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e. State the purpose of the mediation
2. Help the parties to communicate
3. Help the parties to negotiate
4. Clarify the agreement
CASES
The National Football League Players Association
1. By securing the insurance policy for the players, Mr. Smith had dramatically improved
2. It is important to research other people’s positions, needs and interests. You can do this
by asking them questions and by mentally putting yourself in their shoes. It is important
relationship with you, and whether the negotiation will be one-time or ongoing.
3. To determine your starting position you need to consider your BATNA (best alternative
Case Concluded
1. BATNA means “best alternative to a negotiated agreement.” The insurance fund greatly
improved the players’ BATNA because prior to the creation of the insurance fund, they
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2. One of the first steps in “getting your way” is to understand clearly what you want and
why. You also need to know your BATNA: What will happen if you do not reach an
agreement? You do not want to agree to something that is worse than your BATNA, so it
3. If you are the one who has less power in the negotiation, you should attempt to improve
your BATNA in other ways that do not involve the negotiating party. Mr. Smith did this
avoidance).
How the Marriage Proposal Became a Negotiation
1. Answers will vary. Some students will view the negotiation as practical and beneficial.
Other students may view the negotiation as overly clinical and unromantic. One thing to
2. Answers will vary.
3. Answers will vary. Many students are likely to feel that a third party should not be
involved in a decision as highly personal as whether and when two people get engaged.
“MANAGE WHAT” SCENARIOS
11.1 Resolving a Team Dispute
Debrief is located at the end of the chapter.
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11.2 Negotiating an Agreement between Conflicting Parties
Debrief is located at the end of the chapter.
11.3 Starting from a Position of Strength
You should go into the negotiation well-prepared and armed with knowledge and a plan. Before
your boss leaves on vacation it would be wise to ask her if she has any stipulations or
recommendations (e.g., what would be the highest price your boss would be willing to accept?).
You will want to know your BATNA prior to the negotiation, and your boss probably has
important information that will help you determine what the BATNA is. For example, does your
boss have another vendor with whom you could negotiate if you don’t reach a desirable
agreement with this vendor?
11.4 Getting Beyond Failed Negotiations
Debrief is located at the end of the chapter.
MANAGEMENT LIVE
11.1 Robbers Cave Experiment and the Superordinate Goal
Class Discussion Questions:
1. Have you ever experienced conflict with another person or group that was later resolved
through use of a superordinate goal? Explain.
2. Why do you think superordinate goals are so effective?
3. What factors led to the intense competition between the two groups of boys in the first
place?
4. Do you think superordinate goals would be effective at resolving more serious and long-
term disputes (for example between warring nations?)? Why or why not?
11.2 Pareto Efficiency
Instructions:
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kind of car to buy with your significant other). Next, graph out each person’s preferences ranging
from high to low. Finally, compare the preferences and determine a solution that is Pareto
efficient. Make sure that the decision leaves both parties better off and that a change to the
decision does not leave only one or two people better off. If a different decision could make all
parties better off, you have not reached Pareto efficiency. Write a short report detailing the
experience and how everyone responded to the final decision.
11.3 Mediation in Action
Instructions:
Assemble groups of three students. Ask students to read about the mediation in Management
Live 11.3. Students will be role playing the scenario between the trucking company and the
customer. One student will represent the trucking company, one student will represent the
Following the role play, the instructor can use the following questions to debrief the class.
Debrief Questions:
1. Do you think it helped to have a mediator in this dispute? Why or why not?
2. In what kinds of situations do you think a mediator is most helpful?
3. What do you think the two conflicting parties should do if their conflict still is not
resolved after mediation?
4. How do you think this role play differed from a “real” mediation?
5. How do you think emotions come into play in solving a conflict?
TOOL KIT
11.1 Diagnosing the Conflict Source
Instructions:
Watch an episode of a “reality” court television show (e.g., People’s Court, Judge Judy) and
answer each of the questions in the Tool Kit to help you diagnose the conflict source. It is
possible that not all of the questions will be applicable (e.g., “Are the disputants significantly
influenced by their role in the organization?”). Write a short report detailing your findings.
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11.2 A Conflict Grid
Watch an episode of a “reality” court television show (e.g., People’s Court, Judge Judy) and use
the Conflict Grid in Tool Kit 11.2 to help you diagnose the type(s) of conflict present in the case.
Complete the grid and write a short report detailing your findings.
11.3 Mediation Guidelines
CLASS EXERCISES
Diagnosing Your Conflict Resolution Style
Background
In this exercise, students will compare their reported conflict resolution style to their actual
conflict resolution behavior. The exercise has several steps. If possible, have students complete
steps 1 and 2 before they learn about the Thomas-Kilman model of conflict resolution. Once
Instructions
In this exercise, you will be looking at the way you commonly behave when faced with conflict.
All of us have different conflict resolution styles, and there is no one “right” way to handle a
conflict. In fact, the nature of the conflict itself often dictates the best way to resolve it.
Step 1. In one or two paragraphs, describe a conflict with which you are currently involved.
It can be about anything – home, work, a relationship, a business transaction, etc.
And it can be with anyone – a family member, a boss, a salesperson, etc. In your
description, be sure to include:
1 Measurement of Organizational Conflict. By: Rahim, M. Afzalor. Journal of General Psychology, Oct83, Vol. 109
Issue 2, p189
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• The situation – Talk a little bit about the background of the conflict. What led up
to it? What are the circumstances that surround the conflict?
• The players – Who is involved in the conflict? What is the relationship between
the people involved in the conflict? If possible, describe how each person
involved might view the conflict.
• The conflict – What, exactly, is the nature of the conflict? What is your position
in the conflict? The other party’s position? What actions have been taken by each
person so far?
