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Conflict in negotiations

Agnieszka Postuła, Ph.D.

apostula@wz.uw.edu.pl

Sources of conflict

Human needs (need of social security, group affiliation, acceptance etc.)

needs aspirations

Conflict of interests occurs when needs’ satisfaction is not

possible because of others parties’ aspirations (divergence of

interests)

Time – simultaneous satisfaction of one’s needs

Objective causes; conflict between: management – staff, board

– shareholder, sale – marketing, production – sale etc.

Positive consequences of conflict

We speak about differences and problems openly; often, conflict reveals

one’s problems that other party didn’t know about (some people don’t

admit that conflict exist – but it usually means problems)

Conflict extort defining which problems are important (small longlasting

contract or big single agreement?)

Conflict situation helps to establish priorities (what is more important:

average salary or security of employment?)

Conflict is favourable to equalizing patries’ positions (the worst solution is

to stop trying to make situation better and consider yourself weaker party)

Conflict may lead to interesting changes and beneficial solutions.

Negative consequences of conflict

Escalation of a conflict

Pseudosolution of a conflict • ignoring

• delaing

• peaceful co-existence

• depreciating (dehumanizing)

• reorientation (scapegoat)

• separation (moving two parties away of each other living space)

• fight (irreconciliable pose; other party treat as an enemy)

• compromise

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Circle of conflict

Information

conflict

Conflict of

interests

Interpersonal

conflict Structural

conflict

Conflict

of values

Conflict of interests

Divergence of interests or conviction of parties that their aspiration can not be accomplished simultaneously

Real conflict False conflict

Hidden conflict Lack of conflict

Real world

Consciousness

Y

N

Y N

Strategies of conflict resolution

My

interests

Interests of other party

DOMINATION PROBLEM

SOLUTION

COMPROMISE

OMISSION RETREATING

NEGOTIATIONS

Definition:

two-sided process of communication, in order to reach the agreement, that is making common decision on future actions, when at least some of parties’ interests are contradictory.

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Types of interests

Contradictory (basic reason and a purpose of conversation)

Common (base of agreement)

Different (tool of exchange)

When to negotiate When there is no sense to negotiate When there are other ways of conflict resolution: voting,

casting, arbitration etc. When there is no correlation between parties When we know everything about other party

When negotiating is worthwhile There is mutual correlation of the parties (freedom of one

party is limited by interests of other party) There is mutual uncertainty When parties perceive (conflict) divergence interests Cultural acceptation (i.e. arabian or asian style is different

from european style of negotiation; in Turkey you must negotiate, in banks negotiations are rather psychological trick)

PRISONER’S DILEMMA

Johnson

Smith

Do not confess Confess

Do not confess

Confess

1 year

1 year

Small punishment for both of them

8 years

release

Big punishment for Smith, nothing for Johnson

release

8 years

3 years

3 years

Big punishment for Johnson, nothing for Smith

Average punishment for both of them

Negotiator dilemma

Creating (cooperation) – seeking for solution beneficial for both parties or beneficial for one party and not expensive for other.

Openness, sharing information, common work on possible solutions.

Demanding (competition) – division, maximalization of individual benefits.

Deceiving about goals, interests and priorities, closing for argumentation.

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Negotiator dilemma

Smith

Johnson

Creating Demanding

Creating

Demanding

good

good

excellent

fatal

fatal

excellent

trivial

trivial