Negotiation Skill and Conflict Management.pptx

Negotation Skills

1. NEGOTIATION SKILLS & CONFLICT RESOLUTION FOR WIN WIN SITUATION Prof.(Dr.) Narinder Kumar Bhasin Head – PDC , IIBF , New Delhi Former Professor – Banking , Amity University Former Vice President Axis Bank Limited

2. Speaker`s Profile Prof (Dr.) Narinder Kumar Bhasin is presently working as Head , Professional Development Centre , Indian Institute of Banking and Finance (IIBF). Distinguished Senior Banking professional and Research Scholar with 29 years’ experience in the Banking industry and 8 years academic experience as Professor in banking and corporate trainer. His qualifications are PhD from Amity University, Doctorate in management Studies, Fellow Ship IIBF, qualified CAIIB , MBA , Certified Bank Trainer and Diploma in Training and Development from ISTD. He has expertise in establishing and restructuring banking systems and processes. objectives and goals . He has worked in foreign banks like ANZ Grindlays bank and Standard Chartered and Private sector banks like ING Vysya Bank , HDFC and Axis Bank Limited. His last assignment in banking industry was as Vice president Axis Bank limited and Professor in Amity University. As a corporate trainer , he has expertise in designing programme structure , session plans and content for corporate trainings and workshops relating to BFSI topics . He was a part of RBI as member of Reconciliation Group and Working Group for settlement of clearing disputes and writing procedural guidelines of Cheque Truncation System respectively. Domain expertise in banking operations, inward/outward clearing, business development, research and training. Eminent speaker, panelist and presenter at reputed national and international conferences, seminars and forums. Author of multiple publications related to the BFSI industry in IBA and IIBF Journal .Awarded with fellow membership of Indian Institute of Banking and Finance. He was first prize winner of IBA C H Bhaba Research and Scholarship award and IIBF Diamond Jubilee Overseas Research Fellowship . He was awarded AIMS International Award for Outstanding Management Teacher Award in 2022.

3. Participant`s Introduction Name Qualification Bank`s Name Designation What is your expectation from the training course and this session on Negotiation Skills & Conflict Resolution Please share any example of Conflict and Negotiation Skills from your workplace which you have handled recently.

4. Introduction Effective Communication as a tool for excellence in Customer Service   Getting customers is the first step in running a successful business. Keeping happy customers is the priority when building a company with longevity and scalability. Effective communication from customer service representatives is imperative to solving problems quickly . Listen Before Speaking Customers reach out to customer service for a reason, usually because there is a problem with their order or account. Before attempting to resolve a problem, customer service representatives should listen to what the client has to say. Allow the client to express their frustration and listening to what the issue is, is a key component in customer service communications. Listening not only gives the representative insights into what the customer needs, it also lets the customer know that she is valued. This is important in establishing trust between the customer service representative and the customer. Clear and Concise  Customer service representatives should speak slowly, clearly and have the proper telephone hardware to do their job. A headset with a high-quality microphone allows representatives to work on the computer while communicating with the client. It is very frustrating for customers when they are unable to hear or understand what the representative is saying.

5. Repeat, Resolve and Review Having listened to the customer, the representative should repeat the issue back to the customer for clarity and understanding. This not only ensures that the right solution is found, but also lets the customer know that the representative cares about helping them. As the representative finds the solution, he should clearly explain what is going on . Good Service Needs the Right Tools It is important to make sure your customer service team has access to the right resources, so they can provide quality customer service. This is one reason that customer retention management (CRM) software programs are vital in today's global market. Many people think of these as only a sales tool, but the reality is they are a history of the client from prospect through the sale, and provide valuable insights to customer service representatives . Having fast access to order information, delivery data and service issues, enables the representative to address the problem without the customer having to re-hash the entire history of the issue. Many CRM tools actually connect to phone systems and pull up client accounts based on their telephone number, making access that much faster.

