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Chapter 13: Negotiation and Conflict Resolution - Coggle Diagram
Chapter 13: Negotiation and Conflict Resolution
Negotiation
Definition
A process of formal communication, either face-to-face or via electronic means, where two or more people, groups, or organizations come together to seek mutual agreement about issue or issues
Involves management of time, information, and power between individuals and organizations who are interdependent
Common Terms
BATNA
That point where it is advantageous to walk away from the negotiation
Best Alternative to a Negotiated Agreement
Bottom line or reservation point
Should never be revealed to other party
All settlements must be judged in light of all other viable alternatives existing at the time of the agreement
Position
Negotiator’s opening offer
Stated demand at negotiation table
Overlapping positions create
bargaining or settlement zone
Interest
Unspoken motivation or reason that
underlies any given position
Needs vs Wants
Need: Negotiated outcome that negotiator must achieve
Want: Negotiated outcome that a negotiator would like to have, may often be exchanged as a concession
Triangle Talk
Negotiation Framework
Identify or Anticipate the Sourcing Requirement
§ Purchase requisitions
§ Inventory counts
§ Reorder point systems
§ New product development
§ New facilities
Determine If Negotiation or Competitive Bidding Is Required
§ Is bid process inadequate?
§ Are many non-price issues involved?
§ Is contract large?
§ Are technical requirements complex?
§ Does contract involve plant and
equipment?
§ Does contract involve a partnership?
§ Will supplier perform value-added activities?
§ Will there be high risk and uncertainty?
Planning to negotiate
Defining issues, needs, and wants
§ Assembling issues, needs, and wants
§ Defining bargaining mix
§ Defining interests
§ Defining own objectives and opening offers
§ Assessing role of constituents and social context
§ Analyzing other party
§ Planning issue presentations and defenses
§ Defining process protocols
Conduct the negotiation
Phase I
Fact finding and information sharing
§ Clarify or confirm information
Phase II
§ Recess to assess new information and findings
§ Assess relative strengths and weaknesses
§ Review and revise objectives and positions, if necessary
§ Organize agenda
Phase III
§ Meet face-to-face or electronically
§ Narrow differences on issues
§ Offer proposals and counterproposals
§ Exchange concessions
Phase IV
§ Seek agreement
§ Conclude negotiation
§ Agree to follow-on activities
Source of Negotiation Power
Informational power
Ready access to relevant and useful
information
Presentation of facts, data, and
persuasive arguments
Reward Power
One party is able to offer something of
perceived value to other
Individuals respond and behave
accordingly when valued rewards are
available
Coercive Power
Ability to punish
Taking away or withholding something
of value to other party
Legitimate Power
Power based on official position held
Expert Power
Often represented by verifiable
credentials and stature
Special form of informational power
Referent Power
Comes from attraction based on socially acceptable personal qualities and attributes
Cialdini’s Power of Influence
Reciprocation
Obligation to give sth back equal or greater value
Consistency
People tend to want to be perceived as being consistent in their beliefs and actions
Social proof
Looking to behavior of others to determine what is desirable, appropriate, and correct
Power of endorsement
Liking
People work well and are more agreeable with others that we like or who are like us
Authority
People are more likely to accept positions, arguments, and directions from recognized authority figures
Power of titles and perceived
importance
Scarcity
