Management 3315



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Management 5304

2018

Negotiation and Conflict Management

CRN #35457

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Richard A. Posthuma, JD, PhD

Professor of Management

Mike Loya Distinguished Chair in Business Administration

College of Business Administration, Room 249

747-8646

rposthuma@utep.edu

rposthuma.utep.edu

Office Hours:

Monday & Wednesday: 1:30 – 4:30 p.m.

Tuesday: 9:00 am to 12 noon and 1:30 – 4:30 p.m.

Course Days, Times, and Location

Monday & Thursday: 5:30 p.m. to 9:30 p.m.; 110C

Downtown Graduate Business Center

Required Readings:

Lewicki, Barry, & Saunders. (2014). Negotiation: Readings, Exercises, and Cases. 7th Edition. McGraw Hill.

Fisher, R., Ury, W., & Patton, B. (1991). Getting to Yes: Negotiating Agreement Without Giving In. New York: Penguin.

Recommended Optional Additional Reading

Lax, D. A., & Sebenius, J. K. 1986. The Manager as Negotiator. New York: Free Press.

Rubin, J. Z., Pruitt, D. G., & Kim, S. H. (1994). Social Conflict: Escalation, Stalemate, and Settlement. 2nd Ed. New York: McGraw-Hill.

Schelling, T. (1980). The Strategy of Conflict. Cambridge: Harvard University Press.

Course Description

This course examines theories and concepts related to negotiation and the dynamics of bargaining and conflict resolution in business contexts. Students will develop the ability to analyze and implement different negotiation styles and tactics to successfully manage conflict relationships typically found in business settings. Both intellectual and experiential learning components will be used to study a broad range of negotiation situations in many contexts including marketing, finance, entrepreneurship, human resources, and industrial relations across a wide range of industries.

Overview

The course will concentrate on principles and skills in negotiation such as: preparing for negotiation, integrative versus distributive bargaining, BATNAs, resistance points or reservation prices, collaborative “win-win” negotiations, and principled negotiation. The course will also illustrate common irrational tendencies in negotiation including escalation of commitment, anchors, framing effects, etc.

The course will use examine case studies of real world negotiations and use role simulations in which the students will participate in bargaining exercises. The materials for the bargaining exercises will be found in the assigned readings, case packet, or distributed in class. This will provide the students with an opportunity to reinforce the fundamentals of negotiation and conflict management, learn additional concepts, and hone their own negotiation skills. These exercises will also facilitate transfer of learning from the classroom to real world settings

Master Negotiator Award

At the end of the semester one student will be selected to receive an award for their performance in this class. The winner will receive a certificate with their name which designates them as a MASTER NEGOTIATOR. This honor will be awarded based on student’s evaluations of their peers’ performance in the class and the professor’s evaluation of the student. In part, this award will be based on the negotiation reputation that the students have with their classmates. This reflects the idea that long-term reputations can be influenced by the tactics that negotiators use in the short run. These in turn, can influence how negotiators will be perceived in the future. Those negotiators who have developed a reputation for being trustworthy and effective should have advantages in future negotiations.

Course Policies

Academic Honesty: UTEP Policy: “Scholastic dishonesty includes but is not limited to cheating, plagiarism, collusion, the submission for credit of any work or materials that are attributable in whole or part to another person, taking an examination for another person, any act designed to give unfair advantage to a student or the attempt to commit such acts.” Regents’ Rules and Regulations, Part One, Chapter VI, Section 3, Subsection 3.2, Subdivision 3.22. Because scholastic dishonesty harms the individual, all students, and the integrity of the university, policies on scholastic dishonesty will be strictly enforced.

Disability: UTEP Policy: “If you feel you may have a disability that requires accommodations, contact the Disabled Student Services Office at 747-5148, go to the Union Bldg. East, Room 106, or e-mail dss@utep.edu.”

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Grading Summary

Grades are based on the number of points earned during the semester. The table below shows the number of points required for each grade level.

Make sure you've read the assigned materials before coming to class. Please come to class every day with your opinions and ideas about the topics we will be discussing.

During the semester, several in-class exercises, case studies and bargaining exercises will be assigned. These will reflect the types of challenges faced by real-world negotiators. There will be a mid-term test and a final cumulative comprehensive examination. Questions on the final will be based on information in assigned readings, class lectures, bargaining exercises, and presentations.

Total Points Grade

900 - 1,000 = A

800 - 899 = B

700 - 799 = C

600 - 699 = D

599 or less = F

Points are Earned as Follows:

Participation in class discussions = 200

PowerPoint Presentation = 50

Bargaining exercises = 250

Midterm = 200

Comprehensive Final Exam = 300

Total Possible Points: 1,000

Optional Book Review (Extra Credit)

Student’s desiring extra credit may write a book review of any of the book that deals with negotiation and conflict resolution. Students will receive up to 50 extra credit points depending on the quality of their review.

