Chapter 9 - pg 276-280

Understand
How to manage conflict through negotiation

1st slide sa report ko

Managing Intergroup Conflict through Negotiation

A widely used yet often less recognized method of managing intergroup conflict is the
process of negotiation. Despite its importance, the process is often misunderstood and poorly
executed. If done effectively, the negotiation process can be called a collaborative pursuit of
joint gains and a collaborative effort to create value where none previously existed. If done
poorly, the process can be described as a street fight.

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Negotiation entails having two sides with differing or conflicting interests come together to forge
an agreement. Usually, each side will bring to the process a series of proposals that then are
discussed and acted on

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Cross-Cultural Negotiations
involves discussions of common and conflicting interests between persons of
different cultural backgrounds who work to reach an agreement of mutual benefit. By
taking cross cultural negotiation training, negotiators and sales personnel give
themselves an advantage over competitors.

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Group Negotiations
Group negotiations take place whenever one group’s work depends on the cooperation
and actions of another group over which the first group’s manager has no control.
Negotiations between marketing and production departments regarding order deliveries,
between finance and engineering groups over research and development funding, and
between maintenance and manufacturing functions over machine maintenance are all
examples of the group process

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Prenegotiation Tasks
Understanding the Other Side
Prior to sitting down and negotiating with managers and/or representatives of other
groups, managers must thoroughly understand the other side’s needs and positions
regarding the issues to be resolved. For example, A product manager who desperately
wants a customer order filled by manufacturing within the next two weeks should be
aware of other obligations currently being placed on manufacturing.
6th slide(under pa din ng prenegotiation tasks)
Knowing All the Options
Perhaps more important than the accumulation of information is its use in developing,
understanding, and evaluating options available to resolve the conflict. Although the
same issue may be negotiated over and over again, the outcomes may differ,
depending on the parties involved or the timing of the negotiations.

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Negotiation Tactics

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The Effect of Personalities on the Negotiation Process
The process of negotiating is a very people-oriented experience. In addition to
understanding the goals, needs, and wants of the other side, the successful negotiator
tries to understand the relevant personality traits of the other individual(s) negotiating

9th slide
Four of the most common types of personalities a manager will face at the negotiation
table are
1. The power seeker —task and results oriented, seeking challenges and opportunities,
and potentially confrontational. A good decision maker.
2. The persuader —outgoing, socially oriented, ambitious, and tough under a cloak of
amiability, likability, and affability. A dangerous opponent at the negotiating table.
3. The reliable performer —solid, dependable, comfortable in supportive surroundings,
and resistant to sudden change. Dependent on past precedents for confidence in
decision making.
4. The limited performer —lacking in self-confidence, in need of a sheltered
environment, nondecisive, and introverted. Likely to crack under pressure.

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The Role of Trust
In the negotiation process, there will be a greater likelihood of a beneficial outcome for the
organization if a high degree of trust exists between the conflicting groups. 5 Negotiators tend to
regard making statements about their group’s needs, wants, and priorities as risky and therefore
are only willing to make them if there’s mutual trust (i.e., they believe that the other side is also
cooperatively motivated). A high level of trust between the two conflicting parties will lead to
greater openness and sharing of information.

11&12th slide
• Before the negotiation commences:
° Research and prepare carefully. Search for and review all possible sources of information
about the other party and his/her organization. Use Yahoo! or your library’s research databases,
recent news articles, press releases, Better Business Bureau, etc.

• During the negotiation process:

° Monitor the other party for deceitful behavior. Ask questions to which one already knows the
answers. Also, observe the other party’s verbal and nonverbal behaviors for changes (e.g.,
changes in breathing, decreased eye contact, etc.).
° Take detailed notes of the negotiation. To make sure each side understands and agrees to
what was said, notes should be typed up after each meeting and agreed to as the negotiation
progresses.
° Include a “contingency” provision in the final deal. This basically states that if either party
misled the other during the negotiation process, then the deceiving party will be held to agreed-
upon consequences (e.g., financial damages) after the agreement is signed.

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Alternatives to Direct Negotiations
Occasionally, groups are unable to resolve their differences through direct negotiations. Likely
candidates are groups that conflict often or are led by managers of equal rank. Groups can
reach a point where they feel stuck in disagreement. Rather than letting the conflict evolve into a
long, nasty battle, the two sides should seek outside help. A third party, often a CEO or other
top executive, can be called in to mediate the dispute.
Chapter 10 - pg 292-293
Describe
The five interpersonal power bases

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FIVE INTERPERSONAL POWER BASES

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Legitimate Power
A person’s ability to influence others by being in a more powerful position. For example, a vice
president at a company has more power than middle managers, first-line supervisors, and entry-
level employees. In theory, organizational equals (e.g., all first-line supervisors) have the same
amount of legitimate power. However, each person with legitimate power uses it with a personal
flair.

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Reward Power
A person’s ability to reward the behavior of others.Reward power is often used to back up the
use of legitimate power. If followers value the rewards or potential rewards that the person can
provide (recognition, a good job assignment, a pay raise, or a promotion), they are more likely to
respond to orders, requests, and directions. Reward power works best when employees
understand how they can achieve rewards and are kept abreast of their status toward earning
the reward.

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Coercive Power
The opposite of reward power is coercive power , the power to punish subordinates. Followers
may comply because they fear the individual who has power over them. A manager may block a
promotion or fire a subordinate for poor performance. These practices, and the fear that they’ll
be used, constitute coercive power.

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Expert Power
A person with special expertise that’s highly valued has expert power . Experts have power
even when their rank is low. An individual may possess expertise on technical, administrative, or
personal matters. The more difficult it is to replace the expert, the greater the expert power she
possesses.

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Referent Power
Many individuals identify with and are influenced by a person because of the latter’s personality
or behavioral style. The charisma of the person is the basis of referent power. A person with
charisma is admired because of her personality, vision, and the means she uses to speak from
her heart. The strength of a person’s charisma is an indication of her referent power