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Chapter 1Chapter 1

An Introduction toNegotiation

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NegotiationNegotiation..

A means of resolving conflicts for centuriesA means of resolving conflicts for centuries

An alternative to fighting, warAn alternative to fighting, war

Agreements can be made permanentAgreements can be made permanentthrough rules and lawsthrough rules and laws

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

Yet, many people avoid, even fearYet, many people avoid, even fearnegotiation. Why?negotiation. Why?

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How Important a Skill IsHow Important a Skill IsNegotiation?Negotiation?

Negotiation is the preNegotiation is the pre--eminent form ofeminent form of

decision making in personal anddecision making in personal andprofessional lifeprofessional life

--WilliamWilliam UryUry

Getting Past NoGetting Past No

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Five Negotiation SkillsFive Negotiation Skills

Skill 1.1: Recognize theSkill 1.1: Recognize the five essentialelements in a negotiationin a negotiation

Skill 1.2: ModelSkill 1.2: Model bargaining behaviors usedused

by skilled negotiatorsby skilled negotiators

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

Skill 1.5:Skill 1.5:AvoidAvoid cognitive biases

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Three Basic Types ofThree Basic Types ofNegotiationNegotiation

1.1. Deal making::purchase of a new home orpurchase of a new home orcarcar

2.2. Decision making::parties in a zoning caseparties in a zoning case

3.3. Dispute resolution::litigation overlitigation overproperty rightsproperty rights

While the three have subtle differences, allWhile the three have subtle differences, allare forms of negotiationare forms of negotiation

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The Five Elements Common toThe 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. Decision5. Decision--making abilitymaking ability

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Parties and Their InterestsParties and Their Interests

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

some characteristics of the conflict and ignoresome characteristics of the conflict and ignoreothersothers

Relationship/task frame: Parties focus on eitherRelationship/task frame: Parties focus on eitherongoing relationship or the subject matter of theongoing relationship or the subject matter of thedisputedispute

Emotional/intellectual frame:Emotional/intellectual frame: PartiesParties paypayattention to the emotional components of theattention to the emotional components of thedispute or behaviors of the partiesdispute or behaviors of the parties

Cooperate/win frame: Parties seeks to benefitCooperate/win frame: Parties seeks to benefit

both parties or to maximize personal gainboth parties or to maximize personal gain

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Developing Negotiating SkillsDeveloping Negotiating Skills

Negotiations are rarely pure winNegotiations are rarely pure win--lose orlose or

winwin--win propositionswin propositions

Negotiations take place under conditionsNegotiations take place under conditions

of ambiguity and uncertaintyof ambiguity and uncertainty

Most negotiations involve existing orMost negotiations involve existing orpotential sources of conflict that impedepotential sources of conflict that impede

reaching agreementreaching agreement

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Negotiating progress comes in stops andNegotiating progress comes in stops and

starts. Most complex negotiations takestarts. Most complex negotiations take

place between agents of groups and notplace between agents of groups and not

the groups themselvesthe groups themselves

Complex negotiations often involve a teamComplex negotiations often involve a teamapproachapproach

Negotiating skills can be learnedNegotiating skills can be learned

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Negotiations are chaotic and seldom passNegotiations are chaotic and seldom passsequentially through distinct phases suchsequentially through distinct phases such

as preas pre--negotiation, deal structuring,negotiation, deal structuring,detailed bargaining, and agreementdetailed bargaining, and agreement

Negotiations involving multiple parties andNegotiations involving multiple parties and

complex issues challenge a negotiatorcomplex issues challenge a negotiator Most negotiations are linked to otherMost negotiations are linked to other

negotiationsnegotiations

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Bargaining Styles: DualBargaining Styles: DualConcern ModelConcern Model

(assertiveness/cooperation)(assertiveness/cooperation)Five bargaining stylesFive bargaining styles

1. Avoiding1. Avoiding2. Accommodative2. Accommodative

3. Collaborative3. Collaborative

4. Competing4. Competing5. Compromising5. Compromising

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Dual-Concern Model ofBargaining Styles

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Big Five PersonalityDimensions

Unreliable, lack of

ambition,easily distracted

Careful, responsible,

organized, persistent

Conscientiousness

Suspicious, unfriendly,

uncooperative, critical,

disciplined

Courteous, flexible,

trusting, cooperative,

tolerant

Agreeableness

Conventional, narrow

interests, straightforward,

conservative

Imaginative, curious,

original, open-minded

Openness

Introversion, quiet, low-key,

deliberate

Sociable, assertive,

talkative, active

Extraversion

Emotionally healthy, calm,

free from persistent

negative feelings

Anxious, depressed,

worried, insecure

Neuroticism

OPPOSINGASSOCIATIONSDIMENSION

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Attributes of Bargaining Styles

Used when

stakes are small,

time is short, or

in a weak

bargaining

position

Refuses to

compromise on

principle

Can rush the

process and

agree to

unnecessary

concessions

Best when

stakes are small

and time is short

Eager to conclude

negotiation on fair

standards

Compromising

Used when

relationship and

the substantive

outcomes areimportant

No patience for the

give and take that

comes with

collaborativethinking

May transform a

simple problem

into a complex

one

Instinctively

tries to discover

and satisfy the

real interests ofthe parties

Enjoys

participating in

joint problem

solving

Collaboration

When

substantive

interests are

important butnot the

relationship

Believes in treating

people fair and

avoiding needless

conflict

Focus on issues

that are easy to

define win-loss

Excellent

instincts for

claiming value

Views negotiation

as a game or sport

to win

Competing

When hostilitiesneed to be

lessened

Has little patiencefor other partys

needs

May makeunwise

concessions

Good teambuilder

Derives satisfactionfrom solving

problems

Accommodating

When not

interested in

negotiating

Prefers hard-nosed

bargaining

Causes

stalemates

Displays tact

and diplomacy

Defers

confrontational

negotiation

Avoiding

As a strategyWeak

predisposition

As a negative

attribute

As a positive

attribute

Strong

predisposition

Conflict style

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Used judgmental phrases whenUsed judgmental phrases when

