BUS403: Negotiations and Conflict Management (2016.A.01)

Kerry Cash, wondering whether to open another Wenatcheese outlet, can refer to the Tannenbaum-Schmidt model in Table 11.2 "Tannenbaum-Schmidt Continuum" to identify a spectrum of ways to resolve the question:

Table 11.2 Tannenbaum-Schmidt Continuum

Autocratic			Democratic			Participative
Manager makes decision and announces it	Manager sells decision	Manager presents ideas and invites questions	Manager presents tentative decisions subject to change	Manager presents problem, gets suggestions, and makes decision	Manager defines limits asks group to make decision	Manager permits subordinates to function within limits defined by superior

Let's take a look at the components of this continuum, from left to right. First, we have two autocratic options:

• OPTION ONE: Pure announcement. "All right, folks, I've decided we're going to open a new shop in Dryden over Memorial Day weekend".
• OPTION TWO: "Selling". "I'd like us to open a new shop in Dryden. I have five reasons. Here they are…"

Next, three democratic options are available:

• OPTION THREE: Presentation with questions. "I've decided we'll open a new shop in Dryden. What would you like to know about the plan?"
• OPTION FOUR: Tentative decision. "I want to open a new shop in Dryden. Do you have any observations or questions about this possibility?"
• OPTION FIVE: Soliciting suggestions. "I think we're in a position to open a new shop. Dryden seems like the best location, but I'd also consider Cashmere or Leavenworth or Okanogan. I'll decide which way to go after you give me your thoughts".

Finally, two participative kinds of approaches present themselves:

• OPTION SIX: Limited group autonomy. "I want to open a new shop in either Dryden, Cashmere, or Leavenworth sometime between Easter and Independence Day. Talk it over and let me know what we should do".
• OPTION SEVEN: Full group autonomy. "I'm willing to establish a new shop if you'd like. Let me know by two weeks from now whether you want to do that, and if so, where and when".

Of course, many decisions embody more complications and include more details than Kerry Cash's. Some are related to people: Shall we bring more people into the group? If we do, how many should be full-fledged and how many should be temporary or provisional? Or do we need to reduce our number of members?

Other decisions depend on financial variables and constraints: Can we trust the economy enough to invest in new equipment? Do we have time to develop and promote any new ideas?

The Tannenbaum-Schmidt model doesn't tell us how to choose between its own options. Tannenbaum and Schmidt, however, did offer some advice on this score. These are some topics they suggested that leaders address as they decide where to position themselves on the continuum:

• THE ORGANIZATION. What kind is it? Is it a new, or is it relatively solid and secure?
• THE PEOPLE. How mature are they? How experienced? How motivated?
• THE PROBLEM OR DECISION. How intricate is it? What kind of expertise is required to solve it?
• TIME. What deadlines, if any, do we face? Is there enough time to involve as many people as we'd like?

Intel Corporation actually identifies in advance of its meetings the kind of decision-making that will be associated with each question or topic. The four categories it uses resemble some of the components of the Tannenbaum/Schmidt model, as follows:

• Authoritative (the leader takes full responsibility).
• Consultative (the leader makes a decision after weighing views from the group).
• Voting.
• Consensus.

Once you've reached a decision, take a few steps back. Ask yourself, "Is it truly consistent with our group's values, or was it perhaps simply a technocratic outcome: i.e., procedurally proper but devoid of empathy and human understan? Throughout history, many a group's decision reached "by the book" later caused dissension, disappointment, or even dissolution of the group itself.