UNIVERSITI SAINS MALAYSIA

SCHOOL OF SOCIAL SCIENCESMASTER OF PUBLIC ADMINISTRATION

SPA503 : ORGANIZATIONAL MANAGEMENT Dr. Radzak Abaq Sam

MANAGING ORGANIZATIONAL CONFLICTAND NEGOTIATION

By:MUHAMAD IZZWANDY BIN MAMAT (P-SM0081/09)

HADI SAFRIANDA (P-SM0031/09)RISWANDI (P-SM0114/09)AFRIZAL (P-SM0014/09)

SARJANUDDIN (P-SM0123/09)

GROUP 8

IZZWANDI BIN MAMAT

3/15/2010

I. UNDERSTANDING CONFLICT

What is Conflict and Type of the Conflict?

Conflict is a natural disagreement resulting from individuals or groups that

differ in attitudes, beliefs, values or needs. It can also originate from past rivalries and

personality differences. Other causes of conflict include trying to negotiate before the

timing is right or before needed information is available. Now days, in family or simple

management like football team also has a conflict. Example, conflict between a mother

and her son and conflict between coach and player in a team.

The conflict always happen everywhere and every time such as a simple

conflict or a difficult conflict. In a one family or team a great degree of discomfort,

anger, frustration, sadness, and pain can happen anytime. On the other hand, Conflict is

as tension arising from incompatible needs, in which the actions of one frustrate the

ability of the other to achieve a goal.

Sometimes, the conflict also happens with disagreement between people on

substantive or emotional issue. In other side, these conflicts happen in the two types as

a substantive conflict and emotional conflict. Substantive conflict involve when

disagreement over such thing as a goal and tasks like, allocation of resources, the

distribution of reward and policies making. By the way, emotional conflicts happen

when distrust, dislike, anger, fear and some time also involve from feeling of anger.

(Schermerhorn, JR, 2002).

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The dictionary defines "conflict" as "a struggle to resist or overcome;

contest of opposing forces or powers; strife; battle. A state or condition of opposition;

antagonism; discord. A painful tension set up by a clash between opposed and

contradictory impulses." No matter how hard we try to avoid it, conflict periodically

enters our lives.

By the way, In the workplace conflict is a simple disagreement between

team members, if unresolved, may escalate into avoidance, inability to work together,

verbal assaults, and resentment. In the worst cases, it may also lead to hostility and

eventual separation from the organization. Therefore, it is important that the conflict be

resolved as soon as possible. 

A conflict also in situation between two or more people in which one

person perceives that another person has negatively affected, or is about to negatively

affect, something that the first person cares about.  This definition of conflict contains

three elements, all of which must be present in order for a conflict to exist.  First of all,

there is a specific perception on part of one or more of the people involved in the

conflict. 

However, not all disagreements are conflicts.  For example, two people may

disagree on how something should be done.  But a conflict doesn't exist unless both

people care significantly about the issue at hand, and believe that the other party will do

something that has a negative impact on their interests.  If one of the people is willing to

"give in" because the issue is just not that important to them, then the dispute is not a

conflict.  Likewise, the parties may disagree, and the issue may be important to both

people, but if neither person believes the other person will have any impact on their

goals or interests, then the disagreement is not a conflict. (Kreitner, R, 2002).

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.By the way in teams work conflict maybe begin when individuals come

together in work teams their differences in terms of power, values and attitudes, and

social factors all contribute to the creation of conflict. It is often difficult to expose the

sources of conflict. Conflict can arise from numerous sources within a team setting and

generally falls into three categories: communication factors, structural factors and

personal factors. Barriers to communication are among the most important factors and

can be a major source of misunderstanding. Communication barriers include poor

listening skills; insufficient sharing of information; differences in interpretation and

perception; and nonverbal cues being ignored or missed. structural disagreements

include the size of the organization, turnover rate, levels of participation, reward

systems, and levels of interdependence among employees. Personal factors include

things such as an individual's self-esteem, their personal goals, values and needs. In

order for conflict to be dealt with successfully, managers and team members must

understand its unpredictability and its impact on individuals and the team as a whole.

(Varney, 1989).

The ingredients of conflict

Needs - Needs are things that are essential to our well-being. Conflicts arise

when we ignore others' needs, our own needs or the group's needs. Be careful

not to confuse needs with desires (things we would like, but are not essential).

Perceptions - People interpret reality differently. They perceive differences in

the severity, causes and consequences of problems. Misperceptions or differing

perceptions may come from: self-perceptions, others' perceptions, differing

perceptions of situations and perceptions of threat.

