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Pearson New International Edition
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Conflict Management: A Practical Guide to Developing Negotiation Strategies
Barbara A. Budjac Corvette First Edition
Pearson Education Limited Edinburgh Gate Harlow Essex CM20 2JE England and Associated Companies throughout the world
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ISBN 10: 1-269-37450-8 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
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ISBN 10: 1-292-03999-X ISBN 13: 978-1-292-03999-2
ISBN 10: 1-292-03999-X ISBN 13: 978-1-292-03999-2
Table of Contents
P E A R S O N C U S T O M L I B R A R Y
I
1. Defining Negotiation and Its Components
1
1Barbara A. Budjac Corvette
2. Personality
11
11Barbara A. Budjac Corvette
3. Conflict
33
33Barbara A. Budjac Corvette
4. Negotiation Style
57
57Barbara A. Budjac Corvette
5. Key Negotiating Temperaments
77
77Barbara A. Budjac Corvette
6. Communicating in Negotiation
91
91Barbara A. Budjac Corvette
7. A Note on Cultural and Gender Differences
107
107Barbara A. Budjac Corvette
8. Interests and Goals in Negotiation
117
117Barbara A. Budjac Corvette
9. Understanding the Importance of Perception in Negotiation
129
129Barbara A. Budjac Corvette
10. Effects of Power in Negotiation
145
145Barbara A. Budjac Corvette
11. Asserting Yourself
161
161Barbara A. Budjac Corvette
12. Principles of Persuasion
177
177Barbara A. Budjac Corvette
13. Rules of Negotiation and Common Mistakes
197
197Barbara A. Budjac Corvette
II
14. The Negotiation Process and Preparation
207
207Barbara A. Budjac Corvette
15. Alternative Styles, Strategies, and Techniques of Negotiation
219
219Barbara A. Budjac Corvette
16. Team Negotiation
239
239Barbara A. Budjac Corvette
17. Third Party Intervention
247
247Barbara A. Budjac Corvette
18. Using Your Personal Negotiating Power
255
255Barbara A. Budjac Corvette
19. Post Negotiation Evaluation
273
273Barbara A. Budjac Corvette
References and Selected Bibliography
281
281Barbara A. Budjac Corvette
291
291Index
PERFORMANCE COMPETENCIES FOR THIS CHAPTER ● To understand the definition and magnitude of negotiation
● To understand that there are limits to what is negotiable
● To identify the components of negotiation performance
● To identify the steps necessary to develop your effective personal negotiating power
“All the world’s
a stage.”
William Shakespeare
From Conflict Management: A Practical Guide to Developing Negotiation Strategies. Barbara A. Budjac Corvette. Copyright © 2007 by Pearson Prentice Hall. All rights reserved.
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ALL HUMAN INTERACTION IS NEGOTIATION
KEY TERM Negotiation is an
effort to influence
or persuade.
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 come to a definition of negotiation by further considering what nego- tiation is not. Negotiation is not a game. Negotiation is not always a formal process nor in a formal setting. Negotiation is not limited to business transactions. Negotiation is not conducted solely for tangible things we can see and touch. Negotiation is not simply using power- over tactics—shouting louder or bullying better. Negotiation is not a prescribed set of universally applicable maxims or precepts. That hav- ing been said, however, it must be noted that power-over tactics are sometimes used in ostensible negotiation; and, there are indeed, rules and customs often observed in negotiation.
Negotiation is the process of interacting with the goal of obtain- ing agreement or the result you desire.
Defining Negotiation and Its Components
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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 compromise their desires. Others believe that if someone would just tell them the rules they could be effective! There are few universally applicable rules. The rules that do exist provide only general guide- 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. That is, it triggers the need or opportunity to negotiate. Have you ever considered that life would be simple but for human beings?
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.
KEY CONCEPT All interaction is
negotiation.
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Defining Negotiation and Its Components
HOT TIP! Practice
negotiation in
personal settings.
KEY POINT Identify
alternatives prior
to negotiating.
THE PERSONAL NATURE OF NEGOTIATION
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.
It is not uncommon for people to believe that they negotiate effec- tively on behalf of others while not doing so well for themselves. Why the difference? We may say the heart or, more appropriately, the ego is the difference. It is, to a great extent. However, it is probable that if we are ineffective as our own advocates, we are probably not performing at our maximum effectiveness for others either. Once you learn to understand yourself, you will get to the heart of negotiating. It will take some effort but your results will be satisfying.
