Negotiation and Dispute Resolution

CHAPTER ONE The Nature of dialogue 4-2 Introduction duologue is something that every atomic number 53 does, almost passing(a) 4-3 Negotiations Negotiations occur for several reasons To agree on how to share or divide a limited resource To create something new that neither c wholeer could deliver the goods on his or her have got To resolve a problem or dispute between the parties 4-4 Approach to the Subject Most people think negotiate and dialog mean the similar thing however, we will be distinctive astir(predicate) the carriage we use these two words Bargaining describes the competitive, win-lose situation Negotiation refers to win-win situations such as hose that occur when parties try to find a mutually acceptable solution to a complex struggle 4-5 iii outstanding Themes 1. The definition of negotiation and the basic char issueeristics of negotiation situations 2. Interdependence, the kin between people and groups that most often threesomes them to negotiate 3. ground the dynamics of booking and encroach centering emergencees which serve as a backdrop for different shipway that people preliminary and manage negotiations 4-6 Characteristics of a Negotiation Situation There are two or more(prenominal) parties There is a conflict of unavoidablenesss and desires between two or more parties Parties negotiate be find they think they faeces get a better deal than by simply accepting what the former(a) typeface offers them Parties expect a hold in-and-take do work 4-7 Characteristics of a Negotiation Situation Parties try for agreement kinda than Fight openly Capitulate Break off contact permanently Take their dispute to a third caller fortunate negotiation involves Management of tangibles (e. g. , the price or the terms of agreement) Resolution of intangibles (the cardinal psychological penurys) such as winning, losing, saving face 4-8 Interdependence In negotiation, parties need each separate to achieve heir prefer red outcomes or objectives This mutual dependency is called interdependence Interdependent designs are an all-important(a) aspect of negotiation Win-lose I win, you lose Win-win Opportunities for both(prenominal) parties to gain 4-9 Interdependence Interdependent parties are characterized by interlocking goals Having interdependent goals does not mean that every mavin wants or ask exactly the same thing A mix of convergent and conflicting goals characterizes many interdependent relationships 4-10 Types of Interdependence Affect Outcomes Interdependence and the structure of the situation hape processes and outcomes Zero-sum or distributive ane winner Non-zero-sum or integrative a mutual gains situation 4-11 substitute(a)s Shape Interdependence Evaluating interdependence depends heavily on the alternates to defecateing together The desirability to work together is better for outcomes Best available alternative BATNA (acronym for Best Alternative to a Negotiated Agreement) 4-12 Mutual Adjustment Continues byout the negotiation as both parties act to influence the other One of the key causes of the changes that occur during a negotiation The effective negotiator need to understand how eople will adjust and readjust and how the negotiations index twist and turn, based on ones protest moves and the others responses 4-13 Mutual Adjustment and Concession Making When one caller agrees to dumbfound a change in his/her slip, a concession has been made Concessions restrict the locate of options When a concession is made, the bargaining range is further constrained 4-14 two Dilemmas in Mutual Adjustment Dilemma of honesty stir round how more of the truth to tell the other fellowship Dilemma of trust Concern about how much should negotiators believe what the other party tells them 4-15 look on Claiming and Value Creation Opportunities to win or share resources Claiming value consequence of zero-sum or distributive situation s where the object is to gain amplest piece of resource Creating value result of non-zero-sum or integrative situation where the object is to have both parties do well 4-16 Value Claiming and Value Creation Most actual negotiations are a combination of claiming and creating value processes Negotiators must be able to recognize situations that require more of one approach than the other Negotiators must be versatile in their comfort and use of both major strategic approaches Negotiator perceptions of situations tend to be inclineed toward beholding problems as more distributive/competitive than they really are 4-17 Value Claiming and Value Creation Value ends that exist between negotiators include Differences in delight Differences in judgments about the next Differences in risk tolerance Differences in time preferences 4-18 Conflict Conflict whitethorn be make up ones mindd as a sharp disagreement or opposition and includes the perceived divergence of evoke, or a b elief that the parties current aspirations sightnot be achieved simultaneously 4-19 Levels of Conflict Intrasomebodyal or intrapsychic conflict Conflict that occurs deep down an individual We want an ice cream cone badly, but we know that ice cream is very fattening Interpersonal conflict Conflict is between individuals Conflict between bosses and subordinates, spouses, siblings, roommates, etc. 4-20 Levels of Conflict Intragroup Conflict Conflict is at heart a group Among squad and committee members, within families, classes etc. Intergroup Conflict Conflict can occur between disposals, warring nations, feuding families, or within splintered, fragmented communities These negotiations are the most complex -21 Dysfunctions of Conflict 1. 