BUS641 Study Guide

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Study Guide Structure

In this study guide, the sections in each unit (1a., 1b., etc.) are the learning outcomes of that unit. 

Beneath each learning outcome are:

• questions for you to answer independently;
• a brief summary of the learning outcome topic; and
• and resources related to the learning outcome. 

At the end of each unit, there is also a list of suggested vocabulary words.

How to Use this Study Guide

1. Review the entire course by reading the learning outcome summaries and suggested resources.
2. Test your understanding of the course information by answering questions related to each unit learning outcome and defining and memorizing the vocabulary words at the end of each unit.

By clicking on the gear button on the top right of the screen, you can print the study guide. Then you can make notes, highlight, and underline as you work.

Through reviewing and completing the study guide, you should gain a deeper understanding of each learning outcome in the course and be better prepared for the final exam!

Unit 1: Introduction to Conflict Management and Negotiation

1a. Differentiate between negotiation and conflict management

• What is an example of negotiation?
• What is an example of conflict management?
• What is the difference between conflict management and negotiation?
• How can conflict management be used in a negotiation?

Conflict management and negotiation sound very similar but are two separate issues that are closely related. Conflict management is the process of managing conflict or disagreement that may occur between two people or a group of people. Negotiation is the process of coming to an agreement on a specific issue, and sometimes, it may be a conflict that needs to be resolved.

Good conflict management skills can be used to settle a negotiation. As a manager, it will be important for you to understand and assist people through conflicts and negotiations. Understanding the difference between conflict management and negotiation is important because it will help you to settle issues quickly as they arise.

To review, see Defining Conflict Management and Negotiating Effectively.

1b. Compare the different types of negotiation

• What are the different types of negotiation?
• Can you name one example of a type of negotiation?
• How can a manager use the different levels of negotiation to resolve conflict?
• Why is it important to understand the different types of negotiation?

Every day, we use negotiation tactics without being completely aware of what we are doing. For example, you may negotiate with your children to get them to complete homework or complete their chores. Or you may negotiate with a coworker or supervisor to take a needed day off.

The two types of negotiation include integrative and distributive. Integrative tactics use interest-based negotiation and add value to seek a win/win resolution. Distributive tactics in negotiation claim value and attempt to take full advantage of what they can claim. This type of negotiation may not seek a win/win situation but may be okay with a forceful win/lose situation.

Understanding the types of negotiation will help you to better understand the different tactics that people may use during the process of resolution. This understanding may also help you to better use your negotiation skills if you can see how the opposite side is trying to resolve the situation.

To review, see Types of Negotiation.

1c. Evaluate why it is important to determine needs

• Why should you try to understand the opposition in a negotiation?
• How can you determine the needs of the opposition?
• Once you understand the needs of the opposition, what can you do with that information?

Determining the needs and wants of the opposition in any negotiation or conflict is important because it will allow you to see why they need a resolution and, sometimes, a possible solution that turns into a win/win situation. For example, if you determine that the opposition needs a minimum amount of money in the resolution, and you know you can authorize that amount, then you can ask for what you need in exchange for that dollar amount.

Determining needs may be as easy as doing your research before a settlement meeting or negotiation. You may be able to determine what the needs are by asking people directly or perhaps others associated with the negotiation process. At that time, they may ask for your needs and wants as well. If it seems that once the needs of both sides are understood, then perhaps it may be that the settlement for both sides is clear and a win/win resolution is in your future.

To review, see Stages of Negotiation.

1d. Examine the costs and benefits of managing conflict

• What are the costs and benefits of managing conflict?
• How can you determine the costs of managing conflict?
• How can you determine the benefits of managing conflict?
• Why is it important to determine the costs and benefits of managing conflict?

Many people associate conflict with a negative situation. However, conflict can be very useful as we work to resolve differences. Resolved conflicts can pave the way for a better working relationship or eliminate the need for future conflict resolution meetings. As a manager, understanding how your employees deal with conflict can also be useful when it comes to resolving issues between team members and improving working relationships in the future.

