Enforcement Technology: A Case Study in Negotiation Strategy
SEGMENT SUMMARY: ENFORCEMENT TECHNOLOGY—A CASE STUDY IN NEGOTIATION STRATEGY
Based in California, Enforcement Technology (ETEC) is the leading producer of hand-held computers used to issue parking citations. The company also engages in parking and citation management and collection of fines. ETEC works with clients who are often government agencies and municipalities, parking violators, and suppliers. ETEC does business with over 350 agencies in fifty states plus law enforcement agencies in Australia, Canada, New Zealand, Argentina, and Mexico.
What types of negotiation strategies work for ETEC? ETEC strives for positive, long-term relationships with its clients and suppliers, and tries to offer parking violators options for handling their citations, although ETEC does not have the power to dismiss a citation. Through open communication, listening to customers, and using common sense, ETEC negotiates successfully with its three constituencies.
One strategy that ETEC uses successfully is to take control of the situation by determining the needs and wants of the client and then providing clients with options as to time, people, and dollars. Yet, negotiations must also include ETEC’s needs and wants. When handling angry violators who received parking citations, ETEC customer service representatives offer a different level of service. They take control of the situation by listening, being respectful, and using a soft voice, but they turn the situation around to their advantage. They cannot dismiss parking citations, but they can give people information for contesting the citations.
In negotiating with suppliers, ETEC aims for a win-win relationship that is equitable and does not abuse the other party. ETEC favors an honest, straightforward approach that doesn’t waste either party’s time. While ETEC wants the best value, company managers realize that it is far better to “leave a little on the table” and build a good long-term relationship with a supplier. In this way, every order does not have to be negotiated.
What mode of communication works best for ETEC? Managers prefer to handle negotiations on a face-to-face basis. Sometimes letters and faxes are used, but ETEC managers feel that sitting down face-to-face is better because a long-term relationship can be developed.
While each of ETEC’s constituencies has a different set of needs, managers use common sense, treat others as they would like to be treated themselves, and yet remain firm and know what they wish to gain in the negotiations.
PREVIEWING ACTIVITIES:
I) Before Class Preparation for Students
A) Review Chapter
B) Define the following key terms: 1) power; 2) influence; 3) expert power 4) social power.
C) Review the concept of empowerment introduced in Chapter.
- Empowerment is sharing power. Jay Conger defines empowerment as “creating conditions for heightened motivation through the development of a strong sense of personal self-efficacy.
- Managers should express confidence in employees and set high performance expectations. Managers should create opportunities for employees to participate in decision making. Managers should remove bureaucratic constraints that stifle autonomy. Managers should set inspirational or meaningful goals.
II) In-Class Previewing
A) Review the concepts of power, authority, and the zone of indifference. Students will give examples of each.
- Power is the ability to influence another person.
- Authority is the right to influence another person.
- The zone of indifference is the range in which attempts to influence a person will be perceived as legitimate and will be acted on without a great deal of thought.
- Some requests fall outside the zone of indifference, so the zone of indifference will have to be enlarged. Enlarging the zone of indifference is accomplished with power (an ability) rather than with authority (a right). In some cases, no power base is enough to induce another person to comply, especially if the behaviors requested are considered unethical.
B) Describe French and Raven’s interpersonal forms of power.
- Reward power is based on an agent’s ability to control rewards that a target wants.
- Coercive power is based on an agent’s ability to cause an unpleasant experience for the target.
- Legitimate power is based on position and mutual agreement; agent and target agree that the agent has the right to influence the target.
- Referent power is an exclusive power that is based on interpersonal attraction.
- Expert power exists when an agent has information or knowledge that the target needs.
C) Using Table 10.2, Influence Tactics Used in Organizations, describe the process of influence.
- Influence is the process of affecting the thoughts, behavior, or feelings of another person. That other person could be the boss, a coworker, or a client.
- Research has shown that the four tactics used most frequently are consultation, rational persuasion, inspirational appeals, and ingratiation, regardless of the target of the influence attempt.
