NUTRITION AND FOOD SECURITY & COMMUNITY DEVELOPMENT

CORPORATE NEGOTIATIONS
CELBMD DIPLOMA UNIT 6

2022
HASTINGS KUMBUKANI NKHOMA
DOMASI, ZOMBA, MALAWI (hesinkhoma@gmail.com/0881 63 37 63)
 LEARNING OUTCOME 1: INTRODUCTION TO CORPORATE NEGOTIATIONS

CORPORATION

Is a company or group of people authorized to act as a single entity and recognized as such in law.
They may be statutory corporations, joint-stock companies, co-operatives, etc.

CONFLICT RESOLUTION

Sources of conflict include: personal differences such as values, age, personalities, education,
gender, socioeconomic background, cultural background, religion, political beliefs, etc. Thus,
almost any social category that serves to differentiate people may become an object of conflict
when it negatively diverge with people who do not share it.

In organizations, conflicts may involve departments, organizations and clients, bosses and
subordinates, or organizational needs vs. personal needs.

By definition, conflict resolution is the process by which two or more parties engaged in a
disagreement, dispute, or debate reach an agreement resolving it.

CONFLICT RESOLUTION APPROACH

A. FORCING

When one of the conflict’s parties firmly pursues his/her own concerns despite the other (s)
concerns. This may involve pushing one viewpoint at the expense of another or maintaining firm
resistance to the counterpart’s actions. It is also commonly known as competing.

Forcing may be appropriate when all other less forceful methods do not work or are ineffective;
when someone needs to stand up for his/her own rights (or the represented group/organization's
rights), resist aggression and pressure. It may also be considered a suitable option when a quick
resolution is required and using force is justified (e. g. in a life threatening situation to stop an
aggression), and as a very last resort to resolve a longstanding conflict.

B. COLLABORATION

Involves an attempt to work with the other party involved in the conflict to find a win-win solution
to the problem at hand, or at least to find a solution that most satisfies the concerns of both parties.
The win-win approach sees conflict resolution as an opportunity to come to a mutually beneficial
Page 1 of 32
result; and it includes identifying the underlying concerns of the opponents and finding an
alternative which meets each party's concern. It is the most desirable outcome when trying to solve
a problem for all parties.

C. COMPROMISING

It is a situation in which people accept something slightly different from what they really want,
because of the circumstances, or because they are considering the wishes of others. If you
compromise with someone, you reach an agreement with them in which you both give up
something that you originally wanted.

D. WITHDRAWING

This technique consists of not addressing the conflict, postpone it, or simply withdrawing. For that
reason, it is also known as avoiding. It is suitable when the issue is trivial and not worth the effort
or when more important issues are pressing, and one or both parties do not have time to deal with
it.

CONFLICT RESOLUTION AT THE WORKPLACE

Conflict can be defined as an active disagreement between people with opposing opinions or
principles. Conflicts such as disagreements may occur at any moment, being a normal part of
human interactions. The type of conflict and its severity may vary both in content and degree of
seriousness; however, it is impossible to completely avoid it.

Conflict in itself is not necessarily a negative thing. When handled constructively, it can help
people to stand up for themselves and others, evolve and learn how to work together to achieve a
mutually satisfactory solution. But if conflict is handled poorly, it can cause anger, hurt,
divisiveness, and other problems.

At workplace, conflict resolution takes the following forms:

1. LITIGATION

It is a process of preparing a case for trial, and if a settlement cannot be reached, presenting the
case at trial and handling appeals. In other words, it is a process for handling disputes in a court

Page 2 of 32
system. It is a contested action, where someone else, such as a judge, may make the final decisions
for the parties unless the parties settle before trial.

2. ALTERNATIVE DISPUTE RESOLUTION (ADR)

Refers to any means of settling disputes outside of the courtroom. It has gained widespread
acceptance among both the general public and the legal profession in recent years.

The rising popularity of ADR can be explained by the increasing caseload of traditional courts, the
perception that ADR imposes fewer costs than litigation, a preference for confidentiality, and the
desire of some parties to have greater control over the selection of the individual or individuals
who will decide their dispute.

TYPES OF ALTERNATIVE DISPUTE RESOLUTION

I. NEGOTIATION

AN OVERVIEW OF NEGOTIATION

Let us first go through a real-life situation to understand negotiation better.

Your friends want you to come for a late night movie with them. However, you very well know
that your parents will never appreciate your staying away from the house at late nights and you
don' t even want to miss the movie as well as the company of your friends.

What will you do? Will you fight with everyone?

Another situation

Tom went to a nearby mall and after a day of extensive shopping came across a smartphone
which he instantly liked. The cost of the smartphone was around MK80, 000, but unfortunately
he was not left with much cash. There was no way he could leave the smartphone as it was an
exclusive model and Tom was eyeing the product for quite some time.

What would Tom do in such a situation?

The answer to all the above questions lies in a simple word "negotiation". You negotiate so that
you achieve whatever you want without the fear of conflicts or misunderstandings. It is a peaceful
way of accomplishing things without making anyone angry.

Page 3 of 32
We all will agree that nobody has ever gained anything out of conflicts and disagreements.
Disputes in turn increase our stress and we feel restless always. One loses focus and eventually his
interest in the organization goes down. It is always wise to discuss among yourselves and reach to
an alternative best suited to all through negotiations.

DEFINITION AND CONCEPT

People negotiate daily, often without considering it a negotiation. Negotiations occur in

organizations, including businesses, NGOs, within and between governments, as well as in sales
and legal proceedings, and in personal situations such as marriage, divorce, parenting, etc.
Negotiators may work under other titles such as diplomats, legislators, or brokers.

