Chapter # 14: Conflict and Negotiation

1. Assess the roles and functions of third-party negotiations

Exam Q: What is negotiation? Explain the roles and functions of third
party negotiations (Two Times).
Exam Q: Never Negotiate out of fear and never fear to negotiate. Explain
this philosophy and asses the roles of third party negotiations? (Two
Times)
Exam Q: Define Conflict and explain the roles and functions of third party
negotiations? (Three Times)
A. Define Conflict
Conflict is a process that begins when one party perceives that another
party has negatively affected, or is about to negatively affects, something
that the first party cares about.
Conflict primarily deals with perception. If nobody thinks there is conflict,
then no conflict exists.
Conflict can be experienced in an organization through many different
avenues. It can be that:
Incompatibility of goals.
Difference over interpretations of facts.
Disagreements based on the behavioral expectations.

B. Define Negotiation
Negotiation or bargaining is the process when two or more parties have to
allocate resources.
When two or more parties exchange goods or services and attempt to
agree on exchange rate for them.
There are two strategies of bargaining:
a) Distributive Bargaining
b) Integrative Bargaining

Chapter # 1 Exam Notes

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a) Distributive Bargaining
Distributive Bargaining works under zero sum condition.
Any gain that one party makes is the loss of the other party.
Distributive bargaining seeks to divide up a fixed amount of resources and
often creates a win/lose situation.
b) Integrative Bargaining
Integrative bargaining seeks one or more settlements that can create a winwin situation for all parties involved.
C. Roles and Functions of Negotiations
Occasionally individuals or group representatives reach a stalemate
(impasse or deadlock) and are unable to resolve their differences through
direct negotiations.
In such case, they may turn to a third party to help them find a solution.
There are four basic third-party roles :
I.
II.
III.
IV.

Mediator
Arbitrator
Conciliator
Consultant

I.

Mediator
A mediator is neutral third party who facilitates a negotiated solution by
using reasoning, persuasion, and suggestions for alternatives.
Mediators are widely used in labor-management negotiations and in civil
court disputes.
Mediation is most effective under moderate level of conflict.

II.

Arbitrator
An Arbitrator is a third party with the authority to dictate an agreement.
Arbitration can be voluntary or compulsory.
The big plus of arbitration over mediation is that it always results in a
settlement.

Chapter # 1 Exam Notes

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III.

Conciliator
A conciliator is trusted third party who provides an informal
communication link between negotiator and the opponent.
Conciliation is used extensively in international, labor, family, and
community disputes.
Comparing its effectiveness to mediation has proven difficult.
Conciliators engage in fact finding, interpreting messages, and persuading
disputants to develop agreements.

IV.

Consultant
A consultant is a skilled and impartial third party who attempts to facilitate
problem solving through communication and analysis, aided by knowledge
of conflict management.
In contrast to the previous roles, the consultants role is to improve
relations between the conflicting parties so that they can reach a
settlement themselves.
This approach has a longer-term focus: to build new and positive
perceptions and attitudes between the conflicting parties.

Chapter # 1 Exam Notes

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