proposing offersproposing offers

Used neutral phrases whenUsed neutral phrases when

proposing offersproposing offers

Addressed issues in aAddressed issues in a

predetermined orderpredetermined orderFlexible on the order of issues toFlexible on the order of issues to

discussdiscuss

Planned goals around fixedPlanned goals around fixed

settlement pointssettlement points

Developed upper and lower limitsDeveloped upper and lower limits

for possible settlement pointsfor possible settlement points

Anticipated half as many longAnticipated half as many long--

term areasterm areas

Anticipated twice as many longAnticipated twice as many long--

term common areasterm common areas

Considered a third less commonConsidered a third less common

ground areasground areas

Gave over three times as muchGave over three times as much

attention to common groundattention to common groundareasareas

Considered a narrow range ofConsidered a narrow range ofoutcomes or optionsoutcomes or options

Considered a wide range ofConsidered a wide range ofoutcomes or optionsoutcomes or options

AVERAGE NEGOTIATORSSKILLED NEGOTIATORS

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Tactics for Success: Find CommonTactics for Success: Find CommonInterests by Asking the RightInterests by Asking the Right

Questions!Questions!

OpenOpen--ended:ended: What were you hoping to settleWhat were you hoping to settletoday?today?

Leading:Leading: DonDont you think this proposal meetst you think this proposal meetsone of your goals?one of your goals?

Clarifying:Clarifying: Can you postpone collecting that feeCan you postpone collecting that fee

untiluntil

next year?next year?

Gauging:Gauging: How important to you is the 24How important to you is the 24--hourhourservice guarantee?service guarantee?

Seek agreement:Seek agreement: If we agree to your deliveryIf we agree to your deliveryterms do we have a deal?terms do we have a deal?

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Interdependency

Without interdependency no reason tonegotiate, no motivation to reachagreement

Degrees of interdependency include: one-shot negotiation, repeat transactions, orlong-term relationship

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Common GoalsCommon Goals

The two most important types of goalsThe two most important types of goals

1.1. ContentContent:: the substance or specificsthe substance or specifics

2.2. RelationshipRelationship:: how the parties want to behow the parties want to be

viewed by each otherviewed by each other

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Other Types of GoalsOther Types of Goals

ProspectiveProspective:: initial objectiveinitial objective

TransactionalTransactional:: objectives that arise duringobjectives that arise during

negotiationsnegotiationsRetrospectiveRetrospective:: objectives that arise afterobjectives that arise after

negotiations are completenegotiations are complete

CollaborativeCollaborative: mutual objectives: mutual objectives

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FlexibilityFlexibility

A power shift can quickly occur in anegotiation situation. A negotiator must beable to respond in a strategic way.

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Decision-Making Ability

Negotiation involves at least two peopleNegotiation involves at least two peoplemaking decisions that require judgmentsmaking decisions that require judgmentsand choicesand choices

JudgmentJudgment involves recognizing andinvolves recognizing andevaluating the content of the optionsevaluating the content of the optionspresentedpresented

ChoiceChoice involves actually selecting aninvolves actually selecting anoptionoption

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Decision-Making Ability

Parties often differ in how they think orParties often differ in how they think orprocess informationprocess information

People developPeople develop schemaschemaas a way ofas a way of

organizing current knowledge and as aorganizing current knowledge and as away to process future informationway to process future information

Some schemas create biasesSome schemas create biases

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Biases That May Affect aBiases That May Affect aNegotiatorNegotiator

Availability biasAvailability bias: An outcome probability is: An outcome probability isbased on how easy it is to imaginebased on how easy it is to imagine

Representativeness biasRepresentativeness bias:: StereotypingStereotyping SelfSelf--serving biasserving bias: Belief that an option is true: Belief that an option is true

because it benefits thembecause it benefits them

SelfSelf--enhancement biasenhancement bias:: Belief that oneBelief that ones owns ownbehavior 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 challengesUsually present significantly different challengesand negotiation techniques:and negotiation techniques:

11.. CoalitionsCoalitions form to control the outcomeform to control the outcome

22.. TradeTrade--offsoffs can occur with one or morecan occur with one or more

33.. Majority ruleMajority rule may ignore interests of minoritymay ignore interests of minoritypartiesparties

44.. ConsensusConsensus does not mean all parties agree ondoes not mean all parties agree onall issues, but on the wholeall issues, but on the whole

55.. CommunicationCommunication is more difficult due to theis more difficult due to the

number of people and messages requirednumber of people and messages required

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Negotiation Myths and FactsNegotiation Myths and Facts**

MythsMyths1. Good negotiators are1. Good negotiators are

bornborn

2. Experience is a great2. Experience is a greatteacherteacher

3. Good negotiators3. Good negotiatorstake riskstake risks

4. Good negotiators rely4. Good negotiators relyon intuitionon intuition

**Leigh Thompson,Leigh Thompson, The Mind and Heart ofThe Mind and Heart ofthe Negotiatorthe Negotiator

FactsFacts1. Good negotiators1. Good negotiators

make concessionsmake concessions

2. Good negotiators2. Good negotiatorsnever lienever lie

3. Good negotiators3. Good negotiators

look for commonlook for commoninterestsinterests

4. Everyone is a4. Everyone is a

negotiatornegotiator

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