Some of the tactics are used for impression management, described in Chapter 3. In impression management, individuals use influence tactics to control others’ impressions of them.
VIEWING ACTIVITIES:
I) Who are ETEC’s three constituencies? What negotiation strategies are used with each constituency?
- ETEC works with clients who are often government agencies and municipalities, parking violators, and suppliers.
- ETEC strives for positive, long-term relationships with its clients and suppliers, and tries to offer parking violators options for handling their citations, although ETEC does not have the power to dismiss a citation. Through open communication, listening to customers, and using common sense, ETEC negotiates successfully with its three constituencies.
- One strategy that ETEC uses successfully is to take control of the situation by determining the needs and wants of the client and then providing clients options as to time, people, and dollars. Yet, negotiations must also include ETEC’s needs and wants. When handling angry violators who received parking citations, ETEC customer service representatives offer a different level of service. They take control of the situation by listening, being respectful, and using a soft voice, but they turn the situation around to their advantage. They cannot dismiss parking citations, but they can give people information for contesting the citations. In negotiating with suppliers, ETEC aims for a win-win relationship that is equitable and does not abuse the other party.
II) Does ETEC have power in its negotiations with its constituencies? Explain.
- Yes, ETEC has the ability to influence its constituencies. Clients want ETEC to help with parking and citation management. Violators want ETEC to do something about their tickets. Suppliers want to sell goods and services to ETEC.
- ETEC also has authority, the right to influence its constituencies. ETEC has the right to influence its clients by selling them the products and services they need for parking and citation management. ETEC is authorized by its clients to handle violators. ETEC has the authority to make purchase decisions regarding supplies.
III) Describe the forms of power that ETEC has in negotiating with its three constituencies.
- ETEC has reward power when dealing with suppliers because ETEC controls the rewards (the sale of supplies) that that the target (the suppliers) want.
- ETEC has coercive power when dealing with suppliers because it can punish them by changing suppliers.
- ETEC has legitimate power when dealing with violators because the company has been hired by municipalities to handle parking violations. Violators realize that ETEC is in the position and has the right to handle the situation.
- ETEC has referent power when dealing with municipalities and suppliers because the company is the world leader in parking and law enforcement technology.
- ETEC has expert power when dealing with all three constituencies because of the company’s advanced technology and knowledge about parking and citation management.
FOLLOW-UP ACTIVITIES – STUDENTS APPLY & EXTEND:
I) Does ETEC engage in ethical power-related behavior when negotiating with its constituencies? Explain.
- Point out that determining whether a power-related behavior is ethical is complex. Three questions show criteria for examining power-related behavior: 1) Does the behavior produce a good outcome for people both inside and outside the organization? 2) Does the behavior respect the rights of all parties? 3) Does the behavior treat all parties fairly and equitably?
- ETEC managers try to “be equitable and not abuse” others when negotiating. They try to use common sense and “treat others as they would like to be treated themselves.” They try to listen and be respectful of others even as they “take control of the situation and turn it around to their own advantage.”
II) Does ETEC use empowerment? Explain.
- As shown in the video segment, ETEC shares decision making among managers and employees. Empowerment at ETEC is a matter of degree. Customer service representatives are trained to handle angry violators using ETEC’s negotiation strategies, but the representatives take control of the situation themselves. They do not need to consult a supervisor. Empowerment is built into their job content, the tasks and procedures necessary for doing a particular job.
- ETEC tries to create a win-win situation with its clients and suppliers. These constituencies take an active role in decision making. Negotiations often last for long periods of time to assure that each party gets its needs met. ETEC wants to create long-standing relationships and keep clients and suppliers satisfied. This is accomplished by ETEC’s not taking advantage of its leadership position in law enforcement technology and its expertise. ETEC customizes its services to each client.
III) Using the concepts in this chapter and the negotiating strategies outlined in the video segment, develop a role-play with one person taking on the role of a client, supplier, or violator and the other person taking on the role of an ETEC manager. Students can work in pairs and present their role-plays to the class.