chapter 1 an introduction to negotiation 11. negotiation negotiation = a way to beat an opponent...
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NegotiationNegotiation
Negotiation = a way to Negotiation = a way to
beat an opponentbeat an opponent
WRONGWRONG!!
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Negotiation….Negotiation….
A means of resolving conflictsA means of resolving conflicts An alternative to fighting, warAn alternative to fighting, war Agreements can be made permanent Agreements can be made permanent
through rules and lawsthrough rules and laws Today a common means of resolving family, Today a common means of resolving family,
work, and societal disputeswork, and societal disputes Yet, many people avoid, even fear Yet, many people avoid, even fear
negotiation. Why?negotiation. Why? Because they may lack the simple skills, Because they may lack the simple skills,
techniques, and experience to prepare and techniques, and experience to prepare and succeed at negotiation. succeed at negotiation.
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A process where one person is trying to
get another to do or not do something
for him/her
What is negotiation?What is negotiation?
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NegotiationNegotiation
Negotiation Negotiation = =
1. Process to pursue value involving other people1. Process to pursue value involving other people
2. Journey of self-improvement2. Journey of self-improvement
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How Important a Skill Is How Important a Skill Is Negotiation?Negotiation?
““Negotiation is the pre-eminent form of Negotiation is the pre-eminent form of decision making in personal and decision making in personal and
professional life”professional life”
-William Ury-William UryGetting Past NoGetting Past No
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Negotiation: important aspectsNegotiation: important aspects
1. Is everywhere2. Is a process3. Entails a relationship4. Various ways with their own risks and
rewards5. To do or not do something has value for us value for us
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Negotiation is everywhereNegotiation is everywhere
You can You can trytry to negotiate everything to negotiate everything
Negotiation is a skillNegotiation is a skill
Negotiation is not a magic pillNegotiation is not a magic pill
There is no “best” way to negotiateThere is no “best” way to negotiate
Strategy and implementationStrategy and implementation
Basic assumptions to keep in mindBasic assumptions to keep in mind
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Value Negotiation systemValue Negotiation system
Principled Negotiation (Win-Win) Principled Negotiation (Win-Win)
Delivers the most possible value
at the least possible risk
in the widest range of situations
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Three Basic Types of NegotiationThree Basic Types of Negotiation
1. 1. Deal making: : purchase of a new home or purchase of a new home or
carcar
2. 2. Decision making: : parties in a zoning caseparties in a zoning case
3. 3. Dispute resolution: : litigation over property litigation over property
rightsrights
While the three have subtle differences, all While the three have subtle differences, all
are forms of negotiationare forms of negotiation
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Chapter Case: Zoning ChangeChapter Case: Zoning Change
Sophia is seeking a zoning changeSophia is seeking a zoning change
Robert, an inexperienced attorney, is hired Robert, an inexperienced attorney, is hired
by Sophia to represent her before the by Sophia to represent her before the
Zoning CommissionZoning Commission
Neighborhood residents oppose Sophia’s Neighborhood residents oppose Sophia’s
proposed new condo developmentproposed new condo development
The Zoning Commission staff suggest a The Zoning Commission staff suggest a
meeting of all parties to negotiate their meeting of all parties to negotiate their
differencesdifferences
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The Five Elements Common to The Five Elements Common to Negotiation SituationsNegotiation Situations
1. 1. Two or more parties (or interests)Two or more parties (or interests)
2. Interdependence2. Interdependence
3. Common goals3. Common goals
4. Flexibility4. Flexibility
5. Decision-making ability 5. Decision-making ability
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1- Parties and Their Interests1- Parties and Their Interests
Parties can view a conflict situation differentlyParties can view a conflict situation differently
That view, or frame, leads them to focus on That view, or frame, leads them to focus on
some characteristics of the conflict and ignore some characteristics of the conflict and ignore
othersothers
Relationship/task frame: Parties focus on Relationship/task frame: Parties focus on
either ongoing relationship or the subject either ongoing relationship or the subject
matter of the disputematter of the dispute
Emotional/intellectual frame: Parties pay Emotional/intellectual frame: Parties pay
attention to the emotional components of the attention to the emotional components of the
dispute or behaviors of the partiesdispute or behaviors of the parties
Cooperate/win frame: Parties seeks to benefit Cooperate/win frame: Parties seeks to benefit
both parties or to maximize personal gainboth parties or to maximize personal gain
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1/1 Developing Negotiating Skills1/1 Developing Negotiating Skills
Negotiations are rarely pure win-lose or Negotiations are rarely pure win-lose or
win-win propositionswin-win propositions
Negotiations take place under conditions Negotiations take place under conditions
of of ambiguity and uncertaintyambiguity and uncertainty
Most negotiations involve Most negotiations involve existing or existing or
potential potential sources of conflict that impede sources of conflict that impede
reaching agreementreaching agreement
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1/1 Developing Negotiating Skills1/1 Developing Negotiating Skills
Negotiating progress comes in stops and Negotiating progress comes in stops and
