking, eye shifting and dilation of pupils • Lack of spontaneity • Speech errors • High vocal pitch • Negativity

Factors that affect Negotiation Factors having effect on successful Negotiation: • Power - Formal power - Personal sources of power - Things the other party want • Information - About the other party and your own situation - Points of conflict - What issues are common to both parties? - Other relevant influencing factors

Factors that affect Negotiation Contd. 3. Timing - How much time is available overall? - At what stage different issues, offers etc. are to be introduced. - What other pressures or demands are in operation? - 80:20 rule which means eighty percent of concessions are made in the last 20 % of the time. - Opportunity to gain impact. 4. Approach - Keeping the objectives in mind - Maintain open attitude - Vocabulary and phraseology • Avoid “no” • Use vocabulary familiar to the other party except when you are establishing your own expertise

Factors that affect Negotiation Contd. • Cultures • Different social groups have different ideas of what is proper protocol and procedure. • What makes someone a good negotiator in one culture may well not work in another. • Looking at key differences between cultures and their implications for actual negotiating is essential. • BATNA • BATNA is the acronym for Best Alternative To a Negotiated Agreement. • Your BATNA is the choice you can make if you conclude that negotiating with a particular party is not likely to yield a favorable result. • You can walk away from a negotiation if your BATNA is better than the likely outcome of that negotiation.

Arbitration • Arbitration is the process of referring a dispute to an IMPARTIALintermediary • chosen by the parties who agree in advance to abide by the arbitrator's award • that is issued after a HEARING at which all parties have the opportunity to be heard.

Mediation • Mediation involves the intervention of an impartial, neutral intermediary who does not have power to take decision but whose job it is to facilitate a mutually acceptable settlement. • A mediator's primary function is to • identify issues, • explore possible bases for agreement, • discuss the consequences of reaching impasse, and • encourage each party to accommodate the interests of other parties through negotiation. • The processes of Mediation are based on: • taking the parties away from positions towards interests, • seeking multiple options for mutual gain, • testing each against objective criteria in the search for fairness. • Mediation has been proved to be the superior method to provide long-lasting solutions to inter-party conflict.

In Summary, for improving Negotiation Skills • Pay LittleAttention to Initial Offers • Emphasize Win-win Solutions • Create an Openand Trusting Climate: Negotiation requires a minimum of trust. If the atmosphere is contaminated by cynicism and mistrust, negotiation can not be successful. • ResearchYour Opponent • Develop Strategy • Begin with a PositiveOverture • Address the Problem, Not the Personalities

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Understanding Conflict and Negotiation Skills