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Session 5-8

Context

Team Design

Political, Economic and Legal Aspects

Customers, Competitors, Suppliers
Strategy
History
Financial/ Labor Market
Physical Setting

Context: Background factors out of which the group arises

and in which the Group operates

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Context

Team Design

Task Design
Group
Composition

Formal
Organization

GROUP
COMPOSITION
CONTEXT
Political,
Economic
and
Legal Aspects
Customers,
Competitors,
Suppliers
Strategy
History
Financial/ Labor
Market
Physical Setting

Demographics
Competence
Interests
Working Style
Values

FORMAL
ORGANIZATION
Structure
Systems
Staffing

TASK DESIGN
Required activities
Required interactions
Interdependence
Variety and Scope
Significance
Autonomy

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Context

Team Design

Group Culture

Group Culture

Emergent Activities
Emergent Interactions
Shared Values
Norms
Roles and Status
Subgroups
Rituals, Myths and shared Languages
Shared convictions

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Groups develop norms concerning the following:

Distribution of power and influence
Communication patterns within the team
(Who talks with whom? Who talks the most)
What topics are considered legitimate for
discussion
How conflicts are managed

Rituals, Stories and Language

The culture a group forms is outside the direct control of the

manager

It can only be influenced by the managers action, i.e. the way

the manager arranges the design factors

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GROUP
COMPOSITION
CONTEXT
Political,
Economic
and
Legal Aspects
Customers,
Competitors,
Suppliers
Strategy
History
Financial/ Labor
Market
Physical Setting

Demographics
Competence
Interests
Working Style
Values

FORMAL
ORGANIZATION
Structure
Systems
Staffing

GROUP
CULTURE

TASK
REQUIREMENTS
Required activities
Required interactions
Interdependence
Time Span
Significance
Autonomy

Appears to prefer to make

decisions alone
Push
Directive

EFFECTIVENESS
Performance
Well-being
Development

and

Shared capacity to
Adapt and Learn

Management by Committee
Pull
Participative

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Leadership Style

Context

Team Design

Team Culture

Outcomes
Performance
Well-being
Shared capacity to
Adapt and Learn

Abilene Paradox

Inability to manage agreement, not the

inability to manage conflict

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Organizational Members
Agree privately (as individuals) to the situation facing
the organization
Fail to accurately communicate their desires and/ or
beliefs to one another
Invalid and inaccurate information, leads to collective
decisions that lead them to take actions contrary to
what they want to do
Actions that are counterproductive, leads to
experience of frustration, anger, irritation,
dissatisfaction with their organization

the
and

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They form sub-groups with trusted acquaintances and

blame other subgroups for the organizations dilemma

Organizational members do not deal with the issue

and the cycle repeats itself with greater magnitude

Abilene Paradox

Inaccurate assumptions
about what others think
and believe

unwillingness to speak up
about what one thinks and
believes

Action Anxiety

Make Confronters into

Heroes

Negative Fantasies
(Loss of face, Prestige, Position,
Health)

Create Empowering
Structures

Real Risk
Develop a Culture of Pride
Fear of Separation
(Ostracism)

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Two heads are better than One!

The benefits of two heads require that they differ in
relevant skills and abilities
The group members must be able to communicate their ideas
freely and openly. This requires an absence of hostility and
intimidation
Relative to individuals, groups do better on complex rather
than simple tasks

Virtuous Cycle

Identification

Bad
Performance

External Source

Temporary

Unites group members

Motivation to rectify

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Vicious Cycle

Poor
Performance
Identification
Internal Source

Stable Causes

Blame Game

Less Motivation
to Fix

Vicious Cycle
Engendering
Respect

Fostering
Collaboration

Poor
Performance
Identification

Safe Environment

Internal Source

Stable Causes

Blame Game

Less Motivation
to Fix
Fact based
Dialogue

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Army Crew Team vs. Organizations

Team Leaders need to invest time up front
selecting the right mix of members.
Technical Skill Interpersonal Skill
Early Loss Early Win
Team Trust
Foci of Identification

Needs First

Wants Later

The key is to explore options without compromising needs

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High

Competing

Collaborating

O
W
N
Compromising

Low

N
E
E
D
Avoiding
Low

Accommodating
OTHERS NEEDS

High

Competition
When quick, decisive action is vital (in emergencies); on
important issues.
Where unpopular actions need implementing (in cost cutting,
enforcing unpopular rules, discipline).
On issues vital to the organizations welfare.
When you know youre right.
Against people who take advantage of noncompetitive
behavior.