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Power - How people define and use power is an important influence on the

number and types of conflicts that occur. This also influences how conflict is

managed. Conflicts can arise when people try to make others change their

actions or to gain an unfair advantage.

Values - Values are beliefs or principles we consider to be very important.

Serious conflicts arise when people hold incompatible values or when values are

not clear. Conflicts also arise when one party refuses to accept the fact that the

other party holds something as a value rather than a preference.

Feelings and emotions - Many people let their feelings and emotions become a

major influence over how they deal with conflict. Conflicts can also occur

because people ignore their own or others' feelings and emotions. Other

conflicts occur when feelings and emotions differ over a particular issue.

Functional and Dysfunctional Conflict

Functional conflict is constructive and helps task performance and

dysfunctional is destructive and hurts task performance. This distinction depends on the

type of conflict and how the conflict is handled. It is difficult to differentiate between

good and bad conflict, since there is no measure or framework against which it can be

evaluated. Generally, if the result of a conflict is positive, then the conflict is considered

“good” and if the result is negative, then the conflict is considered “bad” ( Rue & Byar,

2009 ).

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Benefits of Conflict

enables a person to become aware of problems in a relationship

serves as catalyst for positive change

energizes and motivates to deal with immediate problems

stimulates interest and curiosity

relieves minor tensions -cathartic

causes decision to be made more carefully

promotes self-knowledge

clears the air of unexpressed resentments

II. CAUSES OF CONFLICT

Trigger (cause) of conflict

Conflict is all kinds of opposition or antagonistic interactions between two

or more parties. Conflict organizations (organizational conflict) is the lack conformity

between two or more members - or members of groups - groups of organizations that

arise because of the fact that they have to share resources - limited resources or

activities - activities or because of work and the fact that they have differences status,

goals, values or perceptions.

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The conflict is a conflict between what is expected of a person against

himself, other people, organizations with reality what to expect. There are many

potential source of conflict.

Today’s organizations are characteristic by complex relationship and high

degree of task interdependence that can cause friction. Moreover, the goal of the parties

are often in compatible, especially when the parties compete for limited resource.

People also have different values an different perception issue (Harold and Heinz. 1990:

285).

A conflict trigger is circumstance that increase of intergroup or

interpersonal conflict. As long as a conflict trigger appears to stimulate constructive

conflict, it can be allowed to continue. There are many potential sources of conflict.

People also have different values and different perception issues. Major conflict trigger

include the following:

1. Vertical conflict.

Occurs between hierarchical levels.

2. Horizontal conflict.

Occurs between persons or groups at the same hierarchical level

3. Ambiguous or overlapping jurisdiction.

Unclear job boundaries often create competition for resource and control.

Reorganization can help to clarify job boundaries if destructive conflict becomes a

problem.

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4. Competition for scarce resource.

As the term is used here, resources include fund, personnel, authority,

power, and valuable information. In other words, anything of value in

organizational setting can become a competitively sough-after scarce resource.

Sometimes, as in the case of money and people, destructive competition for scarce

resources can be avoided by enlarging the resource base (such as increasing

competing managers’ budgets or hiring additional personnel

5. Communication breakdown.

Because communication is a complex process beset by many barriers, these

barriers often provoke conflict. It is easy to misunderstand another person or group

of people if two-way communication is hampered in some way in some way. The

battle for clear communication never ends.

6. Time pressure.

Deadlines and other form of time pressure can stimulate prompt

performance or triggers destructive emotional reaction. When imposing deadline,

manager should consider individual’s ability to cope.

7. Unreasonable standard, rules, policies or procedures.

These triggers generally lead to dysfunction conflict between manager and

the people they manage. The best remedy is for the manager to tune into employees’

perception of fair play and correct extremely unpopular situation before there

mushroom.

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8. Personality’s clashes.

It is very difficult to change one’s personality on the job. There fore the

practical remedy for serious personality clashes is to separate the antagonistic

parties by reassigning one or both to a new job.

9. Status differentials.

As long as productive organizations continue to be arranged hierarchically,

this triggers unavoidable. But managers can minimize dysfunctional conflict by

showing a genuine concern for ideas, feeling, and values of lower-level employees.

10. Unrealized expectation.

Dissatisfaction grow when expectation ore not met. Conflict is another by-

product of unrealized expectations. Destructive conflict can be avoided in this area

by taking time to discover, trough frank discussion, what people expect from their

employment. Unrealistic expectations can be countered before they become a

trigger for dysfunctional conflict.

