Conflict Management: A Practical Guide to Developing Negotiation Strategies PDF
Preview Conflict Management: A Practical Guide to Developing Negotiation Strategies
Pearson New International Edition Conflict Management: A Practical Guide to Developing Negotiation Strategies Barbara A. Budjac Corvette First Edition International_PCL_TP.indd 1 7/29/13 11:23 AM ISBN 10: 1-292-03999-X ISBN 13: 978-1-292-03999-2 Pearson Education Limited Edinburgh Gate Harlow Essex CM20 2JE England and Associated Companies throughout the world Visit us on the World Wide Web at: www.pearsoned.co.uk © Pearson Education Limited 2014 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without either the prior written permission of the publisher or a licence permitting restricted copying in the United Kingdom issued by the Copyright Licensing Agency Ltd, Saffron House, 6–10 Kirby Street, London EC1N 8TS. All trademarks used herein are the property of their respective owners. The use of any trademark in this text does not vest in the author or publisher any trademark ownership rights in such trademarks, nor does the use of such trademarks imply any affi liation with or endorsement of this book by such owners. ISBN 10: 1-292-03999-X ISBN 10: 1-269-37450-8 ISBN 13: 978-1-292-03999-2 ISBN 13: 978-1-269-37450-7 British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library Printed in the United States of America Copyright_Pg_7_24.indd 1 7/29/13 11:28 AM 11111111357901246791779517713771 P E A R S O N C U S T O M L I B R AR Y Table of Contents 1. Defining Negotiation and Its Components Barbara A. Budjac Corvette 1 2. Personality Barbara A. Budjac Corvette 11 3. Conflict Barbara A. Budjac Corvette 33 4. Negotiation Style Barbara A. Budjac Corvette 57 5. Key Negotiating Temperaments Barbara A. Budjac Corvette 77 6. Communicating in Negotiation Barbara A. Budjac Corvette 91 7. A Note on Cultural and Gender Differences Barbara A. Budjac Corvette 107 8. Interests and Goals in Negotiation Barbara A. Budjac Corvette 117 9. Understanding the Importance of Perception in Negotiation Barbara A. Budjac Corvette 129 10. Effects of Power in Negotiation Barbara A. Budjac Corvette 145 11. Asserting Yourself Barbara A. Budjac Corvette 161 12. Principles of Persuasion Barbara A. Budjac Corvette 177 13. Rules of Negotiation and Common Mistakes Barbara A. Budjac Corvette 197 I 222222220134578979975311 14. The Negotiation Process and Preparation Barbara A. Budjac Corvette 207 15. Alternative Styles, Strategies, and Techniques of Negotiation Barbara A. Budjac Corvette 219 16. Team Negotiation Barbara A. Budjac Corvette 239 17. Third Party Intervention Barbara A. Budjac Corvette 247 18. Using Your Personal Negotiating Power Barbara A. Budjac Corvette 255 19. Post Negotiation Evaluation Barbara A. Budjac Corvette 273 References and Selected Bibliography Barbara A. Budjac Corvette 281 Index 291 II BSK03CH1.qxd 6/10/08 10:01 AM Page 1 k c o st r e utt h S / e k h c s e n K rt e b o R P C C ERFORMANCE OMPETENCIESFORTHIS HAPTER ● To understand the definition and magnitude of negotiation “All ● To understand that there are limits to what is negotiable the world’s ● To identify the components of negotiation performance a stage.” ● To identify the steps necessary to develop your effective William Shakespeare personal negotiating power From Conflict Management: APractical Guide to Developing Negotiation Strategies. Barbara A. Budjac Corvette. Copyright © 2007 by Pearson Prentice Hall. All rights reserved. 1 BSK03CH1.qxd 6/10/08 10:01 AM Page 2 Defining Negotiation and Its Components A H I I N LL UMAN NTERACTION S EGOTIATION Whatever the nature of your business, profession, or current pursuits, you encounter conflict and you negotiate. Life is filled with human interaction and human interaction is essentially a negotiating arena. Other people influence our emotions and behav- ior, and we influence the emotions and behavior of others. We par- ticipate in a continuum of perceiving others and forming attitudes toward people, things, and concepts while others are perceiving and forming attitudes about us. In the course of our daily business, professional, and personal lives, we regularly seek to affect the attitudes and behavior of others. At times we seek approval, recognition, or affection. At times we seek to cause action by others. At times we seek to gain the right or privilege to take certain actions ourselves. At times we seek to obtain money or other tangible value. In our interactions with