Page 257 - DMGT519_Conflict Management and Negotiation Skills

Unit 12: Ethics in Negotiation

Notes
Some time passed before a resolution to the matter was worked out that was agreeable to
both parties. What both parties were really seeking was to find a long term solution to this
dilemma. It was only when they truly understood the nature of the problem they were
able to negotiate a reasonable solution that was acceptable to both of them.
It was ascertained that the subassembly workers had some slack time available during
every working month. The damaged parts were returned in small batches form the final
assembly plant so that the subassembly personnel could work on them during these slack
periods. Also, when they examined the problem in more minute detail, the managers
learned that some of the personnel in the final assembly plant may not have been adequately
trained and may have also been partially responsible for the damaged incurred. These
personnel were identified and were sent to the subassembly plant to further their training
and to learn more about what transpired in that department.
The resulting solution addressed the increased cost concerns of both departments on the
one hand. On the other hand, overtime was reduced by allocating the personnel where
and when they most needed and finally, because of the enhanced training, the number of
damaged parts was considerably reduced.
The lesson to be drawn here is that the two managers were only able to address the
problem when they were able to understand the real issues that lay beneath the problem
as the cause for their cost overruns.
Question:
Analyse the case and discuss the case facts.
Source: http://www.negotiations.com/case/negotiation-problem/

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Caution
1. Ethical judgments are made in social context: The type of work you choose and the
type of people you hang out with, will eventually shape your ethical choices as a
negotiator. If you care about having honest and forthright relations with others,
think carefully about what kind of friends, colleagues, clients you want to have in
your life.
2. Even if you choose to lie or be unethical, be honest with yourself: If you are deceptive,
you can end up rationalizing your actions to yourself also. Over time, you may get
in the habit of lying or using other tactics that are unnecessarily risky or harmful.
3. There are many unethical negotiation behaviors besides lying.

Example: Harmful or cruel treatment of others, illegal or unethical threats and coercion,
bribes, kickbacks, corruption, preventing parties from participating or selling them out if they
aren’t at the table, demeaning other parties/groups of people, hate-talk, threats or actions of
violence, ruining someone’s reputation without cause, etc.

4. Be aware of tradeoffs: Self protection, “bluffing”, and distrust also have a cost while
we worry a lot about the price we might pay for being forthright or for extending a
measure of trust the other party, there is also a price to pay for withholding
information, lying, or being suspicious of them. In addition to the relationship costs
of distrust, and the anger of feeling mistreated, you can incur significant business
expenses for protective measures such as fact-finding, inspections, legal discovery
processes, drawing up legal contracts, keeping detailed records, certification, etc.

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