III. HOW TO DEAL WITH CONFLICT

When any more of these antecedent conditions are present, an informed

manager expects conflicts to occur. And when they do, the conflicts then can either be

resolved, in the sense that the sources are corrected, or suppressed, in that the sources

remain but the conflict behaviors are controlled. Suppressed conflicts tend to fester and

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recur at the later time. True conflict resolution eliminates the underlying cause of

conflict and reduces the potential for similar conflicts in the future.

Managers use various approaches to deal with conflicts between individuals

groups. There are times when appealing to super ordinate goals can focus the attention

on one mutually desirable end state. The appeal to higher level goals offers all parties a

common frame of reference against which to analyze differences and reconcile

disagreements. Conflicts whose antecedents lie in the competition for scarce resources

can be resolved by making more resources available to everyone.

Although costly, this technique removes the reasons for the continuing

conflict. By changing the people, that is, by replacing or transferring one or more of the

conflicting parties, conflicts cause by poor interpersonal relationships can be

eliminated. The same holds true for altering the physical environment. Facilities, work

space, or workflows can be rearranged to physically separate conflicting parties and

decrease opportunities for contact with another.

The integrating devices as ways to improve coordinating in an organization

can also be used to deal with conflicts. Using liaison personnel, special task forces,

cross functional teams, and even the matrix form of organization, can change

interaction patterns and assist in conflict reduction. Changing reward systems may

reduce competition between individuals and groups for rewards. Creating systems that

reward cooperation can encourage behaviors and attitudes that promote teamwork and

reduce conflict. Changing policies and procedures may redirect behavior in ways that

minimize the likelihood of known conflict prone situations. Finally, training in

interpersonal skills can help prepare people to communicate and work more effectively

in situations where conflict is likely

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Conflict management and prevention can be done by:

1. Discipline: Maintaining discipline can be used to manage and prevent

conflicts. eg nurse manager must know and understand the rules that exist in

the organization. If not clear, they should seek help to understand it.

2. Consideration of experience in Stages of Life: Conflict can be managed

with the support of nurses to achieve the objectives in accordance with the

experience and the stages of life.

3. For example; outstanding junior nurse can be promoted to follow higher

education, whereas for high-achieving senior nurses can be promoted to

positions higher.

4. Communication: A good communication will create a conducive

environment. An effort that can be done to avoid conflict managers is to

implement an effective communication in everyday activities.

5. Active listening: listening actively is essential to manage conflicts. To

ensure that the receiving nurse managers have a correct understanding, they

can reformulate the problems of employees as a sign that they have listened.

To handle conflict effectively, we must know the capabilities themselves

and also the parties who have a conflict. There are several ways to handle conflicts

among others:

1. Introspection; How are we usually deal with conflict? What style is usually

used? What is the basis and our perception. It is important to do so that we

can measure our strength.

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2. Evaluating the parties involved; It is important for us to know the parties

involved. We can identify what interests they have, how their values and

attitudes of the conflict and what their feelings on the conflict. Our

opportunities for success in dealing with the larger conflict if we look at the

conflict from all perspectives.

3. Identify sources of conflict; As written above, the conflict is not just showed

up. Source of conflict should be identified so that the target of more focused

treatment to cause conflict.

4. Knowing the conflict resolution options available and choosing the right.

Spiegel (1994) explains there are five actions in the handling of the conflict:

a. Competition; This is when we try to impose their own interests above the

interests of others. Choice of action can be successfully done if the

situation requires quick decisions, the interests of one party over the

primary and our choice is vital. Just keep in mind win situation - lose (a

win-win solutions) will happen here. The loser will feel harmed and

could be a prolonged conflict. This can be done in a superior-subordinate

relationship, where the boss put his interests (the organization) in the

interests of subordinates.

b. Avoid conflict; This is when one party to avoid the situation physically

or psychologically. The nature of this action is only delaying the

conflict. Win or lose situation happening again here. Conflict can be

avoided if each party tries to cool the atmosphere. The impact of bad can

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happen if the moment is not right conflict erupted again, plus if one party

to the stress of feeling still has debts solve these problems.

c. Accommodation; That is if we give in and sacrifice their own interests to

others profited from the conflict situation. This is done if we feel that the

interests of others more important, or we want to keep good relations

with these parties. Consideration of personal interests and good relations

to be the main thing here.

d. Compromise; This can be done if the two parties felt that two things are

equally important and good relationship to the primary. Each side will

sacrifice some interest to find win-win situation

e. Collaborate; Creating win situation, the Minister in cooperation with

each other. Options action on ourselves with the consequences of their

actions. If there is conflict in the work environment, interests and

personal relationships into things we have to consider.

