High Performance Team, Conflicts &

Negotiations

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

HIGH PERFORMANCE TEAMS

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)

The Conflict Process

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 – III Intentions

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.

Thank you