LO6 - Resolving Conflict through Negotiation

• negotiation


  The process in which interdependent parties with divergent beliefs or goals attempt to reach agreement on issues that mutually affect them.
• Distributive approach: Win–lose orientation.​


  • Most common when the parties have only one item to resolve.
• Integrative (mutual gains) approach: Win–win orientation.


  • Better with multiple issues of different value to each party.
• Successful negotiators develop goals.​

  • Three goal setting positions in bargaining zone model.​

  Successful negotiators focus on their own needs.​

  • They actively consider various goals that may achieve needs.​

  Successful negotiators also anticipate the other party's goals and their underlying needs.
• best alternative to a negotiated agreement (BATNA) 


  The best outcome you might achieve through some other course of action if you abandon the current negotiation.
• resistance point in the bargaining zone model is the point

  beyond which you will make no further concessions and walk away from the negotiations
• Best alternative to a negotiated agreement (BATNA).​


  • Represents the estimated cost to you of walking away.​
  • Estimates your power in the negotiation.​
  • Having more than one BATNA to a negotiation increases your power.​
  • People tend to overestimate their BATNA.
• negotiation process

  is a complex human interaction that draws on many topics in this book, including perceptions, attitudes, motivation, decision making, and communication.
• Information


  cornerstone of effective negotiations.
• Negotiation Process: Gather Information​

  • Discover other party’s hidden needs, resistance point.​
  • May discover multiple dimensions – transforms distributive into integrative negotiation.
• Information gathering strategies:​

  • Listen closely to the other party.​
  • Use open-ended and probe questions.​
  • Pay attention to nonverbal communication.​
  • Communicate your inner thoughts/reactions to other’s proposals.
• concession 


  is one party’s revision of a negotiating position so it comes closer to the other party’s current position.
• Successful negotiators:​

  • Make fewer, smaller, and clearly-labeled concessions.​
  • State that the other party should reciprocate.​
  • Use multi-issue offers (not one issue at a time).​
• Manage time.​

  • Deadline effect.​
  • Exploding offers.​
  • Escalation of time commitment.​
• Build the Relationship (trustworthiness).​

  • Discover common backgrounds and interests.​
  • Manage first impressions.​
  • Signal trustworthiness.​
  • Show awareness of shared negotiation norms and expectations.​
  • Apply emotional intelligence.
• Location:​

  • Easier to negotiate on your own turf.
• Physical setting:​

  • Seating arrangements, spacing, formality.
• Audience:​

  • Negotiators are more competitive, make fewer concessions when audience is watching.
• In negotiations, women (compared to men) tend to:​

  • Set lower target points, accept offers near their resistance points.​
  • Rely less on alternatives to improve their outcomes.​
  • Avoid engaging in negotiation (accept first offers).​
  • Receive more deceitful tactics by other negotiators.​
  • Be viewed less favourably when using effective negotiation tactics.​
• Women tend to negotiate as well as men through training and experience.