6. Definitio n : Conflict may be defined as, “ A struggle or contest between people with opposing needs, ideas, beliefs, values, or goals ”. Conflict might escalate and lead to nonproductive results, or conflict can be beneficially resolved and lead to quality final products.

7. Workplace conflict

8. CAUSES OF CONFLICT PE R SONA - L I TY CLASHES MIS- UND E RS T ANDIN G FIGHT FOR R E S O U R C E S A UT H ORI T Y ISSUES VALUES & GOALS WORK METHODS

9. Managing Conflict Between Employees

10. EFFECTS OF CONFLICT IN ORGANIZATIONS Negative effects -Stress /Anxiety -Demotivation -Staff quitting -Non-productivity Positive effects -New ideas -Creativity -Change -Problem Solving

11. PONDY’S MODEL OF CONFLICT DEVELOPMENT

12. TYPES / LEVELS OF CONFLICT Interpersonal conflict: It is the conflict between individuals of the organization. Intra-group conflict: It is the conflict within an internal group, team or department . These are conflicts that typically involve more than one person within a group. Inter-group conflict: It is the conflict between different groups , teams and departments. Inter-organization conflict: It is the conflict that arises across different organizations. When different organizations are competing against one another.

13. HOW TO PREVENT CONFLICT: AT INDIVIDUAL LEVEL Adop t a n AVI D Approa c h to ot h er s : A: Assume the positive about others and their behavior. behavior. Assume that they are reasonable and are not trying to cause you grief or pain. Assume that if someone is difficult to deal with, that they have something problematic going on in their life. Assume it is about them and not about you.

14. Con t … V : If you cannot assume the positive as in step 1 above, then you must validate the situation. Talk to the individual and find out what is going on with them. Validate your negative assumptions about the other person by talking person by talking directly to them. I: If you are unable to assume the positive, and you are unable (or unwilling ) to validate the situation by talking to the individual, you must ignore and let it go.

15. Con t … D: If you cannot think positively, if you can’t or won’t validate, and if you can no longer ignore, you must DO something . Otherwise the stress of these unresolved situations will build up and inevitably be detrimental to your health and the health of those around you. Debrief the situation with a trusted friend and get their advice. Discuss the situation and your response with a therapist. Drink something healthy and calming, herbal tea may be a good choice. Do introduce relaxing activities and techniques into your life style. Do consider meditation as a way to become more self-aware and positively focused.

16. THOMAS MODEL OF CONFLICT- HANDLING MODES Thomas and Kilmann (1974) identifed five confict management styles:

17. BORISOFF AND VICTOR THEORY Assessment In the assessment step, the parties involved collect appropriate information regarding the problem. Acknowledgement The acknowledgement step is one in which each party attempts to hear out the other. Attitude In the attitude step, one analyzes potentially problematic variations in styles of writing, speaking, and nonverbal mannerisms. Such differences may blur meanings. It is the role of the effective conflict participant to maintain an open mind toward all parties involved. Action The action step begins to actively implement the chosen conflict-handling mode. Analysis In this last step participants decide on what they will do, and then summarize and review what they have agreed upon.

18. How to Handle a Difficult Employee

19. CONFLICT RESOLUTION STRATEGIES ‘Four Rs’ of conflict-resolution According to Engleberg and Wynn 4 Rs of conflict- resolution are important to resolve issues. Reasons When conflict arises, face it head on. Discuss the reasons and causes for conflict openly and respectfully. Focus on the conflict itself and not on the people and emotions involved in the conflict. Don’t make the discussion personal.

20. C on t … Reactions Have those involved in the conflict. Examine the reactions of those who are involved. Determine whether or not their reactions were destructive. If the reactions are destructive, work with them to develop more- positive reactions to conflict. Determine the pros and cons of a resolution.

21. Con t … Resolution Determine the core of the conflict. Strip away emotional reactions. Decide on the best way to resolve the conflict. Resolution must involves give and take of each party in order to be successful. Result

22. NEGOTIATION A process in which two or more parties exchange goods or services and attempt to agree on the exchange rate for them. Bargaining Strategies: Distributive Bargaining Negotiation that seeks to divide up a fixed amount of resources ; a win-lose situation. Integrative Bargaining Negotiation that seeks one or more settlements that can create a win-win solution.