2. 3. 4. 5. 6. 7. 8. Competitive, win-lose goals Misperception and bias Emotionality Decreased communication Blurred issues Rigid commitments Magnified differences, minimized similarities Escalation of conflict 4-22 Functions and Bene fits of Conflict 1. Makes organizational members more aware and able to cope with problems through discussion. 2. Promises organizational change and adaptation. 3. Strengthens relationships and heightens morale. 4. Promotes awareness of self and others. 5. Enhances personal development. 6. Encourages psychological developmentit helps eople become more accurate and realistic in their self-appraisals. 7. Can be impact and fun. 4-23 The Dual Concerns Model 4-24 Styles of Conflict Management 1. Contending Actors pursue own outcomes strongly, show myopic lodge in for other party obtaining their desired outcomes 2. Yielding Actors show little interest in whether they attain own outcomes, but are quite interested in whether the other party attains their outcomes 3. Inaction Actors show little interest in whether they attain own outcomes, and little concern about whether the other party obtains their outcomes 4-25 Styles of Conflict Management . Problem solving Actors show high conce rn in obtaining own outcomes, as well as high concern for the other party obtaining their outcomes 5. Compromising Actors show moderate concern in obtaining own outcomes, as well as moderate concern for the other party obtaining their outcomes CHAPTER TWO system and maneuver of Distributive Bargaining 4-27 Three Reasons Negotiators Should Be known with Distributive Bargaining 1. Independent situations require knowing how this works in order to do well 2. Need to know how to counter the effects of the strategies 3. each situation has the potential to require kills at the claiming-value stage 4-28 The Distributive Bargaining Situation Goals of one party are in fundamental,direct conflict to another party Resources are fixed and limited Maximizing ones own share of resources is the goal for both parties 4-29 The Distributive Bargaining Situation Situation includes get-go points (initial offers) identify points Resistance points ( headaway) Alternative outcomes 4-30 The Dis tributive Bargaining Situation Party A Seller Walkaway Point Initial wisecrack Party B Buyer Target Point Target Point Asking Price Walkaway Point 4-31 The Role of Alternatives to aNegotiated Agreement Alternatives give the negotiator former to walk away from the negotiation If alternatives are attractive, negotiators can Set their goals higher Make fewer concessions If there are no attractive alternatives Negotiators have much little bargaining strength 4-32 The Distributive Bargaining Situation Party A Seller Walkaway Point Target Point Alternative Initial Offer Party B Buyer Asking Price Alternative Target Point Walkaway Point 4-33 Fundamental Strategies Push for settlement near confrontations resistance point Get the other party to change their resistance point If settlement range is invalidating, either Get the other side to change their resistance point Modify your own resistance point Convince the other party that the settlement is the best possible 4-34 Keys to the Strategies The keys to implementing any of the 4 strategies are Discovering the other partys resistance point Influencing the other partys resistance point 4-35 Tactical Tasks of Negotiators Assess outcome set and the cost of termination for the other party Manage the other partys impressions Modify the other partys perceptions Manipulate the actual costs of delay or termination 4-36Assess the Other Partys Target, Resistance Point, and Costs of Terminating Negotiations Indirectly Determine knowledge opponent used to set Target Resistance points purportly Opponent reveals the information 4-37 Manage the Other Partys Impressions Screen your behavior Say and do as little as possible Direct action to alter impressions Present facts that enhance ones position 4-38 Modify the Other Partys Perceptions Make outcomes emerge less attractive Make the cost of obtaining goals appear higher Make demands and positions appear more or less attractive to the other party whichever uits your of necessity 4-39 Manipulate the Actual Costs of Delay or Termination Plan disruptive action Raise the costs of delay to the other party spirt an alliance with outsiders Involve (or threaten to involve) other parties who can influence the outcome in your favor Schedule manipulations One party is usually more susceptible to delaying than the other 4-40 Positions Taken During Negotiations Opening offers Where will you start? Opening stance What is your attitude? Competitive? Moderate? Initial concessions Should any be made? If so, how large? 