Page 250 - DMGT521_PROJECT_MANAGEMENT

Unit 14: Conflict and Negotiation

Transformation requires us to “wake up” out of vengeance and numbness. It challenges us to Notes
stand up and defend these life-affirming values – not to hurt but to heal; not for victory but for
justice; not for our rights but for the rights of all; not just for our “side” but for the whole of
which we are only a small and fragile part.
As our world grows smaller, opportunities for conflict multiply. Ethnic, religious, political and
personal differences drive people apart in organizations and institutions of all kinds – with
potentially disastrous consequences. It’s the task of effective leaders with mediator skills to
bring people together again.

Did u know? The word “negotiation” originated from the Latin expression, “negotiatus”,
past participle of negotiare which means “to carry on business”. “Negotium” means
literally “not leisure”.

Self Assessment

Fill in the blanks:
1. .............................. is inevitable and universal phenomenon of our individual, team and
organisational life.
2. Conflict is not confined at the individual level alone but is manifesting itself more and
more in ...................................

3. ................................... requires us to “wake up” out of vengeance and numbness.
4. Conflict can be defined in many ways and can be considered as an expression of
...................................

5. Conflict is not ....................................... at the individual level alone but is manifesting itself
more and more in organisations.

14.2 Negotiation

Negotiation is process of adjusting both parties’ views of their ideal outcomes to an attainable
outcome.
In journey of our lives, we negotiate at every step to achieve success both in our personal and
professional lives. People negotiate in their personal life (e.g. with their spouses, children,
school teachers, neighbours) as well as in their business life. Thus, the scope of negotiation
ranges from one-on-one to highly complex multi-party and multi-nation interactions. In the
business world, people negotiate at multiple levels and contexts – within departmental or
business units, between departments, companies, and even across industries. For this reason,
managers must understand enough about negotiations to be effective negotiating within, between,
and up and across all of these business environments.

14.2.1 Definition and Scope

In this unit, we use the following working definition of negotiation: Negotiation is an
interpersonal decision-making process necessary whenever we cannot achieve our objectives
single-handedly. Negotiations not only include the one-on-one business meeting, but also multi-
party, multi-company, and multimillion-dollar deals. Whether simple or complex, negotiations
boil down to people, communication, and influence. Even the most complex of business deals
can be broken down to a system of one-on-one relationships.

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