SBS Model— Substance and Relationships Matter Negotiation & Conflict Management PowerPoint 9 John D. Blair, PhD Georgie G. & William B. Snyder Professor in Management

Unilateral Negotiation Strategies C1: Trustingly Collaborate P1: Firmly Compete S1: Openly Subordinate A1: Actively Avoid Negotiating

C1: Trustingly Collaborate Negotiation Strategy Hallmark is openness on the part of both parties Encourage cooperation to achieve both important relationship & substantive outcomes Seeks “win-win” outcome both to achieve substantive goals and maintain positive relationship

P1: Firmly Compete Negotiation Strategy Appropriate when manager has little trust for other party or relationship is not good to begin with Want to exert power to gain substnative outcomes May require highly aggressive tactics such as bluffing, threatening the other party, misrepresenting intentions, hiding own goals Seeks win-lose substantive outcome & willing to accept neutral or even bad relationship

S1: Openly Subordinate Negotiation Strategy More concerned with establishing positive relationship with other party than obtaining substantive outcomes Subordination is a negotiation strategy and not “accommodation” (a conflict management style) Is a yield-win strategy provides desired substantive outcomes to other party Is a strategy not a simple reflection of power Open subordination can be way for manager to dampen hostilities, increase support and foster more interdependent relationships

A1: Active Avoidance Negotiation Strategy Managers should actively avoid negotiations where neither the substantive nor relationship outcomes are important to them or their organization. Simply saying not interested or refusing to negotiation is most straightforward, but may cause relationship problems Managers much determine which issues are a waste of time to negotiate Avoidance is an explicit, strategic behavior not a default for a manager uncertain about what to do

Unilateral Negotiation Strategies Alone May Not be Enough Unilateral strategies are most successful only in a limited set of situation Before using unilateral strategies suggested above, manager should consider the negotiation from the point of view of the other party Anticipating other party’s substatnive and relationship priorities, should also consider the kinds of actions other party will most likely take. Anticipating the scenario for how the negotiation interaction is likely to go requires interactive strategies.

Interactive Strategies--Competitive, Collaborative & Subordinative P2: Soft Competition Avoid highly aggressive or “dirty” tactics C2: Principled Collaboration Not rely just on trust, but use set of mutually-agreed upon principles that will benefit each negotiator S2: Focused Subordination Acquiesce only to other party's key needs if need to also protect substantive outcomes, not just relationships

Interactive Strategies-Avoidance A2: Passive Avoidance If other party sees negotiation as very important, manger delegates negotiation to subordinate manager A3: Responsive Avoidance If other party sees substance but not relationship as important, manager should regulate the issue through standard operating policies or new policies concerning this other party’s issue

C1. P1. S1. A1. shows assumed strategy for other party C1* P1* S1* A1* shows assumed strategy for other party. The pattern repeats for every four situations. C1* P1* S1* A1*

Scenarios from Best (BT) to Good (G) to Most Likely (ML) to Bad (BD) to Worst (W) Case 13