When negotiating contracts, many conflict situations arise. Here is a summary of conflict situations, and approaches to resolving conflicts.
A conflict occurs when individuals have different perceptions, beliefs, and goals.
Types of conflicts include: (1) intrapersonal conflicts that are internal to the individual, (2) interpersonal conflicts between two or more individuals, and (3) intergroup conflicts between an organizational structure independent of the individuals occupying the roles.
Approaches to resolving conflict include: (1) collaborating and identifying common ground to find mutually beneficial solutions for all parties, (2) avoiding conflict altogether such as devising solutions to minimize interactions, (3) competing to win the conflict at another party’s expense, (4) accommodating to give completely to another side’s wishes, with no attention to one’s own interests, and (5) compromising to reach middle ground with another party where losses are offset by equally valued gains.
Which of the resolutions to use depends on the conflict situation, and the leverage one party has over the other. To win at another party’s expense may require conditions that can never be met resulting in a lack of trust. Compromise may involve changing an organization’s standard procedures. To accommodate completely to another may result in a breach of contract when terms are not possible to be met. In most contract negotiations, the goal is not to overexert leverage to the detriment of the other party. Rather, it is to conclude with an agreement that allows both sides to maintain a long term relationship.
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