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Chapter 1

An Introduction toNegotiation

http://www.business-english-training.com/enter.htm

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Negotiation.

A means of resolving conflicts for centuries

An alternative to fighting, war

Agreements can be made permanentthrough rules and laws

Today a common means of resolvingfamily, work, and societal disputes

Yet, many people avoid, even fearnegotiation. Why?

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How Important a Skill Is

Negotiation?

Negotiation is the pre-eminent form ofdecision making in personal andprofessional life

-William Ury

Getting Past No

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Five Negotiation Skills

Skill 1.1: Recognize the five essential

elements in a negotiation Skill 1.2: Model bargaining behaviorsused

by skilled negotiators

Skill 1.3: Recognize bargaining styles Skill 1.4: Set collaborative goals

Skill 1.5:Avoidcognitive biases

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Three Basic Types of

Negotiation1. Deal making:purchase of a new home or

car

2. Decision making:parties in a zoning case3. Dispute resolution:litigation over

property rights

While the three have subtle differences, allare forms of negotiation

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Chapter Case: Zoning Change

Sophia is seeking a zoning change

Robert, an inexperienced attorney, is hired

by Sophia to represent her before theZoning Commission

Neighborhood residents oppose Sophiasproposed new condo development

The Zoning Commission staff suggest ameeting of all parties to negotiate theirdifferences

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The Five Elements Common toNegotiation Situations

1. Two or more parties (or interests)

2. Interdependence3. Common goals

4. Flexibility

5. Decision-making ability

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Parties and Their Interests

Parties can view a conflict situation differently That view, or frame, leads them to focus on

some characteristics of the conflict and ignoreothers

Relationship/task frame: Parties focus on eitherongoing relationship or the subject matter of thedispute

Emotional/intellectual frame:Partiespayattention to the emotional components of thedispute or behaviors of the parties

Cooperate/win frame: Parties seeks to benefit

both parties or to maximize personal gain

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Developing Negotiating Skills

Negotiations are rarely pure win-lose or

win-win propositions

Negotiations take place under conditionsof ambiguity and uncertainty

Most negotiations involve existing orpotential sources of conflict that impedereaching agreement

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Developing Negotiating Skills

Negotiating progress comes in stops and

starts. Most complex negotiations takeplace between agents of groups and notthe groups themselves

Complex negotiations often involve a teamapproach

Negotiating skills can be learned

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Developing Negotiating Skills

Negotiations are chaotic and seldom pass

sequentially through distinct phases suchas pre-negotiation, deal structuring,detailed bargaining, and agreement

Negotiations involving multiple parties andcomplex issues challenge a negotiator

Most negotiations are linked to othernegotiations

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Bargaining Styles: Dual

Concern Model(assertiveness/cooperation)

Five bargaining styles

1. Avoiding

2. Accommodative

3. Collaborative

4. Competing

5. Compromising

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Dual-Concern Model ofBargaining Styles

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Big Five PersonalityDimensions

DIMENSION ASSOCIATIONS OPPOSING

Neuroticism Anxious, depressed,

worried, insecure

Emotionally healthy, calm,

free from persistent

negative feelingsExtraversion Sociable, assertive,

talkative, active

Introversion, quiet, low-key,

deliberate

Openness Imaginative, curious,

original, open-minded

Conventional, narrow

interests, straightforward,

conservative

Agreeableness Courteous, flexible,

trusting, cooperative,

tolerant

Suspicious, unfriendly,

uncooperative, critical,

disciplined

Conscientiousness Careful, responsible,

organized, persistent

Unreliable, lack of

ambition,easily distracted

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Attributes of Bargaining Styles

Conflict style Strongpredisposition As a positiveattribute As a negativeattribute Weakpredisposition As a strategy

