MGT 445 Organizational Negotiations
Instructor Andrew W. Russo, MBA
May 5, 2009
Third-Party Conflict Resolution
Introduction
In the negotiation process, the use of third-party conflict resolutions often comes into play when parties cannot seem to reach an agreement regarding resolving mutual interests. These types of third-party conflict resolutions are: arbitration, collaboration, litigation and mediation. For the Seatcor Manufacturing Company, the use of third-party conflict resolution is necessary. The researchers of Team A have reported collaborative ideas of this case by (1) analyzing the possible intervention strategies, (2) applying what is thought to be the best strategy, (3) explained how the best strategy should resolve the conflict, and (4) developed a contingency plan in case the best strategy does not work, or is rejected.
Intervention strategies Possible intervention strategies include negotiation, mediation, arbitration, litigation, collaboration and hybrids. Two types of hybrid intervention strategies are mediation – arbitration and arbitration-mediation. • Negotiation - There are four elements to the negotiation process, which include managing interdependence, engaging in mutual adjustment, creating or claiming value, and managing conflict. Negotiations consist of two or more parties be that individuals, groups, or organizations. A conflict of needs and desires exist between parties and the parties chose to negotiate. Parties expect a “give and take” process that is fundamental to the definition of negotiation itself. The parties prefer to negotiate a resolution on their own and seek a mutually beneficial outcome. A successful negotiation includes consideration of the tangibles and intangible aspects of an agreement. Tangible aspects involve the price and terms of a contract, while the intangible consider the feelings of the participants. •
References: Lewicki, R., Saunders, D., and Barry, B., (2007). Negotiations: Readings, Exercises and Cases. 5th Ed. Retrieved May 2, 2009, from University of Phoenix rEsource, MGT445-Organizational Negotiations Purdy, K. (2001-2009). Ethics Resource Center. Mediation: Ethics-Based Conflict Resolution. Retrieved May 2, 2009, from http://www.ethics.org/resources/articles-organizational-ethics.asp?aid=913