Objectives of Negotiation

1
Objectives of Negotiation

• Parties underlying interests are satisfied
• If there is an on-going relationship, that
  relationship is preserved
• The two parties do not leave behind potential
  gains

2
Distributive vs. Integrative Bargaining
3
Win-Win Strategy Win-Lose Strategy
1. Define the conflict as a mutual
problem 2. Pursue joint outcomes 3. Find
creative agreements that satisfy both groups 4.
Use open, honest, and accurate communication
of your needs, goals, and proposals. 5.
Avoid threats (to reduce the others
defensiveness) 6. Communicate flexibility of
position
1. Define the conflict as a win-lose
situation 2. Pursue own outcomes 3. Force the
other person into submission 4. Use
deceitful, inaccurate, and misleading
communication of your needs, goals, and
proposals. 5. Use threats (to force
submission) 6. Communicate high commitment
(rigidity) regarding ones position.
4
Conflict-Handling Orientations
High
Competing
Collaborating
Assertiveness
Compromising
Accommodating
Low
Avoiding
Low
High
Cooperativeness
5
Preparing to Negotiate

• What is my BATNA? What is my Reservation point?
• What is my target or aspiration level?
• What are likely to be the other persons BATNA
  and Reservation point?
• What are my priorities? What do I care about
  getting the most? What am I willing to give up?
• What are the other persons priorities likely to
  be?
• What do I know about the other persons
  negotiating style? Are there cultural
  differences to be aware of?
• Who will make the first offer? If me, what
  should I ask for?
• Is there any kind of objective criteria we can
  use to reach a fair settlement?
• What kind of relationship do I have or want to
  have with the other person?

6
Principles for Integrative Negotiation

• Create an open trusting climate
• Focus on interests not positions
• Separate the issue from the person
• Beware of first offers
• Try to package trade-off issues
• Search for novel and creative solutions
• Search for objective criteria

7
Characteristics of Skilled Negotiators

• Ask more questions
• Test for understanding
• Avoid responding defensively
• Avoid attacking opponent
• Are well prepared!!

8
Mythical Fixed Pie Assumption

• Tendency to assume that negotiators interests
  must be diametrically opposed when this is not
  necessarily so

9
Framing Effect in Negotiation

• Tendency to react differently to potential
  outcomes of a negotiation depending on whether
  they are framed as gains or losses. One is less
  likely to accept an outcome when it is framed as
  a loss relative to what one stated that one
  wanted rather than as a gain relative to ones
  starting position

10
Other Biases in Negotiation

• Escalation of Commitment
• When one gets too wedded to his or her position
  and is unable to back off even when this entails
  a high level of risk
• Failure to consider how the other person views
  the situation and how he or she may rationally
  behave

11
Other Biases in Negotiation

• Failure to consider the cognitive processes being
  used by the other person.
• Negotiators are more successful when they
  consider the negotiation from the point of view
  of the other party.