NOT EVERYTHING IS NEGOTIABLE
It seems common to hear that everything is negotiable. Well, that is just not true! Would you sell your child or your pet? Would you compromise the health of your child or your pet? If you said, “No,” then you see that, contrary to popular statements that everything is negotiable, it is not! If you said, “Yes,” then recognize 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 should be negotiated. If there is not a potential for a mutual beneficial exchange that leaves the parties better off than not negotiating, then the matter should not be negotiated. This principle should become clear as you proceed through your study of negotiation and begin to prepare for each negotiation.
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Defining Negotiation and Its Components
CONSCIOUS AND UNCONSCIOUS DETERMINANTS OF YOUR NEGOTIATION PERFORMANCE
Facts and circumstances, including relative power, as well as time constraints, of course, affect negotiation options and outcomes. However, our human interaction is affected by who we are and with whom we interact. Personality and temperament, values and beliefs, perception, attitudes, style of learning, motivation, way of thinking, style of communication, approach to conflict, fears, and much more determine who we are in any human interaction. We are shaped by our experiences. We often unconsciously adopt the attributes of sig- nificant others in our life. Each one of us has a unique combination of attributes that serve as the base for our personal power.
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.
WHAT YOU DO NOT KNOW WILL HURT YOU
In addition to causing poor choices, what we do not know can hurt us in other, more subtle ways. Even if we are not conscious of our every- day negotiation interactions, we develop patterns and habits. We are also subject to what is called social learning (Bandura 1977). We learn both by observing and doing. In the negotiating arena, this can mean that we imitate the behaviors of those with whom we have negotiated previously. We are particularly likely to adopt behavior exhibited by others that we view as generating a positive outcome for them.
Therefore, if you have often felt like the loser in prior negotia- 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
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negotiations were fair for both sides and you, therefore, have fallen into a pattern of compromising. While such an approach is not competitive, it, too, is not usually the most appropriate or effective approach. Perhaps you have been met in the past with individuals unwilling to negotiate and now you find yourself falling into a pattern of avoidance. Obviously, you cannot get what you want unless you try.
Another problem in copying the negotiating behavior of others is that you are a different person and those tactics may not work well for you. The tactics may actually be inappropriate but worked on you for any number of reasons—lack of preparation, lack of confidence, fear, the particular situation or circumstances, to name a few.
These patterns are difficult to change. Until we become con- scious of our self and our actions, we cannot assess the extent of our effectiveness. Our level of experience is irrelevant to this quest. A person who has been negotiating formally for twenty years is not necessarily being effective. She may have been making the same mistakes for twenty years! If we get different results for others than for ourselves, we need to examine why.
COMPONENTS OF NEGOTIATION PERFORMANCE
The components of negotiation performance, then, include personality, approach, style, temperament, perceptions, interests, goals, needs, values, and powers—of all parties involved. Addi- tional components include the substantive issues, the nature of the conflict, the effects of the conflict, and the alternatives for all parties involved. Components also include the persuasive abilities of all parties involved.
HOW TO DEVELOP YOUR EFFECTIVE PERSONAL NEGOTIATING POWER
Knowledge of human behavior is essential to achieving effective negotiation skills. Effective negotiation requires knowledge of self in all of the aspects noted in the preceding subsections as well as knowledge of others. You must know yourself before you may know or understand others. You must become aware of your thought patterns and how they affect your goals and behaviors. You must become aware of your behaviors and how you are perceived
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Defining Negotiation and Its Components
“It is easier to be wise for others than
for ourselves.”
La Rochefoucauld
by others. You must also acquire knowledge of the nature of conflict, principles of communication and persuasion, and methods for gathering and analyzing information. Effective negotiation also requires critical thinking and creativity.
Psychological and sociological theories provide insight into how we know ourselves and others. The study of psychological and sociological principles combined with self-assessment and practice will guide you to increased effectiveness. Practice of your new knowledge on your own account—where your heart and ego are involved—will generate the greatest gain because it is there where you can discover who you are and your greatest fears. Since you negotiate every day, use those everyday experiences on your own behalf to apply your knowledge and practice your skills.
The study of principles of communication and persuasion com- bined with self-assessment and practice will guide us to increased effectiveness. The study of conflict combined with an assessment of our approach to conflict—and practice—will also guide us to increased effectiveness.
Critical thinking requires an inquisitive mind—asking why and how. It requires openness to options. It requires knowing oneself— one’s biases, prejudices, and beliefs. It requires challenging precon- ceptions and assumptions. It requires multifarious, empathetic, comparative, and integrative thinking. The effectiveness of and the mutual gain derived in a negotiation correspond with the level of creativity applied.
A GENERAL PLAN TO DEVELOP YOUR EFFECTIVE PERSONALIZED NEGOTIATION STRATEGIES
Presented in the following list are fifteen steps that will enable you to use your personal negotiating power.