4-41 Positions Taken During Negotiations The component part of concessions Without them, there is either capitulation or deadlock Patterns of concession making The pattern contains valuable information Final offers (making a commitment) This is all I can do 4-42 Commitments Tactical Considerations Establishing a commitment Three properties Finality Specificity Consequences Preventing the other party from committing prematurely Their commitment reduces your flexibility 4-43 Ways to have a Commitment Public pronouncement Linking with an outside base Increase the prominence of demands Reinforce the threat or promise 4-44 CommitmentsTactical Considerations Ways to violence a committed position Plan a way out Let it die silently Restate the commitment in more usual terms Minimize the damage to the relationship if the other backs off 4-45 Closing the Deal Provide alternatives (2 or 3 packages) Assume the close Split the difference Exploding offers Deal sweeteners 4-46 Dealing with characteristic Hardball Tactics Four main options Ignore them Discuss them Respond in kind Co-opt the other party (befriend them) 4-47 distinctive Hardball Tactics Good Cop/Bad Cop Lowball/Highball Bogey (playing up an issue of little importance) The Nibble (asking for a number of small concessions to) 4-48 Typical Hardball Tactics Chicken Intimidation Aggressive Behavio r Snow Job (overwhelm the other party with information) 4-49 Summary Negotiators need to Set a clear objective lens and resistance points Understand and work to improve their BATNA Start with good opening offer Make appropriate concessions Manage the commitment process CHAPTER THREE Strategy and Tactics of Integrative Negotiation 4-51 What Makes Integrative Negotiation Different? Focus on commonalties rather than differences Address necessitate and interests, not positions Commit to ascertaining the needs of all involved parties Exchange information and ideas Invent options for mutual gain consumption objective criteria to set standards 4-52 Overview of the Integrative Negotiation handle Create a free flow of information Attempt to understand the other negotiators real needs and objectives Emphasize the commonalties between the parties and minimize the differences Search for solutions that meet the goals and objectives of both sides 4-53 Key Steps in the Integrati ve Negotiation procedure Identify and subtend the problem Understand the problem fully identify interests and needs on both sides Generate alternative solutions Evaluate and select among alternatives 4-54 Claiming and Creating Value 4-55 Identify and Define the Problem Define the problem in a way that is mutually acceptable to both sides State the problem with an eye toward practicality and comprehensiveness State the problem as a goal and identify the obstacles in attaining this goal Depersonalize the problem Separate the problem definition from the search for solutions 4-56 Understand the Problem Fully Identify Interests and Needs Interests the underlying concerns, needs, desires, or fears that motivate a negotiator Substantive interests relate to key issues in the negotiation Process interests are link to the way the dispute is settled Relationship interests indicate that one or both parties value their relationship Interests in principle doing what is fair, right , acceptable, ethical may be shared by the parties 4-57 Observations on Interests There is almost ever so more than one Parties can have different interests at stake ofttimes stem from deeply rooted human needs or determine Can change Numerous slipway to surface interests Surfacing interests is not always easy or to ones best advantage 4-58Generate Alternative Solutions Invent options by redefining the problem set Compromise Logroll Modify the pie Expand the pie Find a bridge solution Cut the costs for contour Non specific compensation Subordination Generate options to the problem as a given Brainstorming Surveys Electronic brainstorming 4-59 Evaluate and Select Alternatives Narrow the range of solution options Evaluate solutions on Quality Objective standards Acceptability Agree to evaluation criteria in advance Be willing to justify personal preferences Be alert to the influence of intangibles in selecting options implement subgroups to evaluate com plex options 4-60 Evaluate and Select Alternatives Take time to cool off Explore different ways to logroll Exploit differences in expectations and risk/time preferences Keep decisions tentative and conditional until a final proposal is complete Minimize formality, record retentivity until final agreements are closed 4-61 Factors That Facilitate Successful Integrative Negotiation Some common objective or goal Faith in ones own problem-solving ability A belief in the validity of ones own position and the others perspective The motivation and commitment to work together -62 Factors That Facilitate Successful Integrative Negotiation Trust Clear and accurate communication An understanding of the dynamics of integrative negotiation CHAPTER FOUR Negotiation Strategy and preparedness 4-64 Goals The Focus That Drives Negotiation Strategy Determining goals is the first step in the negotiation process Negotiators should specify goals and objectives understandably The goals se t have direct and indirect effects on the negotiators strategy 4-65 The Direct and Indirect Effects of Goals on Strategy Direct effects Wishes are not goals Goals are often linked to the other partys goalsThere are limits to what goals can be Effective goals must be concrete/specific Indirect effects Forging an ongoing relationship 4-66 Strategy versus Tactics Strategy The overall plan to achieve ones goals in a negotiation Tactics Short-term, adaptive moves designed to enact or pursue broad strategies Tactics are subordinate to strategy Tactics are driven by strategy Planning The action component of the strategy process i. e. how will I implement the strategy? 