It is a technique of discussing issues and reaching to a conclusion benefitting all involved in the
discussion. It is one of the most effective ways to avoid conflicts and tensions. It is also termed as
bargaining.

WHEN DO NEGOTIATIONS OCCUR?

Negotiation can occur in any business situation, but people negotiate in everyday situations outside
of the workplace. It occurs when there is more than one possible outcome from a situation in which
two or more parties have an interest, but they have not yet determined what the outcome will be.
For example, negotiation occurs between a buyer and seller in the purchase of a second handcar,
or even in groups of friends when they decide which film to see at the cinema.

In corporates, business negotiations can include:

 Product deals with suppliers, business partners, or customers.

 Interdepartmental or team discussions to determine aims, processes, and resources.
 Discussions between management and trade unions, concerning such issues as rates of pay.
 Recruiting new people to the business, e.g. through interviews.

In a way, both business and personal relationships are shaped through the process of negotiation.
Success in both business and personal lives depends on having good negotiation skills. In practice,
personal negotiations require the same skills as business negotiations.

Page 4 of 32
NEGOTIATOR

Is an individual representing an organization or a position who listens to all the parties carefully
and comes to a conclusion which is willingly acceptable to all.

SKILLS/QUALITIES OF A GOOD NEGOTIATOR

 A negotiator should be impartial and should not favor anyone.

 Should understand the situation and the parties well and decide something which will
benefit all.
 It is not always that people will easily accept the negotiator’s decision. They may counter
it if they feel that their personal interests are not satisfied. In such situation, the negotiator
must use his/her power to impose his/her ideas on all.
 A negotiator must be a little tactful and smart enough to handle all situations and reach to
a conclusion.

ELEMENTS OF NEGOTIATION

Negotiation=Process+Behavior+Substance (Agenda)

a. PROCESS. The way individuals negotiate with each other. It includes the various
techniques and strategies used to negotiate and reach to a conclusion.
b. BEHAVIOR. How the parties behave with each other during the process of negotiation. It
includes how they interact and communicate with each other.
c. SUBSTANCE (AGENDA). It is a topic or subject of the negotiation process.

Page 5 of 32
 LEARNING OUTCOME 2: MODELS OF NEGOTIATIONS

1. WIN-WIN MODEL

In this model, each and every individual involved in negotiations win. Nobody is at loss in this
model as everyone benefits out of the negotiation process. This is the most acceptable model of
negotiation.

Let us understand it with the help of an example:

Daniel wanted to buy a laptop but it was an expensive model. He went to the outlet and
negotiated with the shopkeeper to lower the price. Initially, the shopkeeper was reluctant but
after several rounds of discussions and persuasion, he quoted a price best suited to him as well
as Daniel. Daniel was extremely satisfied as he could now purchase the laptop without burning a
hole in his pocket. The negotiation also benefited the store owner as he could earn his profits
and also gained a loyal customer who would come again in future.

2. WIN-LOSE MODEL

In this model, one party wins and the other party loses. In such a model, after several rounds of
discussions and negotiations, one party benefits while the other party remains dissatisfied.

In the above example, let us suppose:

Daniel could not even afford the price quoted by the storeowner and requests him to further
lower the price. If the storeowner further lowers the price, he would not be able to earn his
profits but Daniel would be very happy. Thus after the negotiation, Daniel would be satisfied but
the shopkeeper would not.

In a win-lose model, the two parties are not equally satisfied, as only one of them walks away with
the benefit.

3. LOSE-LOSE MODEL

As the name suggests, in this model, the outcome of the negotiation process is zero. No party
benefits out of this model. In this model, the two parties are not willing to accept each other’s
views and are reluctant to compromise.

Page 6 of 32
 Had Daniel not purchased the laptop after several rounds of negotiations, neither he nor the
shop owner would obviously not earn anything.

Let us understand the above three models with an example from the corporate world.

Mike got selected with a multinational firm of repute. He was called to negotiate his salary with
Sara – the HR head of the organization.

CASE1: Sara quoted a salary to Mike, but he was not too pleased with the figure. He insisted that
Sara raise his salary to the best extent possible. After discussions, Sara came up with a
figure acceptable to Mike and she immediately released his offer letter. Mike got his dream
job and Sara could manage to offer Mike a salary well within the company's budget. A
win-win situation as both parties gained.

CASE2: Sara, with her excellent negotiation skills managed to convince Mike at a little lower
salary than he quoted. Mike also wanted to grab the opportunity as it was his dream job
and he was eyeing it for quite some time now. He had to accept the offer at a little lower
salary than expected. Thus in this negotiation, Mike was not completely satisfied but Sara
was. A win-lose situation.

CASE3: Mike declined the offer as the salary quoted by Sara did not meet his expectations. Sara
tried her level best to negotiate with Mike, but to no use. Nobody gained anything out of
this negotiation. A lose-lose model of negotiation.

4. RADPAC MODEL

It is a widely used model of negotiation in corporates. Every letter in the abbreviation stands for a
word:

a. RAPPORT. As the name suggests, it signifies the relationship between parties involved in
negotiations. The parties involved should ideally be comfortable with each other.
b. ANALYSIS. One party must understand the second party. It is important that people
understand each other’s needs and interests through attentive listening.
c. DEBATE. This round includes discussing issues among the parties involved. The pros and
cons of an idea are evaluated, and people try to convince each other.

Page 7 of 32
 d. PROPOSE. Each individual proposes his/her ideas in this round and tries to reach to a
conclusion acceptable by all.
e. AGREEMENT. Individuals come to a conclusion at this stage and agree to the best possible
option.
f. CLOSE. The negotiation is complete, and all individuals are satisfied with the outcome.

