Page 75 - DMGT519_Conflict Management and Negotiation Skills

Unit 4: Negotiation

4.4 Negotiating Conflicts Notes

The right to differ and have one’s own viewpoint is an integral part of a democracy. We become
convinced that our point of view is the right one and that the other party could not agree to it
because of the lack of understanding or inability to using the same facts and arguments to arrive
at the conclusion. As a result both the parties waste hours and days together fruitlessly arguing
repeating the same ground instead of negotiating to achieve a workable compromise.
One of the major causes of conflict is differing perceptions. Beside there are other causes too: e.g.
one of the parties might want to improve on other’s offer (even after a deal has been agreed) thus
introducing conflict deliberately. Sometimes there is a genuine gap between the parties beyond
their control e.g. suppose a flight is delayed due to fog, hence a major contract is lost, consequently
substantial reduction of work available in the company, redundancies are inevitable.

People negotiate because of self interest, be it corporate or personal. It is not always possible to
resolve conflict by negotiation. Two parties in conflict can, of course, decide to ignore the issue
and agree to disagree. Difference of opinion on politics, religion and sport may probably fall in
this category. Agreeing to disagree will not make the problem go away where these differences
affect or are part of a work or commercial relationship.
In the negotiating context, the conflict can be of two kinds:
1. Conflict of interest and
2. Conflict of rights
The conflict of interest occurs where either the terms of business have not been settled or being
re-negotiated, having settled earlier. Labor negotiations on wages, hours, numbers and working
conditions, commercial negations on price, quantity, quality and delivery are the examples of
the conflicts of interest.
The conflict of rights occurs where a difference of interpretation arises about the existing
agreement between the two parties. In labor negotiations a dispute can arise over the application
of an existing agreement. In commercial negotiation the conflict could centre on whether the
terms of the existing contract have been met? Did one party fulfill its obligations under the
contract, if not, was it entirely its own fault or did the other party contributed too, if yes, how
much? Again, this is a conflict about rights not interests.
The word ‘Conflict’ is used descriptively because that is what it is. Characterizing or categorizing
the conflicts of rights or interests, is a prelude to resolving it.

Negotiations as a process for conflict resolution necessarily centers on the issue on which the
two parties are in conflict and not their relationship in total. It is because parties despite all
difference have a common overall interest and common interest in finding a negotiated settlement.
It does not imply that any terms are acceptable.

Task Conduct a debate on following statements and interpret them.
1. “This is an age of negotiation”

2. “Negotiation is process of adjusting both parties’ views of their ideal outcomes to
an attainable outcome”

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