IV. CONFLICT MANAGEMENT STYLES

A conflict management style is the pattern of behaviour an individual

develops in response to conflict with others such as differences of opinion.

General approach to conflict management is divided into 5 styles, among

others; collaboration, domination, follow, avoid, and compromise. These five

management styles are not necessarily effective in all situations of conflict.

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Choosing a conflict management style is important in many areas of life,

especially in business and the workplace. If you are a manager or owner of a company,

you will need to choose a conflict management style to handle problems between

employees, as well as between an employee and yourself. Below we will discuss

different types of conflict styles and why some may work better than others. 

1. Collaboration

Style of handling conflict with a win / win solution (win-win). This style

motivates us to be more creative. The advantages of this style we are encouraged to

consider various alternatives. All the parties involved to provide information and

perspective.

The first conflict management style is collaborating. Using this method,

one would sit down with the individuals involved in the issue and hear their concerns,

as well as voice their own. Once each party has had a chance to have their say, the

manger or owner would then try to find a solution that would make both parties happy

if possible. If not, they would choose the solution that is best for the company.

Symbol

OWL

Collaborating. I win, you win.

Owls highly value their own goals and relationships. They view conflict as

a problem to be solved and to seek solution that achieves both their goals and the goals

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of the other person. Owls see conflicts as a means of improving relationships by

reducing tensions between two persons. They try to begin a discussion that identifies

the conflict as a problem. By seeking solutions that satisfy both themselves and the

other person, owls maintain the relationship. Owls are not satisfied until a solution is

found that achieves their goals and the other person’s goals. They are not satisfied until

the tensions and negative feelings have fully resolved.

Fundamental premise: Teamwork and cooperation help everyone achieve

their goals while also maintaining relationships.

Strategic philosophy: The process of working through differences will lead

to creative solutions that will satisfy both parties' concerns.

When to use:

When there is a high level of trust.

When you don't want to have full responsibility.

When you want others to also have "ownership" of solutions.

When the people involved are willing to change their thinking as more

information is found and new options are suggested.

When you need to work through animosity and hard feelings.

Drawbacks:

The process takes lots of time and energy.

Some may take advantage of other people's trust and openness.

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2. Avoid

This style of others at higher and lower rate yourself. When used

effectively, then this force can maintain good relations with other parties. But this style

allows other parties that we think little of being "I follow whatever you want".

The second conflict management style is avoiding. Using this method, one

would completely ignore the conflict or issue at hand. Furthermore, the manager or

owner would not take any steps to eliminate the conflict or issue. Like the

accommodating conflict management style, avoiding can be very harmful to a business

and set it on a downward slope.

This is because the employees will see this person of authority as someone

who either does not care or someone who won’t take action against them when they do

something that is not good for the company, such as become habitually late with

assignments or become sloppy and produce substandard work.

Symbol

Turtle

Avoiding. You bend, I bend.

Turtles withdraw into their shells to avoid conflicts. They give up their

goals and relationships, they stay away from the issues over which the conflict is taking

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place and from the persons they are in conflict with. Turtles believe it is easier to

withdraw from a conflict than to face it.

Fundamental premise: This isn't the right time or place to address this issue.

Strategic philosophy: Avoids conflict by withdrawing, sidestepping, or

postponing.

When to use:

When the conflict is small and relationships are at stake.

When you're counting to ten to cool off.

When more important issues are pressing and you feel you don't have time to

deal with this particular one.

When you have no power and you see no chance of getting your concerns met.

When you are too emotionally involved and others around you can solve the

conflict more successfully.

When more information is needed.

Drawbacks:

Important decisions may be made by default.

Postponing may make matters worse.

3. Competing

This style follows the opposite of the force. Highlight the dominance of

Hollywood over the will and self interest. This style is used effectively only if we have

the right and power which accompanied the high-level leadership. If not, then the

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resulting reaction will be fatal. This style is reflected in an authoritarian manner or

within the term "shoot better, from the need to hit".

The third conflict management style is forcing. Using this method, one

would use their position as the manager or owner to make a decision regarding the

conflict no matter how the employee(s) feels about the situation. Without hearing

everyone’s side or taking anyone’s feelings into account, the manager whose conflict

management style is forcing will make his own decision in what would be best and that

decision would not be up for discussion. This style would not be best for those who are

trying to work with their employees so as to be a leader who influences them and is

looked up to by them because forcing will tend to alienate those who are affected by the

decision and make them feel as if their thoughts and feelings are unimportant.

Symbol

Shark

Competing. I win, you lose.