PowerPoint Presentation Assignment

Each student will make one PowerPoint presentation during the class.

The presentations will consist of 5 to 7 slides. The presentations will summarize the assigned readings from the book. You will sign up for the presentation in advance. The maximum time for each presentation is 15 minutes.

Each student will pick a reading to summarize. The presentations should match the assigned readings for that class. Only one student will present each reading.

The presentations will follow this format:

18-point font with light colored or white letters and dark background.

First slide:

Title: Number and title of the reading.

Presenter Name

Second Slide:

Explanation of the topic in the reading.

Third and following slides:

Main learning points from the reading.

No spelling, typographical, or grammatical errors.

Students will orally present in class and upload their slides to the Blackboard site for the class.

Course Schedule

|Day |Date |Topic |Reading Assignment |

|Thursday |8/2 |Nature of Negotiation |Section 1 |

|Monday |8/6 |Pre-negotiation Planning |Section 2 |

|Thursday |8/9 |Strategy and Tactics of Distributive and Integrative Negotiations |Sections 3 & 4 |

|Monday |8/13 |Communications and Cognitive Biases |Section 5 |

|Thursday |8/16 |Finding Negotiation Leverage and Ethics |Sections 6 & 7 |

|Monday |8/20 |Social Context; Coalitions Multiple Parties, & Teams |Sections 8 & 9 |

|Thursday |8/23 |Individual Differences |Section 10 |

|Monday |8/27 |Global Negotiations |Section 11 |

|Thursday |8/30 |Managing Difficult Negotiations: Individual and Third-Party Approaches |Sections 12 & 13 |

|Monday |9/3 |Labor Day No Class | |

|Thursday |9/6 |Applications of Negotiations |Section 14 |

|Monday |9/10 |Review and Make Up | |

|Thursday |9/13 |Final Exam | |

Negotiating Planning Form

|Describe the problem. Who are the parties and what will be | |

|negotiated? | |

|Describe the relationship between the parties. | |

|Describe the contextual or situational factors will affect | |

|the negotiation. | |

|Describe the issues that are important to you and the issues| |

|that are important to the other party. | |

|Describe your goals, i.e., what is you want and what is the | |

|least that you will accept? | |

|Describe or bottom line. What is the least amount on each | |

|issue that you will accept without walking away from the | |

|negotiations. | |

|What are your interests that underlie your goals? What are | |

|the other parties’ interests? | |

|What are your alternatives to reaching an agreement and how | |

|can you improve them? | |

|How will you get more information about the other party’s | |

|goals and interests? | |

|Summarize the arguments that you will use to convince the | |

|other party. | |

|Describe your intended strategies, tactics, and the tone | |

|that you will use for the negotiation. | |

|Describe how you will initiate the negotiation process | |

|(timing, initial offer, tone, etc.). | |

|Describe possible actions by the other party and how you | |

|will respond. | |

|What will you do to reach closure, i.e., how will you “close| |

|the deal?” | |

|How will you make sure that the other party will comply with| |

|or follow through with the agreement? | |

|What will you require in the form of guarantees, safeguards,| |

|contracts, etc.? | |

Learning Objectives

COURSE OBJECTIVES & MEASURES

There are six types of learning objectives for this course. The learning objectives for these topics fall into six hierarchical categories. They are, from the lowest to the highest: Knowledge, Comprehension, Application, Analysis, Synthesis, and Evaluation.

1. Knowledge. This category deals with the student’s remembering, either by recognition or recall, the material ideas or issues presented in the text, readings, and lectures.

2. Comprehension. This category of mastery deals with the ability to understand, translate into other words, interpret, and extrapolate ideas and concepts presented in the class.

3. Application. Application is the ability to apply an abstract concept in a new way or into a different situation.

4. Analysis. Analysis consists of breaking down material into constituent parts, detecting the relationships between the parts, and determining how those parts are organized.

5. Synthesis. Synthesis involves the ability to put together different elements, parts, or abstract concepts into a coherent whole pattern or structure.

6. Evaluation. Evaluation is the ability to apply standards or criteria to make judgments about the value of something.

For each of these, the specific learning objectives for this course are identified below. Also listed below are the methods of measuring the student’s achievement of these objectives.

1. Knowledge of Facts & Definitions

a. COURSE OBJECTIVES

The student should be able to describe what is meant by the following terms:

Mutual dependency

Interdependence

Mutual adjustment

Dilemma of honesty

Dilemma of trust

Levels of conflict

Functions and dysfunctions of conflict

Dual concerns model

Unrealistic expectations

Escalation of commitment

Over-competitiveness and the myth of the fixed-pie

Anchors & Adjustments

Frames

Framing risky negotiations

Endowment effect

Availability of information

Winner’s curse

Over-confidence

Law of small numbers

Self-serving biases

Failure to consider others’ cognitions

Reactive devaluation

Target point

Resistance point

Asking price / Initial offer

Bargaining range, settlement range, or zone of potential agreement

Negative bargaining range

BATNA

Settlement point

Bargaining mix

b. MEASURES

The students’ knowledge of these facts and definitions is measured using test questions and interactive exercises.