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Collaboration
To find an integrative solution when both sets of concerns are
too important to be compromised.
When your objective is to learn.
To merge insights from people with different perspectives.
To gain commitment by incorporating concerns into a
consensus.
To work through feelings that have interfered with a
relationship.

Avoidance
When an issue is trivial, or more important issues are pressing.
When you perceive no chance of satisfying your concerns.
When potential disruption outweighs the benefits of resolution.
To let people cool down and regain perspective.
When gathering information supersedes immediate decision.

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Accommodation
When issues are more important to others than to yourself and
to satisfy others and maintain cooperation.
To build social credits for later issues.
To minimize loss when outmatched and losing.
When harmony and stability are especially important.
To allow employees to develop by learning from mistakes.

Compromise
When goals are important but not worth the effort of potential
disruption of more assertive approaches.
When opponents with equal power are committed to mutually
exclusive goals.
To achieve temporary settlements to complex issues.
To arrive at expedient solutions under time pressure.
As a backup
unsuccessful.

when

collaboration

or

competition

is

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At the negotiation table, which fork do you use?

Distributive Strategy
Competitive
Win-Lose
Zero-Sum
The Pie
Buyers = as low as possible
Sellers = as high as possible
Long term relationship not
important
Claiming as much value as
possible in the negotiation

Integrative Strategy
Cooperative
Win-Win
Expanding the possibilities
The Pie
Buyers and Sellers work together to
get more
Long term relationship is important
The value of the relationship
Creating Value in negotiation

Best Alternative To a Negotiated Agreement (BATNA)

Knowing what you will or wont do if an agreement isnt
reached
Helps you gauge when to walk away and when a deal makes
sense
Alternatives
Walking away
Prolonging a stalemate
Approaching another potential party
Making something in-house
Going to Court rather than settling it
Forming a different alliance
Going on strike

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Decide your BATNA before you enter into a negotiation

Important: Work to identify your counterparts BATNA

Diminish the other parties BATNA

The set of agreements that can satisfy both sides in a

negotiation
Sellers Settlement Range
ZOPA
Buyers Settlement Range

Seller walks away (Their Bottom-line)

Buyer walks away (Their Bottom-line)

Zone Of Possible Agreement

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The purpose of negotiation is not to convince the other side to let

us have what we want
It is to help make each of us better off than we would have been
otherwise.
It is to solve a problem jointly for mutual benefit
Most negotiators begin with three options in mind
1. The best deal I can get
2. The worst deal I will accept
3. The most likely agreement I believe we can reach

Bargain

Anchor points determine the negotiating range and influence the

settlement price

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Ask why the other side wants and what it wants

Create common ground with adversaries

Do not assume that your industry competitors are
always adversaries. The needs may be complementary
(Looking for a win-win result)

Source: Malhotra, D. & Bazerman, M. H. (2007). Investigative Negotiation. Harvard

Business Review, September

Interpret demands as opportunities

Consider the seemingly unreasonable demands as the

other partys needs and interests

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Investigate even if the deal seems lost

Persistence
The word No is not carved in Stone

Nibbles

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Common Negotiating Mistakes

Inadequate preparation
Not listening (tone, key issues, signals)
Letting Wants Drive out Needs
Being unduly aggressive
Impatience
Letting Price Bulldoze other interests
Failing to Correct for Skewed Vision
Role Bias
Partisan Perceptions (villain)

Some Specific Tactics

Deliberate deception with phony facts
Cross-check the facts independently
Ambiguous authority after getting firm agreement, indicate
that someone elses approval is needed
Before starting on the give and take find out who has the
authority
Insist on reciprocity, neither side committed to the draft
Good Guy/ Bad Guy routine
Two people on the same side stage a quarrel, one tough
and the other apparently accommodating
Recognize the Psychological manipulation
Ask for reasons

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Flinch
Shock or surprise at an offer. The intent is to send a message
that the offer is oppressive, in the hope that the offerer will
retract his/ her extreme offer
Reluctant
Feigning disinterest sometimes often makes the suitor work
hard to win you over.
Squeeze
You need to go back and sharpen your pencil

Silence
Most people are uncomfortable with silence they may say
something to break the tension (mistake)
Learn to be comfortable with silence. Let the other party do
the talking.
Negotiating with self

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Some Specific Tactics

Bundling: Negotiate multiple issues simultaneously rather than
negotiating issue-by-issue

Focus on interests
Negotiate for a package that includes only what you want

Stressful Situations
Sometimes the setting deliberately designed to make you
want to conclude quickly
If the physical surroundings appear prejudicial do not
hesitate to say so
Suggest changing places, taking a break , adjourning to a
different place and time

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Negotiation Steps
Prepare
Argue
Signal
Propose
Bargain
Close
Agree

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Thank You

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