Sharks try to overpower opponents by forcing them to accept their solution

to the conflict. Their goals are highly important to them, and relationships are of minor

importance. They seek to achieve their goals at all costs. They are not concerned with

the needs of others and do not care if others like or accept them. Sharks assume that

conflicts are settled by one person winning and one person losing. They want to be a

winner. Winning gives sharks a sense of pride and achievement. Losing gives them a

sense of weakness, inadequacy and failure. They try to win by attaching,

overpowering, overwhelming, and intimidating.

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Fundamental premise: Associates "winning" a conflict with competition.

Strategic philosophy: When goals are extremely important, one must

sometimes use power to win.

When to use:

When you know you are right.

When time is short and a quick decision is needed.

When a strong personality is trying to steamroller you and you don't want to be

taken advantage of.

When you need to stand up for your rights.

Drawbacks:

Can escalate conflict.

Losers may retaliate.

4. Accommondating

This style can be irritating others due to wait long to get certainty.

Avoidance means stalling. This force must be used wisely if we are not ready to give

certainty. This style can only be done for a while. While looking for a good solution to

give certainty in the settlement of the conflict. Because the conflict is generally not

disappear because of the time.

The fourth conflict management style is accommodating. Using this

method, one would allow the employee to make the decision or make the decision that

would make the employee feel the best without regard to how it makes the manager feel

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or if it is really the best decision for the company. This style would not be best for a

manager or owner who wants to continue to have a smooth running business because

with this style it is easy for authority figures to be taken advantage of and walked all

over by lower-level employees. This is because they are seen as a people pleaser rather

than someone who will crack-down. When this happens it can turn into work being

habitually late or being done sloppily and not up to the level that is expected.

 Symbol

Teddy Bear

Accommodating I lose, you win

To Teddy Bears, the relationship is of great importance while their own

goals are of little importance. Teddy Bears want to be accepted and liked by others.

They think that conflict should be avoided in favor of harmony and that people cannot

discuss conflicts without damaging relationships. They are afraid that if the conflict

continues, someone will get hurt and that would ruin the relationship. Teddy Bears say

“I’ll give up my goals and let you have what you want, in order for you to like me.”

Teddy Bears try to smooth over the conflict out of fear of harming the relationship.

Fundamental premise: Working toward a common purpose is more

important than any of the peripheral concerns; the trauma of confronting differences

may damage fragile relationships.

Strategic philosophy: Appease others by downplaying conflict, thus

protecting the relationship.

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When to use:

When an issue is not as important to you as it is to the other person.

When you realize you are wrong.

When you are willing to let others learn by mistake.

When you know you cannot win.

When it is not the right time and you would prefer to simply build credit for

the future.

When harmony is extremely important.

When what the parties have in common is a good deal more important than

their differences.

Drawbacks:

One's own ideas don't get attention.

Credibility and influence can be lost.

5. Compromise

This style-oriented middle way. Negotiating skills are required in using

force of compromise. This style is effective when the parties involved have the right

and power and have the same plus minus.

The fifth conflict management style is compromising. Using this method,

one would come up with a solution to the problem or issue at hand that would make

both parties happy without completely giving in to one side or the other. This could

possibly be a good strategy for an issue between two employees; however, if it is

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between the manager or owner and an employee, then it might not be the safest strategy

since you do not want your employees to think that you are “giving in” to meet them

half way.

Symbol

Fox

Compromising. You bend, I bend.

Foxes are moderately concerned with their own goals and their relationship

with others. Foxes seek a compromise; they give up part of their goals and persuade the

other person in a conflict to give up part of their goals. They seek a conflict solution in

which both sides gain something; the middle ground between two extreme positions.

They are willing to sacrifice part of their goals and relationships in order to find

agreement for the common good.

Fundamental premise: Winning something while losing a little is OK.

Strategic philosophy: Both ends are placed against the middle in an attempt

to serve the "common good" while ensuring each person can maintain something of

their original position.

When to use:

When people of equal status are equally committed to goals.

When time can be saved by reaching intermediate settlements on individual

parts of complex issues.

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When goals are moderately important.

Drawbacks:

Important values and long-term objectives can be derailed in the process.

May not work if initial demands are too great.

Can spawn cynicism, especially if there's no commitment to honor the

compromise solutions.

V. NEGOTIATION

The principles of negotiation and conflict management are based on the

assumption that we value relationships and the people we do business with, work with,

and the people we live with. The skills and strategies in negotiation can be applied to

the majority of negotiation or conflict situations. To develop these skills successfully

one needs to practice, read and undertake further training.