friends, family, clients, employees, employers, contractors, ser- vice providers, professionals, merchants, and business associates, we use information and knowledge to get what we want. Negotiation is that process of influencing others in order to get what we want. We negotiate much more often than we may realize. Effective, ethical negotiation is not intimidation, nor is it chiseling or trickery. Rather, effective negotiation is using knowledge of self and others combined with analysis of information and time, thereby tapping the power to affect behavior. The application of that knowledge and information comprises the personal power to win in any negotia- tion. In effective, ethical negotiation, both sides win. That concept is merely a restatement of the business tenet that it is not a good deal unless it is a good deal for all sides. It is, perhaps, easiest to accept the notion in the foregoing and cometoadefinitionofnegotiationbyfurtherconsideringwhatnego- tiationisnot.Negotiationisnotagame.Negotiationisnotalwaysa formal process nor in a formal setting. Negotiation is not limited to businesstransactions.Negotiationisnotconductedsolelyfortangible thingswecanseeandtouch.Negotiationisnotsimplyusingpower- overtactics—shoutinglouderorbullyingbetter.Negotiationisnota prescribedsetofuniversallyapplicablemaximsorprecepts.Thathav- ing been said, however, it must be noted that power-over tactics are sometimesusedinostensiblenegotiation;and,thereareindeed,rules KEYTERM andcustomsoftenobservedinnegotiation. Negotiationis an effort to influence Negotiationis the process of interacting with the goal of obtain- or persuade. ing agreement or the result you desire. 2 BSK03CH1.qxd 6/10/08 10:01 AM Page 3 Defining Negotiation and Its Components It is an interpersonal skill that is not the province of any particular profession. However, it is extremely important to personal interaction, business and organizational management success, and leadership. Negotiation is an art. Negotiation may also be considered scientific—having principles and methods that are used systemati- cally through training and experience. Many people believe that negotiation is difficult and that it is just easier to avoid it or always compromisetheirdesires.Othersbelievethatifsomeonewouldjust tellthemtherulestheycouldbeeffective!Therearefewuniversally applicablerules.Therulesthatdoexistprovideonlygeneralguide- lines that must be applied to specific circumstances and specific individuals. Negotiation is complex and interdisciplinary. It encompasses conflict assessment, management, and resolution. Negotiation is complex primarily because it happens between human beings! Above all, negotiation is personal and individual. It is subject to, understood, and effectuated by the same psychological and socio- logical principles and theories that govern social interactions gen- erally. Once one understands the application of those principles, negotiation becomes much less complex and intimidating. After understanding what it is, it is easy to see the magnitude of negotiation. Every day in all aspects of our lives we negotiate. Think of one time today when you tried to influence someone. Perhaps it was a family member. Perhaps it was a coworker. Perhaps it was your boss. Perhaps it was a stranger. You may have tried to cause someone to behave in a particular way. You may have tried to cause someone to think in a particular way. If so, you were negotiating. Do you recall a time when you wanted someone to think you not rude? If you attempted to affect that person’s opinion—to have them agree with your self-perception—you were negotiating. As human beings we seek psychological consistency and bal- ance. We want things to make sense. We want our way. We want to be satisfied. While there is much to explore in that vein, it will suf- fice for this chapter to understand that the conflict inherent in the need for psychological consistency triggers attempts to influence. KEYCONCEPT That is, it triggers the need or opportunity to negotiate. Have you All interaction is ever considered that life would be simple but for human beings? negotiation. The pervasiveness of negotiation underscores its importance. The good news, however, is that you have ample opportunity to apply what you learn about negotiation. You may—and should— practice every day. Improving your interactions generally will also improve your negotiation effectiveness. 