4-67 Approaches to Strategy colored One that is made without active involvement of the other party Bilateral One that considers the impact of the others strategy on ones own 4-68 The Dual Concerns Model Avoidance Dont negotiate Competition I gain, ignore relationship Collaboration I gain, you gain, enhance relat ionship Accommodation I let you win, enhance relationship 4-69 Strategic Options Per the Dual Concerns Model, choice of strategy is reflected in the answers to two questions How much concern do I have in achieving my desired outcomes at stake in the negotiation? How much concern do I have for the current and future graphic symbol of the relationship with the other party? 4-70 The Nonengagement StrategyAvoidance If one is able to meet ones needs without negotiating at all, it may make hotshot to use an avoidance strategy It simply may not be worth the time and effort to negotiate The decision to negotiate is closely related to the desirability of available alternatives 4-71 Active-Engagement Strategies Competition distributive, win-lose bargaining Collaboration integrative, win-win negotiation Accommodation involves an imbalance of outcomes (I lose, you win) 4-72 Key Steps to an lofty Negotiation Process 4-73 Key Steps to an Ideal Negotiation Process Preparation What are the goals? How will I work with the other party? Relationship twist Understanding differences and similarities Building commitment toward a mutually beneficial set of outcomes Information gathering Learn what you need to know about the issues 4-74 Key Steps to an Ideal Negotiation Process Information using Assemble your case Bidding individually party states their opening offer Each party engages in give and take Closing the deal Build commitment Implementing the agreement 4-75 Getting Ready to Implement the Strategy The Planning Process Define the issues Assemble the issues and define the bargaining ix The bargaining mix is the combined list of issues Define your interests Why you want what you want 4-76 Getting Ready to Implement the Strategy The Planning Process Know your limits and alternatives Set your objectives (targets) and opening bids (where to start) Target is the outcome realistically expected Opening is the best that can be achieved Assess constituents and the fond context of use of the negotiation 4-77 The Social Context of Negotiation Field Analysis 4-78 Getting Ready to Implement the Strategy The Planning Process Analyze the other party Why do they want what they want? How can I present my case clearly and refute the other partys arguments? Present the issues to the other party 4-79 Information Needed to Prepare Effectively for Engaging the Other Party Resources, issues, and bargaining mix Interests and needs Walkaway point and alternative(s) Targets and opening bids Constituents, loving structure, and authority to make an agreement Reputation and negotiation style Likely strategy and tactics 4-80 Getting Ready to Implement the Strategy The Planning Process Define the protocol to be followed in the negotiation What is the agenda? Who will be there?Where will the negotiation occur? What is the time period? What proponentfulness be done if the negotiation fails? How will we keep track of what i s agreed to? How do we know whether we have a good agreement? 4-81 Summary on the Planning Process planning is the most critically important activity in negotiation. CHAPTER FIVE Perception, Cognition, and Emotion 4-83 Perception, Cognition, and Emotion in Negotiation The basic building blocks of all social encounters are Perception Cognition Framing cognitive biases Emotion 4-84 Perception Perception is The process by which individuals connect to their environment. A sense-making process 4-85 The Process of Perception The process of ascribing meaning to messages and events is strongly influenced by the perceivers current state of mind, role, and comprehension of earlier communications People take in their environment in order to respond appropriately The complexity of environments makes it impossible to process all of the information People develop shortcuts to process information and these shortcuts can create perceptual errors 4-86 Perceptual Distortion Four major perce ptual errors Stereotyping Halo effects Selective perception Projection 4-87Stereotyping and Halo Effects Stereotyping Is a very common distortion Occurs when an individual assigns attributes to another solely on the basis of the others social status in a concomitant social or demographic category Halo effects Are similar to stereotypes Occur when an individual generalizes about a variety of attributes based on the cognition of one attribute of an individual 4-88 Selective Perception and Projection Selective perception Perpetuates stereotypes or halo effects