MGT-445 Wk-3 Discussion Questions
Who are stakeholders in a negotiation? Why it is important to analyze stakeholder interests? How do you take these interests and incorporate them into a negotiating strategy?
Stakeholders in a negotiation are those who have something to gain or lose in a negotiation. It is important to analyze stakeholder interest because they can be affected by a specific project. Conflicts can arise that can jeopardize a profitable negotiation. Managers can analyze a stakeholder’s interest to identify issues and assess the stakeholder’s knowledge, positions and interests to increase support. Taking stakeholder interests and incorporating them into a negotiating strategy is essential because you will please all parties involved and the negotiator will be cautious when negotiating. The negotiator has to consider all avenues before closing a deal because he or she must ensure everyone benefits out of the negotiation.
What are the five types of power? Consider a negotiation with which you are familiar. What parties were identified? Who had power or influence? Explain why. Based on your experience with a negotiation, how does having one or more of the five types of power affect the dynamics of the negotiation?
The five major types of power are expert power, reward power, coercive power, legitimate power, and referent power.
The recent negotiation I am familiar with is that of the purchase of my home. The parties identified are; seller, buyer, lender, and realtor.
The party with the power was the lender (bank) because they were the deciding authority on whether or not our credit was approved. However, each party played a role in the negotiation. Each party with the exception of the realtor held legitimate power at one point or another. The seller held legitimate power when deciding whether or not to approve the offer we placed. Though, once the counter-offer was placed we held legitimate power and were the deciding authority. Furthermore, the lender had coercive power because the bank had the ability of punishing the buyer for not doing what needed to be done such as providing proper documentation in a timely manner. In the end, the lender held legitimate power because the lender decided whether or not they lend us the funds to purchase the home. Having one or more of the five types of powers is beneficial to the negotiation process because it gives you an upper-hand on the individual that only has one or none.
What is the role of ethics in negotiation? How does organizational culture affect ethics in a negotiation? If you are to write a code of conduct, what ethical and cultural considerations would you include and why?
Ethics are moral principles or standards of what is right or wrong and are established for individuals to do the right thing. Ethics plays an important role in a negotiation because the reputation of a negotiator can determine if a negotiation goes forward. Those that are known for being fair and honest have a better chance in closing a deal than those that are unfair and dishonest. Therefore, acting ethically will give a negotiator successful business negotiation.
Organizational culture can affect ethics in a negotiation because those of different cultures can negotiate in a different manner. Some negotiators can have a negative attitude and want a win-lose situation rather than a win-win situation. Personality styles, communication, time sensitivity and emotionalism, all affect a negotiation.
If I had to write a code of conduct¸ I would address conflicts of interest, Responsibility to each other, consumers, shareholders, business partners, and responsibility to compliance with the law. Conflict of interest can be an issue if an employee or negotiator is not familiar with policies on gifts, outside activities, and personal relationships. We owe respect and loyalty to each other. Individuals have different work ethics based on origin and respecting diversity is imperative. Responsibility to the consumer relates to the quality and safety of a product. Responsibility to shareholders is important, especially when dealing with financial records and reports. When doing business with others it is important to follow proper purchasing guidelines and handle fair negotiations. Being in compliance with the law is probably one of the most important topics in the code of conduct because every state has specific laws and knowing which law applies to what will help in the event there are international and cross country negotiations.