How to Break Impasse in Negotiation

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How to Break Impasse in Negotiation

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Title: How to Break Impasse in Negotiation


1
How to Break Impasse in Negotiation
  • Chapter 7

2
How 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

3
CASE
  • 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.

4
CASE
  • 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.

5
How 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

6
7.1. Why does Impasse Arise?
  • 7.1.1 Causes of impasse
  • 7.1.2 How to handle impasse?

7
7.1.1 Causes of impasse
  • Position conflicts
  • Coercion (??)
  • Communication barriers
  • Negotiators quality lack
  • Little ZOPA

8
Position 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.

9
Coercion
  • 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.

10
Communication barriers
11
(No Transcript)
12
Types 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.

13
What 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

14
Negotiators quality lack
  • Experience
  • Attitude and habit
  • Knowledge
  • Strategy and skill

15
Little 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.

16
7.1.2 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
17
Another 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.

18
7.1.2 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
19
7.1.2 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.
20
7.1.2 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,)

21
7.2 Conquer the Fear of Impasse
  • Read the Case and try to analyze the situation
    according to what you have learnt
  • P191-192

22
7.3 Avoid provocation
  • Some of these deadlocks are purely temporary,
    others can be permanent.
  • Why does impasse occur?
  • constitution of provocation

23
7.4 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

24
7.5 Other means of dispute handling
  • 7.5.1 Mediation
  • 7.5.2 Arbitration
  • 7.5.3 Litigation

25
Tips 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.

26
Summary
  • 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.

27
Key words
  • 1. Impasse
  • 2. Adjournment
  • 3. Arbitrage
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