1 Handling Conflict

Chapter 9

A Final Word From STEVE JOBS: One of Americas Great Workplace Heroes

Integrate Tech with Humanity Simplify What you produce Focus Focus intensely focus Have Face to Face problem solving Push your team beyond normal limits

Key Messages About Conflict

Conflict is neither good nor bad. Conflict is inevitable.

Conflict does not have to result in winners and losers.

Determining the type of conflict enables you to deal with it.

Conflict can be a good thing.

Because we are all different, differences in points of view are inevitable.

It has the potential to increase understanding, stimulate positive change, and facilitate human relations.

But it can lead to relational stalemates..

Or worse!

Which type are you?

Although the assertive style is the preferred style, it may not always be appropriate. There may be situations when one of the other styles is more appropriate.

For example, if the coworker is a three hundred-pound bully, lets go for the passive style!

EVERYONE IS A NEGOTIATOR
It is an everyday occurrence. Life is an endless series of interactions that require negotiation.

In the workplace you will be confronted with situations in which you are called upon to negotiate, to reach an agreement, or to settle a difference of opinion.

Negotiation Skills
What you say is often less important than how you say it.
Tone, Posture, and Body Language Are Important Negotiating Skills

Negotiation Skills
Understanding and recognition do not mean compromise and concession!

Business Conflicts with Customers: Tips for dealing with unhappy customers, clients, patients

Collaborating: The "win/win" negotiation approach has these positive attributes:

It de-emphasizes personalities in favor of emphasizing the issues. In other words, it separates the person from the problem.

Compromising: The Give/Get Principle of Negotiation

The collaborative, or win-win, approach to negotiation is usually the most effective and most rewarding for both parties. However, there will be certain situations you will confront where the concept of compromise, or giveget, fits better.

Distributive Bargaining
In a zero sum game, the person who makes the first offer is at a disadvantage sets the outer limits of price, other terms

Improve zero-sum negotiation skills by: Understanding your objectives Understanding the other sides objectives

2 Power in Negotiation

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Why Is Power Important to Negotiators?

Seeking power 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.

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 other power with

Sources of Power How People Acquire Power

Informational sources of power Personal sources of power Power based on position in an organization Relationship-based sources of power Contextual sources of power

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 party s position or desired outcomes, or to undermine the effectiveness of the others negotiating arguments

Power Based on Personality and Individual Differences

Personal orientation 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 use

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

Power Based on Relationships

Key aspects of networks: Tie strength An indication 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

Power Based on Relationships

Aspects of network structure that determine power include:

Centrality Criticality and relevance Flexibility Visibility Coalitions

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 Do what you can to manage the process

Testing Your Power

Power is of no value unless you take advantage of it.

Remember, power is not bad--the abuse of it is bad.

When negotiating, be willing to take a chance. Try out your ability to influence the other party and the outcome of the negotiation. You may find out you have more power than you think!

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Intimidation
What can you do? Have confidence to remain un intimidated by tough negotiators or negotiators who pull rank Believe that negotiating is normal rather than something to feel uncomfortable about

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Aggressive Strategies
What can you do?

Ignore the aggressive strategy. Lead a change in the game by proposing objective criteria and principles that should be considered. Lead a change in the game by concentrating first on the interests of the Other and then your own interests. Name the aggressive strategy of the Other party and try to negotiate a change in the game by generating options and concentrating on objective criteria and interest of all parties.

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The Best Offer

Just give me your best priceI dont want a sales pitch. The sales rep is also told that manager has one of the sales reps competitors coming in this afternoon. What can you do? Try responding, Id like to give you my best price but until Ive learned more about your requirements, I dont know what my best price is. Sidestepping the request and signaling that you need information is a good countermeasure because you have agreed that you want to give him what the wants. It is just that you cannot do it in the way he has suggested.

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The Boss Ploy

You discover that the person to whom you are talking does not have the authority to agree. He or she leaves the room (contacts the boss) and returns saying that the boss will not agree unless another x percent is conceded. Then says delivery has to be in 2 rather than 4 weeks The unseen boss always wants a bit more.

What can you do?

Authority Limit Tactics You should always be concerned about the authority of the other party. If this is not possible or you feel that it is tactically inappropriate, continue the negotiations with an acute awareness that the person you are dealing with either does not have, or says that he or she does not have, the final authority. One way to deal with this may be to use the person on the other side of the table as messenger, getting points agreed to by the person with authority step by step.

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Last Minute Wavering Defense= if

Just when you think that negotiations are over and you have reached agreement, the other party begins wavering over some seemingly trivial point. He has realized that as your relief at reaching an agreement increases, your defenses decrease, and he squeezes one last concession from you. And he can waver several times, squeezing more and more

What can you do?

Your defense is to remember that every time he raises another issue, points that have been previously agreed to can be brought back for discussion using the word if. As in, I can consider this new point but only if we reconsider If the new point is genuine, he will not mind resurrecting a previously agreed to one; if the new point is not genuine, he will retract it.

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An Early Concession
Some negotiators begin with an early concession and then wait for you to reciprocate and, being a lady or gentleman, you probably will. What can you do? Unless you realize that what they have done is the chess equivalent of sacrificing a pawn to take your queen. So thank them, remember the concession for later, and continue exploring.

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Tips: What Can I Do?

Don't Believe Everything You See and Hear Don't Offer Your Bottom Line Early in the Negotiation: How many times have you been asked to "give me your best price"? Get Something in Return for Your Added Value Trade concessions - don't give them away Keep the whole picture in your mind. Keep accurate notes Summarize and clarify the negotiation as you go

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3 ETHICS IN NEGOTIATION

Quote.. These replies are typical, the meaning of ethics is hard to pin down and the views many people have about ethics are shaky how can you equate ethics with your feelings, being ethical is clearly not a matter of following ones own feelings and in fact feelings frequently deviate from what is ethical.

Professor Raymond

Harvard Business School

What is Ethics?
Is the branch of Philosophy that defines what is good for the individual and for society and establishes the nature of obligations or duties that people owe themselves and one another. Aristotle

Why Ethics in Negotiations?

its all about

Trust Relationship Fair Honest and Openness Reflection

Unethical Issues In Negotiations Includes.

Lying Bribes Kickbacks Corruption Threats

How to implement Ethics

Ethical Codes

 "The very exercise of developing a code is in itself worthwhile; it forces a large number of people...to think through in a fresh way about their mission and the important obligations they as a group and as individuals have with respect to society as a whole.
Jane Gibbs Chartered Institute of Purchasing and Supply