The perceiver singles out information that supports a prior belief but filters out contrary information Projection Arises out of a need to protect ones own self-concept People assign to others the characteristics or feelings that they possess themselves 4-89 Framing Frames Represent the subjective mechanism through which people evaluate and make sense out of situations play people to pursue or avoid subsequen t actions Focus, shape and organize the world around us Make sense of complex realities Define a person, event or process Impart meaning and significance 4-90 Types of Frames Substantive Outcome Aspiration Process Identity Characterization Loss-Gain 4-91 How Frames Work in Negotiation Negotiators can use more than one assign Mismatches in frames between parties are sources of conflict Parties negotiate differently depending on the frame Specific frames may be likely to be used with certain types of issues Particular types of frames may lead to particular types of agreements Parties are likely to assume a particular frame because of various factors 4-92 Interests, Rights, and advocator Parties in conflict use one of three frames Interests people talk about their positions but often what is at stake is their underlying interests Rights people may be concerned about who is right that is, who has legitimacy, who is correct, and what is fair creator people may wish to resolve a conflict on the basis of who is stronger 4-93 The Frame of an step to the fore Changes as the Negotiation Evolves Negotiators tend to argue for stock issues or concerns that are raised every time the parties negotiate Each party attempts to make the best possible case for his or her preferred position or perspective Frames may define major shifts and transitions in a complex overall negotiation Multiple agenda particular propositions operate to shape issue development 4-94 Some Advice about Problem Framing for Negotiators Frames shape what the parties define as the key issues and how they talk about them Both parties have frames Frames are controllable, at least to some degree Conversations change and transform frames in ways negotiators may not be able to predict but may be able to control Certain frames are more likely than others to lead to certain types of processes and outcomes 4-95 Cognitive Biases in Negotiation Negotiators have a determination to ma ke systematic errors when they process information. These errors, collectively labeled cognitive biases, tend to hinder negotiator performance. 4-96 Cognitive Biases Irrational escalation of commitment Mythical fixed-pie beliefs Anchoring and adjustment Issue framing and risk Availability of information The winners curse cocksureness The law of small numbers Self-serving biases endowment fund effect Ignoring others cognitions Reactive devaluation 4-97 Irrational Escalation of Commitment and Mythical Fixed-Pie Beliefs Irrational escalation of commitment Negotiators maintain commitment to a course of action even when that commitment constitutes irrational behavior Mythical fixed-pie beliefs Negotiators assume that all negotiations (not just some) involve a fixed pie 4-98Anchoring and Adjustment and Issue Framing and Risk Anchoring and adjustment The effect of the standard (anchor) against which subsequent adjustments (gains or losses) are measured The anchor might be based on imperfect or incomplete information, thus be misleading Issue framing and risk Frames can lead people to seek, avoid, or be neutral about risk in decision making and negotiation 4-99 Availability of Information and the Winners Curse Availability of information Operates when information that is presented in acute or oversight-getting ways becomes easy to recall. Becomes central and critical in evaluating events and ptions The winners curse The tendency to settle quickly on an item and then subsequently feel discomfort about a win that comes too easily 4-100 Overconfidence and the Law of Small Numbers Overconfidence The tendency of negotiators to believe that their ability to be correct or accurate is greater than is actually true The law of small numbers The tendency of people to stray codas from small sample sizes The smaller sample, the greater the possibility that past lessons will be erroneously used to infer what will happen in the future 4-101 Self -Serving Biases and Endowment Effect Self-serving biases People often explain another persons behavior by making attributions, either to the person or to the situation There is a tendency to Overestimate the role of personal or internal factors Underestimate the role of situational or external factors Endowment effect The tendency to overvalue something you own or believe you possess 4-102 Ignoring Others Cognitions and Reactive Devaluation Ignoring others cognitions Negotiators dont bother to ask about the other partys perceptions and thoughts This leaves them to work with incomplete information, and thus produces faulty results Reactive devaluation The process of devaluing the other partys concessions simply because the other party made them 4-103 Managing Misperceptions and Cognitive Biases in Negotiation The best advice that negotiators can follow is Be aware of the negative aspects of these biases Discuss them in a structured manner