Negotiation

Report
MSc/ PG Diploma in Construction Management
Conflict Management and Negotiation
By Professor Simon Burtonshaw-Gunn – licensed under the Creative Commons Attribution – NonCommercial – Share Alike License
http://creativecommons.org/licenses/by-nc-sa/2.5/
MSc/ PG Diploma in Construction Management
School of the Built Environment
MSc Construction Management
People Management in the Built Environment
Presentation 2: Negotiation
Professor Simon Burtonshaw-Gunn
MSc/ PG Diploma in Construction Management
Presentation 2: Negotiation
•
Approaches to Negotiation
•
Negotiation process
•
Conducting a negotiation – opening,
bargaining and closing
•
Successful negotiation
MSc/ PG Diploma in Construction Management
Negotiation
Negotiation is a means of communicating with the aim of
reaching a mutual agreement but is used for more complex
communication where there is some uncertainty over the
outcome.
It is simply a process whereby two parties come together to
confer with a view to concluding a jointly acceptable
agreement.
Such an approach can be used in conflict resolution or group
decision making or problem solving.
MSc/ PG Diploma in Construction Management
Negotiation
Negotiation involves two main elements:
• Purposeful persuasion – whereby each party attempts to persuade
the other to accept its case by marshalling arguments , backed by
factual information and analysis.
• Constructive compromise – whereby both parties accept the need to
move closer towards each other’s position, identifying the parameters
of common ground within and between their positions, where there is
room for concessions to be made while still meeting the needs of
bath parties.
Gennard and Judge (2003)
MSc/ PG Diploma in Construction Management
Negotiation
In looking at the Negotiation process, there are two basic approaches
Distributive bargaining
Integrative bargaining
What you think that these mean?
MSc/ PG Diploma in Construction Management
Negotiation
In looking at the Negotiation process, there are two basic approaches
Distributive bargaining - negotiation about the
distribution of finite resources. One party’s
gain is the others loss: a win – loose or zero
sum equation
Integrative bargaining – this is about joint
problem solving, aiming to find a mutually
satisfactory solution , win-win. The aim is not
just to get the best outcome (loose-loose) but
to fulfil the needs of all parties as far as
possible
MSc/ PG Diploma in Construction Management
Negotiation
The Negotiation process:
• Preparation - data gathering and analysis, identifying key issues,
planning strategy and tactics, preparing the meeting
• Opening - presentation of each side’s case
• Bargaining – identifying common ground, making concessions:
moving together
• Closing – final offer, conclusion
MSc/ PG Diploma in Construction Management
Negotiation
Preparing a negotiations strategy:
• Set objectives for the negotiation
• Gather information
• Identify potential areas of conflict
• Identify potential areas of movement
• Formulate a negotiating strategy – ideal outcome, realistic
outcome, fall-back position, sticking points
MSc/ PG Diploma in Construction Management
Negotiation
Preparing for the Meeting:
• Purpose – What is the purpose or objective of the meeting? Is it
about investigation or are you intending to finalize the negotiation
• Plan – where will the meeting be held? How should the room be
laid out? What facilities will be required?
• Pace – About 5% of any meeting time should be given to breaking
the ice and making introductions, before getting down to business
• Personalities – with whom are you meeting? Are they experienced
negotiators?
MSc/ PG Diploma in Construction Management
Negotiation
Conducting the negotiation:
• Opening presentation
• Fact-finding
• Identifying common ground
• Use of negotiating strategy and bargaining power
• Considering
• Making concessions
• The negotiating team approach
• Effective communication skills
• Leadership
MSc/ PG Diploma in Construction Management
Negotiation
Successful negotiation characteristics:
• They avoid direct conflict
• They consider a wide range of options
• They hold back counter proposals rather than responding
immediately
• They use emollient verbal techniques: “would it be helpful if we. . . ”
• They summarize on behalf of all involved
• They advance single arguments insistently and avoid long winded,
multiple reason arguments
(From John Hunt ‘Managing People at Work’)
MSc/ PG Diploma in Construction Management
Negotiation
Negotiation model. . .
Please see Handout of the Thomas - Kilmann Conflict Model and how this
is related to the model on the next slide
MSc/ PG Diploma in Construction Management
Negotiation
Negotiation model. . .
High
Forcing: satisfying own
needs at the expense of
the others, usually results
in hostility and
resentment
Collaborating: by
seeking to find and
understand solutions for
all parties
(a win/win strategy)
Compromising
Assertion
Avoiding: potential
conflict is a common
approach best used when
the issue or unimportant
or when time is limited
Low
Accommodating:
satisfying the needs of
other parties at the
expense of your own
needs
Low
Co-operation
High
Published in Organizational Behaviour and Human Performance Volume 16 by Thomas L. Ruble and
Kenneth W. Thomas, ‘Support for a two-dimensional model of conflict behaviour’.
MSc/ PG Diploma in Construction Management
Negotiation
Closing. . .
In closing the negotiation the following items needs to be considered:
• Balance of Pros and Cons
• Upside and downside costs
• Cost analysis close
• “Strawberry or Vanilla”
• Assumptive
MSc/ PG Diploma in Construction Management
School of the Built Environment
MSc Construction Management
People Management in the Built Environment
Presentation 2: Negotiation
Professor Simon Burtonshaw-Gunn

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