Negotiation
An adaptive process
Why
Negotiate?
Distribution of
Scarce Resources
Bargaining Zone
BATNA
ZOPA
BATNA
Anchor Point: First Offer
Reservation Point: Lowest selling point & Highest buying point
ZOPA: Zone of Possible Agreement
BATNA: Best Alternative to an Negotiated Agreement
The Orange Quarrel
Jenny cut , Joey
Choose
Jenny
Joey
Jenny
50%
Joey
50%
WIN-WIN
Still the efficiency for each party remains 50%
The Orange Quarrel ?
Satisfaction
(Beyond Win-WIN)
100%
Jenny
50%
0%
Achieves
Efficiency
Objective
50%
100%
Joey
Efficiency
Suppose you are a staunch Democrat and
your uncle is a Republican. Every time he sees you,
he tries to pick a fight about politics and “those
stupid liberals.”
What conflict handling intention should you
use in dealing with him?
Notes
Conflict
When A perceives that B has negatively affected, or
about to affect, something A cares about
two person relationship model
•
•
•
Task Conflict: Content and goals (moderate)- creativity
Relationship Conflict: Interpersonal
Process Conflict: How the task is done (Low)
Bargaining Strategies
Distributive Bargaining: Negotiation that seeks to
divide up a fixed amount of resources; a win-lose
situation (competing)
Integrative Bargaining: Negotiation that seeks one or
more settlements that can create a win-win solution
(collaborating)
Managing Functional Conflict
• Recognizing difference in approaches; marketing, operations
and HR manager might explain same problem is different
ways
• Pick relevant part of the problem and approach solution;
each side gets its top need satisfied
• Addressing the conflict directly; open discussion
Use Competition (win-lose)
• Where unpopular actions need implementing (in
cost cutting, enforcing unpopular rules, discipline)
• On issues vital to the organization’s welfare
• When you know you’re right
• Against people who take advantage of
noncompetitive behavior
Use Accommodation (you lose)
• When you find you’re wrong and to allow a
better position to be heard
• When issues are more important to others
than to yourself
• To build social credits for later issues
• When harmony and stability are especially
important
Use Compromise (lose-lose)
• When goals are important but not worth
the effort of potential disruption of
relationships
• When opponents are of equal power
• To achieve temporary settlements to
complex issues
• To arrive at solutions under time pressure
• As a backup when collaboration or
competition is unsuccessful
Use Avoidance (Undecided)
• When an issue is trivial, or more important
issues are pressing
• When you perceive no chance of satisfying
your concerns
• When potential disruption outweighs the
benefits of resolution
• To let people cool down and regain
perspective
• When others can resolve the conflict effectively
Use Collaboration (win-win)
• To find an integrative solution when both sets
of concerns are too important to be
compromised
• When your objective is to learn
• To merge insights from people with different
perspectives
• To gain commitment by incorporating
concerns into a consensus
Cultural Concerns
• Indian managers are more likely to use
accommodation and avoidance; French managers
are likely to use competition
• American are more likely to make first offer than
Japanese
• North Americans use facts to persuade; Arabs use
emotion
• Brazilians say “no” more often than Americans or
Japanese