The cost of not resolving conflict can be great. It can result in high turnover with your staff, employee lawsuits if they feel issues were not properly resolved, or just a negative attitude in the workplace. Dealing with conflict before or as it arises can save you time and energy in the future.

To review, see Positive and Negative Sides of Conflict.

1e. Differentiate between the different types of conflict

• What are the different types of conflict?
• Why is it important to understand the different types of conflict?
• How can you use the different types of conflict for a resolution?
• Can you name one example of a type of conflict?

Conflict can arise in many forms, and we deal with these situations daily. We may have an issue with a family member first thing in the morning, a co-worker who is angry because he believes he has been given more work than others, or your whole team who is upset over where the Christmas party is going to take place this year. Understanding the different types of conflict is important because it helps to better develop your conflict resolution skills and assist others in managing the conflict.

Most types of conflict fall into one of these four categories: goal, cognitive, affective, and behavioral.

• Goal conflict may occur when a person or group has one specific goal in mind, and it conflicts with others or other groups.
• Cognitive conflict may occur when a person or group has inconsistent ideas that may be different than with others or other groups.
• Affective conflict may occur when emotions or feelings are involved that are different from others in the group or between groups.
• Behavioral conflict occurs when someone in the group acts differently than the rest and makes the situation a little awkward.

To review, see Types of Conflict.

Unit 1 Vocabulary

This vocabulary list includes terms you will need to know to successfully complete the final exam.

• affective conflict
• behavioral conflict
• cognitive conflict
• conflict management
• distributive tactics
• goal conflict
• integrative tactics
• negotiation

Unit 2: Communicating to Resolve Conflict

2a. Examine the communication skills needed to resolve a conflict

• What communication skills might be needed to resolve a conflict?
• Can you develop the skills necessary to resolve a conflict?
• How can you use the communication skills you have to resolve a conflict?
• Why are communication skills necessary in conflict management?

We all use communication skills to get through our day. At work, we may communicate with coworkers, managers, other departments, or outside companies. Many organizations look for people with good communication skills because they may resolve issues quickly and easily. Some of these communication skills might include being a good listener or the ability to understand both sides and empathize with each side by explaining needs and wants.

Asserting your needs and wants is another important skill during a negotiation and is important when attempting to resolve a conflict. By communicating those needs with others and understanding their needs as well, you may be halfway through the resolution process before it officially begins. Most people want to work with someone they like. Being likable is a communication skill that most people have not mastered (or may not care to master), but the more likable someone is, the more we want to work with that person, and the more easily we may be willing to resolve a conflict.

To review, see Communications Skills.

2b. Examine how to successfully conduct a difficult conversation

• What is a difficult conversation?
• Why do we need to have difficult conversations?
• How can we successfully have a difficult conversation?

A difficult conversation is just that: a conversation we need to have with someone but may avoid because we know it will be difficult. It can also be very uncomfortable to have a difficult conversation. But if we avoid having a necessary difficult conversation, problems will most likely ensue.

For example, if you have an employee who does something their coworkers do not like, then it is important to have a conversation with that employee. Even if the situation has nothing to do with work, it must be dealt with to keep the peace. If it is not dealt with, then there may be arguments or even some employees who will treat that employee badly because they are not like the other employees. This is essentially confronting the conflict before it progresses too far and attempting to resolve the issue in the short term.

To review, see Confronting Conflict.

2c. Evaluate why cultural differences will be a factor to consider in a negotiation

• What is an example of a cultural difference?
• Why should we consider cultural differences in a negotiation?

Understanding the cultural differences that might be a factor in a negotiation is important so that you can better manage the conflict. For example, if you have an employee who is from another country and may communicate with team members in a different way, then it will be useful for you to understand how to deal with this new team member and the interactions with the team.

If you treat that employee differently, then so will the rest of the team. So, it is important for you to display proper communication from the start, and ensuring you understand the cultural differences is important. Cultural differences may include mannerisms, language, and/or habits specific to that culture. It is important to encourage a diverse workforce because these differences may add strength to your team as different opinions and attitudes may arise.

To review, see Cultural Differences.

2d. Examine how emotions and bias affect the negotiation process

• How might emotions affect the negotiation process?
• What is bias?
• How might bias affect the negotiation process?
• Why is it important to understand emotions and bias as it relates to the negotiation process?

