BUS641: Strategic Negotiations and Conflict Management

After you understand the conflict well and what the other side needs, the next step is to see what information you can gather about the situation. If the conflict is between two employees in your department, perhaps you can speak to other employees about the situation. You might also speak to other departments or your supervisor to see if they have had a similar issue and how it was resolved.

Suppose the conflict is with a vendor or outside company. In that case, you may be able to find additional information from another department or online about the conflict or check to see if a similar situation has occurred in the past. Sometimes court records can be found, or you may find additional information on the vendor or outside companies' websites that might assist you in better understanding the situation. Whenever you find information, you may also have follow-up questions that must be answered to ensure a good understanding of the situation.

In the example of two employees who argue over job responsibilities, and each believes the other is responsible for a specific task, there are quite a few things you can do to research this issue. You could review the job descriptions and see if this task is included for the job of either employee. If you are new in your role, you can speak to a former manager in that department or your supervisor to see what has occurred in the past. You can speak to human resources and see what they advise. Ultimately, it may come down to you listening to all sides and deciding who should complete the task. Remember, it may not be the two employees who have complained about the situation.

Negotiation may occur inside or outside your organization. As a manager, you may need to successfully maneuver through each and understand your resources for each situation. For example, you have contacted a few outside vendors to receive estimates about installing a new breakroom market for your employees. In addition to drinks and snacks, this market will include a large coffee machine, fresh food options, and small personal items for employees to purchase, and it will need to be re-stocked several times a week.

Before the first visit, you research what other sites in your company have used and which outside vendors they are using. You find no contract on file for your entire organization, and each location uses one of three vendors in your area. You visit each location and look at the markets from all three vendors. Each vendor arrives on-site to gather information for their bid. By speaking to other locations within your organization, you also find out that your organization does not pay for the installation or the service of the market. Some sites get a 5%-10% of the profits from sales in the market. Of the three vendors you have contacted, you know that Vendor A is the one you like best because of its wide variety of fresh food options. You then schedule a meeting with Vendor A to discuss details.

First, after mentioning that you have contacted other companies for bids, the sales representative informs you that you have to go with their company because of a contract already in place. You mention that you have already checked on that; there is no such contract in place and that it is a location-based decision. The sales representative then states they were not aware and just assumed.

Second, the sales representative shows you the plans and states that your location will need to pay a 5% of sales fee for the installation and service of the market. You state that no other location in your area currently pays a fee, and two locations are paid 5-10% of the sales to allow the market into their location. You then ask what percentage you can expect from your company.

Third, after various back-and-forth negotiations, you decide that you do not want your employees to think that you are making money off of their on-the-premises food consumption. Instead of receiving a percentage of the sales, you ask that the cost of each item is 10% less so the employees receive the discount. The final decision is that they will receive an 8% discount on all food items and no additional fees will be asked of your company. You sign the agreement, and the company installs the market for your employees.

This example shows how important it is to complete your research before the negotiation meeting. By understanding resources and asking questions, you can make informed decisions and negotiate the best deal for your company during the negotiation process.

Concept check questions

1. What negotiation process have you been a part of recently, and how did it end?
2. What research did you conduct or wish you had conducted before the negotiation meeting?
3. What do you wish you had done differently during that process?

Source: Saylor Academy
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