Let us again consider the example of Mike and Sara to understand the RADPAC model.

 They must be comfortable with each other and should not start the negotiations right away.
They must first break the ice. The discussions must start with a warm smile and greetings.

 Both should try to understand each other's needs. Mike's need is to grab the opportunity,
while Sara wants to hire a competent employee for the organization.

 The various rounds of discussions between the two. They would debate with each other to
get what they want.

 Mike would propose the best possible salary he can work on while Sara would also discuss
the maximum salary her company can offer.

 Both would agree, and where required they would compromise to their best possible extent.

 The negotiation is complete and probably the next course of action is decided, like in this
case the next step would be generation of the offer letter and its acceptance.

GOALS AND OUTCOMES

When negotiating, it is important to understand the difference between these two concepts.

Page 8 of 32
Goals are the needs, wants, and preferences that individuals consider before negotiating

Outcomes are possible results of the negotiation process. They may be win-win, win-lose, or lose-
lose.

Page 9 of 32
 LEARNING OUTCOME 3: TYPES OF NEGOTIATIONS IN ORGANIZATIONS

Negotiations take place in various ways in organizations for increased output and better relations
among employees. Negotiation types include the following:

1. Day-to-day negotiations at workplace

Every day we negotiate something or the other at the workplace either with our fellow workers or
supervisors for the smooth flow of work.

2. Negotiations between employees and supervisors

At the workplace, an employee has to negotiate with his/her superiors so that s/he is assigned
responsibilities as per his/her specialization. Again, an individual before accepting any offer
should negotiate the salary to avoid tensions later. Don’t just accept any offer just because you
need a job.

3. Negotiations between colleagues

Negotiations reduce the chances of disputes and conflicts. Any particular member should not be
over-burdened while other members are loafing.

4. Commercial negotiations

Are generally done in the form of contracts. In such cases, everything should be in a written form.
A contract is signed by both parties and they both have to adhere to its terms and conditions. It is
important to note that commercial negotiations involve an external party, and thus a contract is
essential that no party backs out later.

Cherry was representing the administration department of a reputed organization. He was

assigned the responsibility of buying bulk laptops for the office employees from a vendor. He
asked the vendor to quote a price for him. Cherry found that the price was beyond the company's
budget and thus sat with the vendor, negotiated the price with him, and finally both of them
agreed to a price suitable to both. A contract was signed between Cherry and the vendor
mentioning the payment details, mode of payment, date of delivery, warranty details, and other
important terms and conditions.

Page 10 of 32
 5. Legal negotiations

These take place between an individual and the law where the individual has to abide by the rules
and regulations laid by the legal system. The legal system also takes into account the needs and
interests of the individual.

IMPORTANCE OF CORPORATE NEGOTIATIONS

a. Negotiations help when corporates are hiring employees. It is important that the
individual responsible for hiring negotiates with the candidates and offer them the best
salary possible.
b. Negotiations are vital when dealing with vendors. The person dealing with external
parties must be a good negotiator, else s/he will end up paying more amount than
required. However, the vendor’s needs like profits must also be considered
c. They help when signing contracts. The terms and conditions must be discussed on an
open forum and should be signed in the presence of both parties.
d. Help to establish good working relationships between workers and their superiors. You
do not accept responsibilities just because your boss wants you to. If you are not
comfortable, it is better to politely decline it.
e. Negotiations help to reduce conflicts at the workplace. Conflicts arise when individuals
are too rigid and unwilling to compromise. In such situations, negotiations help in finding
an alternative.

NEGOTIATIONS PREPARATIONS AND ITS IMPORTANCE

The first and foremost requirement for an effective negotiation is preparation. Go through even the
minutest details related to the deal and the other party. Also remember to carry all the necessary
documents along with you.

1. Be specific about your expectations. The purpose of the negotiation must be clear. Be
focused and don’t change your mind too often. However, don’t expect anything you know
is not possible.
2. Be ready with an alternative plan. Don’t rely on a single plan or point as it might not work
out sometimes, and you might end up sitting blank at the time of discussions.

Page 11 of 32
 3. Be transparent and honest. Don’t hide anything from the other party, as the deal might turn
in your favor but you might land yourself in trouble later.
4. Be confident. Never show your helplessness to anyone. You might be in dire need of
something, but keep the feelings to yourself.
5. Understand the second party well. Try to find out more about their needs and interests and
take into consideration their expectations.
6. Be a good communicator. Don’t play with words and avoid using foul words against
anyone for it spoils the ambiance. Take care of your dressing as well so as to make the
desired first impression on others. If you adopt a casual approach, the other person will not
take you seriously.
7. Learn to compromise where possible. You cannot always get everything. As such, know
when to compromise as it helps in reaching a conclusion.
8. Adopt a positive attitude. Negative attitude will lead to negativity during negotiations.
Don’t pretend, just be yourself and things will definitely fall into place.

IMPORTANCE OF NEGOTIATIONS IN DAILY LIVES

 Negotiations help to maintain peace in families and communities as people discuss and
compromise on their differences.
 Negotiations help in effective buying. In order to avoid overspending, one must negotiate
with the sellers to reduce the cost to the best extent possible.
 Negotiations reduce conflicts and improve relations among individuals. As a social animal,
we live in societies and need people around us, which is all the reason we must maintain
good relationships with others.

