1
DAY 1
Negotiation is “a form of decision making in which two or more parties talk with one another in
an effort to resolve their opposing interests (Lewicki, Saunders and Barry, 2011).
Origins of Conflict
Conflict can arise from various sources, broadly categorized into two main types: Substantive
and Psycho-Social.
Substantive Conflict
1. Resources
○ Conflicts over resources occur when parties compete for limited assets or
supplies. In an employment context, this can manifest as disagreements over
wages, benefits, or working conditions.
○ Employers' Goals & Interests:
■ Maximize profits
■ Minimize costs
■ Maximize productivity
■ Specialization of job tasks and economies of scale
■ Flexibility in hiring and firing decisions
■ Flexibility in the deployment of labor
■ Flexibility in hours of work
■ Commitment to work and organization
○ Workers' Goals & Interests:
■ Maximize wages
■ Maximize conditions and non-wage benefits
■ Fair work effort
■ Interesting and varied work, meaningful work relationships, and job
satisfaction
■ Job security
■ Regular work
■ Regular hours
■ Competing work and non-work commitments
2. Control
○ Control-related conflicts arise when there is a struggle over authority, influence,
or decision-making power. These can be prevalent in hierarchical organizations
where different levels of management and employees may have competing
interests regarding the direction and control of operations.
Psycho-Social Conflict
, 2
1. Values
○ Conflicts based on values occur when there is a fundamental disagreement over
beliefs, ethics, or priorities. These conflicts are deeply rooted in personal or
cultural values and can be challenging to resolve because they pertain to core
principles.
2. Emotions
○ Emotional conflicts arise from feelings and psychological states, such as anger,
frustration, or distrust. These emotions can exacerbate other types of conflict or
become a primary source of disagreement in themselves.
3. Perceptions
○ Perception-based conflicts occur when different parties have divergent views or
interpretations of the same situation. These can be influenced by individual
experiences, biases, or misinformation.
○ Example: In a tenant-landlord relationship, tenants and landlords may have
different perceptions:
■ Tenants' Perceptions:
■ Rent is too high.
■ Cannot afford to pay more due to other rising costs.
■ The apartment needs maintenance.
■ Feelings of being overcharged compared to similar
accommodations.
■ Landlords' Perceptions:
■ Rent has not increased for a long time.
■ Need more rental income due to rising costs.
■ Tenants may cause wear and tear.
■ Necessity to raise rents to improve neighborhood quality.
OUTCOMES:
Objective Outcomes
● Performance vs. Potential: This involves assessing actual achievements compared to the
maximum possible outcomes. It focuses on how well you did relative to your full
potential and whether the goals set were met or exceeded. For instance, in a sales target
scenario, it involves comparing the actual sales achieved with the highest potential sales
based on market analysis.
● Efficiency: This dimension evaluates the effectiveness of efforts in terms of time and
resource utilization. It involves minimizing wasted time and effort, and ensuring
resources are allocated and used optimally. For example, in project management, it
assesses whether the project was completed on time and within budget, with minimal
waste.
, 3
Emotional Outcomes
● Emotional State: Reflecting on your feelings after the completion of a task or
achievement is crucial. This includes experiencing a sense of fulfillment or regret. For
instance, after a successful presentation, one would evaluate whether there is a sense of
pride and satisfaction with the performance.
● Emotion Management: This aspect analyzes the impact of the outcome on emotional
well-being. It involves creating positive emotions and resolving or mitigating negative
emotions. For example, after resolving a conflict, one might feel relieved and note that
stress has been alleviated.
Relational Outcomes
● Relationship Quality: Considering the effect of actions on relationships with others is
vital. This includes preserving or enhancing the relationships involved and strengthening
or weakening connections with others. For instance, in a team project, evaluating whether
collaboration improved relationships and trust among team members is essential.
Prisoners Dilemma
● Invented in the 1950s: The Prisoners Dilemma is a fundamental concept in game theory
that was developed in the mid-20th century. It is used to demonstrate the conflict between
individual rationality and collective benefit.
Major Problem
● Rational Solution to Cheat: In any given round, the rational choice for an individual is to
cheat or defect because it offers a higher payoff compared to cooperating if the other
player also defects.
● Sub-optimal Outcome: When both players choose to cheat across multiple rounds, the
outcome is sub-optimal. Continuous cheating leads to both players being worse off than if
they had cooperated. This illustrates that while cheating might seem beneficial in the
short term, it leads to poorer results in the long run.