Step 2. Go to http://www.mhhe.com/baldwin1e and take the “What Is Your Preferred
preferences, noting your strongest and weakest conflict resolution styles.
Step 3. Review the information in the text on the Thomas-Kilman Conflict Mode Instrument,
and compare the styles associated with that instrument with the styles associated with
Rahim’s “What Is Your Preferred Conflict Style?” instrument. What similarities do
you see between the two models? Are there any differences?
Step 4. With a partner, discuss your conflict situation. What conflict resolution style did you
exhibit in that situation? How does your behavior match your preferred conflict
resolution style according to the test? If there are differences, how would you explain
those differences?
Step 5. Using Toolkit 9.1, work with your partner to diagnose the source of the conflict you
described in Step 1. How does your conclusion about the source of conflict differ
from what you originally saw as the source of the conflict?
Step 6. Using the information on negotiating skills and conflict resolution in this chapter,
identify what you need to do now to ensure that the conflict has a win-win outcome.
What should you say? What should you do? What do you expect from the other
party?
Pemberton’s Dilemma2
Introduction
This exercise creates a situation in which you and the other person(s) will be making separate
decisions about how to manage your firm. In this situation, the outcomes (profits and losses) are
determined not only by what you do, but also by a number of other factors such as the goals and
2 This exercise was written by Roy J. Lewicki, Bruce Barry, and David M. Saunders, in collaboration with
Gregory Leck. It appears in Negotiation: Readings, Exercises and Cases (5th Edition), and is copyrighted
2007 by the McGraw-Hill Companies, Inc. Used with permission.
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motive that you and the other party have and the communication that takes place between you
and them.
your profits will be directly affected by these decision.
Background Information
Pemberton is a quaint little town located in the heartland of our great country. Although it is
only a 30-minute drive to a major metropolitan center, most of the townsfolk prefer to do their
shopping at one of the two general stores located in Pemberton. At these stores, one can buy a
variety of good, ranging from groceries to hardware equipment. Both establishments boast a
soda fountain, which is quite popular among both the younger and older generations.
becoming more and more prevalent. In fact, every Sunday there is a mass exodus to the nearby
metropolitan cent, where Sunday shopping has been permitted for years.
You are a member of the management team from one of the two general stores in Pemberton.
Both the Country Market and the Corner Store have been consistently losing potential profit as
given week.
If only one store decides to open on Sunday, that particular store would enjoy the patronage of
all those Sunday shoppers and would manage to make a $40,000 profit for the week.
Unfortunately, the store that decided to remain closed on that Sunday would actually incur a loss
of $40,000 that week. This would be due to various reasons, most notably the preference of
customers to continue to do their shopping throughout the week at the store that remained open
on Sunday.
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If both stores decided to stay open on Sunday, adverse consequences would be faced by both
establishments. Although Town Hall may be able to turn a blind eye to one store violating the
municipal resolution, two stores would be looked upon as a conspiracy against the traditionalist
of Pemberton. Artemus Hampton, Pemberton’s mayor and a direct descendant of one of the
town’s founders, would no doubt pressure Town Hall into levying the highest possible fine
allowable by law. In this case, the penalty would be so excessive that both stores would incur
losses of $20,000 each for the week. While your lawyers have suggested that the municipal
resolutions prohibiting Sunday shopping in Pemberton might be overturned in a court case, this
too would be a costly option. In either case, if both stores open on Sunday, they will each incur
losses of $20,000 for the week.
Keeping this information in mind, your team is to decide each week, for the next 12 weeks,
whether your store is to remain open on the Sunday of that week. The decision made for the first
week must be made without prior consultation with the management team of the competing
store. Subsequent decisions may be made after consulting with your competitors. Both teams
shall reveal their decisions simultaneously. Remember, the goal is to maximize profits over the
next 12-week period.
The exercise begins when representatives from the stores (one from each) meet and indicate with
a card if their store will open or close on the first Sunday. Each team will record the outcome of
each Sunday on their profit chart. The time periods between each Sunday are fixed and may not
be altered. Each team will complete a total of 12 moves. Profits and losses are calculated after
each Sunday and are cumulative for the 12 weeks (see the accompanying sample profit chart).
Profit Chart
Country Market
Close Sunday
Open Sunday
Corner Store
Close
Sunday
Corner:
+$20,000
Corner:
-$40,000
Country:
+$20,000
Country:
+$40,000
Open
Sunday
Corner:
+$40,000
Corner:
-$20,000
Country
-$40,000
Country:
-$20,000
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Profit Scorecard
Profit
Corner Store’s
Choice
Country
Market’s
Choice
Corner Store
Country
Market
15-minute
planning
period
Round 1
Round 2
Round 3
Double Round
Round 4
5 minute
negotiation
Round 5
Round 6
Round 7
Triple Round
Round 8
5 minute
negotiation
Round 9
Round 10
Round 11
Quadruple
Round
Round 12
Discussion
Pemberton’s Dilemma is an example of a “zero-sum game” – an exercise in which maximizing
Chapter 11 – Resolving Conflict Through Negotiation and Mediation
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Discussion Questions
1. What strategy did you use in your first three rounds of this exercise?
2. How did doubling, tripling, and quadrupling the outcomes of the round affect your
strategy?
3. What effect did face-to-face negotiations have on your strategy?
4. Once you had negotiated, did both parties stick to the negotiated agreement?
5. If you did not stick with the negotiated agreement, what effect did that have on the round
in which you deviated from the agreement? Subsequent rounds? What effect did it have
on your relationship with the other team?
6. Using the values given in the case, determine the outcomes for both sides if the outcomes
for one side are maximized.
7. What decision pattern would maximize the outcomes of the negotiation for both sides?