3 BSK03CH1.qxd 6/10/08 10:01 AM Page 4 Defining Negotiation and Its Components T P N N HE ERSONAL ATURE OF EGOTIATION The heart of negotiation may be said to be the heart of the individuals involved. What is commonly referred to as the heart is usually what makes negotiation feel difficult. Our emotions, temperament, disposi- tion, and other aspects of our personalities give each of us unique needs, interests, goals, and perspectives. Our needs and desires invoke our ego and our self-concept as well as our fears. These attributes, or phenomena, are actually based in the brain, of course. Itisnotuncommonforpeopletobelievethattheynegotiateeffec- tivelyonbehalfofotherswhilenotdoingsowellforthemselves.Why thedifference?Wemaysaytheheartor,moreappropriately,theegois thedifference.Itis,toagreatextent.However,itisprobablethatifwe areineffectiveasourownadvocates,weareprobablynotperforming HOTTIP! at our maximum effectiveness for others either. Once you learn to Practice negotiation in understand yourself, you will get to the heart of negotiating. It will personal settings. takesomeeffortbutyourresultswillbesatisfying. N E I N OT VERYTHING S EGOTIABLE It seems common to hear that everything is negotiable. Well, that isjustnottrue!Wouldyousellyourchildoryourpet?Wouldyou compromise the health of your child or your pet? If you said, “No,” then you see that, contrary to popular statements that everythingisnegotiable,itisnot!Ifyousaid,“Yes,”thenrecognize that negotiation requires a minimum of two people and that your counterpart is likely to hold some things to be nonnegotiable. If your reaction here is that these examples are extreme, ponder the issue further. If one has no values, beliefs, or options, then everything might be negotiable. The key here is to identify your personal ethics, moral code, and values as you consider negotiation options. In addition to those abiding factors, each potential negotiation must be analyzed to determine whether or not the matter shouldbe negotiated. If there is not a potential for a mutual beneficial exchangethat leaves the parties better off than notnegotiating, then KEYPOINT the matter should not be negotiated. This principle should become Identify alternatives prior clear as you proceed through your study of negotiation and begin to negotiating. to prepare for each negotiation. 4 BSK03CH1.qxd 6/10/08 10:01 AM Page 5 Defining Negotiation and Its Components C U D Y ONSCIOUS AND NCONSCIOUS ETERMINANTS OF OUR N P EGOTIATION ERFORMANCE Facts and circumstances, including relative power, as well as time constraints, of course, affect negotiation options and outcomes. However,ourhumaninteractionisaffectedbywhoweareandwith whomweinteract.Personalityandtemperament,valuesandbeliefs, perception,attitudes,styleoflearning,motivation,wayofthinking, styleofcommunication,approachtoconflict,fears,andmuchmore determinewhoweareinanyhumaninteraction.Weareshapedby ourexperiences.Weoftenunconsciouslyadopttheattributesofsig- nificantothersinourlife.Eachoneofushasauniquecombination ofattributesthatserveasthebaseforourpersonalpower. We are not always conscious of these attributes and characteris- tics or the other factors inherent in negotiation. We must know who we are if we are to use our strengths. We must know who we are if we want to consciously develop the attributes we desire. We must also be aware of certain psychological phenomena that may cause us to believe things that are not so. Sometimes we suffer from dis- tortions in our perceptions and thinking that cause us to miss opportunities and make poor choices in negotiation. W Y D N K W H Y HAT OU O OT NOW ILL URT OU Inadditiontocausingpoorchoices,whatwedonotknowcanhurtus inother,moresubtleways.Evenifwearenotconsciousofourevery- daynegotiationinteractions,wedeveloppatternsandhabits.Weare alsosubjecttowhatiscalledsociallearning(Bandura1977).Welearn bothbyobservinganddoing.Inthenegotiatingarena,thiscanmean thatweimitatethebehaviorsofthosewithwhomwehavenegotiated previously.Weareparticularlylikelytoadoptbehaviorexhibitedby othersthatweviewasgeneratingapositiveoutcomeforthem. Therefore,ifyouhaveoftenfeltliketheloserinpriornegotia- tions, you may begin to utilize the same tactics that were used to gain an advantage over you. There are several problems associ- ated with doing so. Feeling like a loser reflects a competitive, gamelike, or win/lose approach. While that is one of the four approaches available for negotiation, it is usually the most inap- propriate and ineffective one. Perhaps you felt like your prior 5
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