1. Practice critical thinking and empathy. 2. Study and understand key principles from psychological,
sociological, communication, and conflict theories. 3. Know yourself. 4. Understand the dynamics of conflict. 5. Know major negotiation styles and temperaments and how to
interact with each of them. 6. Communicate effectively, allowing for differing perceptions,
biases, and prejudices.
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Start working on your critical thinking and self-knowledge by ask- ing yourself the following two questions.
● What do I know? ● How do I know what I know?
Performance Checklist
✓ All human interaction is negotiation. Negotiation is the process of interacting with a goal and encompasses conflict management and resolution.
✓ Not everything is negotiable. Not everything should be nego- tiated.
✓ The components of negotiation include the individual person- alities involved, interests, goals, needs, values, perceptions, power, substantive issues, alternatives, context, communica- tion, and persuasion. What we do not know about ourselves and our habits may lessen our effectiveness and inhibit our development.
✓ Critical steps in becoming more effective in negotiation are to know yourself, understand the process of conflict and negoti- ation, control yourself, and do what feels natural for you. Developing personalized negotiation strategies requires
Defining Negotiation and Its Components
“To be absolutely certain about something, one must know everything or nothing about it.”
Henry A. Kissinger
7. Acknowledge cultural and contextual expectations. 8. Understand the dynamics of power. 9. Identify interests and goals.
10. Be assertive. 11. Be persuasive. 12. Be thoroughly prepared and avoid common mistakes. 13. Use tactics that suit you and understand tactics used by others. 14. Know when to walk away as well as when and how to use third-
party help. 15. Know how to evaluate your performance and target
improvements.
After mastering these fifteen items, then you must—
Practice. Evaluate. Practice. Evaluate. Change?
Practice. Evaluate. Practice.
A BEGINNING
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Defining Negotiation and Its Components
critical thinking and creativity, self-assessment, study, appli- cation of knowledge, and practice.
Key Terms, Phrases, and Concepts
Negotiation
Mutual Beneficial Exchange
Unconscious Determinants of Negotiation Performance
Review Questions
Mark each of questions 1 through 5 as True (T) or False (F) and answer questions 6 through 10.
T F 1. All human interaction may be considered negotiation. ___________
T F 2. Negotiation is an effort to influence. ___________
T F 3. Negotiation is an art and a science. ___________
T F 4. Everything is negotiable. ___________
T F 5. Everything should be negotiated. ___________
6. Explain how and why negotiation is not subject to fixed rules or methods. ___________
7. Why is your personal life a good place to practice building your negotiation skills? ___________
8. How can your ego interfere with your negotiation performance? ___________
9. What kinds of things or factors of which you may not currently be aware may affect your negotiation performance? Why? ___________
10. List ten components of negotiation performance. ___________
Case 1
Assume that you own and operate a business. Your production this year was based on prior years’ experience. You have been left, how- ever, with 100,000 unsold units on hand. You have been selling your product at $5 each and expected the same price for these 100,000 units. You have exhausted all avenues you can think of for dispos- ing of your excess product. You do not have the storage capacity for keeping these units in inventory while you continue production.
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Defining Negotiation and Its Components
This morning a giant retail organization contacted you urgently seeking the type of product you produce to fill deficits in their supply. They offer to pay you $3 per unit.
Case Discussion Questions
1. How would you assess whether or not you should negotiate? Identify the factors you would consider and the overall rule you would apply.
2. What factors can you readily identify that will affect your nego- tiation options and outcomes?
3. What unconscious factors might also affect your negotiation performance?
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PERFORMANCE COMPETENCIES FOR THIS CHAPTER ● To learn what comprises personality
● To learn key aspects of major personality theories most relevant to conflict, negotiation, and persuasion
● To assess key aspects of your personality
“Thales was asked what was most
difficult to man; he answered: ‘To know
one’s self.’”
Diogenes
From Conflict Management: A Practical Guide to Developing Negotiation Strategies. Barbara A. Budjac Corvette. Copyright © 2007 by Pearson Prentice Hall. All rights reserved.
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“Every man has three characters— that which he exhibits, that which he has, and that which he thinks he has.”
Alphonse Karr
In this chapter we review aspects of personality that relate to the dynamics of conflict, negotiation, and persuasion. Major personal- ity theories are synthesized and presented for your use in self- understanding. First, we define personality and then proceed to specific characteristics that impact your negotiation behavior. You are urged to assess your personality relative to the factors and characteristics presented here. In this chapter you assess yourself.
