MGT 459 Negotiation

1
MGT 459 - Negotiation

• Instruction 5.1

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Reconciling Interests

• Can the interests of separate parties always be
  reconciled?
• A shared interest in closing the deal may
  create temptations to negotiate unwisely.
• Lose sight of more important interests
• Hide, distort or lie about important interests
• Be careful of an agreement at any cost
  mentality.

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Why does lying make an agreement a bad deal?

• Its illegal, not to mention unethical, to lie
• Fraud (including promissory fraud)
• Knowing misrepresentation of material fact which
  victim relies on and causes damage
• False pretense
• False representations of material past or
  present facts, known by the wrongdoer to be
  false, made with the intent to defraud a victim
  into passing title in property to the wrongdoer
• A false representation can be a verbal, written,
  or implied statement
• A false representation can also occur when the
  wrongdoer says or does nothing. The knowing
  concealment of facts that the victim should be
  made aware of, when undertaken with the intent to
  defraud the victim, is also a false
  representation.

Source answers.com
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Should you ever lie in negotiations?

• Is negotiation a game like poker?
• game implies non-serious outcomes
• games have rules, participants consent
• Should you lie about your reservation point?
• Dont give information simply because it is
  requested
• How can I avoid lying?
• Be prepared to answer questions you hope they
  dont ask
• Dont agree to a deal you dont understand

5
Frequently Asked Questions

• Seller I stayed true to my interests, but was
  misled by the other party.
• The matter will still be disputed (likely in
  court) but you may be able to place more blame on
  the other party.
• Buyer I stayed true to my interests, and was
  never questioned and/or never lied about anything
  to the other party. 
• In this case, more fault lies with the other
  party, but a bad deal is a bad deal (and fraud
  may still have occurred).
• Bad deals arent fair everyone loses in some
  way.
• Better agreements are reached when each party
  takes responsibility to identify the interests of
  the other party.

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Final Thoughts

• You never have to lie in a negotiation.  You may
  feel pressured to lie, you may want to lie, you
  may be rewarded for lying and/or you may like to
  lie, but you dont have to.
• You never have to reach an agreement.  Sometimes
  the best agreement is no agreement.  If the
  solution doesnt satisfy at least the most
  important interests of both parties, there may
  not be a positive bargaining zone.
• Your reputation as a wise, trustworthy negotiator
  (i.e., one who identifies mutually beneficial
  agreements) will be one of your greatest assets.
   A reputation as a cunning, deceptive negotiator
  will be your greatest liability. 
• You dont have to be a soft or a hard negotiator
  to reach good agreements.  Both styles will
  probably keep you from reaching the best
  agreements.