Page 12 of 32
 LEARNING OUTCOME 4: NEGOTIATION SKILLS – HOW TO NEGOTIATE
EFFECTIVELY

1. Be clear with the agenda. Have a clear objective about the negotiations, and be well
informed by among other things trying to find out more about the competitor’s products or
services.
2. React sensibly. You should never lose your temper or over-react. In addition, if you are
unhappy with the deal, show your displeasure rather than keeping things to yourself.
3. Be patient. It is not always that the person will accept your suggestions in the first attempt.
Never be in a hurry to close the deal.
4. Be a good listener. Do not jump to conclusions. Instead, listen to what the other party is
saying.
5. Be reasonable. Do not quote anything just for the sake of it, but be reasonable. Do not ask
for anything you know is not possible.
6. Be dignified. One should maintain the decorum of the place and should not stoop to any
level for getting the best deal. Avoid shouting or using derogatory statements against
anyone.

NEGOTIATION TECHNIQUES

How we conduct our negotiations with each other is important. The following are some points to
bear in mind when negotiating:

a. Be well informed about everything related to the deal.

b. Take good care of your posture as well as your body movement. Look confident and do
not look around or play with things while speaking. Don’t stammer or start sweating in
front of others.
c. Take care of your dressing. Do not wear anything which is too casual.
d. Never keep things to yourself and complain later. Do not assume that the other person
can read your mind on his/her own.
e. Know where to compromise.
f. For a third party, it is better to sign a contract or have a written agreement so that nobody
backs out later.

Page 13 of 32
LEARNING OUTCOMES 5, 6, 7: FACTORS WHICH CAN AFFECT NEGOTIATIONS

I. COMMUNICATION

It is a process of sharing, transferring, or exchanging messages from a source to a receiver through

a medium to achieve the desired response.

COMMUNICATION METHODS BETWEEN INDIVIDUALS

a. VERBAL COMMUNICATION

Means communicating with words, and it includes the following:

1. Oral communication: Uses spoken language/word of mouth. Examples include face-to-face

interaction, and telephone conversations.
2. Written communication: Uses written symbols; that is via words and sentences. Examples
include letters, emails, and social media messages.
3. Visual communication: Examples include charts, posters, tables, maps, and diagrams.
b. NON-VERBAL COMMUNICATION

This is communication which does not use words. Mostly under this we talk of body language.

TYPES OF NON-VERBAL COMMUNICATION

1. Facial expressions. The human face is extremely expressive, able to convey countless
emotions without saying a word. And unlike some forms of non-verbal communication,
facial expressions are universal. The facial expressions for happiness, sadness, anger,
surprise, fear, and disgust are the same across cultures.
2. Body movement and posture. Consider how your perceptions of people are affected by the
way they sit, walk, stand, or hold their head. This type of non-verbal communication
includes your posture, bearing, stance, and subtle movements you make.
3. Gestures. The use of movements, especially of the hands and other limbs to communicate.
You may wave, point, beckon, and use your hands when arguing or speaking. The meaning
of some gestures can vary across cultures.
4. Eye contact. It communicates many things including interest, affection, hostility, or
attraction. Eye contact is important in maintaining the flow of conversations.

Page 14 of 32
 5. Touch. We communicate a great deal through touch, including a warm bear hug, a pat on
the body, squeezing a person's hand, caressing, etc.
6. Space. This entails the use of physical space when interacting with other people. You can
use space to communicate messages like intimacy, affection, fear, dislike, aggression, or
dominance.
7. Voice. It is not just what you say, it is also how you say it. People pay attention to your
timing and pace, how loud you speak, tone, etc. Tone of voice, for example, can indicate
anger, affection, or confidence.
 Effective communication is directly proportional to an effective negotiation. The better the
communication is, the better the communication would be. Discussions do not fighting and
shouting, but simply the exchange of ideas, thoughts, and opinions with others.
 The way you present your thoughts matter a lot. Don’t speak just for the sake of it.
Hazardous thoughts and abstract ideas only lead to confusion, therefore one must speak
clearly about what they expect from the other person.
 Effective communication also plays an important role in salary negotiations. Express your
salary expectations clearly in front of the recruiter. If you are not satisfied with the small
offer, it is better to decline it politely.
 Effective communication is of prime importance in business deals. The terms and
conditions must be stated clearly for better transparency and do not try to hide anything
from the second party. It is also always better to depend on written communication for
better reliability.
 Non-verbal communication plays an important role in an effective negotiation. Our facial
expressions, hand movements, and posture matter a lot and must not be ignored. Whenever
going for a negotiation, carry a smile but do not laugh unnecessarily or crack silly jokes.
Also remember to sit composed and imposed and upright as well as make eye contacts, as
it shows your confidence and strong will power. Don’t play with your fingers, hair, or
things kept on the table, and don’t look around instead of concentrating in the discussions.
II. PERSONALITY

Is an organized set of characteristics possessed by a person that influences their environment,

emotions, and behavior in various situations. Personality also human reactions to other people,
problems, and distress.
Page 15 of 32
ROLE OF PERSONALITY IN NEGOTIATIONS

 Be sincere rather than just serious. Go well prepared for the negotiations. The agenda must
be clear to you, and carry all the related documents which you might require.
 Be honest. Do not fake things. For example, one should not manipulate his/her salary to
get a hike in the next organization.
 Be patient. It has been observed that impatient people are poor negotiators. When you want
something, you need to convince others about it, and that requires patients.
 Trust the other party. Don’t always find faults in others. The other party is not your enemy
but is there just to conduct business.
 Be professional. Once the deal is closed, sign a contract in the presence of all people
involved. Do not rely on oral communication.
 Be tactful and diplomatic. Be intelligent, and know what to speak and what not to. Apply
your brains and react in an appropriate manner.
III. EMOTIONS

Are strong feelings, such as of love, anger, joy, hate, or fear deriving from one’s circumstances,
mood, or relationships with others.

