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Presentation Flow
• Introduction
• High Performance Team
• View of Conflicts
• Types of Conflicts
• Conflict Process
• Negotiation – Introduction
• Bargaining Strategies
• Negotiation Process
• Individual Differences in Negotiation
• Third Party Negotiation
Introduction
• Conflict and negotiations are aspects of running a business
• Business owners face continuous conflicts with partners, managers and employees
(eg:- DUMA DUMA case in ASSAM)
• Negotiations are often necessary to reach an amicable solution for an organisation
Characteristics
• Participative leadership
• Open and clear communication
• Defined roles and responsibilities
• Valued diversity
• Clear goals and intense energy
Traditional View on Conflict
• A workplace without any conflict was assumed to be a happy and productive.
• Lack of openness and trust between workers and management.
• Conflict was regarded as
o Dysfunctional
o Destructive and
o Irrational
Interactionist View of Conflict
• The belief that conflict is not only a positive force in a group but also an absolute necessity for a group to perform effectively.
• Example: The vary famous “divide and rule” policy of British Raj in India.
Types Of Conflicts• Functional Conflict:
Supports the goal of the group, improves performance.
Example: “Employee of the Month competition” in organizations
• Dysfunctional Conflict:
Conflict that hinders group performance. Example: Demerger of Sony Ericsson.
1. Task Conflict (Failure of first Moon mission
under Dr. APJ Abdul Kalam)
2. Relationship Conflict (separation of Ambani brothers)
3. Process conflict (Failure to deliver products by e-commerce websites)
Stage- I Potential Opposition
• Communication : Lack of clear transfer of information
• Structure: The size and specialization of the group.
• Personal variables: Conflicts due to personality, emotion and values
Stage- II Cognition and Personalization
• Perceived Conflict: Awareness by one or more parties of the existence of conditions that create opportunities for conflicts to arise.
Eg – Ratan Tata and Noel Tata at the time Cyrus Mistry was made chairperson of TATA Group.
• Felt Conflict: Emotional involvement in a conflict that creates anxiety, tenseness, frustration or hostility.
Stage – IV Behavior
• This stage include statements, actions and reactions.
• Conflict intensity continuum
Stage – V Outcomes
• Functional outcomes : Conflict results in improvement in group’s performance.
• Dysfunctional outcomes: It hinders group performance.
CONFLICT MANAGEMENT
Conflict Resolution Techniques
•Develop superordinate goals
•Expanding the supply of critical resources
•Solving problems
Conflict Stimulation
•Bringing outside individuals into the group
•Altering the organization’s structure
•Stimulating competiton
NEGOTIATION
Negotiating is the art of
reaching an agreement by
resolving differences
through creativity
Bargaining Strategies
• Distributive Bargaining- Negotiation that seeks to divide up a fixed amount of resources; a win/lose situation.
• Integrative Bargaining- Negotiation that seeks one or more settlements that can create a win/win situation.
Negotiation Process
Preparation and Planning
Definition of Ground Rules
Clarification and Justification
Bargaining and Problem Solving
Closure and Implementation
Preparation and Planning
Definition of Ground Rules
Clarification and Justification
Bargaining and Problem Solving
Closure and Implementation
1- Preparation & Planning
Focus -
• Nature of Conflict?
• History leading to this Negotiation?
• Who all are Involved?
• Perceptions of Conflicts?
• Goals?
Assess other party’s goals
Develop a strategy
- BATNA
Preparation and Planning
Definition of Ground Rules
Clarification and Justification
Bargaining and Problem Solving
Closure and Implementation
2- Definition of Ground Rules
Ground Rules
Who will do ?
Where will it take place ?
Issues?
Outcome -Initial Proposal or demands exchanged
Preparation and Planning
Definition of Ground Rules
Clarification and Justification
Bargaining and Problem Solving
Closure and Implementation
3- Clarification and Justification
• In this phase, both parties explains, amplify, clarify, bolster and
justify their demands.
• Informing each other on issues.
4- Bargaining and Problem Solving
• Give-and-take
• Breaking Deadlocks
• Win-Win situation
Preparation and Planning
Definition of Ground Rules
Clarification and Justification
Bargaining and Problem Solving
Closure and Implementation
5- Closure and Implementation
• Formulating an agreement
• Ensuring Implementation
• Reviewing your negotiating experience
Individual Differences in Negotiation
“Are some people better negotiators than others ??”
Yes or No
Personality Mood/emotions Culture Gender
Factors Influencing Individual Negotiation
Personality Traits in negotiation
• Extrovert people not successful in distributive negotiation.
• Disagreeable Introvert effective in Distributive negotiation.
• More socialite people not concerned with outcomes are poor negotiator.
Moods/Emotions in Negotiation
• Positive mood have better negotiation outcomes in integrative negotiation.
• Anxiety and super excitement appears to have negative impact on negotiation.
• Angry negotiators have upper hand in negotiation.
Culture in negotiation
• Negotiators from different countries negotiate differently.
• Indian negotiator less willing to disclosed information.
Gender differences in negotiations
• Men and women negotiate in same manner.
• But gender did affect negotiation outcomes.
• Women more cooperative and pleasant.
Third Party Negotiations
Mediator
• Neutral third party facilitating a negotiated solution by using reasoning, persuasion and suggestions for alternatives.
• Used in labor and management negotiations , corporate negotiations.
• Example-Reliance industry de-merger
Arbitrator
• Third party to a negotiation who has the authority to dictate an agreement.
• Either voluntary or compulsory
• Mostly result in settlement
• Used in family law matters, civil actions involving claims for damages or money
• Example- Settlement of $13 Million Lawsuit of Red Bull
Conciliator
• A trusted third party who provides an informal communication link between the negotiator and the opponent.
• Discuss differences
• Alternate solutions are provided and discussed.
• Example- Cheque bouncing cases, petty offences, motor accidents claims cases.