Emotions and bias play a large part in the negotiation process, and it is important to monitor these as they can affect a resolution. Emotions that might arise during the negation process include anxiety, self-doubt, pessimism, or a positive attitude. For example, if one person in a negotiation process is pessimistic about the outcome of the conflict, then that person may be able to easily sway others to feel the same. And if that pessimistic attitude continues, then the negotiation may never be resolved.

In the workplace, bias can occur when a supervisor prefers one employee over another and may treat that person differently than other employees, and as a result, you lose the trust of other employees. In a negotiation, a personal bias may occur when one side of the negotiation believes they know exactly how much money will be required to resolve the conflict, and they will not be swayed. The result is that neither side is able to resolve the conflict.

To review, see Maintaining Positive Emotions and Types of Bias.

Unit 2 Vocabulary

This vocabulary list includes terms you will need to know to successfully complete the final exam.

• communication skills
• cultural differences
• difficult conversations
• emotions
• personal bias

Unit 3: Creating Value and Positive Outcomes

3a. Examine the steps to develop a plan for a negotiation session

• Why should you have a plan for a negotiation?
• What are a few steps in planning for a negotiation?
• What is BATNA, and how can you use it in a negotiation?

Planning your negotiation is important if you want to examine the process and help determine the outcome. While it will not guarantee the outcome you want, it will help you to be better prepared.

The steps to develop a negotiation plan may vary depending on the situation, the people involved, and the outcome wanted by each side. The steps might include considering options, completing research about the negotiation or the other side, determining the wants and needs of each side, imagining what a win-win scenario would look like, and what your backup plan might be just in case it does not go as planned.

Best Alternative to a Negotiated Agreement (BATNA) is another way to review the entire negotiation process. BATNA is a strategy you can use to help you plan the negotiation process, and it may help you determine alternative ways to settle a negotiation.

To review, see Why is a Plan Needed?.

3b. Examine how to create value during the negotiation process

• Why would it be important to create value?
• What is an example of how you might create value during a negotiation?
• How might you use integrative bargaining to create value?

It is important to create value in a negotiation, and this may mean finding a creative win-win situation for all parties to agree to. Or if a win-win cannot be accomplished, then perhaps, at a minimum, create a solution that might allow both parties to move forward, even if slightly after the negotiation process. Creating value means that you can show the opposition why a certain path is good for both parties.

In a previous unit, we discussed using integrative bargaining, and this is another strategy to help you create value to get to a win-win resolution. Integrative bargaining looks for the best solution for both sides and by showing the opposition the value, they may be more likely to agree to a resolution. For example, in a real estate negotiation, one side might offer a slightly higher price in exchange for additional features they know the other side wants. By showing that added value and understanding wants and needs, you can work together to accomplish a solution that works well for all sides.

To review, see Build Trust and Find Common Ground.

3c. Examine the stakeholders in the negotiation process

• Why is it important to determine who the stakeholders are in a negotiation?
• Who are the stakeholders in your negotiation?
• How do stakeholders influence the outcome of a negotiation?
• What are the types of stakeholders in a negotiation?

Stakeholders are people with something to win or lose in any negotiation; they are the main decision-makers in a negotiation, and these are the people to ask about wants and needs. There are primary and secondary stakeholders involved in the negotiation process. One thing to keep in mind is that secondary stakeholders are most likely not key decision-makers in a negotiation, and it will be important to determine this as quickly as possible because you need to focus on the people who will make the final decision.

Primary stakeholders are the people that will be directly affected by the negotiation outcome. Sometimes, secondary stakeholders may oversee a negotiation, and sometimes, they may just have a stake in the outcome of the negotiation. Secondary stakeholders might include banks or governmental agencies.

To review, see Stakeholders Wants and Needs.

3d. Evaluate the possible outcomes of a conflict

• Why is it important to try to determine the outcome of a conflict?
• How can you determine the outcome of a conflict?
• Can planning help you to evaluate potential endings to a conflict?