2. Comprehension & Understanding

a. COURSE OBJECTIVES

The student should be able to:

- Explain and describe the advantages and disadvantages of positions taken during negotiation

o opening offer: extreme or modest?

o opening stance: competitive or moderate?

o Initial concessions: define original bargaining range

- Explain the major types of concessions

o Reciprocal

o Packaged

o Patterns

o final offer

- Explain the reasons for and types of commitments

o reduces ambiguity about positions

o reduces other party’s options

o real commitments have finality, specificity, and consequences

o public pronouncement

o linked to an outside base

o increasing prominence

o reinforcing threats or promises

o preventing the other party from becoming committed

o ways to abandon a commitment

- List the steps involved in integrative negotiations

o Steps

▪ Identify and define the problem

▪ Define the problem in a way that is mutually acceptable to both sides

▪ Keep the problem statement simple and clear

▪ State the problem as a goal and identify obstacles to obtaining the goal

▪ Depersonalize the problem

▪ Separate the problem definition from the search for solutions

- Identify Types of interests

o Substantive

o Process

o Relationship

o Principle

- Generate alternative solutions

o Inventing options: redefining the problem or problem set

▪ Expand the pie

▪ Logroll

▪ Nonspecific compensation

▪ Cut costs for compliance

▪ Find a bridge

o Alternatives to the problem as given

▪ Brainstorming

▪ Nominal groups

▪ Surveys

- Evaluate and selection of alternatives

o Narrow the range of options

o Evaluate quality and acceptability

o Used agreed upon criteria

o Justify personal preferences

o Recognize intangibles

o Use subgroups to evaluate complex options

o Take time out to cool off

o Explore ways to logroll

▪ Differences in risk preference

▪ Differences in expectations

▪ Differences in time preferences

o Keep decisions tentative until all details are final

o Minimize formality and record keeping until final agreements are closed

- Explain factors that facilitate integrative negotiation

o Common objective or goal

o Faith in one’s own problem-solving ability

o Belief in validity of own and other’s perspective

o Motivation and commitment to work together

o Trust

o Clear and accurate communication

- Explain why it’s hard to achieve integrative negotiation

o Relationship history

o Belief in distributive bargaining

o Mixed-motive nature of negotiations

- Explain different types of cognitive biases

o irrational escalation of commitment

o myth of fixed pie

o anchoring and adjustment

o framing

o availability of information

o winner’s curse

o overconfidence

o law of small numbers

o self-serving biases

o ignoring other’s cognitions

o reactive devaluation

- identify dimensions of complexity in multiparty negotiations

o Number of parties

o Informational and computational complexity

o Social complexity

o Procedural complexity

o Strategic complexity

b. MEASURES

The students’ comprehension and understanding of these concepts is evaluated through in-class presentations, and questions on tests that use different wording to describe the same concepts.

3. Application

a. COURSE OBJECTIVES

The student should be able to:

- Apply an ethical perspective to negotiation situations

- Identify the methods for trading risk between parties and apply these to different situations

o Options

o Variable payment schedules

o Bonuses

- Identify behavior that constitute hardball tactics and list things that a negotiator can do to respond to them

o Types

▪ good guy/bad guy

▪ highball/lowball

▪ bogey

▪ nibble

▪ chicken

▪ intimidation

▪ aggressive behavior

▪ snow job

o dealing with them

▪ ignore them

▪ discuss them

▪ respond in kind

▪ co-opt the other party

- Explain the importance of competitive negotiation tactics in different contexts

- Adequately prepare for a negotiation using the following steps:

o Gather information about the resources and weaknesses of yourself and your opponent

o Determine your BATNA, reservation price, target point; and estimate those of your opponent

o Define your own underlying interests, those of your constituencies, and those of your opponent

o Develop supporting arguments

o Brainstorm a list of potential negotiating points

o Establish values on your interests and your opponents and look for potential trade-offs

o Determine your own and your opponent’s authority to negotiate and match levels

- List the major elements that contribute to closing a deal and explain how to apply these in different contexts

o provide alternatives

o assume the close

o split the difference

o exploding offers

o sweeteners

- Design a negotiation plan including resistance points, target points, tactics, BATNAs, etc.

- Discuss the ways companies attempt to negotiate in international and across cultural settings.