THE ROLE OF EMOTIONS IN NEGOTIATIONS

a. If one is in a happy mood, everything seems perfect and good. Individuals with a positive
attitude tend to trust each other better. They do not necessarily find faults in other people.
b. Anger acts as a hurdle to effective negotiations. A person loses control and is not in a
position to think constructively. It only leads to conflicts and misunderstandings and does
not solve any problem.
c. One needs to be friendly. Learn to trust other people, but don’t get too involved in
friendships. If you become too attached, the other person might expect unnecessary favors
from you.
d. Be calm and composed. Never lose your control and start shouting. Also don’t take rash
decisions or interfere while the other person is speaking.
e. Don’t stress yourself. Relax, because whatever has to happen will definitely happen.
Unnecessary stress makes you feel nervous and you tend to lose your confidence.

Page 16 of 32
 f. Avoid being adamant. An individual must learn to be flexible and willing to compromise
sometimes. At times, it is good to be the first one to accept things.

CHALLENGES FOR AN EFFECTIVE NEGOTIATIONS

There are several challenges to negotiations, including the following:

 Misunderstanding the other party. There are individuals who only think about their interests
and tend to ignore the interests and needs of others.

Jim wanted to buy a shirt for himself. He was only concerned with his pocket and never bothered
about the storeowner. He quoted an unusually low price and the storeowner refused to sell the
shirt. The outcome was a big zero. Nobody could get what they wanted. Jim failed to understand
the fact that the storeowner is not sitting for charity. He also has a family to look after and thus
even his profits are important. Why would he sell something at a less rate which would not earn
him his profits?

 Going unprepared for the negotiations. Do not underestimate the second party. One should
do his/her homework carefully by among others checking out even the minutest details
before going for negotiations.
 Last minute changes. These result in confusions and misunderstandings. Do not change
statements now and then. Once a conclusion is reached or a deal is cracked, sign a
contract/agreement in the presence of both parties.
 Being too rigid. Try to adjust with each other and find solutions which will satisfy all. For
example, when buying an item, the price is not the only important thing. Other factors like
quality, brand name, and durability must be taken into consideration.
 Lack of confidence. Do not forget to make eye contact with the other person. In addition,
be straightforward and crisp in your communication. Also remember to take care of your
dressing.

Page 17 of 32
 LEARNING OUTCOME 8: PROFESSIONAL NEGOTIATIONS

Professionals must know how to negotiate effectively to successfully close deals, avoid conflicts,
better relations among employees, and making the organization a better place to work. In
conducting negotiations, the following tips must be considered by professional negotiators:

a. Preparations.
b. Confidence.
c. Avoid delays. One should always arrive at business meetings on time. At least try to get to
the meeting venue a few minutes earlier.
d. Understand the other person well.
e. Do not cheat anyone. Be honest and only speak when sure about it. Also remember that it
is unethical to fake things or manipulate the truth.
f. Always have an alternative plan with you.
g. Know the purpose of the negotiation

BEST ALTERNATIVE TO A NEGOTIATED AGREEMENT (BATNA)

Negotiators must consider their position if negotiations fail to produce an acceptable outcome.
They can determine a BATNA, which gives an alternative where agreement cannot be reached.

It does not need the cooperation from others and gives options when negotiations fail.

II. MEDIATION

This is another form of alternative dispute resolution. It is the intervention of an acceptable,

impartial, and neutral third party in assisting two or more individuals in a dispute or conflict.

In the workplace, mediation is applicable to disputes in such areas as wrongful termination,

worker’s compensation, discrimination, and grievances.

MEDIATOR

A mediator enables the parties to deal with conflict issues in a constructive manner. However, it
is not the function of the mediator to pass judgement.

BENEFITS/ADVANTAGES OF MEDIATION

a. Cheaper when compared with other procedures like litigation.

Page 18 of 32
 b. Sometimes it lead to rapid settlement of conflict.
c. It brings about a mutually satisfactory outcome. Parties are generally more satisfied with
solutions that have been mutually agreed upon as opposed to solutions that are imposed by
a third party.
d. There is high rates of compliance.
e. It leads to personal empowerment.
f. There is a significant level of confidentiality.
III. ARBITRATION

It is a form of ADR in which the dispute is decided by one or persons known as arbiters, arbitrators,
or arbitral tribunal, which renders the arbitration award. It is a proceeding in which a dispute is
resolved by an impartial adjudicator whose decision the parties to the dispute have agreed, will be
final and abiding.

It is often used for the resolution of commercial disputes, particularly in the context of international
commercial transactions. It can be either voluntary or mandatory, and it is more formal than
mediation, and resembles a simplified version of a trial involving limited discovery and simplified
rules of evidence.

ADVANTAGES OF ARBITRATION

a. Allows the parties to choose their own tribunal. This is especially important when the
subject matter of the dispute is highly technical.
b. It is often faster than litigation.
c. Arbitral proceedings and an arbitral award are generally non-public, and can be made
confidential.

DISADVANTAGES OF ARBITRATION

a. There are limited avenues for appeal, which means that erroneous decisions cannot be
easily overturned.
b. In some legal systems, arbitration awards have fewer enforcement options than judgements
made in courts.

Page 19 of 32
 IV. COLLABORATIVE LAW

Refers to a new method of solving legal disputes that avoids traditional court proceedings. Rather
than filing a lawsuit, each side voluntarily agrees to a series of sit-down negotiations between the
parties, their lawyers, and any number of experts trained in the subject matter of the dispute.

These meetings allow the parties to openly exchange information and discuss the matter with an
understanding that nothing communicated will later be used against them in court.

The collaborative law process is founded on good faith. By taking a cooperative approach, rather
than an adversarial one, parties can resolve difficult issues that would otherwise lead to expensive
and time-consuming litigation.