Determining possible outcomes should be part of the planning process when you map out how you would like the negotiation process to go. Gathering as much research as possible is a good way to assist you in understanding the negotiation. You may gather research through conversations with both sides of a negotiation or try to determine how each party may have acted in previous negotiations, asking about needs and wants.

Once you have gathered some information about the negotiation, you may better determine possible outcomes. Thinking through the process and how it could end, or what you will do in response to certain moves, will be useful when reviewing potential outcomes. If one side has more leverage than the other in a negotiation, it is possible to also foresee a win-lose situation, and then you might also think about possible responses to see what needs might be met.

To review, see Gather Information, Clarify Needs, and Bargain.

Unit 3 Vocabulary

This vocabulary list includes terms you will need to know to successfully complete the final exam.

• Best Alternative to a Negotiated Agreement (BATNA)
• creating value
• possible outcomes
• primary stakeholders
• secondary stakeholders

Unit 4: Bargaining and Negotiations

4a. Evaluate the difference between negotiation and bargaining

• What is bargaining?
• How do negotiation and bargaining relate to each other?
• Are bargaining and negotiation the same thing?

The process of bargaining and negotiation are sometimes viewed as the same, but they are two separate things. As we discussed in a previous unit, when two or more parties try to agree on a specific issue or conflict, it is called negotiation. Bargaining is a strategy used in the negotiation process.

For example, in bargaining, one side states what they would like to occur, and the other side will make a counteroffer and ask for what they need. This process will continue until a resolution is found that both parties can agree to. We also see bargaining occur during certain sales situations, such as when buying a car or trying to talk someone down on a listed price. It is a technique that some people are very comfortable with, while others may shy away from it because it makes them uncomfortable.

To review, see How to Determine Needs and Wants.

4b. Compare the needs for each party to a conflict in a given scenario

• Why is it important to determine the needs of both sides in a negotiation?
• Can you just understand the needs of one side in a negotiation?
• Why should you compare needs in a negotiation?

It is important to determine the needs and wants of both sides so that information can be assessed for a better understanding of the negotiation itself. Understanding the needs and wants of both sides might lead to an easy solution to a conflict, especially if the needs of each side do not conflict with each other and neither is bothered by giving up what the other side needs.

This is why it is important to compare needs in any negotiation. Needs can be determined by asking questions about a perfect situation and what their minimum needs are. It is also important to remember to speak directly to the key stakeholders when determining needs. You can also research how past negotiations were conducted. This information can be very telling when it comes to comparing wants and needs.

To review, see How to Determine Needs and Wants.

4c. Examine creative solutions in negotiation for a given conflict

• How can you come up with creative solutions to resolve a conflict?
• Why is it important to examine creative solutions for a conflict?
• What is an example of a creative solution to resolve a conflict?

Creative thinking can be very useful in resolving conflict. After understanding the conflict from the perspective of both sides, you can then begin to think about creative solutions to the problem. Brainstorming ideas with a group of people, or even the people involved in the conflict, is one option that may allow for some out-of-the-box thinking.

Another option that might be helpful in creative thinking is reviewing what has been conducted in the past, either in similar situations or perhaps with the same people involved in the conflict. This may give you a better understanding of the conflict overall and possible options for resolution. In your workplace, a few options might be to speak to other managers about what they have done to resolve similar situations or even speak to human resources about possible options.

To review, see Creative Thinking.

4d. Examine collaboration and why it is important to the negotiation process

• What is collaboration?
• How can collaboration help in the negotiation process?
• Why is it important to understand the collaboration process?

Collaboration occurs when two people come up with a plan to resolve a negotiation or conflict. Collaboration is important to any negotiation process because it shows how motivated each side is in a conflict. The more willing each side is to discuss and work together to come up with a resolution, the more successful the negotiation will be, and a win-win situation is likely.

By better understanding the collaboration process, you may be able to move a negotiation forward and arrive at potential solutions to your problem or conflict. Then, by actively engaging the other side to collaborate with you, you are creating a situation in which a resolution will be found. The collaboration process is an important step to understand in the negotiation process.

To review, see Collaboration.

Unit 4 Vocabulary

This vocabulary list includes terms you will need to know to successfully complete the final exam.

