1. Negotiation for conflict resolution
Organizational Communication

2. Main take-aways
Principles of negotiation can be used in any situation of interpersonal conflict
Principles
Negotiate over issues, not positions
Separate people from the problem
Expand the pie (integrative negotiation) before dividing it (distributive negotiation)
Search for opportunities for log-rolling, where negotiators differ on importance & payoff for settlements
Some tactics
Ask questions & reveal information to find interests & opportunities for log rolling,
Consider multiple issues simultaneously

3. How is negotiation related to organizational communication?
Negotiation is the process of communication btw two or more people with divergent interests trying to reach a joint decision that affects them all
Can be used in most cases of conflict between interests
E.g., Setting terms of an employment contract
Employer’s interest in getting best worker
Employer’s need to staff an important project
Worker’s interest in getting best salary
Worker’s interest in getting an interesting assignment
E.g., Deciding approaches to HCII website redesign
Interest to have an improvement in the short term
Interest to have best site in the long term
E.g., Disciplining a teammate
Interests of Sharon to have flexibility for family
Interest of rest of team to have a predictable work environment

4. From task to person conflict in the HCII
Task disagreement about stages in updating HCII website
Update technology & then outsource new design ($80K)
Update technology, redeploy old design & implement student design ($10K)
Led to entrenched positions & personal attacks

5. Escalation
A: “I asked [contractor] to do a migration of the current site, … reimplement our current theme, [and] implement the winning student design... I've asked him to do the second theme so that we can do A/B testing and have something credible with which to compare any new …design…. And [if the] new design takes longer than planned, we'll have a plausible site to present to the world in the meantime.”
B: “I am surprised to hear that you are proposing to bypass the HCII website committee process. ... I cannot approve the move to implement the student design ... without meeting to talk about it further.”
A: “I thought it was worth $2,600 of my discretionary money to have a fallback if a professionally designed site isn't done quickly enough or isn't good enough”
B: “I can't approve the implementation of a re-design at this time, regardless of where the funds come from”
A: “I encouraged this project and agreed to take it on because I thought it was important for the department, but I see continued foot dragging from you With no disrespect, I’ll end by quoting General Patton: ‘lead, follow or get out of the way’”
B: “I also hear your frustration with me, and I wish it did not lead you to communicate with me in this manner. It's not respectful nor is it effective.”

6. Positions & Interests:
Position: a statement of demands or wants.
Often a solution the persons sees as the only way to solve the problem.
Statement of the outcome the person would like to see.
Often stated as a demand.
Often a win/lose proposal.
E.g., Henry Tam case: MGI is making either an educational or entertainment product
First, we need to understand position and interest.

7. Interests: Interest: a need or concern underlying a position
The motivation that caused the person to arrive at a position
Why a person holds his/her position.
Keep asking why until you get to an interest
Often people lose sight of their interests and become entrenched in their position.

8. Convert Positions to Interests:
Arguments about position often lead to stalemates (i.e., no agreement) or low joint benefit
Converting positions to interests is valuable because there are often many different ways to satisfy the same interest
If you understand the interests then you can potential satisfy both sides interests

9. Discuss issues, not positions
Jack Nicholson: Five Easy Pieces (1970)

10. What Does it Mean to Be an “Effective Negotiator”?
Individual level
Getting valued resources (money, people, projects)
Maintaining & building relationships
Enhancing your reputation
Building/maintaining trust
Enjoying peace of mind
Company level
Profitable deal making (effective sales force)
Getting positive (rather than negative) press
Enhancing reputation of company
Building the brand

11. Two fundamental processes in successful negotiation
Distributive negotiation
Divvying up some fixed resource (e.g., price)
Normally entails a single issue
Goal is to gain as much of the resource as possible
Integrative negotiation
Finding solutions that maximize the resource before divvying it up
Possible with multi-issue negotiations, where the parties care about the issues differently
Most negotiations involve both.
Rule: first grow the pie & then divide it
It is generally possible to convert a distributed negotiation into an integrative one, by adding issues

12. Negotiators’ Mental Models
Orientation Win/lose Win/win
Strategy Positional, distributive; Principle-based; oriented; power-based interest-based
Goal Slice the pie Expand the pie, then slice the pie
Approach Single issue; Multiple issues; sequential bargaining simultaneous discussion of issues
Offers Single offers; take-it-or-leave-it Multiple offers
Outlook Short-term; no future relationship Long-term; build long term relationship
Claiming Value Mental Model Creating Value Mental Model
Distributive Integrative
Naïve Expert

13. Negotiating a coffee contract
Do not show your confidential role instructions to the other side in the negotiation, but you are free to tell them whatever you would like about your confidential role information.
You may use any strategy, short of physical violence, to reach agreement, including ingratiation, bribery, side-deals or misrepresentation. However, in selecting a strategy, it is wise to consider that using it may have ramifications that go beyond that particular negotiation.
Be creative in what you offer or ask for
Try to convert the distributed negotiation (win-loose over price) to a multi-issue negotiation

