OBS 220
Chapter 1 – Negotiations Essentials
What is negotiation?
Negotiation is …
• Your key communication and influence tool
• An interpersonal decision-making process necessary whenever we cannot
achieve our objectives single-handedly
• Not just about resources- it is equally about relationships and trust
The mind and heart of negotiator
Mind = the development of deliberate, rational and thoughtful strategies for
negotiations.
Heart = caring for relationships and having trust.
NB: Both the bottom line AND relationships are important.
Relationship vs Economics
• In any negotiation, two things are at stake
1. Economic value (money and scarce resources)
2. People (relationships and trust)
• But focusing only on the economic side now and want to build a
relationship in the future is not advisable as people tend to not forget if you
were rude to them.
• Thus it is important to work on both.
• When people make economic sacrifices to secure or maintain a
relationship they are often disappointed
• Because the sacrifice we make today may not be remembered or
reciprocated tomorrow.
• This chapter focuses on how negotiators can enhance long-term
relationships without paying more or receiving less.
, Satisficing vs Optimizing
• Satisficing refers to doing just enough to reach one’s minimum goals, not
pushing to maximize one’s potential gains.
• Optimizing negotiators capture all the potential gains in a situation.
Why is it important to be an optimizing negotiator?
- Satisficing = accepting of mediocracy
- Satisficing negotiators often settle for less than they could otherwise
have.
- Over the long run satisficing can be detrimental to individuals and
companies and greatly reduce economic gains.
- Thus it is important to work on both.
- Optimizing negotiators will use a variety of eXective negotiation
strategies and skills to drastically increase economic gains.
Short vs Long term relationships
Another distinction concerns strategies that might be used in short versus long
term relationships.
• If a person believes the negotiation was single-shot negotiation, they might
act diXerently, maybe more aggressive, than if they anticipated another
interaction in the future.
• All negotiatiors should assume that the details of their negotiation will be
accessible for anyone to view (because of social media/ dashcams) and
that all negotiations have long-term implications.
Intra- vs Inter- Organizational Negotiation
• At first it may seem that internal negotiations might go more smoothly and
collaboratively than external negotiations.
• However, envy and internal competition may in fact loom larger when
people negotiate internally versus externally.
Chapter 1 – Negotiations Essentials
What is negotiation?
Negotiation is …
• Your key communication and influence tool
• An interpersonal decision-making process necessary whenever we cannot
achieve our objectives single-handedly
• Not just about resources- it is equally about relationships and trust
The mind and heart of negotiator
Mind = the development of deliberate, rational and thoughtful strategies for
negotiations.
Heart = caring for relationships and having trust.
NB: Both the bottom line AND relationships are important.
Relationship vs Economics
• In any negotiation, two things are at stake
1. Economic value (money and scarce resources)
2. People (relationships and trust)
• But focusing only on the economic side now and want to build a
relationship in the future is not advisable as people tend to not forget if you
were rude to them.
• Thus it is important to work on both.
• When people make economic sacrifices to secure or maintain a
relationship they are often disappointed
• Because the sacrifice we make today may not be remembered or
reciprocated tomorrow.
• This chapter focuses on how negotiators can enhance long-term
relationships without paying more or receiving less.
, Satisficing vs Optimizing
• Satisficing refers to doing just enough to reach one’s minimum goals, not
pushing to maximize one’s potential gains.
• Optimizing negotiators capture all the potential gains in a situation.
Why is it important to be an optimizing negotiator?
- Satisficing = accepting of mediocracy
- Satisficing negotiators often settle for less than they could otherwise
have.
- Over the long run satisficing can be detrimental to individuals and
companies and greatly reduce economic gains.
- Thus it is important to work on both.
- Optimizing negotiators will use a variety of eXective negotiation
strategies and skills to drastically increase economic gains.
Short vs Long term relationships
Another distinction concerns strategies that might be used in short versus long
term relationships.
• If a person believes the negotiation was single-shot negotiation, they might
act diXerently, maybe more aggressive, than if they anticipated another
interaction in the future.
• All negotiatiors should assume that the details of their negotiation will be
accessible for anyone to view (because of social media/ dashcams) and
that all negotiations have long-term implications.
Intra- vs Inter- Organizational Negotiation
• At first it may seem that internal negotiations might go more smoothly and
collaboratively than external negotiations.
• However, envy and internal competition may in fact loom larger when
people negotiate internally versus externally.
