Page 106 - DMGT519_Conflict Management and Negotiation Skills

Conflict Management and Negotiation Skills

Notes Psychological school of negotiators is primarily concerned with the belief system of the
negotiators. It is popular with some managers because they believe that the source of industrial
conflict can be found in personality disorders of their opponents. The training values of various
alternative approaches are difficult to be accepted as negotiating such as ‘need theory’ or over-
compelled manipulative bargaining. The need theory implies that the negotiator is separate
from the interest which he is presumably serving. Much the same is implied in transactional
analysis approaches. Both may improve the inter-personal relationship of the parties, if only,
because the divisive irritants are suppressed. Similarly, an over-complex manipulative approach
leaves a great deal to be desired. The parties are expected to make estimates of probabilities of
various outcomes and then, to calculate the likely rewards associated with these outcomes,
weighted by the probability of them occurring.
In Eight Step Approach, the negotiating sequence has been broken into eight main steps through
which negotiations will go, if agreement is to be reached, though not necessarily in a rigid
order, nor with equal attention of time to each step.
What differentiates are step from the next is the differing skills which are appropriate in each
case. These steps may help you identifying your surroundings so that you may head off in
correct direction to reach the agreement. The eight steps are:

1. Prepare
2. Argue
3. Signal

4. Propose
5. Package

6. Bargain
7. Close
8. Agree

Four of the eight steps (underlined )are the crucial phases of negotiation. If the negotiator
fumbles in these steps due to any reason, the deal struck, if at all, is more likely to be poorer than
it need have been.

Be prepared for Concessionary Moves

Once an anchor point is on the table, the parties generally engage in a set of moves and
countermoves that they hope will end in an agreeable price or set of arrangements.

The best advice about concessions is to avoid the impulse to make them. Few of us like
negotiating, so we want to get it over as quickly as possible. And as social creatures we want
other people to like us, and to view us as reasonable. These factors often make inexperienced
negotiators too ready to make concessions. If you find yourself in this category, here are a few
tips:
1. Look to your BATNA before you consider making a concession. If your BATNA is very
strong (especially relative to the other side’s) a concession may be unnecessary in making
a deal.
2. If you’re impatient to get it over with because negotiating is stressful, take a break before
you consider a concession. If the other side is expecting a ` 10,000 concession on the price
of the home you are selling, think about how difficult it was for you to earn that ` 10,000.

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