Wiley CIAexcel Exam Review 2014: Part 3, Internal Audit Knowledge Elements

5.4 Conflict Management

Topics such as negotiation skills, conflict types and their resolution methods, and added-value negotiating concepts are discussed in this section.

(a) Negotiating Skills

Negotiation is a decision-making process among different parties with different preferences. Two common types of negotiation include two party (buyer and seller) and third party (buyer, seller, and agent). Traditionally, negotiation takes a win–lose attitude, which is based on power, position, and competition. Here, one person’s success is achieved at the expense of the success of others. It takes something from the other party. However, win–win attitude is based on high principles and cooperativeness among parties. Here, one person’s success is not achieved at the expense of the success of others. Every party gets something.

(i) Process of Negotiation

A negotiation is more than an exchange of material objects and words.24 It is a way of acting and behaving that can foster understanding, belief, acceptance, respect, and trust between two or more parties. It is the manner of your approach, the tone of your voice, the attitude you convey, the methods you use, and the concern you exhibit for the other side’s feelings and needs. All these things comprise the process of negotiation. Hence, the way you go about trying to achieve your objective may, in and of itself, meet some of the other party’s needs.

A conflict situation is the prerequisite to negotiation. Conflict is an unavoidable part ...