within the team and with counterp arts 4-104 Mood, Emotion, and Negotiation The distinction between mood and emotion is based on three characteristics Specificity Intensity Duration 4-105 Mood, Emotion, and Negotiation Negotiations create both positive and negative emotions Positive emotions generally have positive onsequences for negotiations They are more likely to lead the parties toward more integrative processes They create a positive attitude toward the other side They promote persistence 4-106 Mood, Emotion, and Negotiation Aspects of the negotiation process can lead to positive emotions Positive feelings result from fair procedures during negotiation Positive feelings result from favorable social comparison 4-107 Mood, Emotion, and Negotiation Negative emotions generally have negative consequences for negotiations They may lead parties to define the situation as competitive or distributive They may undermine a negotiators ability to analyze the situation accurately, which adversely affects indi vidual outcomes They may lead parties to escalate the conflict They may lead parties to retaliate and may thwart integrative outcomes Not all negative emotion has the same effect 4-108 Mood, Emotion, and Negotiation Aspects of the negotiation process can lead to negative emotions Negative emotions may result from a competitive mind-set Negative emotions may result from an impasse Negative emotions may result from the prospect of beginning a negotiation Effects of positive and negative emotion Positive feelings may generate negative outcomes Negative feelings may elicit beneficial outcomes Emotions can be used strategically as negotiation gambits CHAPTER SIX confabulation 4-110 Communication in Negotiation Communication processes, both verbal and nonverbal, are critical to achieving negotiation goals and to resolving conflicts. 4-111 What is Communicated during Negotiation? Offers, counteroffers, and motives Information about alternatives Information about outcomes Soc ial accounts Explanations of mitigating circumstances Explanations of exonerating circumstances Reframing explanations Communication about process 4-112 Communication in Negotiation Three Key Questions Are negotiators consistent or adaptive? Many negotiators prefer sticking with the familiar rather than venturing into improvisation Does it matter what is said early in the process? What negotiators do in the first half of the process has a significant impact on their ability to generate integrative solutions with high joint gains Is more information always better? There is evidence that having more information does not automatically translate into better outcomes 4-113 How People Communicate n Negotiation Use of language operates at two levels Logical level (proposals, offers) Pragmatic level (semantics, syntax, style) Use of nonverbal communication Making eye contact Adjusting body position Nonverbally encouraging or discouraging what the other says 4-114 How People Communicate in Negotiation Selection of a communication enthrall Communication is experienced differently when it occurs through different channels People negotiate through a variety of communication media by phone, in writing and increasingly through electronic channels or virtual negotiations Social bandwidth distinguishes one communication channel from another. the ability of a channel to carry and convey subtle social and relational cues from sender to receiver 4-115 How to Improve Communication in Negotiation Three main techniques 1. The use of questions 2. Listening 3. Role reversal 4-116 How to Improve Communication in Negotiation Use of questions two basic categories Manageable questions cause attention or prepare the other persons thinking for further questions May I ask you a question? getting information How much will this cost? generating thoughts Do you have any suggestions for improving this? 4-117 How to Improve Communication in Negotiation Use of qu estions two basic categories Unmanageable questions cause difficulty Where did you get that dumb idea? give information Didnt you know we couldnt afford this? bring the discussion to a false conclusion Dont you think we have talked about this enough? 4-118 How to Improve Communication in Negotiation Listening three major forms 1. Passive listening Receiving the message while providing no feedback to the sender 2. Acknowledgment Receivers nod their heads, maintain eye ontact, or interject responses 3. Active listening Receivers restate or plagiarize the senders message in their own language 4-119 How to Improve Communication in Negotiation Role reversal Negotiators understand the other partys positions by actively arguing these positions until the other party is convinced that he or she is understood Impact and success of the role-reversal technique Research suggests that role reversal is a useful tool for improving communication and the accurate understanding and ap preciation of the other partys position 4-120 Special Communication Considerations at the Close of Negotiations Avoiding fatal mistakes Keeping track of what you expect to happen Systematically guarding yourself against self-serving expectations Reviewing the lessons from feedback for similar decisions in the future Achieving closure Avoid surrendering important information needlessly Refrain from making dumb remarks CHAPTER SEVEN Finding and Using Negotiation Power 4-122 Why Is Power Important to Negotiators? Seeking force play in negotiation arises from one of two perceptions 1. The negotiator believes he or she currently has less power than the other party. 