Page 310 - DMGT402_MANAGEMENT_PRACTICES_AND_ORGANIZATIONAL_BEHAVIOUR

Unit 14: Conflict Management

Notes

Task Analyse the situation when you managed conflict between two or more people.
How could you have managed?

14.7 Negotiation

Negotiation is the process through which the parties to a conflict define what they are willing to
give and accept in an exchange. Negotiation permeates the interactions of almost everyone in
groups and organisations. If the conflict is complex, the negotiation process may incorporate
different strategies for different issues: avoiding some, compromising on others, and so on.
Steps in Negotiation

We can identify four basic steps in the negotiation process. They are:
1. Preparation: Preparation for negotiations should begin long before the formal negotiation
begins. Each party gathers information about the other side—its history, likely behaviour,
previous interactions and previous agreements reached by the parties. Each party polls its
members to determine their wishes, expectations, and preferences regarding a new
agreement.
2. Evaluation of Alternatives: The two sides attempt to identify the bargaining range (i.e.,
the range in which both parties would find an agreement acceptable). The bargainers
determine the alternatives acceptable to them and also identify their best alternative if a
negotiated settlement is not reached. Identifying a set of alternatives, including the best
one, helps individuals determine whether to continue the negotiation or seek another
course of action.
3. Identifying Interests: Negotiators act to satisfy their own interests, which may include
substantive, relationship, personal or organisational ones. The person or group must
assess the other party's interests and then decide how to respond to those interests in their
offers. Effective negotiations call for satisfying interests by identifying and exploring a
range of possible positions on specific issues.

4. Making Trade-offs and Creating Joint Gains: Bargainers use trade-offs to satisfy their
own and others' interests. Either position would meet the interests of maintaining a
certain standard of living. One way to assess trade-offs is

(a) Begin by identifying the best and worst possible outcomes.
(b) Next, specify what impact trade-offs will have on these outcomes.
(c) Finally, consider whether the changed outcomes will better meet the parties' interest.
Negotiators need to overcome the idea that a fixed pie of outcomes exists, avoid non-rational
escalation of conflict, pay attention to others' cognitions and avoid devaluating the others'
concessions while overvaluing their own.

Notes Negotiating
Once you’ve taken the time to assess your own goals, consider the other party’s goals and
interests, and develop a strategy, you’re ready to begin actual negotiations. The following
suggestions should improve your negotiating skills.
Contd...

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