Page 252 - DMGT521_PROJECT_MANAGEMENT

Unit 14: Conflict and Negotiation

Notes
Did u know? The foundations of negotiation theory are decision analysis, behavioural
decision-making, game theory and negotiation analysis. Another classification of theories
distinguishes between Structural Analysis, Strategic Analysis, Process Analysis, Integrative
Analysis and behavioral analysis of negotiations.
Individuals should make separate, interactive decisions; and negotiation analysis considers how
groups of reasonably bright individuals should and could make joint, collaborative decisions.
These theories are interleaved and should be approached from the synthetic perspective.

14.3 Alternatives to Negotiation

The right to differ is regarded in democracies as a fundamental right. Given that everybody
demands the right to have a viewpoint, naturally follows to find out a way of handling the
mutual right to differ and that is negotiation. Negotiating may not work in certain circumstances,
necessitating finding other way outs. There are alternatives to negotiation which are appropriate
and sometimes even preferred to suit the circumstances.

Dictatorship is one of the alternatives to negotiations, which is even preferable in certain
circumstances. If the decision is made unilaterally and the other party accepts it because either
one has surrendered one’s own right or is fearful of the consequences, accepting the right and
might of the dictator. Decisions will be dictated whenever such situations exist such decisions
are far more common than realised and widespread throughout society.
In military orders are not subject to negotiation; in sports the referee’s decision is final, through
a player does not lose the right to challenge it risking punishment.

A solution can be hit through arbitration, if negotiation fails to produce one. Arbitration may be
another alternative to negotiation wherein a third party is designated to make decisions for the
two parties, who could not agree as one. This may not work always.
Because of its nature arbitration is also unpopular among the negotiators, as it requires the
parties concerned to hand over their powers in the hand of a neutral party and hence lose the
opportunity to influence the decision in their favor, and moreover the decision of the arbitrator
has to be mutually binding. Thus it has some proximity to the decision by dictatorship.

Pendulum arbitration is more common. In this the arbitrator selects one or the other party’s
final positions and is precluded from forming a compromise between them. Such a mechanism
encourages the interested parties to move closer and closer to what they think the arbitrator
may consider as a reasonable solution, thus even increasing the probability of striking a solution
without the necessity of arbitration.
The most common alternative negotiation is persuasion. If the other party can be persuaded to
accept one’s point of view. It is often the first thing we try an keep on trying throughout the
negotiation. Unfortunately, the experiences show a very pessimistic picture of the success rate of
persuasion, provoking the feeling of frustration as people in conflict can seldom be persuaded
easily.

Self Assessment

Multiple Choice Questions:
6. Negotiation is a process in which:

(a) two or more parties try to resolve differences.

LOVELY PROFESSIONAL UNIVERSITY 247