23. THE NEGOTIATION PROCESS

24. THIRD-PARTY NEGOTIATIONS Mediator A neutral third party who facilitates a negotiated solution by using reasoning, persuasion, and suggestions for alternatives. Arbitrator A third party to a negotiation who has the authority to dictate an agreement. Conciliator A trusted third party who provides an informal communication link between the negotiator and the opponent. Consultant An impartial third party, skilled in conflict management , who attempts to facilitate creative problem solving through communication and analysis.

25. Conflict Resolution There are three periods in banking when conflict is most likely, three root causes of conflict, and one great reason to resolve it: if you don’t, the situation will just get worse. Whether the friction is between departments, teams or individuals, these insights can help bank and credit union leaders better understand the dynamics of the workplace conflict — which is the key to resolving it. Brace yourself, because there is a lot more conflict ahead in a banking industry undergoing seismic changes.

26. Change and Disruption Change and disruption tend to spark an increase in workplace conflict — and the banking industry is a hotbed of change and disruption. Healthy conflict can spark new insights and creative solutions. But unless the managers at your financial institution have the skill to deal constructively with opposing viewpoints — whether between departments, teams or individuals — negative outcomes are more likely. Decisions come slower, work relationships degrade, and performance slips.

27. You can ignore disagreement, but that can make the situation worse, says Joe Sullivan, chief executive of the consulting firm Market Insights, which specializes in data-driven strategies for banks and credit unions. “It’s human nature to have conflict and human nature to avoid it,” Sullivan says. “But if we sweep it under the rug, the issue doesn’t go away. It’s still there, and then resentment starts to build.” Resentful employees are rarely high performers (consider the “ quiet quitting ” phenomenon). Unresolved tension also tends to resurface in a different form.

28. Workplace conflict is becoming more common   Those who report dealing with conflict in their jobs often, very often, or all the time, increased to 35% in an August 2022  study  from The Myers-Briggs Company, compared with 29% in its previous study on the subject in 2009. That’s why Sullivan strongly recommends that managers at all levels get training in how to resolve employee conflict. “The world is entirely different post-Covid,” and workplace conflict has increased, he says. “So bankers are going to be well-served to take a new look at conflict and teach people the skills of conflict resolution.” One of those skills is being attuned to when conflict is likely to arise.

29. When Is Conflict at Work Most Likely to Happen? Sullivan says financial institutions are most liable to see conflict in three discrete periods: amid strategic planning, leadership changes and M&A. These transitionary periods task people with seeing, accepting, and working toward a future different from their present. Your people may envision different futures for the bank or credit union, or lobby for different paths to the same future. The nature and frequency of conflict will depend on your organization’s culture, Sullivan says. Some banks and credit unions are more collegial than others, some are more confrontational. That culture will inform the way conflict presents itself — ranging from frosty exchanges to verbal altercations or worse. Personalities have an effect on conflict as well, too. “You know, ego gets in everybody’s way,” Sullivan says. “Not always in a bad way. Ego is a vision for how we think things should be.”

30. Such visions are motivating, and a bank or union’s success depends on the motivation of its employees. Still, even well-intentioned people can get locked in battles that waste time and fry patience. And work relationships can degrade quickly.  Employees feel uncomfortable. Or hostile. Or quit. But it helps to remember that all conflicts are educational. Indeed, that view is essential to resolving the issue. “As a leader, you’ve got to look at this conflict as an opportunity to learn and understand another person’s point of view,” Sullivan says. “You can understand a worker better, or maybe even understand the culture of your bank better.” That mindset will soften your response. As a first step in resolving conflict, identify the cause — you can’t hope to solve the problem until you know what caused it, Sullivan says — and the best place to look starts with the letter “I.”