starts. Most complex negotiations take place starts. Most complex negotiations take place
between agents of groups and between agents of groups and not the groups not the groups
themselvesthemselves
Complex negotiations often involve a Complex negotiations often involve a team team
approachapproach
Negotiating skills can be Negotiating skills can be learnedlearned
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1/1 Developing Negotiating Skills1/1 Developing Negotiating Skills
Negotiations are chaotic and seldom pass Negotiations are chaotic and seldom pass
sequentially through distinct phases such as sequentially through distinct phases such as
pre-negotiation, deal structuring, detailed pre-negotiation, deal structuring, detailed
bargainingbargaining, and agreement, and agreement
Negotiations involving multiple parties and Negotiations involving multiple parties and
complex issues challenge a negotiatorcomplex issues challenge a negotiator
Most negotiations are linked to other Most negotiations are linked to other
negotiationsnegotiations
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1/2 Bargaining Styles: Dual 1/2 Bargaining Styles: Dual Concern Model Concern Model
(assertiveness/cooperation)(assertiveness/cooperation)
Five bargaining stylesFive bargaining styles
1. Avoiding 1. Avoiding
2. Accommodative2. Accommodative
3. Collaborative3. Collaborative
4. Competing4. Competing
5. Compromising5. Compromising
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Negotiation Continuum
I win, you lose I win, you lose (competition—A)(competition—A)
I lose or give in I lose or give in (accommodate(accommodate——B)B)
We both get something We both get something
(compromise—C)(compromise—C)
We both We both
“win”(collaborate—D)“win”(collaborate—D)
A B C A B C
DD
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CompetitionCompetition
Plus The winner is clear Winners usually experience gains
Minus Establishes the battleground for the next
conflict. May cause worthy competitors to
withdraw.
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AccommodationAccommodation
Plus Curtails conflict situation. Enhances ego of the other.
Minus Sometimes establishes a
precedence. Does not fully engage participants..
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CompromiseCompromise
Plus Shows good will. Establishes friendship.
Minus No one gets what they want. May feel like a dead end.end.
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CollaborationCollaboration
Plus Everyone “wins”. Creates good feelings.
Minus Hard to achieve since no one knows
how. Often confusing since players can “win”
something they didn’t know they wanted.
2/1 Attributes of Bargaining Styles
Conflict style Strong predisposition
As a positive attribute
As a negative attribute
Weak predisposition
As a strategy
Avoiding Defers confrontational negotiation
Displays tact and diplomacy
Causes stalemates
Prefers hard-nosed bargaining
When not interested in negotiating
Accommodating Derives satisfaction from solving problems
Good team builder
May make unwise concessions
Has little patience for other party’s needs
When hostilities need to be lessened
Competing Views negotiation as a game or sport to win
Excellent instincts for claiming value
Focus on issues that are easy to define win-loss
Believes in treating people fair and avoiding needless conflict
When substantive interests are important but not the relationship
Collaboration Enjoys participating in joint problem solving
Instinctively tries to discover and satisfy the real interests of the parties
May transform a simple problem into a complex one
No patience for the give and take that comes with collaborative thinking
Used when relationship and the substantive outcomes are important
Compromising Eager to conclude negotiation on fair standards
Best when stakes are small and time is short
Can rush the process and agree to unnecessary concessions
Refuses to compromise on principle
Used when stakes are small, time is short, or in a weak bargaining position
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SKILLED NEGOTIATORS AVERAGE NEGOTIATORS
Anticipated twice as many long-Anticipated twice as many long-term common areasterm common areas
Anticipated half as many long-Anticipated half as many long-term areasterm areas
Developed upper and lower limits Developed upper and lower limits for possible settlement pointsfor possible settlement points
Planned goals around fixed Planned goals around fixed settlement pointssettlement points
Flexible on the order of issues to Flexible on the order of issues to discuss discuss
Addressed issues in a Addressed issues in a predetermined orderpredetermined order
Used neutral phrases when Used neutral phrases when proposing offersproposing offers
Used judgmental phrases when Used judgmental phrases when proposing offersproposing offers
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SKILLED NEGOTIATORS AVERAGE NEGOTIATORS
Considered a wide range of Considered a wide range of outcomes or optionsoutcomes or options
Considered a narrow range of Considered a narrow range of outcomes or optionsoutcomes or options
Gave over three times as much Gave over three times as much attention to common ground attention to common ground areasareas
Considered a third less common Considered a third less common ground areasground areas
Anticipated twice as many long-Anticipated twice as many long-term common areasterm common areas
Anticipated half as many long-Anticipated half as many long-term areasterm areas
Developed upper and lower limits Developed upper and lower limits for possible settlement pointsfor possible settlement points
Planned goals around fixed Planned goals around fixed settlement pointssettlement points
Flexible on the order of issues to Flexible on the order of issues to discuss discuss
Addressed issues in a Addressed issues in a predetermined orderpredetermined order
Used neutral phrases when Used neutral phrases when proposing offersproposing offers
Used judgmental phrases when Used judgmental phrases when proposing offersproposing offers 282811
½ Tactics for Success: Find Common ½ Tactics for Success: Find Common Interests by Asking the Right Questions!Interests by Asking the Right Questions!