- Managing the other party’s impressions using the following:

o Screening activities

o Calculated incompetence

o Selective presentation

o Logical arguments

- Manipulate the costs of delay or termination

o Deadlines

o increase the costs of disagreement through disruptive action

o alliance with outsiders

o schedule manipulation

- Identify different types of communication techniques

o use of questions

o listening: passive, acknowledgement, active

o Role reversal

o Communication freezers

b. MEASURES

The students’ ability to apply these concepts is evaluated through in-class presentations and test questions that evaluate ability to transfer concepts from one setting to another and to determine how to apply them and when they are appropriate.

4. Analysis

a. COURSE OBJECTIVES

The student should be able to:

- Analyze an ethical tactics in negotiation

o Types of deceptive/unethical tactics

▪ Misrepresentation

▪ Bluffing

▪ Falsification

▪ Deception

▪ Selective disclosure or misrepresentation to constituencies

▪ Inappropriate information collection

o Dealing with deception

▪ Ask probing questions

▪ Recognize the tactic

• Ignore the tactic

• “call” the tactic

• respond in kind

• discuss what you see and offer to help the other party be more honest

- Describe how national culture can influence negotiation

o definition of negotiation

o selection of negotiators

o protocol

o communication

o time

o risk propensity

o groups vs. individuals

o nature of agreement

- Explain how negotiation in settings where the parties are expected to have a long-term relationship are different from other settings.

- Discuss how the characteristics of a negotiation setting affect the utility of different negotiation tactics

- Compare the trade-offs among the various approaches to bargaining and evaluate which is appropriate in each situation

- Ability to analyze a conflict situation and identifying the desired output, plans, and activities that are appropriate

b. MEASURES

The students’ ability to analyze these concepts is evaluated through written case analyses, in-class presentations, and questions on tests that evaluate students understanding of the parts of a process, how they work, and compare them across multiple contexts

5. Synthesis

a. COURSE OBJECTIVES

The student should be able to:

- Form an opinion about an ethical dilemma and using a chosen ethical perspective (relativist, absolutist, universalist) defend this opinion against possible alternative arguments

- Explain how changes in negotiator power will influence negotiation interactions

- Analyze the major factors to consider in matching the negotiation strategy to negotiator’s goals

- Explain the importance of process issues such as communication in negotiation

- Describe the effects of power tactics on the expected outcomes of agreement and the relationship between the parties.

- Explain culturally responsive negotiation strategies

o Low familiarity

▪ agents and advisors

▪ mediator

▪ induce the other party to use your approach

o Moderate familiarity

▪ Adapt to the other party

▪ Coordinate adjustment

o High familiarity

▪ Embrace other party’s approach

▪ Improvise and approach

▪ Effect symphony

- Distinguish between involuntary and voluntary conflict resolution, and discuss how each can be leveraged for a negotiation advantage

b. MEASURES

The students’ ability to synthesize these concepts is evaluated through in-class presentations and questions on tests that evaluate ability to solve problems across multiple contexts using the concepts and ideas learned in the class.

6. Evaluation

a. COURSE OBJECTIVES

The student should be able to:

- Ability to evaluate and choose an appropriate negotiation strategy based on organizational objectives

- Evaluate a party’s readiness to negotiate

- Evaluate the appropriateness of different remedies for difficult negotiations

o Tension release

o Active listening

o Separating the parties

o Synchronized de-escalation

o Mixed responses

o Improve accuracy of communications

▪ Role reversal

▪ Imaging

o Controlling issues

▪ Reduce the number of parties

▪ Control the number of issues

▪ State issues in concrete terms rather than as principles

▪ Restrict precedents

▪ Fractionate big issues

▪ Depersonalize issues

o Commonalities

▪ Superordinate goals

▪ Common enemies

▪ Agree on rules and procedures

- Explain the potential advantages of new technologies for negotiation

- Explain the importance of effectively understanding the nature and value of parties’ interests

- Explain and evaluate the reasons why negotiations fail

- Evaluate how U.S. negotiators compare to others

- Evaluate the factors that most strongly influence negotiations in international markets

- Choose the right negotiation technique for a variety of contexts based on your evaluation of the situation

- Evaluate the processes and techniques appropriate for different phases of multiparty negotiations

o Pre-negotiation stage

▪ Participants

▪ Coalitions

▪ Defining group member roles

▪ Understanding the costs and consequences of non-agreement

▪ Understanding the decision rule

▪ Learning the issues and constructing the agenda

o Managing the group process and outcome

▪ Appoint the appropriate chair

▪ Use and restructure the agenda

▪ Assure a diversity of information and perspectives

▪ Assure consideration of all available information

• The Delphi, brainstorming, and nominal group techniques

▪ Review and manage decision rules

▪ Strive for first agreement

▪ Role of Chair: Manage process – not outcome

- Agreement phase

b. MEASURES

The students’ evaluation skills are measured through written case analyses, in-class presentations and questions on tests that evaluate ability to make evaluative judgments using the concepts and ideas learned in the class.

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