Negotiation is a fact of everyday life. Our negotiating skills are tasted when

we begin a new job, rent an apartment, live with a roommate, buy a house, buy or lease

a car, ask for a raise or promotion, live with a spouse, divorce a spouse, or fight for

custody of a child. Managers have even more opportunities to negotiate. Salespeople,

employees, labor unions, other managers, and costumer all have wishes the organization

may not be able to grant without some give-and take. Sadly, most of us are rather poor

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negotiators. Negotiating skills, like any other crucial communication skills, need to be

developed through diligent study and regular practice. In fact, subjects in a study who

had been trained in negotiating tactics negotiated more favorable outcomes than did

those with no such training.

Robert Kreitner (2004) define negotiation as “a decision-making process

among interdependent parties who do not share identical preferences.” They go on to

say “It is through negotiation that the parties decide what each will give and take in

their relationship.” The scope of negotiations spans all levels of human interaction,

from individual to organizations to nations. Two common types of negotiation are two-

party and third-party. This distinction is evident in common real estate transactions. If

you sell your home directly to a buyer after settling on a mutually agreeable price, that

is a two-party negotiation. It becomes a third-party negotiation when a real estate agent

acts as a go-between for seller and buyer.

Element of Effective Negotiation

A good way to learn about proper negotiation is to start from zero. This

means confronting and neutralizing one’s biases and faulty assumptions. Sports and

military metaphors, for example, are usually inappropriate. Why? It is because effective

negotiators are not bent on beating the opposition or wiping out the enemy. They have a

much broader agenda. For instance, effective negotiators not only satisfy their own

needs, they also enhance the other party’s readiness to negotiate again. Trust is

important in this regard.

What negotiation and conflict have in common

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The obvious common denominator in negotiation and conflict is they both

involve a relationship with at least one other person. Albeit the relationship may only be

a short term one.

When you enter into a negotiation or find yourself in conflict with another

person, the outcomes you and the other person desire appear to be diametrically

opposed. Otherwise there would not be a conflict or need for serious

negotiation.

The extent to which you have invested (time, money, emotion, ego) in the

outcome of either situation may make it easier or harder to achieve what you

want. It is unlikely to enter into a negotiation, or find yourself in conflict if you

do not care about the outcome. In general, you already have an emotional,

financial or other investment.

The difference between a conflict situation and entering a negotiation, is that the

tension levels are already high when in conflict and relationships may have

already been damaged.

In either situation, it is common that both parties see themselves as 'right', and

want to prove their 'rightness' to each other. In this sense every negotiation has

potential for conflict.

If both parties maintain their position of 'rightness', there is little opportunity for

resolution or for either party to achieve their desired outcomes. Relationships

may be irretrievably damaged and neither party wins.

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Tips to Resolve workplace conflict :

1. Get past needing to compete. Competition, while a part of the

negotiation process, can destroy long-term relationships, which in turn

can destroy your bottom line. Therefore, you must be able to balance

competition against the desire to foster long term relationships.

2. Get down to the real issue. Separate the real issue the driving force of

the negotiation from the all the less important issues that take up time.

People lose valuable time and money chasing after non-mission-critical

issues.

3. Know and use your leverage. Business people must know and use

their leverage. Leverage is your ability to get a deal on your terms. If

you want a deal on your terms, you must know and appropriately use

your leverage.

4. Don’t assume that people will act in rational ways. You cannot use

rational arguments with people who have an emotional charge. It just

doesn’t work. Address the emotional argument. If it is not your

strength, then find someone for whom it is.

5. Things are not black and white. Americans in particular like to talk in

terms of the bottom line, bullet points and principles. The reality of the

situation is that what you are negotiating is not likely a black and white

issue. There will be nuances and shades of gray.

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6. Don’t let bad things linger. This piece of advice got the most laughs

as they all remembered times when matters got really ugly. Matters just

get worse the longer they linger. They don’t go away.

7. Let bygones be bygones. People make mistakes. People also do really

stupid things, like denying responsibility for their obvious mistakes.

For the good of business, it is wise to let bygones be bygones.

Best Alternative to a Negotiated Agreement (BATNA)

BATNA is a term coined by Roger Fisher and William Ury in their 1981

bestseller, Getting to Yes: Negotiating Without Giving In. It stands for "best alternative

to a negotiated agreement." BATNAs are critical to negotiation because you cannot

make a wise decision about whether to accept a negotiated agreement unless you know

what your alternatives are. Your BATNA "is the only standard which can protect you

both from accepting terms that are too unfavorable and from rejecting terms it would be

in your interest to accept." In the simplest terms, if the proposed agreement is better

than your BATNA, then you should accept it. If the agreement is not better than your

BATNA, then you should reopen negotiations. If you cannot improve the agreement,

then you should at least consider withdrawing from the negotiations and pursuing your

alternative (though the costs of doing that must be considered as well).

