Chapter 19: Third Party Manage Difficult Negotiation

Question 1

What are the use of third party negotiators**

Answer 1

Given negotiations are often tense and difficult and may have reached a potential impasse

Third party intervention may be the only way to get negotiations back on track

Involvement of third parties signals a failure in the negotiation process

Question 2

What are the general benefits of third party intervention (list 7)**

Answer 2

Creating breathing space or a cooling-off period
Reestablishing or enhancing communications
Refocusing on the substantive issues
Remedying or repairing strained relationships
Establishing or recommitting to time limits and deadlines
Salvaging sunk costs
Increasing satisfaction with the conflict resolution process and its outcomes

Question 3

When is third party involvement appropriate**

Answer 3

Third-party intervention is appropriate when negotiators believe they can no longer manage the situation on their own**

When negotiator requests intervention, process must be acceptable to other parties **

Question 4

How to determine which type of intervention is more appropriate?

Outcome vs procedure (think of 2x2 table)

Answer 4

Row: Level of Negotiator control in procedure

Column: Level of negotiator control in outcome

low-low: Autocracy

low-high: mediation

high-low : arbitration

high-high: negotiation

Question 5

What are the two types of formal intervention methods

Answer 5

1. Arbitration
2. Mediation

Question 6

What is mediation***

Answer 6

• Mediation seeks to have the parties themselves
  develop and endorse the agreement
• It has been called a form of “assisted negotiation”**
• It can help reduce or remove barriers to settlements, adding value to the negotiation process

Question 7

When to use mediation**

Answer 7

• The parties need to be open to receiving help—a
  phenomenon known as ripeness
• The parties participate voluntarily—they are not
  forced to enter into the process**
• The mediator must be acceptable to all the parties to the dispute**

Question 8

What are the downsides to arbitration

Answer 8

 Possible negative consequences for negotiators when they anticipate a third-party intervention (i.e. arbitrator’s decision may be against their interests)

Removal of outcome control from negotiators

 Possible lack of commitment to implementing the imposed outcome

Question 9

What are the downsides to mediation

Answer 9

 Lack of impetus or initiative to adhere to any particular settlement or to settle at all

 Possible perpetuation of the dispute, perhaps indefinitely

 Possible escalation of the dispute into more damaging, more costly forms

Question 10

Why are third party intervention important

Answer 10

-avoid costly legal fees
- provide fair independent assessment of issues and allow resolution and closure