ABSTRACT

Effective negotiating and conflict management are two necessary leadership skills that are required to sustain the equilibrium of an organization in rapidly changing and complex environments. The ability to negotiate effectively is a critical component in the leadership task of managing change and transforming organizations. For example it is used in:

strategically engaging and influencing stakeholders on aspects relating to the future of the organization, for example in high-level contract management or negotiations with financial institutions to obtain finances for the rapid expansion of the organization;

managing and minimizing the effect of change-induced conflict on individuals and within groups;

managing relationships between the organization and its customers or other external stakeholders; and

implementing decisions brought about by significant change and transformation.

The need for negotiation as part of conflict and change management is inevitable when:

people feel threatened or confused either by external forces or by internal adjustments;

there is a disagreement about a course of action;

there are differences in expectations such as in product quality or service delivery; or

there is opposition or competition between individuals or groups, or within an individual or a group such as for scarce resources.