Negotiation lecture 1
Definition negotiation:
A social process, in which interdependent people with conflicting interests determine how
they are going to allocate resources of work together in the future” (Hames, 2011, p.5)
When do people negotiate
Past view = combative process
Modern view = collaborative process used to find best solution for everyone involved
o We negotiate, when we believe that we can achieve more with others than without
them
Dual concerns model
How do people manage conflict?
o relative importance of the outcomes (not just for oneself)
Competitive approach = like dividing a pie
not seen as positive according to psychology and mostly neglected in negotiation research
i.e. distributive, positional, zero-sum, lose- win
Claiming value
When resources are fixed or limited
o This can also be a mindset = whereby you seek to “win” even though it might not be
the case actually = example is trump, every concession to him is like “losing”
,Collaborative approach =
i.e. integrative, principled, interest-based, mutual, win-win
Creating value
Resources are not fixed or limited
o Try to identify what the other party wants and find additional resources to fix the
situation
When not to negotiate
- You may lose everything
- You do not have time or are not well prepared or have no stake in the outcome
- If waiting will improve your ability to satisfy your needs
- If the other party’s demands are unethical or illegal
Initial stage
o Preparation, rapport building, testing assumptions
Middle stage
o Arguments, offers and close deal
Final stage
o Implement agreement
,Prep questions negotiation
1. What do you want or need and how do you intend to get it?
2. What are your alternatives if you are unable to reach an acceptable outcome negotiating
with this party?
3. What does the other party want or need and how will he or she attempt to get it?
4. What are his or her alternatives if an acceptable agreement cannot be reached with you?
1. Defining the situation:
Accurately defining the situation is necessary to ensure that any outcome that you negotiate
satisfies all of your true needs, and perhaps those of the other party
→ gathering relevant information
Additional factors:
The nature of the interaction
Relative power
Resources and constraints (i.e. information, expertise, time)
Others who may be affected by the negotiation (and it’s
outcome)
Environment or context
, A and b= players
C= coaches
D = fans
E= broader societal factors
2. Setting goals
Substantive goals vs. relationship goals
Effective goals:
o Are clear, specific, measurable and challenging yet attainable
o Guide behavior
o Clarify expectations and determine priorities
o Help you determine the appropriate strategy
3. Determine the strategy
1. Strategy = plan or process = collaborative or competitive
2. Tactic = short term actions such as hard ball tactic if you are applying a competitive
strategy = behavior aspects of the strategy
4. Implementing strategy
Operationalizing the plan: The implementation depends on the identification and and
definition of relevant component parts:
o Issues
= Specific dimensions of the situation that need to be addressed
For example: job negotiation = salary, duties, vacation days...
Bargaining mix = All relevant issues in the negotiation
Definition negotiation:
A social process, in which interdependent people with conflicting interests determine how
they are going to allocate resources of work together in the future” (Hames, 2011, p.5)
When do people negotiate
Past view = combative process
Modern view = collaborative process used to find best solution for everyone involved
o We negotiate, when we believe that we can achieve more with others than without
them
Dual concerns model
How do people manage conflict?
o relative importance of the outcomes (not just for oneself)
Competitive approach = like dividing a pie
not seen as positive according to psychology and mostly neglected in negotiation research
i.e. distributive, positional, zero-sum, lose- win
Claiming value
When resources are fixed or limited
o This can also be a mindset = whereby you seek to “win” even though it might not be
the case actually = example is trump, every concession to him is like “losing”
,Collaborative approach =
i.e. integrative, principled, interest-based, mutual, win-win
Creating value
Resources are not fixed or limited
o Try to identify what the other party wants and find additional resources to fix the
situation
When not to negotiate
- You may lose everything
- You do not have time or are not well prepared or have no stake in the outcome
- If waiting will improve your ability to satisfy your needs
- If the other party’s demands are unethical or illegal
Initial stage
o Preparation, rapport building, testing assumptions
Middle stage
o Arguments, offers and close deal
Final stage
o Implement agreement
,Prep questions negotiation
1. What do you want or need and how do you intend to get it?
2. What are your alternatives if you are unable to reach an acceptable outcome negotiating
with this party?
3. What does the other party want or need and how will he or she attempt to get it?
4. What are his or her alternatives if an acceptable agreement cannot be reached with you?
1. Defining the situation:
Accurately defining the situation is necessary to ensure that any outcome that you negotiate
satisfies all of your true needs, and perhaps those of the other party
→ gathering relevant information
Additional factors:
The nature of the interaction
Relative power
Resources and constraints (i.e. information, expertise, time)
Others who may be affected by the negotiation (and it’s
outcome)
Environment or context
, A and b= players
C= coaches
D = fans
E= broader societal factors
2. Setting goals
Substantive goals vs. relationship goals
Effective goals:
o Are clear, specific, measurable and challenging yet attainable
o Guide behavior
o Clarify expectations and determine priorities
o Help you determine the appropriate strategy
3. Determine the strategy
1. Strategy = plan or process = collaborative or competitive
2. Tactic = short term actions such as hard ball tactic if you are applying a competitive
strategy = behavior aspects of the strategy
4. Implementing strategy
Operationalizing the plan: The implementation depends on the identification and and
definition of relevant component parts:
o Issues
= Specific dimensions of the situation that need to be addressed
For example: job negotiation = salary, duties, vacation days...
Bargaining mix = All relevant issues in the negotiation