• bargaining
• collaboration
• compare needs
• creative thinking

Unit 5: Summary of Conflict Management and Negotiation

5a. Examine mistakes made in the negotiation process

• How are mistakes made in the negotiation process?
• Why should you examine past mistakes in a negotiation?
• Can you avoid mistakes made in the negotiation process?

Reviewing past mistakes can be enlightening when it comes to understanding a particular negotiation. You may be able to avoid making the same mistakes in the future if you better understand what occurred in the past. These may be your mistakes, others, or perhaps how the opposition handled their last negotiation.

You may not be able to avoid making mistakes during the negotiation process, but you may be better informed if you understand what has occurred in the past. Mistakes may be made by asking for something unattainable, which leads to a lose-lose situation. Or by standing firm or being inflexible on something the side cannot give. By remaining open to possibilities, you may avoid mistakes that others have made in the past.

To review, see Reviewing Common Mistakes.

5b. Evaluate when to use a third party to help resolve the conflict

• When do you know you will not reach a solution in a conflict?
• What options do you have when you cannot resolve a conflict?
• What is the result of a third-party option to resolve a conflict?

There are a few ways to resolve a conflict that cannot be resolved between two parties, and they do not need to involve a lawsuit. Once you recognize that a conflict cannot be resolved, it is time to research potential options to reach a solution. At that point, you will need to discuss with the opposition the fact that you do not believe a solution will come soon. And you may need to discuss possible options about how to move forward.

These options may include walking away from the conflict and leaving it unresolved. For many, this is not an option, and this is when a third party may need to assist you in resolving the issue. Each party must agree to the third-party resolution decision about the case and what is decided.

To review, see When the Negotiation Fails.

5c. Examine the process of closing the conflict

• How do you close a conflict?
• What type of formal agreement might be used to close a conflict?
• What is a conflict resolution agreement?

Once a conflict is resolved, whether through an agreement or a third-party mediator, then you need to have a formal record of the resolution. This is a record of what each person agreed to in the resolution. After an arbitration, a conflict resolution agreement is needed to close the conflict. This contract includes what each party agrees to do after the close, and it can be formal or informal. But will include information about what occurs if each party does not do everything they agreed to.

The same will occur if an employee agrees to an arbitration agreement and resolves issues with the employer. It is important to have a record of what will occur so that both parties are protected and do what they said they would. The steps to closing the contract may require a meeting where the contract is created, agreed to, and signed.

To review, see After You've Resolved the Conflict.

5d. Examine training employees on the negotiation process

• Why is it important to train employees in the negotiation process?
• How can you train employees to be better negotiators?
• What are the benefits of training employees in the negotiation process?

As a manager, you will need to consider training employees to handle conflict. This will be important as you manage your team and help them to develop their skills, and it will make your work life easier if they have better communication skills. You can include them in the negotiation process as you work to resolve issues with your team, other departments, or outside companies. They may ask questions during the process, and you must work to ensure they are properly trained.

Once employees are trained, they can work independently to resolve issues on their own. In addition, you are taking care of your team as you work to ensure they are properly trained and are improving their communication skills. This process will also strengthen your team as they learn better conflict management skills.

To review, see Train Employees to Handle Conflict.

5e. Evaluate the mediation process to resolve issues

• What is mediation, and how does the process work?
• What are some benefits of using third-party resolutions?
• Why is it important to consider mediation?

Mediation or arbitration are alternative ways to resolve a conflict, and they involve a third party who presides over the mediation to arrive at a resolution. One of the benefits of using a third party is that it is less expensive than hiring lawyers and going to court. It is possible that the resolution results in a win-win situation, or it may result in a win-lose situation.

Each side agrees that the resolution is binding, and whatever the mediator decides is the resolution. One downside is that one party may have no room to negotiate after the mediator decides. Once a resolution is reached, a conflict management agreement can be used to record what each party agrees to.

To review, see Meditation and Case Management.

Unit 5 Vocabulary

This vocabulary list includes terms you will need to know to successfully complete the final exam.

• arbitration
• conflict resolution agreement
• mediation
• reviewing past mistakes
• third-party resolution