MGT 459 Negotiation

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MGT 459 - Negotiation

• Instruction 5

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Understanding Self-Perceptions

• Johari Window (Joseph Luft and Harry Ingham)

Public Awareness
Known to Others
Not Known to Others
Known to Self
Open
Hidden
Self-Awareness
Not known to Self
Unknown
Blind
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Negotiation Style
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Dimensions of Negotiation Style

• Motivation Who wins?
• Individualistic, competitive, cooperative
• Approach What is my decision criteria?
• Interests, rights, power
• Emotion How do I bargain?
• Rational, positive, negative

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Motivational Style
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Tips for Negotiators

• Cooperative
• Dont focus on bottom line
• Develop your BATNA
• Get an agent
• Avoid saying yes

• Competitive
• Think about pie expansion
• Ask more questions
• Negotiate, not haggle
• Show respect

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Strategic Issues of Motivational Style

• Dont default to a hard bargaining style
• Hard bargaining effectiveness is largely a myth
• Dont lose sight of your own interests
• Be careful about making faulty comparisons
• Compare your agreement with your BATNA
• Dont compare your outcome with theirs
• Recognize that competition engenders competition

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Approach to Negotiating
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Strategic Issues of Approaches

• Leverage the principle of reciprocity
• Refocus your opponent on interests
• Recognize the costs of rights and power

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Strategic Issues of Approaches

• Know when to use rights and power
• When the other party refuses to come to the table
• When youre at an impasse
• When parties agree to make a deal but are
  positioning
• Know how to use rights and power
• Challenge the other partys interests
• Be clear and credible
• Dont burn bridges

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Emotional Styles
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Strategic Issues of Emotion

• Keep a cool head
• Understand the implications of false emotions
• Recognize emotions are contagious
• Use negative emotions carefully and credibly
• Dont gloat

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Influencing the Target

• Reciprocity
• Scratch my back and Ill scratch yours
• Be careful of uninvited favors, gifts, services
• Consistency
• I always do what I say
• Be careful of making commitments to their
  foot-in-the-door (e.g., Yes, Id purchase today
  at the right price.)

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Influencing the Target

• Social Proof
• Look to others to determine what is desirable,
  appropriate, expected
• Be careful of relying on others, especially in
  ambiguous situations
• Liking
• Dress, sense of humor, good mood
• Youll make more concessions to someone you like,
  and to targets who are like you
• One strategy is to build relationship before
  negotiating

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Influencing the Target

• Authority
• People accept directions, opinions, and advice of
  authority figures.
• Symbols of authority (suit tie, cell phone) are
  not authority
• Scarcity
• We find things that are in short supply more
  appealing.
• Be careful of today only, limited supply,
  reverse psychology

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(Expect These) Tactics

• Assess the value of outcomes and the costs of
  termination to the target
• Indirect assessment
• Direct assessment
• Manage the targets impressions
• Screening activities
• Direct action to alter impressions
• Manipulate the actual costs of delay and
  termination
• Disruptive action
• Alliances with outsiders
• Negotiation schedule

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Frequently Asked Questions

• How can I tell whether someone is lying to me?
• Understand the difference between complete
  falsification and exaggeration
• Dont just ask the target if he or she is lying
• Test for consistency in their statements
• Enrich the mode of communication Its harder to
  lie in person than in e-mail
• Ask for proof or evidence

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Hardball Tactics

• Good Guy / Bad Guy
• Highball / Lowball
• Bogey
• The Nibble
• Chicken
• Reactive devaluation
• Intimidation and Aggression

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Dealing with Hardball Tactics

• Ignore them
• Discuss them
• Respond in kind
• Co-opt the target