31. What Causes Workplace Conflict? Know the Three ‘I’s’ Times of flux create an environment that thrust differing visions of the future into competition. That competition, according to Sullivan, can usually be traced back to one of three things: information, incompatible interests, or ideals. “If you can boil it down to the three I’s of information, interests, and ideals,” he says, “chances are you’re going to identify where the conflict is within your organization.”

32. Conflicts of information . Sullivan says informational issues can arise when people have different kinds of information each pointing to different outcomes, or have the same source of information but disagree on what it means. Take, for instance, a decision about tech investment. A marketing team’s customer analysis will be different from that of a retail team, but both analyses will be solid sources of information — even if they suggest different levels of investment in a particular technology or initiative. Meanwhile, a single source of information, like Census results, can also spark differences of opinion. Banking execs may agree that some geographies are growing faster than others but disagree about whether they should build more branches in a high-growth area.

33. More Than a Minor Distraction: On average, survey respondents spent  4.34 hours  per week dealing with conflict at work. This is a significant cost for not only organizations in lost time, but individuals too, in terms of lower job satisfaction and emotional impact, the Myers-Briggs study said. Incompatible interests or needs . At the core, these conflicts are an issue of resources. “It’s always about either money, personnel, or time,” Sullivan says. Because resources are always limited, prioritizing one area will almost necessarily deprive another of resources — saying “yes” to one part of the financial institution means saying “no” to another. That “no” will disappoint a team or an individual, impacting their work and possibly livelihood. Sullivan says a common example is the reallocation of budget away from labor to fund digital transformation, which impacts HR, retail operations, and many other roles. In any case, being deprived of resources for the benefit of another leader or team — even when the resources will do more good elsewhere — is a recipe for conflict.

34. Ideals . Differing values, belief systems or intentions can cause clashes in ideals: what one person holds dear, another considers dispensable. Sullivan says this can be as damaging to a financial institution as conflicts over information or incompatible needs but can have a particularly corrosive effect on relationships because ideals are intrinsic to our sense of self and “the kind of world you want to live in,” as Sullivan put it. Consider the technology leader who proposes sacrificing headcount in favor of investing in a new capability. The chief operating officer may agree that it would have meaningful financial benefits, but if she cares about employees as people and prioritizes retention, she may bristle when a colleague proposes layoffs and oppose the idea. The type of financial institution — bank or credit union — has no bearing on whether conflicts over ideals are more likely or less likely, according to Sullivan. “We all show up in a certain way. We all have incompatible belief systems,” he says. “And that’s true in any organization.”

35. SUMMARY Definition of conflict Causes of conflict Effects of conflict Pondy’s model Types of conflict AVID approach Thomas and Kilmann conflict management styles Borisoff and Victor theory Conflict resolution strategies Negotiation

36. Test Your Understandings How does conflict affect customers? It can also affect customer satisfaction and loyalty, as customers may experience confusion, frustration, or dissatisfaction with the products or services they receive.   What are the effects of conflict in the workplace?   The negative effects of workplace conflict can include work disruptions, decreased productivity, project failure, absenteeism, turnover and termination.   Why is conflict management important to customer service? Conflict occurs when two or more parties can't agree on a course of action. Usually, it's because they have a difference in perspectives, values, or opinions. Failing to resolve conflicts with customers can have a negative impact on retention, loyalty, and brand awareness.   What causes conflict in customer service? In customer service, conflicts often arise from customer dissatisfaction. Customers may be frustrated because they're having a problem with a product or service. They may be angry because they've been in touch with customer service several times and still don't have a solution to their problem.  

37. How do you deal with customers when conflicts arise? Customer Service Conflict Resolution Guide Stay Calm. The most professional way to handle an upset customer is to refrain from getting upset yourself. ... Validate Your Customer. ... Don't Take it Personally. ... Avoid Arguing. ... Be Gentle. ... Be Assertive. ... Take Responsibility. ... Focus on a Solution   Is conflict in the workplace good or bad? Healthy conflict allows for more creativity, stronger ideas and more engaged employees. Debates, competition and industry disruption are all examples of healthy conflict that can lead to fresh perspectives and growth for a business.  

