Final Exam Flashcards
What is the the window into human nature?
Language —> Direct communication, indirect communication
Direct language = mutual knowledge
Indirect language = individual knowledge
3 Communication types
1) Dominance - haggling
2) Communality - friendship and family not business
3) Reciprocal - Harvard method, you scratch my back I scratch yours, no winners/losers
ADR Techniques (Alternative Dispute Resolution Techniques)
Mediation and Arbitration
Mediation
1) Without prejudice, subject to contract and privileged
2) Confidential to each of the parties and to the mediators to extent agreed by the parties
3) Consensual process that depends on co-operation from teh parties and their continuing willingness to mediate
4) NOT BINDING but is intended to lead to binding agreement
Arbitration (characteristics)
1) Conducted by an individual arbitrator or arbitration panel
2) A BINDING TECHNIQUE - the arbitrator or team must reach a decision in accordance with the Arbitration Act 1996 for England and Wales
3) A more formal process although CDP arbitration is designed to be flexible and less confrontational than some traditional arbitration
-Cross boarder disputes, based on international law
Definition of arbitration
Arbitration is a private jurisdiction which replaces public jurisdiction on the basis of a voluntary legally effective decision
Arbitration process
1) Start by the claimant’s statement of the case
2) Naming the arbitrator(s)
3) Conclusion of arbitration contacts
4) Rules of the procedure are determined (either by elected arbitrators or by the parties)
5) Dispute is carried through according to rules of procedure
6) Termination of dispute by arbitrators award or by order of the court of arbitration
Mediation definition
Mediation is a method of intervention in conflicts and is carried out by a neutral person, the mediator. Mediators assist the parties to find a solution on their own. By facilitating negotiations without a competence to decide; they do not express any evaluations on his own. The mediator will only intervene in order to structure and support the proceedings. Mediation proceedings are open ended and differ from arbitration which is aimed at a decision.
Winner/Loser Approach
Not Harvard method, hard/soft strategies of negotiating
Soft Strategies for Negotiation
Agreement as objective, confidence in the opposite party, relationship is top priority, makes offers, unilateral concessions, inclined to give way to pressure, looks for joint solutions.
Hard strategies for negotiation
Victory as objective, distrust of opposite party, position is top priority, uses threats, unilateral benefits, inclined to assert pressure, focuses on own advantage.
3 Requirements for proper negotiation: harvard method
3 Requirements for proper negotiation
1) Objective to satisfying both parties
2) Efficiency of approach
3) Preserve or improve the relationship between parties
4 basic concepts of proper negotiating
1) Individuals and problems are dealt with separately
2) Interests (why?) and not positions (what?) are top priority
3) Possibilities are developed before decisions are taken
4) Results are based on objective criteria
How can you develop the second stage of negotiation?
Development of possibilities:
Brainstorming with opposite party, widen the basis of your options, look at things from an experts point of view, change your PoV, discover common interests, change basic parameters, look for advantages of both sides, try to combine different interests, make decisions easier for the opposite party, ask the opposite party what they think will help.
Power gained from negotiating methods
There is power in..
- establishing good relationships
- understanding each others interests
- developing creative possibilities
- applying comprehensible criteria
- developing the best alternative
- achieving fair agreements
- being aware of negotiating properly
When the opposite side clings to their positions
- Don’t fight back
- Don’t attack the other sides position
- Use questions in order to look behind the other sides position
- Don’t justify your interests or concepts
- Ask the opposite side for criticism and advice
- Turn attacks on you into relevant confrontation
- Again and again ask questions about the subject matter
- Also use the power of keeping silent
Big 5 personality traits
1) Openness to experience
2) Conscientiousness
3) Extroversion
4) Agreeableness
5) Neuroticism
What subject does negotiation belong to?
Organizational behaviour
3 types of mediators
1) Substance orientated
2) Relationship orientated
3) Process orientated
Concept of man
Every human is a mold shaped by thinking and we fill the mold with feelings then come to action.
1) Avoid identification with subject matter
2) Avoid concentrating on positions BUT
3) Operate at level of thinking
Hansen case
- Set of facts
• Company Polluted the environment against the law, because they had no filterw
• CEO tried to convince the board to avoid polluting but they didn’t accept.
• The CEO tried to avoid it but there was no money available, so he omitted the decision and the waters were polluted.
• The government sue the company and the CEO directly. - Legal consequences
Question: Is the CEO responsible?
• Even if you try to change something, you are liable (responsible) for your actions.
• It is not enough to try to avoid the problem, you have to be successful
Chech Hansen Case – Company that pollutes the water and the managers goes to prison
outcome: attempts do not count, but the result is the important.
Hansen had 2 possible choices:
- Stop the production od the company
- Resign his job
Meta Approach - What does the meta approach mean for negotiation?
“Common elements”, the same in every country. Meta Approach used for preparations before you begin negotiation.
Ask yourself:
Q: How do I get the other party to make the concessions necessary to reach my desired end point.
Q: How should we evaluate the outcome of negotiation? Q: Why did the event occur?
Q: How do we manage the conflict
Q: How do I get the other parties information without giving away my interests and making myself vulnerable to exploitation
Conflict Managment
Belongs to legal risk management. Stems from a disagreement or conflict between over a contract between two parties
Direct language and indirect language
Direct language = mutual knowledge
Indirect language = individual knowledge