People tend to use collaborative law to settle highly emotional cases such as business partnership
dissolution, wrongful discharge claims, and family law cases. It is not surprising, then, to learn
that the vast majority of collaborative law cases deal with divorce.

BENEFITS OF COLABORATIVE LAW

1. It offers the benefit of confidentiality.

2. The parties directly control how the proceedings unfold.

OTHER WAYS OF HANDLING CONFLICTS

1. Therapy.
2. Fighting.
3. Counseling.

Page 20 of 32
 LEARNING OUTCOME 9: CONFLICT AND NEGOTIATIONS

Conflict refers to a clash/disagreement between or among individuals arising out of personal or

organizational differences.

CAUSES OF CONFLICT

Any differences among people can cause conflicts. Some of the factors include:

 Resources.
 Approaches.
 Perceptions.
 Power.
 Unfair treatment.
 Poor communication.
 Poor working conditions.
 Unrealistic needs and expectations.

TYPES OF CONFLICT

There are several types of conflict, and some of them include the following:

1. INTERDEPENDENCE/TASK-BASED CONFLICT

These arise in a situation where individuals in a project must coordinate their tasks so that everyone
can successfully get their part done.

2. LEADERSHIP CONFLICT

People have different styles of leadership, and everyone reacts differently to those leadership
styles. For example, some are strict on rules and deadlines, while others are laidback and easy-
going.

3. WORK STYLE CONFLICT

For example, some people need no extra direction to complete a task, while others prefer external
input and direction every step of the work.

Page 21 of 32
 4. PERSONALITY-BASED CONFLICT

We are all different, and we cannot like everyone we meet and it is not easy to work with someone
whose personality we find distasteful.

5. DISCRIMINATION-BASED CONFLICT

This discrimination may come due to age, gender, race, ethnicity, religion, or disability. Here,
conflict arises as the victims of this discrimination protest and resent the treatment they are given.

PHASES OF CONFLICT

1. PRELUDE TO CONFLICT

Involves all factors which possibly causes a conflict among individuals. These may include
political, cultural, religious, educational, and gender differences.

2. TRIGGERING EVENT

No conflict can arise on its own. There has to be an immediate event which triggers or sparks the
conflict. These could include one person speaking ill of another’s religious or cultural beliefs, or
disagreements other the outcome of an election result.

3. INITIATION PHASE

This is the phase when the conflict has already begun. Heated arguments, abuses, verbal
disagreements, or even actual fighting are manifested.

4. DIFFERENTIATION PHASE

It is a phase when individuals involved in a conflict voice out their differences against each other.
The reasons for the conflict are raised in this phase.

5. RESOLUTION PHASE

This phase explores the various options to resolve the conflict. This can happen through mediation,
negotiation, litigation, arbitration, or other methods of conflict resolution.

Page 22 of 32
WAYS OF AVOIDING CONFLICT AT WORKPLACE

 Learn to control your emotions. The individual you are dealing with might not be from
the same background as you are or hold the same opinions as you do, but that does not
mean you should ridicule him/her.
 Be a good and patient listener. Actively listen to others and opt to discussions over
quarrels.
 Be flexible and try to find an alternative. Do not always disregard others’ opinions.
Rather, work as a team and learn to compromise.
 Keep control on your tongue. One must speak before speaking, and also address others
with respect rather than shouting unnecessarily.
 Communicate effectively. Be clear and transparent in your communication. In addition,
always ask for clarification on matters you don’t understand.

CONFLICT MANAGEMENT

Involves the steps undertaken to prevent the conflict at the right time and also helps to resolve it
in an effective and smooth manner.

No conflict can just start on its own. There has to be an event or incident to trigger it. Through
conflict management, one actually finds out the possible events which can trigger a conflict and
tries to avoid them.

In all, conflict management helps individuals to understand the causes of a conflict and helps to
prevent it at the right time.

CONFLICT MANAGEMENT SKILLS

A conflict is not easy to control, rather it requires an individual to have certain skills for it to be
resolved, including the following:

1. Effective communication skills.

2. Listening skills.
3. Discussion. It is always better to sit and discuss the issues on an open forum. All
participants must give their inputs and efforts must be made to find an appropriate solution.
Everyone has a right to express their views and a middle way has to be found.

Page 23 of 32
 4. Patience. One has to be patient to avoid conflicts. There would be people at your workplace
and even home who would try to provoke you. In such a situations, learn to control your
temper and emotions.
5. Impartial. Stand by what is right and never support what is wrong simply because it is
coming from someone close to you. Listen to everyone and never ignore them just because
you don’t know or like them.
6. Never criticize. Instead, make the other person understand if s/he is wrong. As someone
who is more educated, knowledgeable, or experienced, others will look up to you for
guidance and they will be hurt if you start demeaning them.
7. Have a positive attitude. If you have done something wrong, have the courage to accept
the blame, instead of blaming others or trying to justify yourself. In addition, avoid
backbiting and faultfinding at the workplace.
8. Ignore petty issues. Don’t waste your energy over trivial things or a person who is too
adamant and is not willing to compromise.

STRATEGIES TO BE USED TO AVOID CONFLICT AT WORKPLACE

At workplace, conflicts have to be avoided at all cost and it should be ensured that employees give
their best for maximum productivity. For this to be realized, strategies have to be set and some of
them are as follows:

a. Don’t leave any problem unattended. This means every problem has to be addressed at
an earliest time.
b. Avoid imposing your ideas on others. Instead, try and consider their views.
c. An individual must keep his/her personal and professional lives separate.
d. Never carry your problems to work, as it prevents you from concentrating in your work.
e. Always opt for written forms of communication over oral forms.
f. Develop the habit of using planners to avoid forgetting important dates and tasks.

