Essay
Negotiation and conflict resolution
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Question 1: List and explain three significant factors of negotiation. Explain why they are significant and how they can be used by someone.
Answer: The three significant factors of negotiation are as follows:
1. Power: This is the ability of a party to influence decisions and apply control over the situation and thus, is a significant factor in the course of negotiation. Power comes into play when a person has sufficient knowledge and expertise on a field and is able to make decisions with confidence which carry high credibility.
2. Time: Time in the course of negotiation represents the need for each person or party to achieve a result and make decisions on time. If results are not achieved on time then projects would remain incomplete. This can hamper the success of an organization and it will not be able to compete with other organizations in the industry. Therefore, time is a crucial factor of negotiation in agreements. It can be used by parties in effectively negotiating on their agreements so that work can be completed on time.
3. Information: Without this factor, negotiations are not possible. Each party must have sufficient information about each other’s wishes and desires to agree on a certain point. When the parties involved in the course of negotiation will have this information then can effectively arrive at a proper decision and then continue the work productively.
Question 2: Assume you are about to begin negotiating for the purchase of a new condo. As part of your preparation you determine your price, your resistance point and your opening offer. Why are these prices key points in your analysis?
Answer: The price, resistance point and the opening offer represent the key points in an analysis because these will determine the outcome of negotiations or bargaining. These three points help in determining the final solution or the final agreement (McShane and Von Glinow, 1993).
Question 3: When if ever is it good idea to make the first offer in a negotiation?
Answer: It is a good idea to make the first offer in the course of negotiation when you know the true value of the asset being offered for sale or purchase to the other party or have enough information about any issue being discussed for negotiation. It is also wise to make first offer when the issue is important enough for you to come out in your way and you have realistic expectations which can guide the negotiation strategy.
Question 4: Explain why it is important for you to know your BATNA before you begin to negotiate?
Answer: BATNA basically represents the alternatives to negotiated agreements. It is important for a party to know its BATNA because unless it does not know about its alternatives, it cannot make a wise decision. It allows a party to choose the terms that are most favorable to it. If the proposed agreement for negotiation appears to better than the party’s BATNA then it should go for it otherwise it should continue with more negotiation until the party arrives at an agreement which benefits it in run. It is important for a party to keep in mind and improve its BATNA wherever possible because a good and effective BATNA has a direct impact on the party’s negotiating power and position through which it can influence decisions.
Question 5: Explain the difference, in negotiation, between position and an interest. How are these terms related?
Answer: Position in negotiation means the particular stance over which a party stands and is making negotiations on that stance whereas interest refers to the reasons or desires behind taking that stance or position. Position simply represents what a party wants and interest represents the reasons that cause these positions. This shows the two term are related. Interests are highly negotiable where as positions are difficult to negotiate upon because one party takes the position completely opposite from the other one.
Question 6: The foundation for success in negotiation is in the planning that takes place prior to the dialogue. Identify nine points you should consider when developing your planning guide.
Answer: Planning is important to have a clear idea before actually starting the negotiation with the other party. The points that one must consider before formulating a dialogue are as follows (Freund, 1993):
identify the problem
establish your objectives
establish your position and interests
plan your strategy for achieving the objectives
know your BATNA
know the desires and wishes of the other party
acquire complete information on the issue
possible concessions to be made
role and tasks of each team member and third party, if any involved.
Question 7: Describe a negotiation situation in which you would be likely to engage an agent. When would an agent not be too useful?
Answer: Agents are useful in a situation when a party needs the advice or knowledge of a professional to make negotiations. For example, an agent is necessary when a couple wants to get divorced out of the court. In such cases, a lawyer is appointed and all formalities are completed through him.
An agent will not be too useful if he hinders the process of negotiation and exercises undue authority.
REFERENCES:
Freund, James C. (1993). SMART Negotiating. Newyork: Fireside.
McShane, Steven L., & Von Glinow, Mary Ann (2003). Organizational Behaviour.Newyork: McGraw-Hill.