Relevance to Business and Personal Lives
● Common in Business: The Prisoners Dilemma is frequently observed in business
scenarios. Companies often face situations where mutual cooperation could lead to better
industry standards or market conditions, but the temptation to gain an immediate
competitive advantage leads to decisions that are detrimental in the long run.
● Personal Lives: Similar dynamics are present in personal interactions and relationships.
Cooperation and trust can lead to mutually beneficial outcomes, but the fear of being
taken advantage of can lead to decisions that harm both parties.
, 4
Cooperation vs. Cheating
● Reasons for Cooperation:
○ Long-term Benefits: Repeated interactions create a scenario where the benefits
of mutual cooperation outweigh the short-term gains from cheating. Over time,
trust and collaboration lead to better outcomes.
○ Reputation and Trust: Maintaining a good reputation encourages others to
cooperate with you. In business and personal relationships, being known as
trustworthy can result in more advantageous and stable interactions.
○ Punishment and Retaliation: In repeated games, the threat of retaliation for
cheating can deter individuals from making selfish choices. Knowing that
cheating will lead to negative consequences in future rounds promotes
cooperative behavior.
Dilemma Strategy: Tit-for-Tat
Overview
● Invitation for Strategies: Academics and researchers were invited to submit strategies for
iterated Prisoner's Dilemma games to find the most effective approach for achieving
optimal outcomes.
Winning Strategy
● Developed by Anatol Rapoport: The winning strategy, known as Tit-for-Tat, was
developed by social psychologist Anatol Rapoport. It gained recognition for its simplicity
and effectiveness.
Description of Tit-for-Tat
● Initial Move: On the first turn, always cooperate. This establishes a baseline of trust and
sets a cooperative tone for future interactions.
● Subsequent Moves: In subsequent turns, the player mirrors the opponent’s last move. If
the opponent cooperates, the player cooperates in the next turn. If the opponent cheats,
the player responds by cheating in the next turn.
Key Characteristics of Tit-for-Tat
● Reciprocity: The strategy relies on reciprocal behavior. Cooperation is met with
cooperation, and cheating is met with cheating. This encourages mutual cooperation and
deters cheating.
DAY 1
Negotiation is “a form of decision making in which two or more parties talk with one another in
an effort to resolve their opposing interests (Lewicki, Saunders and Barry, 2011).
Origins of Conflict
Conflict can arise from various sources, broadly categorized into two main types: Substantive
and Psycho-Social.
Substantive Conflict
1. Resources
○ Conflicts over resources occur when parties compete for limited assets or
supplies. In an employment context, this can manifest as disagreements over
wages, benefits, or working conditions.
○ Employers' Goals & Interests:
■ Maximize profits
■ Minimize costs
■ Maximize productivity
■ Specialization of job tasks and economies of scale
■ Flexibility in hiring and firing decisions
■ Flexibility in the deployment of labor
■ Flexibility in hours of work
■ Commitment to work and organization
○ Workers' Goals & Interests:
■ Maximize wages
■ Maximize conditions and non-wage benefits
■ Fair work effort
■ Interesting and varied work, meaningful work relationships, and job
satisfaction
■ Job security
■ Regular work
■ Regular hours
■ Competing work and non-work commitments
2. Control
○ Control-related conflicts arise when there is a struggle over authority, influence,
or decision-making power. These can be prevalent in hierarchical organizations
where different levels of management and employees may have competing
interests regarding the direction and control of operations.
Psycho-Social Conflict
, 2
1. Values
○ Conflicts based on values occur when there is a fundamental disagreement over
beliefs, ethics, or priorities. These conflicts are deeply rooted in personal or
cultural values and can be challenging to resolve because they pertain to core
principles.
2. Emotions
○ Emotional conflicts arise from feelings and psychological states, such as anger,
frustration, or distrust. These emotions can exacerbate other types of conflict or
become a primary source of disagreement in themselves.
3. Perceptions
○ Perception-based conflicts occur when different parties have divergent views or
interpretations of the same situation. These can be influenced by individual
experiences, biases, or misinformation.
○ Example: In a tenant-landlord relationship, tenants and landlords may have
different perceptions:
■ Tenants' Perceptions:
■ Rent is too high.
■ Cannot afford to pay more due to other rising costs.
■ The apartment needs maintenance.
■ Feelings of being overcharged compared to similar
accommodations.
