Negotiation

What is Negotiation?

Robert Curry• A process in which 2 or more parties attempt to reach

a joint decision where they are in potential conflict or disagreement (Robert Cullen).

Shell • An interactive communication process that may take

place whenever we want something from someone else or another person wants something from us (Shell in Bargaining for Advantage) .

Characteristics

Two or more parties

Conflict of needs and desires between two or

more parties

Parties think they can get a better deal than

by accepting what other side offers them

Parties expect a “give and take” process

Characteristics

•Fight openly•Capitulate •Break off

contact permanently

•Take their dispute to a third party

Parties search for agreement

rather than:

•Management of tangibles (e.g., the price or the terms of agreement)

•Resolution of intangibles (the underlying psychological motivations) such as winning, losing, saving face

Successful negotiation

involves:

8 What do you think?Agree Disagree

1Negotiators should not reveal their true feelings in case their opponents take advantage

2A magrinally acceptable deal is better than no dealat all

3If an opponent gives me an opportunity to takeadvantage discreetly, that`s their problem

4I will renegotiate profitable deals if the othernegotiator say they are in difficulties

5I look after my own interests and leaveopponents to look after theirs

6It is generally beneficial to be open aboutone`s true circumstances

7 I am worried about rejection when negotiating

8If opponents are too soft and can`t look afterthemselves, that`s their lookout

9 A good cause is more worthy than power

10When opponents buckle under pressure Ishould push harder

Interdependence

• In negotiation, parties need each other to achieve their preferred objectives

• Mutual dependency = interdependence• Interdependent goals are an important aspect of

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

Interdependence

• Interdependent parties are characterized by interlocking goals

• Having interdependent goals does not mean that everyone wants or needs exactly the same thing

• A mix of convergent and conflicting goals characterizes many interdependent relationships

US Mexico Ground Water Crisis•Problem

•complications of groundwater•border region between the United States andMexico •despite the presence of an active supra- legal authority since 1944, groundwater issues have yet to be resolved.

•Supralegal Body: •International Boundary and Water Commission (IBWC)

Timeline· 1944 US-Mexico Water Treaty signed. IBWC expanded to include water allocation within itsresponsibilities.· 1973 Minute 242 on groundwater signed between Mexico and the United States.· 1983 La Paz Agreement signed creating technical working groups that addressed water quality amongother environmental concerns.· 1993 North American Free Trade

US Mexico Ground Water CrisisLessons Learned

Good Conditions insufficient• Despite

– presence of active authority, – despite warm political

relations– Interdependence– negotiations have continued

since 1973 without resolution

• Even if conditions for agreement are good, this does not guarantee that issues will be resolved.

Infighting Differences

between the United States federal government

the government of the States bordering Mexico

lack of cooperation between the two nations with regards to groundwater resources.

Difference of opinion of federal and state governments can impede cooperation.

Conflict

Negotiations result from

conflict

Conflict: Definition

• Sharp disagreement or opposition• Perceived divergence of interest• Belief that the parties' current aspirations

cannot be achieved simultaneously

Functions of Conflictonflict

1. Makes people more aware and able to cope with problems through discussion.

2. Secures organizational change and adaptation.3. Strengthens relationships and morale.4. Promotes awareness of self and others.5. Enhances personal development.6. Encourages psychological development—it helps

people become more accurate and realistic in their self-appraisals.

7. Can be stimulating and fun.

Dysfunctions of Conflictnflict

1. Competitive, win-lose goals2. Misperception and bias3. Emotionality4. Decreased communication5. Blurred issues6. Rigid commitments7. Magnified differences, minimized similarities8. Escalation of conflict

Copyright ©Allyn & Bacon 2006

Types of conflict

• Pseudo-conflict: people misunderstand one another

• Simple conflict: people disagree about issues

• Ego-conflict: personalities clash

Managing pseudo-conflict

Managing simple conflict

• Clarify both perceptions of message• Focus discussion on issues• Use facts not opinions• Use structured problem solving • Compromise

• Make conflict group concern• Tackle one issue; most important• Find areas of agreement• Postpone decision while conducting additional

research

Managing ego - conflict

• Encourage active listening• Keep discussion on key issues• Turn discussion to problem to solve, rather

than conflict to win• Seek cool, calm climate

• Be descriptive rather than evaluative• Develop rules or procedures that permit

differences of opinions• Agree to disagree & return to areas of

agreement

Dual Concerns Model (Traditional)El modelo dual de las preocupaciones

Poco MuchoPreocupación por yo mismo

Preo

cupa

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por

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a Po

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M

ucho Accommodating

AdaptarseProblem Solving

Colaborador

ContendingCompetetivo

CompromisingCompromiso

Inaction/AvoidEvitar

Collaborate

AccommodateAvoid

Compromise

Compete

Value of Relationship

Importance Placed on Mercy

Response to Other’s Interests

Valu

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Issu

e

Nee

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Achi

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f Ow

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Dual Concerns Model (Cullen)El modelo dual de las preocupaciones