Title: How to Break Impasse in Negotiation
1How to Break Impasse in Negotiation
2How to Break Impasse in Negotiation
- Key Point
- 1?to learn to identify the causes of impasse in
negotiation - 2?to build a correct attitude towards the impasse
- 3?to know the strategies that may prevent a
negotiation from falling into impasse
3CASE
- This is a claim negotiation between Mr.Ren and a
manager of Germany company. Chinese party asks a
claim of 11million Marks, the German can only
accept 3 million. The gap is large and this is a
Marathone negotiation. To break the impasse, Mr.
Ren suggests a trip to DaMing Temple in beautiful
Yangzhou. - This is a temple to remember a great Buddhist
monk in Tang Dynasty, he has been to Japan six
times and blind for speading Buddha dharma for
six times, his name is Jianzhen. Japanese and
Chinese will never forget him. Mr. Ren
introduced. Maybe you are interested why
Janpanese have so much investment in China.
Thats because Japanese are familiar with
Chinese, and they know Chinese focus much on
relations and friendship.
4CASE
- Then he smiled to tne Germany manager, We have
cooperated for many years, we are not only
business partners, but also friends, arent we? - The Germany manager was moved. The car was drived
to the meeting hall directly, and the negotiation
goes on. - Lets talk frank. How much could you compensate
us? We Chinese pay much attention to friendship.
We dont want you lose your bowl for this claim.
On the othe hand, please think for us, China is
poor, we have to give compensation to 10,000
constructors because of the defect of the
machines!.. - Finally, the German compensated 8 million Marks.
The Germany manager said although he gave the
money, he felt comfortable.
5How to Break Impasse in Negotiation
- Structure of the chapter
- 7.1. Why does Impasse Arise?
- 7.2 Conquer the Fear of Impasse
- 7.3 Avoid provocation
- 7.4 Dont make things worse
- 7.5 Other means of dispute handling
67.1. Why does Impasse Arise?
- 7.1.1 Causes of impasse
- 7.1.2 How to handle impasse?
77.1.1 Causes of impasse
- Position conflicts
- Coercion (??)
- Communication barriers
- Negotiators quality lack
- Little ZOPA
8Position conflicts
- Two men were quarrelling in a library. One wants
the window open and the other wants it closed.
They bicker back and forth about how much to
leave it open a crack, halfway, three quarters
of the way. No solution satisfies them both. The
librarian enters. She asks why he wants the
window open To get some fresh air. She asks
the other why he wants it closed To avoid the
draft. After thinking a minute, she opens wide a
window in the next room, bringing in fresh air
without a draft. - In this case, the two men were insisting on their
own positions and no one was willing to give in.
In the conflict, the more one insists, the less
the other concesses. Actually the real interest
has been ignored and to maintain the self face,
no one is willing to give in, but tries to force
the other to concess by strong will. Finally, it
is not a negotiation, but will contest. - Thus, getting entangled in position conflicts is
an ineffective negotiation form. The two parties
ignore the real potential interest, and agreement
is reluctant to make. Even more, the emotion of
the two parties may be hurt, and negotiators may
face big loss. While in fact, position conflicts
is the most common impasse and one of the common
mistake that negotiators make.
9Coercion
- Coercion is destructive to negotiation for it
means unequal and unreasonable. It is adverse to
the principle of equlity in negotiation. - Do you have impasse example because of coercion?
(youth revolt) - In negotiation, impasse happens because the
stronger party uses coercion is common. While,
for the other party, sometimes, he has to
maintain the nations or the enterprises honor
besides economic benefits, so the more pressure
he feels, the more decisive he is. Then the
impasse forms and difficult to break.
10Communication barriers
11(No Transcript)
12Types of communication
- Verbal communication
- Mainly refers to the language we use in our daily
life, including spoken as well as written. - Nonverbal communication
- People communicate via other means, such as
spatial arrangement, temporal arrangement,
Kinestics, etc. This type is called nonverbal.
13What do the following mean?
- Silence
- Hand gestures
- Net words CUL, LOL, AFK, BBL, ASAP, F2F, IMO,
JAM GG, JJMM, 88, frog, dinosaur, cups,3q - ??????????,??
- In communication, the Japanese always say Hi,
Hi - Game transmission
14Negotiators quality lack
- Experience
- Attitude and habit
- Knowledge
- Strategy and skill
15Little ZOPA
- You have attracted by a red car valued 100,000
Yuan. You have 80,000 only, and you are willing
to pay 80,000 to buy a car at most. After
bargaining, the seller could give 5 discount at
most. No one makes mistakes here, this impasse
could not be overcome for little ZOPA.