CONFLICT MANAGEMENT IN GROUPS

The following are ways of managing conflicts in groups:

 Do not impose your ideas on other individuals in the group.

Page 24 of 32
  When there is an issue to be discussed, do not discuss it with the group members
separately. Rather, invite each and every one on a proper forum.
 Each member of the group must trust the other members and should have confidence in
them.
 Group members must be friendly with each other. Personal interests must be left out and
avoid treating others like enemies.
 Be a good leader and take everyone along. A leader should be one who is able to
understand his group members and support them always.
 Appreciate if another member is right or has come up with brilliant ideas. If they are
wrong, correct and guide them properly.

TIPS FOR CONFLICT MANAGEMENT

The following are some of the tips for conflict management among professionals:

1. Make sure your communication is effective and impressive.

Never play with words or share haphazard thoughts with others; instead use corporate jargons and
professional terminologies for better understanding.

If you are not clear about what you expect from your fellow worker, the other person will never
be able to understand what you intend to communicate. Be very precise but convincing. The
content has to be relevant and sensible.

2. Be a patient and good listener.

Never jump with your questions or comments during a presentation as it seriously offends the
speaker and results in displeasure.

Wait for your turn to speak. Don’t poke your nose into other’s conversations, and never interfere
in each other’s work. Let your colleagues have some space. Always listen to the other person as
well and then decide what is wrong and right.

3. Don’t always depend on spoken communication at workplace.

Professionals must communicate through written methods like emails, and make sure the email is
marked to all the concerned members so that everyone is on the same page and gets a common

Page 25 of 32
picture. Never communicate with individuals separately as people feel left out and start fighting
each other.

4. Professionals must develop the habit of planners, organizers, desk calendars, etc. at work.

You cannot remember everything, so it is advisable to jot down important points to avoid forgetting
crucial things. Encircle the dates on the desktop calendar when you have to submit an important
report to your boss or have to go for a meeting and place it right in front of you. It would prevent
unnecessary stress and conflicts.

5. The pitch and tone have to be taken care of.

Don’t be too low as others will not be able to understand you properly. Never shout or be rude to
your colleagues. Shouting solves no problem and it seriously goes against you. Soften your pitch
but be convincing. Professionals must take care of their accent, correct pronunciation,
punctuations, etc.

6. Adopt a positive attitude.

Don’t always find faults in other people and assume that they are always wrong. Listen to their
side of the story as well and never underestimate your fellow workers.

If you do not agree with the other person, don’t start arguing, instead sit with them face to face,
discuss and make them understand your point. They will feel glad.

Leave your personal problems out before stepping into the office, and always keep your personal
interests on the back burner. Find reasons to be happy as negative thoughts always lead to conflict
and disagreements. You can’t misbehave with your colleagues just because you are in a bad mood.

7. A professional must avoid blame games at work.

Learn to own your responsibilities and do not always blame others for your mistakes. Never drag
issues and be a little more forgiving. Don’t always expect others to come up to you and admit their
mistakes. Take the initiative and be the first one to apologize.

8. Be impartial at workplace.

An individual must be judged by the hard work s/he puts in and not physical appearance or
relations with you. Do not blame anyone just because you don’t like them.
Page 26 of 32
 9. Never discuss your work and responsibilities with others and learn to keep things
confidential.

Never spread unnecessary and baseless rumors about anyone. Gossips and backbiting must be
avoided at workplace, and also avoid doing personal favors at the office.

IMPORTANCE OF CONFLICT MANAGEMENT

 Plays a crucial role at workplaces to prevent conflicts and for the employees to concentrate
on their work. The team leaders must ensure that the roles and responsibilities of every
employee are clearly passed on to them.
Employees should be discouraged from interfering in each other’s work. Employees waste
half of their time and energy in fighting with others and finding it very difficult to work.
 Conflict management strengthens the bond among the employees and half of the problems
automatically disappear. Individuals must feel motivated at work and find every single day
exciting and challenging. Before implementing any idea, it must be discussed with
everyone and no one should feel ignored or left out. In this way, every employee feels
indispensable and strives hard to live up to the expectations of his/her fellow workers and
in a way positively contributing to the success of the organization.
 Conflict management avoids conflicts to a great extent and this also reduces the stress and
tensions.
 Conflict management plays a role in our personal lives. Tussles and fights spoil
relationships and only increase our list of enemies. Everyone needs friends who will stand
by us when we need them. As such, conflicts must be avoided at home as it spoils the
ambience and spreads negativity.
 Conflict management helps to find a middle way, an alternative to any problem and
successful implementation of ideas. Problems must be addressed at the right time to prevent
conflict and its adverse effects at a later stage. Through conflict management skills, an
individual explores all possible reasons to worry which might later lead to a big problem
and tries to resolve it as soon as possible.
 It is always wise to prevent a fight in the first place rather than facing its negative
consequences later. Stress disappears, people feel motivated, happy, and the world
definitely becomes a much better place to stay as a result of conflict management.

Page 27 of 32
 LEARNING OUTCOME 10: MOTIVATION

Motivation is a driving factor for doing an action. In other words, it is the collection of factors that
affect what people choose to do and how much time and effort they put into doing it.

TYPES OF MOTIVATION

There are two types of motivation, which are presented below:

1. Intrinsic Motivation

It exists within a person and includes many internal sources of motivation. These include beliefs,
personal pride, power, sense of accomplishment, and personal enjoyment.

2. Extrinsic Motivation

It comes from external sources or outside the individual. They include bonuses, pay raises,
promotions, and additional time off from work.