WHY IT IS IMPORTANT TO KNOW YOUR PERSONALITY
People interact in negotiation. “Human interaction” may more appropriately be one word. It is difficult to separate the interaction from the people. Your negotiating success depends upon an accu- rate understanding of and use of your unique personality type and style of interaction as well as an accurate perception and under- standing of others’ personality types and styles. Knowing yourself is a prerequisite to knowing others. Knowing yourself is also a pre- requisite for tapping your personal power to maximize your effec- tiveness in any human interaction.
Personality
DEFINING PERSONALITY: ONE SIZE DOES NOT FIT ALL
1 This definition also recognizes the predominant view on nature versus nurture—that
personality is the result of a dynamic interaction among genes and environment (including
the situation).
Personality may be described as the dynamic, developing system of an individual’s distinctive emotional, cognitive, and spiritual attributes. That definition purposefully does not limit personality to characteristic behaviors and/or thoughts, because there abound many perceptions of what should be deemed characteristic.1 Nev- ertheless, we will be discussing matters in terms of characteristics.
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Personality
There exist many schools of thought and approaches to analyzing personality. It is neither possible nor necessary to review personality exhaustively here. We address key portions of those theories most relevant to the dynamics of human interaction gener- ally and negotiation particularly. We view personality from a human development perspective. Implicit in such a view is the recognition that personality changes (or can change) over the life span. You have the power and ability to develop traits, characteristics, and aspects of your self. Also implicit in such a view is that behavior occurs (or may occur) relative to circumstances. You may demonstrate varying aspects or characteristics of your personality in varying circum- stances and/or with varying other people. Culture also affects development of certain personality characteristics. Having knowl- edge of these variations is a prerequisite to assessing the reasons and propriety for variations—and to changing your behavior.
FACETS OF PERSONALITY THAT AFFECT YOUR NEGOTIATION APPROACH AND TEMPERAMENT
In this section we investigate key facets of personality that affect your interaction in negotiation: emotional stability; conscientious- ness; locus of control; self-monitoring; competitiveness and types A and B; need for achievement, power, and affiliation; Machiavel- lianism; Jungian personality preferences of extroversion, introver- sion, cognitive processing style, and orientation to others; learning style; right-brain/left-brain dominance; creativity; charisma; and emotional intelligence.
Everyone possesses each of the facets and traits to some degree. You will find that some traits are similar to each other. You may even think that some describe the same trait or characteristic by a different name. Examining each of them will help you to find your personal negotiating style and power as well as help you to identify and develop into the negotiator you desire to be. You will likely find a balance in the combination of traits and characteristics you pos- sess and exhibit. Your task here is to assess the relative strength of each in order to gain understanding of particular strengths and weaknesses in your interactions. As you study each section, try to honestly assess yourself. A profile form (Exhibit 1) is included for use in recording your self-assessments.
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Personal profile of negotiating personality attributes.
Emotional stability High ___________ Moderate ___________ Relatively low ___________
Conscientiousness High ___________ Moderate ___________ Relatively low ___________
Internal locus of control High ___________ Moderate ___________ Relatively low ___________
External locus of control High ___________ Moderate ___________ Relatively low ___________
Locus of control is primarily Internal ___________ External ___________
Self-monitoring High ___________ Moderate ___________ Relatively low ___________
Type A High ___________ Moderate ___________ Relatively low ___________
Type B High ___________ Moderate ___________ Relatively low ___________
Competitiveness High ___________ Moderate ___________ Relatively low ___________
Achievement need High ___________ Moderate ___________ Relatively low ___________
Personal power need High ___________ Moderate ___________ Relatively low ___________
Social power need High ___________ Moderate ___________ Relatively low ___________
Affiliation need High ___________ Moderate ___________ Relatively low ___________
Among the need for achievement, personal power, social power, and affiliation, the strongest is:
Achievement ___________ Personal ___________ Social ___________ Affiliation ___________
Machiavellianism High ___________ Moderate ___________ Relatively low ___________
Personal source of energy Extroverted ___________ Introverted ___________
Preference for taking in information Sensing ___________ Intuiting ___________
Preference in rational functioning Thinking ___________ Feeling ___________
Preference for external interaction Judging ___________ Perceiving ___________
Primary learning style Accommodating ___________
Diverging ___________
Converging ___________
Assimilating ___________
Preference for activities utilizing Right brain ___________ Left brain ___________
Creativity High ___________ Moderate ___________ Fairly low ___________
Charisma High ___________ Moderate ___________ Fairly low ___________
Emotional intelligence High ___________ Moderate ___________ Fairly low ___________
Consistency check
Review your profile for sense and consistency. Note the following expect
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