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1. Conflict resolution
2. Added-value negotiating
Section Topics
Part 4, Section E
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Why are negotiation and conflict management skills so important to the role of the internal auditor?
Answers:• Help build relationships and trust.• Understand and handle adversarial
communication.• Effectively deliver reports and
recommendations.
Discussion Question
Part 4, Section E, Introduction
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Nature of Conflict
Conflict is a disagreement between parties about interests, ideas, opinions, beliefs, values, and behaviors.
Individuals
Groups (within/between)
Systemically within or among
organizations
Part 4, Section E, Topic 1
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• Value differences
• Unethical behavior
• Poor communication
• Change efforts
• Different goals and objectives
• Resource allocation
• Lack of information
• Environmental stressors
• Group incompatibility
• Cultural background differences
• Questionable motives
• Incorrect assumptions
• Leadership and management approaches
• Status differences
• Lack of trust
• Reward systems
• Short-sighted problem solving
Conflict Triggers
Part 4, Section E, Topic 1
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Individual Resolution Strategies
Competing—focusing on winning
Accommodating—giving in, even if not convinced
Avoiding—ignoring the conflict
Compromising—giving in to gain some resolution
Collaborating— working together for a win/win
Part 4, Section E, Topic 1
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Manager Styles: Resolution Strategies
Withdrawing—avoiding or ignoring conflict
Smoothing—finding common ground; may involve giving in
Forcing—dominating and forcing a win/lose situation
Compromising—reaching a compromise for both sides
Collaborating—looking for a win/win solution together
Part 4, Section E, Topic 1
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I. You and a partner have gathered all of the data for an auditing report, which is due in one week. You disagree on the report format due to personal report writing preferences.
II. You would like to continue work with a vendor but are in conflict over what you can pay and what they will deliver for that amount.
Discussion Question
Answers:I. If either format will communicate the important points, you
might accommodate or compromise to get the report done on time.
II. Since you want to keep the vendor, you might collaborate by looking for a win/win solution that will meet your needs and support the vendor quality you have come to expect.
Which resolution strategy might you use in each circumstance below? Choose from competing, accommodating, avoiding, compromising, or collaborating.
Part 4, Section E, Topic 1
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• Separate the people from the problem.• Focus on interests, not positions.• Generate a variety of possibilities.• Base results on objective standards and
mutual interests.
Principled Negotiation
Outcomes are not based on the positions of parties but on mutual interests and fair standards.
Part 4, Section E, Topic 1
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• Select appropriate time and place.
• Identify your goal.
• Set a discussion agenda.
• Focus on facts and real issues.
• See the other party’s point of view.
• Separate people from the problem.
• Discuss in a respectful manner.
• Use good communication skills.
• Remain calm.
• Find common ground.
• Consider winning and losing consequences.
• Use a facilitator or mediator if necessary.
• Develop alternatives.
• Come to agreement.
Resolution Considerations
Part 4, Section E, Topic 1
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Added-value Negotiating
Win/Win
Added-value negotiating is a cooperative approach, based on shared interests and objectives. Parties present exchanges of value and multiple deals, which requires a good deal of advance study and preparation. The ultimate goal is a win/win agreement.
Part 4, Section E, Topic 2
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Negotiating Steps
Clarify interests.
Identify value options.
Create several offers.
Select the best offer.
Perfect the deal.
Part 4, Section E, Topic 2
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What are some of the special considerations in global deal making?
Discussion Question
Answers: Cultural background differences, negotiation practice differences, time and distance differences, cross-border legal issues, possible need for cultural mediators and informants
Part 4, Section E, Topic 2
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Reinforcing Activity 4-5Part 4, Section E, Topics 1 and 2
Negotiating
Part 4, Section E, Topics 1 and 2
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Questions?
End of Section E
Part 4, Section E
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