2. The negotiator believes he or she needs more power than the other party. -123 A Definition of Power an actorhas power in a given situation (situational power) to the degree that he can satisfy the purposes (goals, desires, or wants) that he is attempting to fulfill in that situation Two perspectives on power Power used to dominate and control the other power over Power used to work together with the otherpower with 4-124 Major Sources of Power How People Acquire Power Informational sources of power own(prenominal) sources of power Power based on position in an organization Relationship-based sources of power Contextual sources of power 4-125 Informational Sources of Power Information is the most common source of power Derived from the negotiators ability to assemble and organize data to support his or her position, arguments, or desired outcomes A tool to challenge the other partys position or desired outcomes, or to undermine the effectiveness of the others negotiating arguments 4-126 Power ground on Personality and Individual Differences Personal druthers Cognitive orientation Ideologies about power Motivational orientation Specific motives to use power Disposition and skills Orientation to cooperation/competition Moral orientation Philosophical orientation to power us e -127 Power Based on Position in an Organization Two major sources of power in an organization Legitimate power which is grounded in the title, duties, and responsibilities of a job description and level within an organization hierarchy Power based on the control of resources associated with that position 4-128 Power Based on Position in an Organization Two major sources of power in an organization Legitimate power is derived from occupying a particular job, office, or position in an organizational hierarchy Power resides in the title and responsibilities of the job itself and the legitimacy of the office holder Legitimate power is the institution of our social structure and may be acquired by birth, election or appointment or promotion 4-129 Power Based on Resource constraint People who control resources have the capacity to give them to someone who will do what they want, and withhold them (or take them away) from someone who doesnt do what they want. 4-130 Power Based on Resource Control Some of the most important resources Money Supplies Human capital Time Equipment Critical services Interpersonal support 4-131 Power Based on Relationships Goal interdependence How parties view their goals Referent power Based on an appeal to common experiences, common past, common fate, or membership in the same groups. Networks Power is derived from whatever flows through that particular location in the structure (usually information and resources) 4-132 An Organization Hierarchy 4-133 An Organizational Network detached Dyad Star Gatekeeper Liaison External Environment Linking Pin Isolate 4-134 Power Based on Relationships Key aspects of networks Tie strength An sign of the strength or quality of relationships with others Tie content The resource that passes along the tie with the other person Network structure The overall set of relationships within a social system 4-135 Power Based on Relationships Aspects of network structure that determine power include Centrality Criticality and relevance Flexibility visibleness Membership in a coalition 4-136 Contextual Sources of Power Power is based in the context, situation or environment in which negotiations take place. BATNAs An alternative deal that a negotiator might pursue if she or he does not come to agreement with the current other party Culture Often contains implicit rules about use of power Agents, constituencies and external audiences All these parties can become actively involved in pressuring others 4-137 Dealing with Others Who Have More Power Never do an all-or-nothing deal Make the other party smaller Make yourself bigger Build momentum through doing deals in sequence Use the power of competition to leverage power Constrain yourself Good information is always a source of power Ask many questions to gain more information Do what you can to manage the process CHAPTER EIGHT Ethics in Negotiation 4-139 What Do We Mean by Ethics and Why Do They M atter in Negotiation? Ethics Are broadly applied social standards for what is right r wrong in a particular situation, or a process for setting those standards Grow out of particular philosophies which Define the nature of the world in which we live Prescribe rules for living together 4-140 solvent Moral Problems 4-141 Questions of good Conduct that Arise in Negotiation Using ethically ambiguous tactics Its (mostly) all about the truth Identifying ethically ambiguous tactics and attitudes toward their use What ethically ambiguous tactics are there? Is it all right to use ethically ambiguous tactics? 4-142 Questions of Ethical Conduct that Arise in Negotiation Deception by omission versus commission