Having a good BATNA increases your negotiating power. Therefore, it is

important to improve your BATNA whenever possible. Good negotiators know when

their opponent is desperate for an agreement. When that occurs, they will demand much

more, knowing their opponent will have to give in. If the opponent apparently has many

options outside of negotiation, however, they are likely to get many more concessions,

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in an effort to keep them at the negotiating table. Thus making your BATNA as strong

as possible before negotiating, and then making that BATNA known to your opponent

will strengthen your negotiating position.

Guy Burgess and Heidi Burgess have adapted the concept of BATNA

slightly to emphasize what they call "EATNAs" estimated alternatives to a negotiated

agreement" instead of "best alternatives." Even when disputants do not have good

options outside of negotiations, they often think they do. (For example, both sides may

think that they can prevail in a military struggle, even when one side is clearly weaker,

or when the relative strengths are so balanced that the outcome is very uncertain.) Yet,

perceptions are all that matter when it comes to deciding whether or not to accept an

agreement. If a disputant thinks that he or she has a better option, she will, very often,

pursue that option, even if it is not as good as she thinks it is.

BATNA and EATNAs also affect what William Zartman and may others

have called "ripeness," the time at which a dispute is ready or "ripe" for settlement.

When parties have similar ideas or "congruent images" about what BATNAs exist, then

the negotiation is ripe for reaching agreement. Having congruent BATNA images

means that both parties have similar views of how a dispute will turn out if they do not

agree, but rather pursue their other rights-based or power-based options.

In this situation, it is often smarter for them to negotiate an agreement

without continuing the disputing process, thus saving the transaction costs. This is what

happens when disputing parties who are involved in a lawsuit settle out of court, (which

happens in the U.S. about 90 percent of the time). The reason the parties settle is that

their lawyers have come to an understanding of the strength of each sides' case and how

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likely each is to prevail in court. They then can "cut to the chase," and get to the same

result much more easily and more quickly through negotiation.

On the other hand, disputants may hold "dissimilar images" about what

BATNAs exist, which can lead to a stalemate or even to intractability. For example,

both sides may think they can win a dispute if they decide to pursue it in court or

through force. If both sides' BATNAs tell them they can pursue the conflict and win,

the likely result is a power contest. If one side's BATNA is indeed much better than the

other's, the side with the better BATNA is likely to prevail. If the BATNAs are about

equal, however, the parties may reach a stalemate. If the conflict is costly enough,

eventually the parties may come to realize that their BATNAs were not as good as they

thought they were. Then the dispute will again be "ripe" for negotiation.

The allure of the EATNA often leads to last-minute breakdowns in

negotiations. Disputants can negotiate for months or even years, finally developing an

agreement that they think is acceptable to all. But then at the end, all the parties must

take a hard look at the final outcome and decide, "is this better than all of my

alternatives?" Only if all the parties say "yes," can the agreement be finalized. If just

one party changes his or her mind, the agreement may well break down. Thus, knowing

one's own and one's opponent's BATNAs and EATNAs is critical to successful

negotiation

Determining BATNA

BATNAs are not always readily apparent. Fisher and Ury outline a simple

process for determining your BATNA:

1. develop a list of actions you might conceivably take if no agreement is reached;

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2. improve some of the more promising ideas and convert them into practical

options; and

3. select, tentatively, the one option that seems best.

BATNAs may be determined for any negotiation situation, whether it be a

relatively simple task such as finding a job or a complex problem such as a heated

environmental conflict or a protracted ethnic conflict.

Fisher and Ury offer a job search as a basic example of how to determine a

BATNA. If you do not receive an attractive job offer by the end of the month from

Company X, what will you do? Inventing options is the first step to determining your

BATNA. Should you take a different job? Look in another city? Go back to school? If

the offer you are waiting for is in New York, but you had also considered Denver, then

try to turn that other interest into a job offer there, too. With a job offer on the table in

Denver, you will be better equipped to assess the New York offer when it is made.

Lastly, you must choose your best alternative option in case you do not reach an

agreement with the New York company. Which of your realistic options would you

really want to pursue if you do not get the job offer in New York?

More complex situations require the consideration of a broader range of

factors and possibilities. For example, a community discovers that its water is being

polluted by the discharges of a nearby factory.

Community leaders first attempt to negotiate a cleanup plan with the

company, but the business refuses to voluntarily agree on a plan of action that the

community is satisfied with. In such a case, what are the community's options for trying

to resolve this situation?

