Negotiation is a communication way to reach an agreement between two parties or may be
more. Most of the occasions in our life are based on negotiation which may lead to conflict (Fisher, Ury & Paton, 2012). Enterprises normally seek to achieve the maximum business value from their investments. Buyers & suppliers try to make the best benefit from any transaction, for that reason both of them sit together to present their different or conflicting positions; this process is known as negotiations (Wiley Customs, 2011). Mainly the main focus during the negotiations is price; the suppliers are looking for more profit and the buyers normally tries to get the best possible price. Kerzner (2001) stated that contractual negotiations are normally turned to be conflicts at the end.
Avoiding & dealing with unethical behaviors during negotiations: Before getting into negotiations; adequate planning, research and preparation are required to have successful results and to meet the expected objectives. It is essential to assess the present situations before starting and negotiations. Once you know about the current situation and have clear understanding of the circumstances, you need to prepare for the negotiation itself. However this will give you great confidence to proceed with the negotiation. Ethics is an important factor in negotiations. People may use unethical approaches to reach their goals; however, some of these approaches may have terrible results in the long run. Most of the people who use unethical approached are immoral, dishonest, profit driven and sometimes corrupted (Docstoc, 2011). In the daily business life, people are working to achieve their targets, yet, people must not be goal focused. Dr. Karras said using unethical approach to reach the goal will devastate the value of the goal (Karras, 2009). One of the main steps to avoid unethical behavior is to understand the ethical and adapt ethical tactics, and to recognize the unethical approaches and methods. Using a principled negotiation method is one of the good options to adapt during unethical negotiation it is firm on the merits and soft on the people. It allows the negotiator to be fair and at the same time protected from the people who may take advantage of this (Fisher, Ury & Paton, 20000). According the text book, when people realize that unethical methods are being used, they react in one of two ways. Some people may get upset but they accept this situation and decide not to deal with these people again. On the other hand, other decides to accommodate unethical people. If they come offensively high, they respond very softly. If the other team becomes deceptive they act the same. If the other team sticks to his position, they lock themselves more tightly. These types of negotiations normally end when one of the two parties yields. Fisher et al recommended three steps to be followed to in negotiating the rules when the other people are using some unethical methods. First you should recognize the tactics used by the other party. Then raise the issue clearly, this will make their tactics less effective. Finally discuss the rules of negotiation and identify the goal of this negotiation is.
Unethical situations: Price is considered the most common reason for negotiation point within the business environment. Many organizations spend long time negotiating the price of a contract. People are involved in negotiation to obtain the best value of money, for that reason they might use an unethical tactics to reach their target. Lewicki & Robinson stated that, the main reason of lying during negotiations is to gain more power against the opponent (Lewicki & Robinson, 1998). Being working in the construction field I found that most of the unethical tactics is used during the contract negotiations, variation orders & extension of time meeting and dispute resolutions. Lewicki & Robinson identified the most used unethical tactics (Lewicki & Robinson, 1998): - Misrepresentation: it is the way that the negotiator distracts the other opponent and gives wrong information to prove his point of view or to get a concession. As a part of the owners team we normally face the normal conflict between the contractor and the consultant or the designer. And normally each one will defend his position and may deliver wrong information. In such situation I normally try to keep myself impartial and to concentrate more at the problem and to separate the people from the problem. If the issue becomes a bit complicated I normally ask to schedule another meeting. And before the next meeting I listen to the both parties and study the case. Normally in the next meeting all the related parties will calm down, and I try to focus on the interest and the solution of the problem and to engage both parties in the solving the problem.
- Bluffing: some people give promises and they dont intend to do it later. It is not an easy job to recognize the unethical used tactics by the opponent especially bluffing. I believe that with the good preparation and good experience negotiator will be able to recognize the unethical tactics easily. During one of the project I worked in, the contractor excavated huge amounts of not quality soil to install the foul sewer network, and according to the specifications he had to import quality material to backfill. In addition to that it was mentioned in the contract that the contractor should export the excavated material. During one of the site tours I noticed that the contractor is spreading the material and trying to keep it onsite, I took some photos and I kept them with me. During the monthly progress meeting I raised the subject gently and I asked the contractor to comply with his contractual obligations. The first reaction was denying from the contractor side, calmly I presented the photos. The contractor started to become aggressive and attacking me personally. To be honest I was so upset but I kept myself calm as much as I can. However, he claimed that this was done by mistake and it will be taken out immediately. To make sure that this will happen I asked to minute this and to confirm this by an official letter.
- Falsification: it is another type of lying, and it is mainly giving wrong or incorrect information especially about financial situations or warranties...etc. I was part of a team to evaluate sub-contractor to do some works. After reviewing his technical & commercial tender we asked to meet him. And before the meeting the team leader asked me to some researched about the sub-contractor financial situation in the market, and surprisingly we found that it is totally contradicting with the submitted document. During the meeting our team leader asked for more clarifications and mentioned that we have some doubts about their financial situation. The S/C team started to be more defensive and more aggressive because we are so suspicious about them. The meeting room turned to a war room. Our team leader was so smart and asked for some more official document and to end the meeting and all the discussion immediately, and another meeting will be scheduled after confirming and satisfying our requirements.
Conclusion: Gathering information from suppliers, experienced people, available data etc is very important before getting involved in negotiation session. The more you know about the subject the better prepared you will be to achieve expected results. A mixed strategy between hard and soft tactics is recommended. The Principled Negotiation method is recommended by Fisher et al. it concentrate on the mutual benefit where possible, involved parties tactics should be based on fair standards (Fisher, Ury & Paton, 2012).
Fisher, R, Ury, W & Patton , B. (). Getting to yes-Negotiating agreement without giving in. Published by: Penguin group. Docstoc. (2011). Unethical tactics in negotiation. [Online] available from: http://www.docstoc.com/docs/14702735/Unethical-Tactics-in-Negotiation. accessed on: 08 Feb 2013. Karras, C. (2009). Is it ethical?. [Online] available from: http://www.karrass.com/blog/is-it- ethical/. Accessed on: 08 Feb 2013. Kerzner, H. (2001). Strategic planning for project management using a project management maturity model. New York: John Wiley & Sons, Inc. Lewicki, R & Robinson, R. (1998). Ethical and unethical bargaining tactics: an empirical study. Journal of business ethics 17:665-682. Wiley Customs. (2011). Planning and Administrating Project Contracts and Procurements. eBook Laureate. John Wiley & Sons.