Topic 1 - Introduction to Negotiation and Mediation.ppt

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1. PUB 321
Strategic Negotiation
&
Mediation
Topics 1
Introduction to Negotiation & Mediation

2. Learning Objectives
•DefinetheconceptofNegotiation
•DefinetheconceptofMediation
•UnderstandthepurposesofNegotiationandMediation

3. What is Negotiation?
“The art of reaching an agreement by resolving differences
through creativity” (Creative Negotiating, Stephen Kozicki, Adams
Press, 1998)
Takes place when two or more people, with differing views,
come together to attempt to reach agreement on an issue. It is
persuasive communication or bargaining.
–“Negotiation is about getting the best possible deal in the best
possible way.”
A strategicendeavor directed toward the specific ends of
reaching agreements and satisfying negotiators’ needs.
Theprocessweusetosatisfyourneedswhensomeoneelse
controlswhatweareseeking.
Theprocessofattemptingtosatisfyyourwants,bygivingup
somethingyounowhaveinexchangeforsomethingelseyou
want.
“Theartoflettingthemhaveyourway.”

4. Characteristics of Negotiations
Two or more parties are involved.
There exists a perceived conflict of interest between those parties.
Parties chose to negotiate because they believe they can influence each
other to get a better deal than what they would otherwise get if action
was unilateral.
For time being, parties prefer to work together for resolution rather than
fight or seek other non-negotiated remedies.
Parties expect to experience “give and take” during their negotiations as
each side compromises positions.
Parties expect that negotiations will allow them to manage both the
“tangibles” and the “intangibles” contained in their issues.

5. Characteristics of Negotiation…
Negotiation is voluntary process dependent upon communication
and motivation
The process often involves less than frank and open
communication
Need to reconcile deceptive tactics and fair agreements
Need to establish trust

6. Purposes of Negotiation
To reach a desired and durable result by including the interests
of both parties.
To reach agreement efficiently and fairly using talents of all
participants to solve problems.
To develop a shared sense of satisfaction from working together
successfully
To reconcile deceptive tactics and fair agreements
To establish trust

7. What is Mediation?
Mediation:
–A neutral third party assists the parties to reach a negotiated
settlement but has no power to decide the issues in dispute.
–A structured process in which an impartial party, the mediator, helps
parties in the workplace to resolve the dispute or difficulties that
have arisen between them.
–A voluntary process, with the mediator or parties involved having
the right to end the process at any time.
Mediator:
–Is responsible for facilitating and determining the procedure for the
mediation.
–Has no legal power, does not impose solutions and makes no
attempt to judge the situation.
–Helps those involved to communicate, negotiate and work towards
their own agreement
–Facilitates a safe and respectful discussion.

8. What is Mediation?
Is an informal process in which a third-party assists others to reach a
negotiated settlement.
Mediation is a processin which an impartial third party assists
disputants in finding a mutually acceptable solution to their
dispute.
Mediation is both voluntary and confidential.

9. Purposes of Mediation
To help organisations prevent and manage interpersonal difficulties
To enable better working relationships,
To build more successful teams and
To maximise organisational performance.

10. Advantages of Mediation
Faster than litigation.
Less expensive than litigation.
Informal compared to
litigation.
Parties select the neutral
position.
Non-binding until agreement
is reached.
Creative solutions are possible
Private and Confidential
Parties decide who
participates.
Parties retain control of
process and outcome.
Outcomes tailored to needs
and interests of parties
Broader range of issues can
be decided.
Improves parties’ capacity to
resolve future disputes
Greater satisfaction with
outcome, higher level of
compliance.

11. Disadvantages of Mediation
One party can refuse to mediate.
Cannot make legal precedent
Discovery is non-existent or
limited.
May still need adjudication.
Difficult if there is a power
imbalance.
No precedent created
Societal norms for behavior not
created, refined.
May advantage more powerful
party.
Since voluntary, may be difficult to
ensure participation.
Does not guarantee end to dispute.

12. Factors Favoring Mediation
Desire to avoid adverse precedent.
No need to establish precedent.
Need to avoid publicity or need for confidentiality or privacy.
Desire for speedy resolution; need to avoid delay.
Need to preserve continuing relationship.
Recognition that emotions or hostilities may bar a settlement.
Desire to minimize risk of imposed outcome.
Need to reduce high cost of litigation.
Existence of collateral issues that may enhance resolution in a
mediation forum.

13. Mediator Characteristics
Neutral
–Never side any party in the conflict, the best role is
to get parties to mutually decide how to settle their
dispute.
Intelligent
–Understands the nature of the issues.
–Socially and emotionally intelligent; can read the
parties and choose the appropriate approach.
Trustworthy
–Can be trusted with information that one party does
not want revealed to the other party.

14. Mediation Process
Mediation is a process that moves through stages.
Introduction:
–Mediator introduces self and sets the ground rules.
Problem-solving:
–Mediator uses various approaches to help parties reach the
agreement.
Agreement:
–Mediator helps finalize the agreement by getting
commitment from both parties.

15. What Tactics Do Mediators Use?
Pressure:
–Push them to make concessions.
Friendliness:
–To gain trust and confidence, use humor, let them blow
off steam, speak their language.
Avoid negative emotions:
–Control expressions of hostility.

16. Negotiation versus Mediation
Negotiation
Involves two or more parties
Happens when there is a
problem, a conflict of interest or
a common concern between
parties.
Appropriate when the parties
have a more-or-less even power
balance
Mediation
Involves two or more parties
Happens when there is a problem,
a conflict of interest or common
concern between parties
Appropriate when the parties have
an uneven power balance and it
occurs following the invitation of
the parties to a conflict
Involves an acceptable, impartial
third party whose role is to assist
the parties to reach their own
mutually acceptable agreement,
and who has no authoritative
decision-making power

17. Negotiation versus Mediation…
Negotiation
Happens when the parties want
to reach a joint agreement
through verbal and interactive
process.
Requires parties to identify the
issues of a conflict, educate
each other about their needs
and interests, come up with
possible settlement options and
bargain over terms of a final
agreement. (ACCORD)
Mediation
Happens when parties are
willing to negotiate and reach a
joint agreement through verbal
and interactive process.
Requires a mediator to assist
parties to identify the issues of
conflict, educate each other
about their needs and interests,
come up with possible
settlement options and bargain
over terms of a final agreement.
(ACCORD)

18. Mediation in Practice
Typical Cases-Mediation
Civil cases, commercial contracts, torts, employment
disputes
Family, especially when children involved
Small claims
Neighborhood, interpersonal disputes
Environmental, public policy

19. Mediation Values
Process is consensual
Party self-determination
Mediator impartiality
Confidentiality