MOTIVATIONAL MODEL OF HUMAN NEEDS

Several motivational theories state that employee performance and satisfaction is based on how
well the company meets the needs of the employees. There are four major models in the needs-
based category: Abraham Maslow’s hierarchy of needs, Fredrick Herzberg’s dual factor theory,
Clayton Alderfer’s existence-relatedness-growth theory, and David McClelland’s acquired needs
theory.

ABRAHAM MASLOW’S THEORY (HIERARCHY) OF NEEDS

With the hierarchy of needs, Maslow highlighted that humans are motivated by needs. He
classified the requirements into a pyramid of five levels as per their importance and priority. He
said when one need gets satisfied, it stops being a motivating factor. Once this happens, the next
set of needs in the hierarchy order takes its place. The needs have been classified into the following
in order:

I. Physiological Needs

These are the basic needs of an individual which includes food, clothing, shelter, air, water, and
sleep. These needs relate to the survival and maintenance of human life.

Page 28 of 32
 II. Safety Needs

These needs are also important for human beings. Everybody wants job security, protection against
danger, safety of property, etc.

III. Social Needs

These needs emerge from the society. Man is a social animal, and these things become important.
They include love, affection, belongingness, friendship, and family.

IV. Esteem Needs

These needs relate to desire for self-respect, recognition and respect from others.

V. Self-actualization Needs

These are needs of the highest order and they are found in those people whose previous four needs
are satisfied. They include growth, advancement and creativity.

THE USE (APPLICATION) OF THE MODEL IN MANAGEMENT

I. Physiological needs. Regular salary, safe working environment, lunch breaks, coffee
machines, etc.
II. Safety needs. Retirement plans, sick leaves, health and wellness programs, insurance
plans, job security, etc.
III. Social needs. Team work, group projects, and social gatherings to encourage
communication among employees.
IV. Self-esteem needs. Rewards to appreciate and value employees. Use feedback and
appraisal programs to recognize them.
V. Self-actualization needs. Challenging work, promotions, training programs to advance
their career, and enhance their skills.

MOTIVATIONAL INCENTIVES

An incentive is an act or promise for greater action. At workplaces, management has to offer the
following categories of incentives to motivate employees:

Page 29 of 32
MONETARY INCENTIVES

Money has been recognized as an important source of satisfying the needs of people. Apart from
psychological needs, it also satisfies security and social needs. Bonuses and allowances are
examples here.

ON-MONETARY INCENTIVES

These can be of the following types:

a. Job security. If a person’s job is secure, s/he will put maximum efforts to achieve the
objectives of the company.
b. Praise or recognition. Employees will respond more to praise and try to give the best of
their abilities.
c. Suggestion scheme. Apart from helping with encouraging, participation, this also helps
workers to feel important.
d. Promotion opportunities. If the employees are provided opportunities for the
advancement and growth, they feel satisfied and contented and they become more
contented and committed to the organization.

IMPORTANCE OF MOTIVATION TO EMPLOYEES AND BUSINESS ORGANIZATIONS

For organizations, motivation provides the following benefits:

 Puts human resources into action. Every organization requires physical, financial, and
human resources to accomplish its goals. This can be done by building willingness in
employees to work. This will help the enterprise in securing best possible utilization of
resources.
 Improves the level of efficiency among the workers. For getting the best of work
performance, the gap between ability and willingness has to be filled which helps in
improving the level of performance of subordinates. This will result into increased
productivity, reducing cost of operation, and improving overall proficiency.
 Leads to the achievement of organizational goals. This can be achieved through best
possible utilization of resources. In addition, goals can be achieved if coordination and
cooperation takes place simultaneously which can be effectively done through motivation.

Page 30 of 32
  Leads to stability of the workforce. This is important from the viewpoint of reputation and
goodwill of a concern. The employees can remain loyal to the enterprise only when they
have a feeling of participation in the management.

For an individual employee, motivation is important because:

 It will help him or her achieve his personal goals.

 If an individual is motivated, s/he will have job satisfaction.
 It will help in self-development of an individual.
 An individual will gain by working with a dynamic team.

MOTIVATION AND MORALE

Morale can be defined as the total satisfaction derived by an individual from his/her work group,
his/her superiors, the organization s/he works for, and the environment. It generally relates to the
feeling of individual’s comfort, happiness, and satisfaction. There are two states of morale:

a. High morale, which results in:

 Immediate conflict identification and resolution.
 Increase in productivity.
 Greater motivation.
b. Low morale, which has the following features:
 Greater grievance and conflicts in an organization.
 High rate of employee absenteeism and turnover.
 Dissatisfaction with superiors and colleagues.
 Decreased productivity.
 Lack of motivation.

TIPS FOR MOTIVATING EMPLOYEES

a. Provide the employees with certain benefits. Give them bonuses, pay them for overtime,
as well as health insurance.
b. Give the employees learning opportunities. This learning can be through other more
experienced colleagues, workshops, or educational advancements.

Page 31 of 32
 c. Set an example for your staff. Be a role model because the staff will learn from what you
do and not from what you say.
d. Be flexible. Introduce flexibility in work. Allow for flexible working hours if possible and
let the employees work from home occasionally if need arises.
e. Acknowledge your staff on their achievements. A pat on the back, some words of praise,
and giving a note of credit to the employees at personal level with some form of publicity
can motivate them.

SELF-MOTIVATION AT WORKPLACE

Self-motivation is a power that drives us to keep moving ahead. It encourages continuous learning
and success. It is a primary means of realizing our goals and progressing. It is basically related to
our inventiveness in setting dynamic goals for ourselves, and our faith that we possess the required
skills and competence for achieving them.

TEAM MOTIVATION

*students should research their own information on this sub topic.

Page 32 of 32