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They could possibly sue the business based on stipulations of the Clean Water

Act.

They could contact the Environmental Protection Agency and see what sort of

authority that agency has over such a situation.

They could lobby the state legislature to develop and implement more stringent

regulations on polluting factories.

The community could wage a public education campaign and inform citizens of

the problem. Such education could lead voters to support more environmentally

minded candidates in the future who would support new laws to correct

problems like this one.

In weighing these various alternatives to see which is "best," the community

members must consider a variety of factors.

Which is most affordable and feasible?

Which will have the most impact in the shortest amount of time?

If they succeed in closing down the plant, how many people will lose their jobs?

These types of questions must be answered for each alternative before a

BATNA can be determined in a complex environmental dispute such as this one.

BATNAs and the Other Side

At the same time you are determining your BATNA, you should also

consider the alternatives available to the other side. Sometimes they may be overly

optimistic about what their options are. The more you can learn about their options, the

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better prepared you will be for negotiation. You will be able to develop a more realistic

view of what the outcomes may be and what offers are reasonable.

There are also a few things to keep in mind about revealing your BATNA to

your adversary. Although Fisher and Ury do not advise secrecy in their discussions of

BATNAs, according to McCarthy, "one should not reveal one's BATNA unless it is

better than the other side thinks it is."[5] But since you may not know what the other

side thinks, you could reveal more than you should. If your BATNA turns out to be

worse than the opponent thinks it is, then revealing it will weaken your stance.

BATNAs and the Role of Third Parties

Third parties can help disputants accurately assess their BATNAs through

reality testing and costing. In reality testing, the third party helps clarify and ground

each disputing party's alternatives to agreement. S/he may do this by asking hard

questions about the asserted BATNA: "How could you do that? What would the

outcome be? What would the other side do? How do you know?" Or the third party may

simply insert new information into the discussion...illustrating that one side's

assessment of its BATNA is likely incorrect. Costing is a more general approach to the

same process...it is a systematic effort to determine the costs and benefits of all options.

In so doing, parties will come to understand all their alternatives.

If this is done together and the parties agree on the assessment, this provides

a strong basis upon which to come up with a negotiated solution that is better than both

sides' alternatives. But if the sides cannot come to such an agreement, then negotiations

will break down, and both parties will pursue their BATNA instead of negotiation.

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VI. Conclusion

The ability to manage conflict, that there is a healthy conflict of ideas

without the unhealthy conflict of feelings. The principle that all conflicts cannot

necessarily be resolved, but learning how to manage conflicts can decrease the odds of

nonproductive escalation. Conflict management involves acquiring skills related to

conflict resolution, self-awareness about conflict modes, conflict communication skills,

and establishing a structure for management of conflict in your environment.

A conflict trigger is circumstance that increase of intergroup or

interpersonal conflict. As long as a conflict trigger appears to stimulate constructive

conflict, it can be allowed to continue. There are many potential sources of conflict.

People also have different values and different perception issues.

To handle conflict effectively, we must know the capabilities themselves

and also the parties who have a conflict.

General approach to conflict management is divided into 5 styles, among

others; collaboration, domination, follow, avoid, and compromise. These five

management styles are not necessarily effective in all situations of conflict.

A good way to learn about proper negotiation is to start from zero. This

means confronting and neutralizing one’s biases and faulty assumptions. Sports and

military metaphors, for example, are usually inappropriate. It is because effective

negotiators are not bent on beating the opposition or wiping out the enemy. They have a

much broader agenda. For instance, effective negotiators not only satisfy their own

needs, they also enhance the other party’s readiness to negotiate again. Trust is

important in this regard.

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VII. References

Richard L. Daft and Dorothy Marcic, Understanding Management, Harcourt College Publishers, Orlando, 2001.

Harold Koontz and Heinz Weihrich, Essentials of Management, McGraw-Hill Inc., San Fransisco, 1990.

John R. Schermerhorn, Jr., Management, John Wiley & Sons, Inc., New York, 2005.

Robert Kreitner, Management, Houghton Mifflin Company, New York, 2004.

Michael L. Spangle and Myra Warren Isenhart, Negotiation, Communication for Diverse Setting, Sage Publications Inc., London, 2003.

Michele J. Gelfand and Jeanne M. Brett, The Handbook of Negotiation and Culture, Stanford University Press, California, 2004.

Varney, G. H. (1989). Building productive teams: An action guide and resource book. San Francisco, CA: Josey-Bass, Inc.

http://www.communitybuilders.nsw.gov.au/getting_organised/people/conflict.html

http://managingconflict.com/blog/category/techniques-to-manage-conflict.

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