14. Role Play Spend 5 minutes negotiating Questions to consider:
What are each party’s interests in the negotiation (i.e., what are all the possible things they want to achieve)
How can you incorporate the inventory of interests into a deal that is better than simply haggling over price

15. Anderson VP of Sales

16. Statler, F&B Director

17. Target or Aspiration level
What you aiming for—your ideal
Since aspiration level influences the offers you make and accept, set it aggressively
The best, reasonable deal you think you can get
 You need to do preparation to know what is reasonable (e.g., Zillow for house prices; Career center for salaries)
Setting it too low  winner’s curse
I had two offers on my house at the asking price before it went on the market  set the price too low
Setting it too high with no concessions may lead to partner walking away & not getting any deal
Reasonable the targets in the Coffee Negotiation?

18. B.A.T.N.A Best Alternative To Negotiated Agreement (BATNA)
What will you do if you don’t make a deal with this partner?
Determined by your available alternatives
Defines the most you will pay (buyer) or least you will accept (seller)
Key source of power: Ability to walk away
What are the BATNA in coffee negotiation?

19. Reservation price (RP)
The offer below which you will walk away
When the deal no longer makes sense for you
Based on BATNA
To develop a reservation point:
Brainstorm alternatives
Evaluate each alternative
Attempt to improve BATNA
Calculate reservation price as precisely as possible
 Probability of alternative X value
What is RP in coffee negotiation?

20. Coffee Contract Bargaining Zone
Price to Colonial Williamsburg
CEO sets min price ($6.50) based on bean cost ($5.93) + transport ($.80) – publicity investment ( $.20)
Value of Anderson quality ($2.70) over current brand ($4.70)
Price to typical restaurant
Zone of Possible Agreement
>=$5.95
$6.50
$7.40
<=$8.10
Buyer’s Target
Seller’s RP
Buyer’s RP
Seller’s Target
Why is this information useful to you in a negotiation?
How should you get this information?

21. Getting the best deal in a distributed negotiation
Appeal to norms of fairness
Support your offers with facts
Don’t fall for a ‘split the difference’ trap

22. Opening the negotiation
Should you go first or wait?
Where should you open the negotiation?

23. Anchoring effects
People make estimates by starting from an initial anchor value and adjusting to yield a final answers
They generally insufficiently adjust
Anchors are usually based on whatever information is available, regardless of relevance
First offers acts as anchor  advantage
Use your target as your anchor
Not your RP
Not the initial offer
Set aggressive, but realistic targets
Get data to know what is realistic

24. Power in distributed negotiation: Slicing the Pie
Know your BATNA & try to improve it
Research partner’s BATNA
Don’t reveal your BATNA/RP
Set high, but realistic target
Make the first offer
Immediately re-anchor on others BATNA or your target if other makes a first offer
Make small, graduated concessions
Make bilateral, not unilateral concessions

25. Threats?
Threats & false verbal commitments (e.g., “That’s the best I can do”) don’t work well
Causes the other party to be defensive & stick to their initial position
Increases risk of stalemates
Harms the relationship if the deal is made

26. Integrative negotiations
Multiple issues
Differing strengths of preference
Differing interests
Future relationship
Multiple alternatives

27. Log rolling
The practice of exchanging favors, especially in politics by reciprocal voting for each other's proposed legislation
Increase overall welfare if all parties give up something they don’t care about for something they do

28. Goals Grow the pie Then split the pie Look for log-rolling trade-offs
If necessary, convert single issue deals to multi-issue deals
Reveal priority information & ask for questions
Take your time
Then split the pie
Know your alternatives
BATNA & Reservation point
Set aggressive targets
Make first offer
Provide facts & rationale

29. Ways to grow the pie Build trust and share information
Ask questions
Give away information about your priorities
Make package offers, not one issue at a time
Make multiple offers simultaneously
Search for “post-settlement” settlements

30. Make package offers Nothing is settled until everything is settled
Going issue-by-issue eliminates the possibility of trading off across issues
You can use this approach even if they do not
Know how issues trade off against each other in your utility function

31. Language to Use
Distributive language leads to lower joint value & more impasses
Integrative language leads to more joint value & fewer impasses
Demands
Threats
Arguments about positions
Information exchange over the positions (i.e., what I want)
Concession exchanges
Relationship building
Rationale & explanation
Information exchange, especially about priorities over the issues (i.e., what is important to me)
Asking
Telling

32. PREPARE! You: What are you worth?
What do you want?
What would your dream job be like?
What are you worth?
What are your alternatives? (your BATNA)
Identify the least acceptable deal (your RP)
Keep in mind a realistically optimistic deal that will take care of your wants (your target)

33. Developing a Scoring System
Goal: Develop a metric by which any agreement can be scored
How to do it:
List all the issues of concern
Generate alternatives for each of the issues
Score each alternative
Provide relative weights for all the issues