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CHAPTER ONE
The Nature of Negotiation

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Introduction
Negotiation is something that everyone does, almost daily

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Characteristics Common to All Negotiation Situations

There

are two or more parties There is a conflict of interest between them Parties negotiate because they think they can get a better deal than by taking what the other side will give them. Parties prefer to search for agreement rather than:
Fight openly Capitulate Permanently break off contact Take their dispute to a third party
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Characteristics Common to All Negotiation Situations (cont.)

Parties

expect give and take. They expect both sides will modify or give in somewhat on their opening statements, requests, or demands negotiation involves:
The resolving of tangibles (e.g., the price or the terms of agreement)

Successful

The resolution of intangibles (the underlying psychological motivations)

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Interdependence
In

negotiation, both parties need each other This mutual dependency is called interdependence
Interdependent goals are an important aspect of negotiation
Win-lose:

I win, you lose Win-win:Opportunities for both parties to gain

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Interdependence
One

potential consequence of interdependent relationships is value creation The other potential consequence of interdependent relationships is conflict

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Value Creation
Synergy: the notion the "the whole is greater than the sum of its parts".
Negotiators

should be aware that potential differences can be used to reach agreement

It

is also possible to create value through shared interests and through scale (task too big for one party to accomplish alone)

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Conflict
May be defined as a: "sharp disagreement" and includes "the perceived divergence of interest, or a belief that the parties' current aspirations cannot be achieved simultaneously"

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Levels of Conflict
Intrapersonal

or Intrapsychic Conflict

Conflict that occurs within an individual

We

want an ice cream cone badly, but we know that ice cream is very fattening

Interpersonal

Conflict

Conflict is between individual people

Conflict

between bosses and subordinates, spouses, siblings, roommates etc.

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Levels of Conflict (cont.)

Intragroup
Among

Conflict

Within-group negotiation
team and committee members and within families, classes etc.

Intergroup

Conflict

Conflict can occur within groups and among groups simultaneously

Conflict

between unions and management, warring nations, feuding families, or community action groups and government authorities

These negotiations are the most complex

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Dysfunctions of Conflict

Competitive processes
Parties compete because they believe that their goals are in opposition and that they cannot both achieve their objectives

Misperception and bias

As conflict intensifies:
Perceptions

become distorted Thinking tends to become stereotypical and biased

Emotionality
Parties may become increasingly emotional and irrational as the conflict escalates

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Dysfunctions of Conflict (cont.)

Decreased communication
Parties communicate less with those who disagree with them, more with those who agree

Blurred issues
The parties become less clear about: How the dispute started What it is really about What it will take to solve it

Rigid commitments
Parties become more committed to their points of view and less willing to back down from them for fear of losing face

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Dysfunctions of Conflict (cont.)

Magnified differences, minimized similarities This distortion leads the parties to believe they are farther apart from each other than they really are Escalation of the conflict Both parties attempt to win by: Increasing their commitment to their position, Increasing the resources they are willing to put up to win, Increasing their tenacity in holding their ground under pressure

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Five Major Strategies for Conflict Management:

1 Contending
Actors pursue own outcomes strongly, show little concern for other party obtaining their desired outcomes

2 Yielding
Actors show little interest in whether they attain own outcomes, are quite interested in whether the other party attains their outcomes

3 Inaction
Actors show little interest in whether they attain own outcomes, little concern about whether the other party obtains their outcomes
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Five Major Strategies for Conflict Management:

4 Problem solving
Actors show high concern 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

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The Dual Concerns Model

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