38. Case Studies and Learning There off

39. Case Study 1 https://www.youtube.com/watch?v=EDMY39JE1sY Mr. Rajan , Branch Manager of ABC Bank give good performance ratings to his two senior officer , namely Mr. Raman and Mr. Rajesh . They both have a role of customer services , operations and business promotions. Both the employees are good in their role and helped branch to achieve its CASA budget . Mr .Raman , after completing his work , generally use to leave the office at 5 pm where Mr. Rajesh after finishing his work use to go to branch manager and ask for any help he required to completed the day`s operations . Branch Manager . Mr .Rajan used to explain him the concept of forex business and retail lending business . One day regional manager of ABC Bank , while passing outside the branch at 6.30 pm thought to visit the branch and noticed the branch manager teaching Mr .Rajesh . Regional Manager felt very happy and appreciated the branch manager for creating back up . After few months , Mr Rajesh got promotion and Mr. Raman was given only good increment. Mr. Raman complaint to Branch Manager that we both are doing good work and got some good rating so why he was not considered for promotion . Branch Manager said I have given both of you good rating and recommended for promotion but head office has promoted Mr. Raman.

40. Case Study1 …continue Mr. Raman stop talking to Rajesh and was not working efficiently . He complained to HR Department also and to Union for favoritism, When management did not responded , Mr Rajesh start searching for new job and after six months , he resigned from the services of the bank and got good job with higher salary and position. Questions 1. In the above case study , what are the reason of conflict between two employees. 2. What is the reason that Mr. Rajesh did not get the promotion when both are good performer. 3. If you are a regional manager or circle head, what action you have taken to resolve the conflict. 4. Do you think the negotiations skills are missing in above case study and who is a failure and winner .

41. STAR Concept

42. Case Study 2 –Workplace Dispute It came to the attention of the CEO of a small company that there was a difficulty between two employees who had been working together for some time but recently appeared to have major differences that were affecting their entire department. The CEO was being approached by both employees at different times and also by their line manager and was spending increasing amounts of time speaking to them, taking notes of their comments, meeting with their line manager and generally finding it difficult to get on with her own job, so time consuming were the conversations. The line manager attempted to deal with the issue in informal conversations but ultimately one of the parties made a complaint of harassment against the other. The matter was dealt with internally and ended in a disciplinary warning which simply led to matters disintegrating. The rest of the employees inevitably fell into two camps and relations between staff reached an all time low when one party refused to pass important client information to the other and a complaint ensued from the client. Eventually one of the parties left the company and shortly after commenced Tribunal proceedings for constructive dismissal. 

43. Almost a year after the proceedings began, the CEO suggested to their lawyers that a mediation might help – the company had spent thousands of Ruppes in legal costs up to that point and the CEO was becoming extremely anxious about her annual budget as the year end approached. The two sides agreed to a mediation and in a day the matter was resolved. Although it was too late to resolve the issue between the parties, at least they were able to save further legal costs. Had the mediation taken place at the earliest possible stage – ie . before the dispute spiralled to the point of one party leaving – far larger sums might have been saved and the impact on those involved, as well as the company, might have been considerably less.

44. Summary How to Handle Conflict in the Workplace Talk with the other person. ... Focus on behavior and events, not on personalities. ... Listen carefully. ... Identify points of agreement and disagreement. ... Prioritize the areas of conflict. ... Develop a plan to work on each conflict. ... Follow through on your plan. ... Build on your success.

45. SUMMARY - CONCLUSION

46. THANK YOU Prof.(Dr.) Narinder Kumar Bhasin Head – PDC , IIBF , New Delhi Former Professor – Banking , Amity University Former Vice President Axis Bank Limited Mail id : [email protected] , [email protected] Mobile [phone]. 9910110182