■ Landlords' Perceptions:
■ Rent has not increased for a long time.
■ Need more rental income due to rising costs.
■ Tenants may cause wear and tear.
■ Necessity to raise rents to improve neighborhood quality.
OUTCOMES:
Objective Outcomes
● Performance vs. Potential: This involves assessing actual achievements compared to the
maximum possible outcomes. It focuses on how well you did relative to your full
potential and whether the goals set were met or exceeded. For instance, in a sales target
scenario, it involves comparing the actual sales achieved with the highest potential sales
based on market analysis.
● Efficiency: This dimension evaluates the effectiveness of efforts in terms of time and
resource utilization. It involves minimizing wasted time and effort, and ensuring
resources are allocated and used optimally. For example, in project management, it
assesses whether the project was completed on time and within budget, with minimal
waste.
, 3
Emotional Outcomes
● Emotional State: Reflecting on your feelings after the completion of a task or
achievement is crucial. This includes experiencing a sense of fulfillment or regret. For
instance, after a successful presentation, one would evaluate whether there is a sense of
pride and satisfaction with the performance.
● Emotion Management: This aspect analyzes the impact of the outcome on emotional
well-being. It involves creating positive emotions and resolving or mitigating negative
emotions. For example, after resolving a conflict, one might feel relieved and note that
stress has been alleviated.
Relational Outcomes
● Relationship Quality: Considering the effect of actions on relationships with others is
vital. This includes preserving or enhancing the relationships involved and strengthening
or weakening connections with others. For instance, in a team project, evaluating whether
collaboration improved relationships and trust among team members is essential.
Prisoners Dilemma
● Invented in the 1950s: The Prisoners Dilemma is a fundamental concept in game theory
that was developed in the mid-20th century. It is used to demonstrate the conflict between
individual rationality and collective benefit.
Major Problem
● Rational Solution to Cheat: In any given round, the rational choice for an individual is to
cheat or defect because it offers a higher payoff compared to cooperating if the other
player also defects.
● Sub-optimal Outcome: When both players choose to cheat across multiple rounds, the
outcome is sub-optimal. Continuous cheating leads to both players being worse off than if
they had cooperated. This illustrates that while cheating might seem beneficial in the
short term, it leads to poorer results in the long run.
Relevance to Business and Personal Lives
● Common in Business: The Prisoners Dilemma is frequently observed in business
scenarios. Companies often face situations where mutual cooperation could lead to better
industry standards or market conditions, but the temptation to gain an immediate
competitive advantage leads to decisions that are detrimental in the long run.
● Personal Lives: Similar dynamics are present in personal interactions and relationships.
Cooperation and trust can lead to mutually beneficial outcomes, but the fear of being
taken advantage of can lead to decisions that harm both parties.
, 4
Cooperation vs. Cheating
● Reasons for Cooperation:
○ Long-term Benefits: Repeated interactions create a scenario where the benefits
of mutual cooperation outweigh the short-term gains from cheating. Over time,
trust and collaboration lead to better outcomes.
○ Reputation and Trust: Maintaining a good reputation encourages others to
cooperate with you. In business and personal relationships, being known as
trustworthy can result in more advantageous and stable interactions.
○ Punishment and Retaliation: In repeated games, the threat of retaliation for
cheating can deter individuals from making selfish choices. Knowing that
cheating will lead to negative consequences in future rounds promotes
cooperative behavior.
Dilemma Strategy: Tit-for-Tat
Overview
● Invitation for Strategies: Academics and researchers were invited to submit strategies for
iterated Prisoner's Dilemma games to find the most effective approach for achieving
optimal outcomes.
Winning Strategy
● Developed by Anatol Rapoport: The winning strategy, known as Tit-for-Tat, was
developed by social psychologist Anatol Rapoport. It gained recognition for its simplicity
and effectiveness.
Description of Tit-for-Tat
● Initial Move: On the first turn, always cooperate. This establishes a baseline of trust and
sets a cooperative tone for future interactions.
● Subsequent Moves: In subsequent turns, the player mirrors the opponent’s last move. If
the opponent cooperates, the player cooperates in the next turn. If the opponent cheats,
the player responds by cheating in the next turn.
Key Characteristics of Tit-for-Tat
● Reciprocity: The strategy relies on reciprocal behavior. Cooperation is met with
cooperation, and cheating is met with cheating. This encourages mutual cooperation and
deters cheating.
