People and Organizations - Introduction to Negotiations

Negotiations & Conflict Management Basic Concepts: Theory & Practice People and Organizations Basic Building Blocks • Interests – Yours – Others • Power—multiple sources • Options-many • Outcomes – Substantive – Relationship • Conflict Management Systems – Internal to the Organization – External—societal, international, community… Brought to Life By: • Personal styles, ethics, values • Roles—negotiator, mediator, arbitrator, system designer, change agent, evaluator • Strategies and tactics – Distributive, integrative, reframing, transforming, dealing with difficult people… • Prepare, Prepare, Prepare! What is Power? • The (perceived) ability to bring about desired outcomes; or, the ability to get others to do what you want them to do! • French & Raven (1959) – Expert Power – Reward Power – Coercive Power – Legitimate Power – Referent Power – Subsequently: • Informational • Relational or Connectional Sources of Power • Positional • Personal • Resource Control • SocialRelational • Tactical • Reputation • Legitimate authority; or “I’m the boss” • Expertise, information • Rewards, sanctions (e.g. legal, economic..) • Networks, collective action, coalitions • BATNA*, coercion, commitment, deadlines, reframing, face saving, integrative solutions • Trustworthy, effective, networked, or – Feared – Difficult Person.. *Best Alternative To Negotiated Agreement Coalitions • Identifying potential partners • Form them early—first mover advantage • Maintain them—highly unstable! • How to break them if necessary Try to be part of a blocking coalition and a winning coalition A Final Parable: “Five Smooth Stones”* • David and Goliath: What were David’s sources of power? • Cesar Chavez: What were his sources of power? *Marshall Ganz, Five Smooth Stones, “How David Beat Goliath,”2000 But, I don’t like Conflict!!! Common Advice from a Favorite Mother: “We don’t talk about that sort of thing!” Assumptions about Conflict • It’s bad if: – Never surfaced – Surfaced, and left to fester and not resolved – Surfaced, personalized, or allowed to escalate into “conflict traps” A Conflict Trap in Action Hostile Climate Quality (-) Contract Demands Grievance Rates Source: Auto Industry Study, 1985 (-) Productivity Assumptions about Conflict • It can be helpful if: – Surfaced early, used to identify underlying interests – Focused on interests and problems, not people – Used to broaden alternatives, address interests of all stakeholders – Used to improve relationships – Modern conflict resolution tools are applied, skillfully But, easier said than done! Assumptions about Conflict • When is conflict likely to be dysfunctional and you should not negotiate? – Crisis - time is critical (emergency rescues) – Routine tasks - i.e., optimal way is well known – Basic value/commitment violated and you want to send message that conflict is not “legitimate”, e.g., hostage situations, blackmail, wildcat strikes, parentchild decisions… and obviously faculty-student… • Advice from a favorite wife: “Pick your battles!” Negotiation Styles/Strategies Competition (A) Compromise Avoidance Accommodation (A) Negotiation Styles/Strategies Competition (A) Collaboration Compromise Avoidance Accommodation (A) Negotiation Strategies • Distributive • Conflicting goals, fixed pie, task is to claim value and max. personal gains • Integrative • Shared goals, expandable pie, task is to create value, max. joint gains • Mixed-Motive • Some of both: Expanding the pie; meeting needs of all or most parties as much as possible while claiming your appropriate share /----------/--------/------------/------------/------------/ A’s Opening Offer A’s Target Point A’s Resistance Point B’s Resistance Point B’s Target Point Negative Contract Zone (Gap between A & B Resistance Points) B’s Opening Offer /-----------/-----------/-----------/-----------/------------/ A’s Opening Offer A’s Target Point B’s Resistance Point A’s Resistance Point B’s Target Point Positive Contract Zone (A & B Resistance Points Overlap) B’s Opening Offer Distributive Tactics • • • • • • • Develop target and resistance positions in advance Overstate opening positions Commit to these positions early and publicly Channel communications through a spokesperson Give as little as possible for what you get Use coercive forms of power Mobilize support from constituents against the other party • Divide and conquer the other side; protect against the same on your side • An agreement reluctantly accepted is a sign of success Integrative Tactics • • • • Focus on Interests, Not Positions Share Information Search for Joint Gains Brainstorming, sub-committee explorations of problems, open communications • Use objective criteria to evaluate options • Look for options to “expand the pie” Distributive-Integrative Differences • Note positions vs. problems • Differences in use of information • Differences in communication patterns • Differences in relationships - trust levels Interest-based Bargaining vs Positional Bargaining Position of A Interests of A Limited zone for agreement Many options to consider before finalizing an agreement Position of B Interests of B Positional versus Interest-based Communications Here are two statements -- which is positional and which is interest-based? Statement A: We are implementing a new quality initiative and we expect your union to fully participate Statement B: We are implementing a new quality initiative, which is part of ISO 9000:2000. We know that worker input – your union members – is essential to any quality initiative. So, we really want your full participation. Also, active union participation in ISO 9000:2000 will send an important signal to our customers. What can we do to work together on this issue? What do you notice when you compare the statements? Positions versus Interests Statement by a maintenance team leader: “You were supposed to train me two months ago in how to use the computerized ordering system and this still hasn’t happened. I want you to train me today!” What are some potential underlying interests? How would you know which interests are most important in this particular instance? How might you reframe this positional statement into an “interested based” statement Positions versus Interests Statement by a maintenance team leader: “You were supposed to train me two months ago in how to use the computerized ordering system and this still hasn’t happened. I want you to train me today!” How might you reframe this positional statement into an “interested based” statement: “Sorry I have been terribly busy… as I imagine you have been too. I’d like to approach this together with you… “ Would you be willing to help me”?… “I am unable to achieve the expected productivity gains, because I can’t use the system. Perhaps we can take the time together today to go through the training” “ How can we get together… When?… “ “ We’re having a hard time satisfying the customer…“ Lessons • Lesson 1: Listening for interests is an active process of asking for more information and clarification. • Lesson 2: Reframing is a valuable tool/skill/tactic—try it out! Summary: Personal Skills for Dealing with Conflict • Most conflicts mixed-motive in nature • Need to master basic skills in negotiations – Accurate analysis of personal style – Able to mix styles as appropriate to situation • Skills need to be broadly diffused: “It takes at least 2 to tango” • Skills can only be developed by practice! • And the Bottom Line: Prepare, Prepare…! Preparing means (at a minimum) • Knowing your own interests – Substantive – Relationship • Trying to understand others interests • Analyzing sources of power available to all parties—but not being paralyzed by it • Thinking about options • Understanding your personal style—strengths and weaknesses • Knowing your BATNA