However it is not simply the fact that people are interdependent that calls for negotiations, it is when there is a conflict in which way to go about the new problem. For example if the amount of production is to be determined for the year negotiations have to occur as there are many different departments that will want the level of production to be different due to their own personal interests. And the more diverse the people, the greater the chance of conflict.
Another important element of negotiation is opportunistic interaction which simply means that each is trying to seek an advantage by taking the actions and plans of the other into account when searching for a solution and also expects the other party to do the same. So in the process of negotiations people are driven by self interest which can often conflict with the interests of the other party and thus try to influence their decisions not by cooperating fully but rather by turning the situation to their own advantage.With these three elements are involved then negotiation can be used to come to a decision that is beneficial to both. However these new decisions too, can at some point have to be negotiated about again as new conflicts arise.
Conflicts occur between managers and their subordinates but also between those they cannot command such as their peers or the board of directors. Thus they have to negotiate with different groups of people because the cooperation of all the participants is important to the success of the organization.
The conflicts that may arise are caused by the fact that the world is not a static place. A changing environment requires for changes in the ways in which things are run or occur in an organization. However seeing as there are so many participants involved, problems can arise when trying to change previously decided agreements. Adapting to changes can be difficult but is essential to the survival in this changing world.
Negotiations, though may occur at every level in an organization, is central to the manager’s job. Managers have many responsibilities such as the success of a product. But this goal depends on the combination of many different departments such as marketing, production line, and sales, however this manager doesn’t have direct authority over all these different departments. This is where dependence comes in and thus the importance of building good, trusting relationships because in this case with little or no authority over those that affects your responsibilities, effective negotiation is essential for success.
Similarly, even though managers do have authority over their subordinates behaving like a dictator based solely on the fact that if they refuse they can be fired, can be ineffective in reaching your goal. Negotiation is still very important because the subordinate may be a valued asset of the organization and the loss of him could hinder the organization’s success. Also people tend to work better under friendly and understanding conditions.
When dealing with their superiors people are required to negotiate as well. This is due to the their dependence on their superiors for resources, information and support. For example managers are also often required to negotiate with financial backers, or their board of directors for some sort of authority the managers need to go along with something.
Negotiation is not just a simple discussion of interests. Managers must evaluate their interests and asses the trade offs and importance of each. This is because negotiation is a give and take kind of agreement. To get something your way, you have to give a little to the other party for them to agree.
Conflicts are bound to arise in an organization in order to deal with changes in and out of the workplace. It occurs when there is some conflict between to parties in the organization in reaching some common goal. It is essential to the organization to be able to resolve this conflict in order for success to continue. This can be done by negotiations between both parties and comprising for the better of the organization. Managers are often involved in these negotiations, whether it be with subordinates or superiors, they are required to take into account the interest of the other party and be willing to make some trade offs. Conflicts are not necessarily something negative as it can improve the processes that the organization we previously using.
