NEGOTIATION. NEGOTIATION. TWO TYPES OF NEGOTIATION 1.Distributive (Competitive) Parties have different and independent goals fixed-sum win-lose positional. NEGOTIATION. Integrative (Collaborative) Parties work together toward common or compatible goal Resolution of conflict
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TWO TYPES OF NEGOTIATION
Parties work together toward common or compatible
Resolution of conflict
Advancement of shared vision
Deal constructively with difference
Joint ownership of resolution
Soft Hard Problem solving
Avoid conflict Win Solve the problem
Friends adversaries Professionals
Change easily Dig in Focus on interests
Concede easily Concede Don’t concede ?
---------- stubbornly Invent options
Soft Hard Problem Solving
Avoid contest Win contest Use standards
of will of will
Make Demand Separate people concessionsconcessions and problem
Back down Make threats Know others walkaway
Commit early Commit early Draft as you go
draft late draft late commit at end
Bargain Over Interests Not Positions
Separate People From the Problem
Generate Options Before Deciding
Base Results On Objective Criteria
Things you say Underlying you want Motivations
Demands Needs and Concerns
What you will Fears and Aspirations
or won’t do
B. Halo effects
C. Selective perception
A. The norm of reciprocity
B. The similarity principle
A. Irrational Commitment
B. Fixed-Pie Beliefs
C. Anchoring and Adjustment
D. Information availability bias
E. Winners Curse
G. Law of Small Numbers
H. Self-serving biases
I. Ignoring Other’s Cognition's
J. Reactive Devaluation
1. Delay: When you have the power, when you don’t , delay
2. Silence and Bracketing: Direct opponent’s attention to a certain topic and then listen. Gains information
3. Limited Authority: Opponent lacks authority, needs to get approval for agreement.
4. “No”: Value of a “no” is you can ask why. Answer reveals what he will do.
5. Expectation and control: “This part is not negotiable, but that part is”. Redirects the negotiation.
6. Rationale: Be able to explain positions and concessions. Gives satisfaction to other party.
7. Message sending: Recognize verbal, visual and written messages. (i.e. nervous laugh, jiggling foot, crying.
8. Threats: To be effective threats must be believable. Credible if reasonably proportionate to action it is intended to effect. Never make a threat unless prepared to carry it out. Affirmative promises usually better that negative threats
9. Boulwarism: Named for Lemuel Boulware, former V.P. for labor relations at General Electric. Best offer take it or leave it bargaining. Deprives opponent of participation. Reduces chance of successful resolution.
10. Mutt and Jeff routine: Good guy /bad guy. Reasonable / unreasonable teams
11. Never accept first offer.
12. Flinch: For most people visual overrides auditory.
13. Avoid confrontation: Especially at beginning of process. Intensifies opponents desire to be proven right.
14. The Vise: “You’ll have to do better then that.” Response, “How much better?”
15.“Split the difference” : Never suggest, let your opponent suggest. Can be caught by appeal to higher authority.
16. Set aside Gambit: Set aside difficult issues to be decided later. Get agreement on smaller issues which creates momentum.
17. Avoid last minute “nibbles”: You are most vulnerable after you think negotiations completed, but other side then wants more concessions.
18. Maintain Walk-away power.
1. Do your homework : Prepare
2. Go to the top: Negotiate with those who
3. Build relationships whenever possible:
Easier to communicate with a friend
than with a stranger or enemy.
4. Avoid quick concessions
points in positive ways.
6. Maintain your composure:
7. Don’t give up: What appears to be a dead end may only be a corner.
A large car manufacturer is suffering significant financial losses. As a result plants need to be closed and 6000 employees laid off. Four proposals have been developed. You must select one of the plans.