167.1.2 How to handle impasse?
- Recently two of my sons were squabbling over some
apple pie, each insisting that he would have the
larger slice. Neither would agree to an even
split. So I suggested that one boy cut the pie
any way he liked, and the other boy could choose
the piece he wanted. This sounded fair to both of
them, and they accepted. Each felt that he had
gotten the square deal.
Setting up an objective solution to Make both of
the two parties feel fair
17Another example
- Have you watched the movie Tokyo Trial?
- In July, 1945, Chinese judge Mei, Ruao was
authorized to take part in Tokyo Trial. The
seating became a problem. The president of the
court is in the middle, and because of the big
effect that US in WWII, there is no question that
American judge will take the right seat next to
the court president. Who would take the third
seat that on the left of the court president
rised serious conflicts among judges from other
countries. - Judge Mei realized he is the representitive of
China, for the country, he has to strive for the
third seat. However, at that time, China is not
strong enough, if there is no reasonabe and fair
means, others could definitely refuse. And other
judges faced the same problem, no on wants to
concess. - Then, Judge Mei suggested We could arrange the
seating by the sequence of signing the Surrender
Document. Facing the objective suggestion, no
others could give a better solution. - Actually, the sequence is US, PRC, Soviet Union,
Canada, So Judge Mei was arranged the third.
187.1.2 How to handle impasse?
- There is an department trying to set up a
shopping center in suburb. The place it favored
was owned by Zhangqiao Government.The department
offers 1million to open a shopping center,
Zhangqiao Government asks for 2 million. After
negotiation, the formor offers 1.2m at most, the
latter asks 1.8 at least. The two parties face an
impasse. - The government wants to sell more money and build
a factory to solve the problem of unemployment
because the farmers have to leave their ground.
The department wants to save money on purchasing
the ground, but enlarge the center. - To penetrate the surface, there is common
interest. The government wants to solve
unemployment and keep the society stable, while
the department needs sellspersons for larger
scale. They find a win-win solution quickly. - Program 1 Deal done by 1.2m, while the shopping
center should provide a position for each family
when it opens. - Program 2 Zhangqiao government becomes a
shareholder by the ground. After the shopping
center setting up, a part of it should be
provided for farmers for business.
Concerning the real interest
197.1.2 How to handle impasse?
- The example of Peace Talk between Egypt and
Israel - At first, Israle announced to occupy SINAI
Penninsula, while Egypt refused decisively. - What is the BATNA?
- Benefits for Israle, Egypt and America keep
Sinai Penninsula as a non-military area.
Finding constitutions when one refers to a
constitution Program which satisfies his own
interest and considers the Other partys
interest, he holds the initiative of negotiation.
207.1.2 How to handle impasse?
- Others
- (1) Keeping it fluid
- (2) Seeking easy escape routes
- (3) Shifting the topic
- (4) Adjournment strategy
- In negotiation we try to be sympathetic,
sometimes the third party may help, and sometimes
we could be strong to maintain indipendence and
honor if necessary. - Case of Never teach a grandmother how to boil
egg. (youd better, you must, I advice, if u,
We,)
217.2 Conquer the Fear of Impasse
- Read the Case and try to analyze the situation
according to what you have learnt - P191-192
227.3 Avoid provocation
- Some of these deadlocks are purely temporary,
others can be permanent. - Why does impasse occur?
- constitution of provocation
237.4 Dont make things worse
- get the argument away from the why questions to
the how questions - what to do and what not to do
- Make things happen for you by asking open
questions
247.5 Other means of dispute handling
- 7.5.1 Mediation
- 7.5.2 Arbitration
- 7.5.3 Litigation
25Tips to break the deadlock
- Go back to information gathering and build
understanding to generate additional options.
There may be an underlying issue that is not
being addressed. - Try to discover the barriers to effective
negotiating. Make a direct appeal to the other
party. For instance, Can you tell me why we are
having so much trouble finding an acceptable
solution? - Agree not to agree for the time being. Create
time to reflect on the problem and resume
negotiations later. Ask if more information is
needed. - Inform the other party of the consequence of
failure to reach a negotiated solution. - See if the other party is willing to try out one
of the proposed solution for a period of time. - Call in an outside party to act as a conciliator,
a mediator or an arbitrator.
26Summary
- 1. In this chapter we mainly introduce the reason
why an impasse appear and how to manage it. In
fact, we should first of all to prevent it from
happening but if it comes, its not necessary to
be excessively worried or even give up the
negotiation. What we can do is to take useful
steps to impel negotiation to continue. - 2. The main strategies of re-starting a
negotiation include the following avoiding,
adjournment, litigate, arbitrage and so on. This
chapter discusses how they are used under
different situation.
27Key words
- 1. Impasse
- 2. Adjournment
- 3. Arbitrage