Negotiation - Business Decision Making - ثاني ثانوي

Lesson 3 Chapter 7 Negotiation One distinctive type of conflict management is negotiation, whereby people engage in give-and-take discussions and consider various alternatives to reach a joint decision that is acceptable to both parties. Negotiation is used when a con- flict is formalized, such as between a business and its customers. www.ien.edu.sa 212 7 Chapter رة ا Ministry of Education 2024-1446 Business Decision Making S1 S2 S3.indb 212 DEFINITION Negotiation: A conflict management strategy whereby people engage in give-and-take discussions and consider various alternatives to reach a joint decision that is acceptable to both parties. 3-1 Types of Negotiation Conflicting parties may embark on negotiation from different perspectives and with different intentions, reflecting either an integrative approach or a distribu- tive approach. 1. Integrative Negotiation Integrative negotiation is based on a win-win assumption in that all par- ties want to come up with a creative solution that can benefit both sides. Rather than viewing the conflict as a win-lose situation, people look at the issues from multiple angles, consider trade-offs, and try to "expand the pie" rather than divide it. With integrative negotiation, conflicts are managed through cooperation and compromise, which fosters trust and positive long- term relationships. 2. Distributive Negotiation Distributive negotiation, on the other hand, assumes that the size of the "pie" is fixed, and each party attempts to get as much of it as possible. One side wants to win, which means the other side must lose. With this win-lose approach, distributive negotiation is competitive and adversarial. 30/06/2023 14:28

Which style of negotiation will these employees use? DEFINITIONS Integrative negotiation: A collaborative approach, whereby the parties want to come up with a creative solution that benefits both sides of the conflict. Distributive negotiation: A competitive and adversarial approach in which each party strives to get as much as it can, usually at the expense of the other party. QUICK TIP Remember that demands create yes-or-no obstacles to effective negotiation, whereas interests present problems that can be solved creatively. 3-2 Rules for Reaching a Win-Win Solution Achieving a win-win solution through integrative negotiation is based on four key strategies: 1. Separate the people from the problem For successful integrative negotiation, people stay focused on the problem and the source of conflict rather than attacking or attempting to discredit each other. 2. Focus on underlying interests, not current demands Demands are what each person wants from the negotiation whereas under- lying interests represent the "why" behind the demands. Consider two sis- ters arguing over the last orange in the fruit bowl. Each insists that she should get the orange and refuses to give up (demands). If one sister had asked the other why she wanted the orange, the sisters would have discovered that one wanted to eat it, and the other wanted the peel to use for a project (interests). By focusing on interests, the sisters would have been able to arrive at a solution that gave each what she wanted. Managing Teams to Support Decisions in Organizations. وزارة التعليم Ministry of Education 2024-1446 Business Decision Making S1 S2 S3.indb 213 213 30/06/2023 14:28

QUICK TIP Rather than taking the atti- tude of "that's your prob- lem", adopt the opposing party's problem as your own and try to come up with a solution to help get closer to an agreement. YOU TRY IT 3. Listen and ask questions A good strategy for most negotiations is to listen and ask questions. You can learn more about your opponent's position, constraints, and needs by being quiet or asking questions. Smart negotiators want to learn the other side's constraints so that they can help overcome them. 4. Insist that results be based on objective standards Each party in a negotiation has its own interests and naturally would like to maximize its outcomes. Successful negotiation requires focusing on objec- tive criteria and maintaining standards of fairness rather than using subjec- tive judgments about the best solution. Teamwork and Negotiation to Enact Saudi Vision 2030 Of all the factors that are essential in successfully enacting the objectives of Saudi Vision 2030, perhaps one of the most important is teamwork. Many novel and ambitious initiatives have been founded in response to Saudi Vision 2030, and a wide array of new teams have been created, tasked with meeting this challenge. These teams represent a range of different sizes and incorporate members from diverse groups and backgrounds, including Saudi citizens and consultants from across the globe. Clearly, with so many interested parties involved, each with their unique priorities to consider, strong teamwork and solid negotiating skills will prove critical to ensure the smooth running of operations. As you get older and graduate from school and college, you will become an increasingly important part of the Saudi Vision 2030 plans, too. Throughout your business career, you are likely to encounter the various chal- lenges outlined in this chapter. Learning the four rules for reaching a win-win solution will hold you in good stead for playing an effective role in negotiations, managing conflict, and building successful teams. Consider the following situation that requires negotiation in order to settle a dispute in the workplace. Due to an impending deadline to launch a new prod- uct, your employer wants you to work additional hours without compensation. Your contract renewal is due soon. What would you do to resolve the conflict? Describe how each of the four strat- egies to create a win-win solution could be applied to this scenario. 214 7 Chapter رة ا Ministry of Education 2024-1446 Business Decision Making S1 S2 S3.indb 214 30/06/2023 14:28

REVIEW QUESTIONS 1. In which negotiation strategy does each party strive to get as much as it can, usually at the expense of the other party? a. Integrative negotiation b. Combative negotiation c. Distributive negotiation d. Comparative negotiation. 2. Which of the following is not a key strategy for reaching a win- win situation? a. Focusing on underlying interests b. Separating people from the problem c. Listening and asking questions d. Overpowering people you don't agree with | وزارة التعليم Ministry of Education 2024-1446 Business Decision Making S1 S2 S3.indb 215 Managing Teams to Support Decisions in Organizations. 215 30/06/2023 14:28