Open-ended: Open-ended: “What were you hoping to “What were you hoping to settle today?”settle today?”
Leading: Leading: “Don’t you think this proposal “Don’t you think this proposal meets one of your goals?”meets one of your goals?”
Clarifying: Clarifying: “Can you postpone collecting that “Can you postpone collecting that fee untilfee until next year?”next year?”
Gauging:Gauging: “How important to you is the 24- “How important to you is the 24-hour service guarantee?”hour service guarantee?”
Seek agreement:Seek agreement: “If we agree to your “If we agree to your delivery terms do we have a deal?”delivery terms do we have a deal?”
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2- Interdependency
Without interdependency no reason to
negotiate, no motivation to reach agreement
Degrees of interdependency include: one-
shot negotiation, repeat transactions, or
long-term relationship
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3- Common Goals3- Common Goals
The two most important types of goalsThe two most important types of goals
1. 1. ContentContent:: the substance or specifics the substance or specifics
2. 2. RelationshipRelationship: : how the parties want to be how the parties want to be viewed by each otherviewed by each other
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3/1 Other Types of Goals3/1 Other Types of Goals
ProspectiveProspective:: initial objective initial objective
TransactionalTransactional:: objectives that arise during objectives that arise during
negotiationsnegotiations
RetrospectiveRetrospective: : objectives that arise after objectives that arise after
negotiations are completenegotiations are complete
CollaborativeCollaborative: mutual objectives: mutual objectives
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4- Flexibility4- Flexibility
A power shift can quickly occur in a
negotiation situation. A negotiator must be
able to respond in a strategic way.
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5- Decision-Making Ability
Negotiation involves at least two people Negotiation involves at least two people
making decisions that require judgments and making decisions that require judgments and
choices choices
JudgmentJudgment involves recognizing and involves recognizing and
evaluating the content of the options evaluating the content of the options
presentedpresented
ChoiceChoice involves actually selecting an optioninvolves actually selecting an option
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5- Decision-Making Ability
Parties often differ in how they think or Parties often differ in how they think or
process informationprocess information
People develop People develop schema schema as a way of as a way of
organizing current knowledge and as a organizing current knowledge and as a
way to process future informationway to process future information
Some schemas create biases Some schemas create biases
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Biases That May Affect a NegotiatorBiases That May Affect a Negotiator
Availability biasAvailability bias: An outcome probability is : An outcome probability is based on how easy it is to imaginebased on how easy it is to imagine
Representativeness biasRepresentativeness bias: : StereotypingStereotyping Self-serving biasSelf-serving bias: Belief that an option is true : Belief that an option is true
because it benefits thembecause it benefits them Self-enhancement biasSelf-enhancement bias:: Belief that one’s own Belief that one’s own
behavior is more constructivebehavior is more constructive Impact biasImpact bias: One overestimates the : One overestimates the
positive/negative satisfaction of an outcomepositive/negative satisfaction of an outcome
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Multiparty NegotiationsMultiparty Negotiations(three or more parties or interests)(three or more parties or interests)
Usually present significantly different Usually present significantly different challenges and negotiation techniques:challenges and negotiation techniques:
11. . CoalitionsCoalitions form to control the outcomeform to control the outcome
22. . Trade-offsTrade-offs can occur with one or morecan occur with one or more
33. . Majority ruleMajority rule may ignore interests of may ignore interests of minority partiesminority parties
44. . ConsensusConsensus does not mean all parties does not mean all parties agree on all issues, but on the wholeagree on all issues, but on the whole
55.. CommunicationCommunication is more difficult due to the is more difficult due to the number of people and messages required number of people and messages required
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Negotiation Myths and FactsNegotiation Myths and Facts**
MythsMyths
1. Good negotiators 1. Good negotiators are bornare born
2. Experience is a 2. Experience is a great teachergreat teacher
3. Good negotiators 3. Good negotiators take riskstake risks
4. Good negotiators 4. Good negotiators rely on intuitionrely on intuition
FactsFacts1. Good negotiators 1. Good negotiators make concessionsmake concessions
2. Good negotiators 2. Good negotiators never lienever lie3. Good negotiators 3. Good negotiators look for common look for common interestsinterests4. Everyone is a 4. Everyone is a negotiatornegotiator
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