Topic: Negotiation

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Topic Negotiation
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Negotiation Approaches

• Distributive
• Maximize the value of this deal
• Short-term focus
• Integrative
• Create value
• Long-term focus

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Contract zone in bargaining
A
B
I
I
A
B
T
T
B
A
R
R
I initial where you start T target your
goal R resistance the point you wont go
beyond
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Contract zone in bargaining
A
B
I
I
A
B
T
T
B
A
R
R
I initial T target R resistance Negative
contract zone
Positive contract zone
B
A
I
I
A
B
A
B
T
T
R
R
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Some things to note

• Opening offer
• More extreme (but not too extreme)better final
  price
• Opening attitude
• Cooperative/competitive
• Keep matched with opening offer
• Concessions
• Reciprocal
• Decreasing in size
• Cultural differences

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Two Important Tasks for Distributive Negotiation

• Discover opponents resistance point
• Influence opponents resistance point

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Negotiation Pyramid
Pareto optimal
Settlement superior to other feasible
settlements
Mutual Settlement (positive contract zone)
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Characteristics of Integrative Negotiation

• Free flow of information
• Focus on understanding others needs
• Emphasize commonalities
• Search for solutions that satisfy both sides

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Tactics that encourage integrative solutions

• Superordinate goals
• Separate people from the problem
• Focus on interests, not positions
• Invent options for mutual gain

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Factors that influence negotiation

• Social factors
• Opening moves
• assimilation to competition
• lock-ins
• extremity of opening offer
• Overall strategy
• Relative power of the 2 sides

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• Situational factors
• physical context
• site
• publicness
• physical arrangements
• time limits

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• Organizational factors
• boundary role
• representative bargaining
• constituent involvement
• accountability
• unanimity of position

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• Individual differences
• Gender differences
• Competitors, cooperators, individualist
• max relative differences, max joint outcomes, max
  own outcomes
• Interpersonal orientation
• Sensitivity to partners behavior
• extent to which bargaining is personal
• responses to equitable/inequitable offers
• assimilation to competition/cooperation
• maintenance of original disposition
• potential for emotional conflict

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• Cultural differences
• opening offers
• directness
• arguments
• silence
• relationship focus

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Skilled negotiators

• Planning
• explore more options
• focus more attention on common ground
• more time on long-term issues (majority of time
  still spent on short-term issues)
• ranges rather than point objectives
• consider issues independently (issue planning)

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Verbal Tactics

• Irritatorswords that have negligible value (but
  annoy other) generous offer fair price
  reasonable arrangement
• Counterproposals respond by offering own
  proposal
• Defense/attach spiralheated, value-laden
  accusations, defensive statements.

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• Behavioral labelingdescribing what you play to
  say before you say it (Can I ask a question?
  Id like to make a suggestion.)
• Active listening demonstrating previous
  statement has been understood
• Questions
• Feelings commentarydescribes feelings about a
  situation (Im uncertain how to react to what
  youve just said . . . )
• Argument dilutionweak arguments dilute strong
  arguments

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Skilled Negotiators

• Irritators
• Counterproposals
• Defense/Attack spirals-
• Behavioral labeling
• Disagreeing
• All other

• Active listening
• Testing for understanding
• Summarizing
• Questions
• Feeling commentary
• Argument dilution--