Avoiding Defersconfrontational

negotiationDisplays tactand diplomacy Causesstalemates Prefers hard-nosedbargaining When notinterested in

negotiatingAccommodating Derives satisfaction

from solving

problemsGood team

builder May makeunwiseconcessions

Has little patience

for other partys

needsWhen hostilities

need to be

lessenedCompeting Views negotiation

as a game or sportto win

Excellent

instincts forclaiming value

Focus on issues

that are easy todefine win-loss

Believes in treating

people fair andavoiding needless

conflict

When

substantiveinterests are

important but

not the

relationship

Collaboration Enjoys

participating in

joint problemsolving

Instinctively

tries to discover

and satisfy thereal interests of

the parties

May transform a

simple problem

into a complexone

No patience for the

give and take that

comes withcollaborative

thinking

Used when

relationship and

the substantiveoutcomes are

importantCompromising Eager to conclude

negotiation on fair

standards

Best when

stakes are small

and time is shortCan rush the

process and

agree to

unnecessary

concessions

Refuses to

compromise on

principleUsed when

stakes are small,

time is short, or

in a weak

bargaining

position

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SKI LLED NEGOTIATORS AVERAGE NEGOTI ATORSConsidered a wide range of

outcomes or options Considered a narrow range ofoutcomes or optionsGave over three times as much

attention to common ground

areas

Considered a third less common

ground areas

Anticipated twice as many long-term common areas

Anticipated half as many long-term areas

Developed upper and lower limits

for possible settlement points

Planned goals around fixed

settlement pointsFlexible on the order of issues to

discuss

Addressed issues in a

predetermined orderUsed neutral phrases when

proposing offersUsed judgmental phrases when

proposing offers

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Tactics for Success: Find Common

Interests by Asking the RightQuestions!

Open-ended: What were you hoping to settle

today? Leading: Dont you think this proposal meets

one of your goals?

Clarifying: Can you postpone collecting that fee

untilnext year? Gauging:How important to you is the 24-hour

service guarantee?

Seek agreement:If we agree to your delivery

terms do we have a deal?

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Interdependency

Without interdependencyno reason tonegotiate, no motivation to reach

agreement Degrees of interdependency include: one-

shot negotiation, repeat transactions, or

long-term relationship

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Common Goals

The two most important types of goals

1. Content: the substance or specifics

2. Relationship: how the parties want to beviewed by each other

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Other Types of Goals

Prospective: initial objective

Transactional: objectives that arise duringnegotiations

Retrospective: objectives that arise after

negotiations are completeCollaborative: mutual objectives

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Flexibility

A power shift can quickly occur in anegotiation situation. A negotiator must be

able to respond in a strategic way.

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Decision-Making Ability

Negotiation involves at least two peoplemaking decisions that require judgments

and choices Judgmentinvolves recognizing and

evaluating the content of the optionspresented

Choiceinvolves actually selecting anoption

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Decision-Making Ability

Parties often differ in how they think orprocess information

People develop schemaas a way oforganizing current knowledge and as away to process future information

Some schemas create biases

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Biases That May Affect a

Negotiator

Availability bias: An outcome probability is

based on how easy it is to imagine Representativeness bias: Stereotyping

Self-serving bias: Belief that an option is truebecause it benefits them

Self-enhancement bias:Belief that ones ownbehavior is more constructive

Impact bias: One overestimates the

positive/negative satisfaction of an outcome

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Multiparty Negotiations(three or more parties or interests)

Usually present significantly different challengesand negotiation techniques:

1. Coalitionsform to control the outcome

2. Trade-offscan occur with one or more

3. Majority rule may ignore interests of minority

parties4. Consensusdoes not mean all parties agree on

all issues, but on the whole

5.Communicationis more difficult due to the

number of people and messages required

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Negotiation Myths and Facts*Myths

1. Good negotiators are

born2. Experience is a greatteacher

3. Good negotiators

take risks4. Good negotiators rely

on intuition

*Leigh Thompson, The Mind and Heart ofthe Negotiator

Facts

1. Good negotiators

make concessions2. Good negotiators

never lie

3. Good negotiators

look for common

interests

4. Everyone is a

negotiator

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