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8/3/2019 01 intro rev
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Prof Stephen W. Nason All Rights Reserved
MGMT 3140
NEGOTIATION
1
Prof Stephen W. Nason
PhD
Adjunct Associate Professor of Management
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Prof Stephen W. Nason All Rights Reserved
SESSION 1
NEGOTIATION INTRODUCTION
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Who Likes Negotiating?
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CLASS NOTES: Effective Negotiation
Negotiation is something thateveryone does, almost every day
Why is Negotiation Important?
Most People are Bad Negotiators
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Most People are BAD Negotiators!
Investigations show that people do not negotiate well
Less than 4 percent of managers reach win-win outcomes when put to the
test (Nadler, Thompson, & Van Boven, 2003)
Even when negotiators are privately in perfect agreement, they fail to
realize it 50 percent of the time (Thompson & Hrebec, 1996)
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CLASS NOTES: Effective Negotiation
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Why are people such BAD Negotiators?
Faulty Feedback
After most negotiations people never know what would have happened if
negotiated differently
Never know what others might have achieved in the same situation
Satisficing and Excessive Optimizing
Satisficing- accepting a satisfactory result
Excessive Optimizing by refusing to accept anything but the best result you end
up with nothing
Self-Reinforcing Incompetence
Most negotiate poorly, and with experience, they become even better at
negotiating poorly
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CLASS NOTES: Effective Negotiation
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Common Negotiation Errors:
Leaving money on the table (lose-lose negotiation)
Settling for too little (the winners curse)
Walking away from the table
Settling for terms worse than your alternative (the agreement bias)
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Common Negotiation Myths:
Myth 1: Negotiations are fixed-sum
Myth 2: You need to be tough
Myth 3: Good negotiators are born
Myth 4: Experience is a great teacher
Myth 5: Good negotiators take risks
Myth 6: Good negotiators rely on intuition
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What is the best way to develop
negotiation skills:
Experience
Listen to the wisdom of your professor
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CLASS NOTES: Effective Negotiation
Neither work wellExperience with
Comparison of outcomes
Comparison of approaches
Experimentation
Discussion
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Course Learning Objectives
Improve your ability to negotiate successfully
Science (Mind)
Heart (Emotions)
Art of Negotiation
General strategy for successful negotiation
Enlightened model of negotiation
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Negotiation
Fundamentals ContextsProcesses Remedies
Perception
& Biases
Nature of
Negotiation
Distributive
Negotiations
IntegrativeNegotiations
Strategy
& Tactics
Salary
Negotiations
Ultimatums
Difficult
Negotiations
Video Analysis
Coalitions &
Multiple Parties
Disputes
Groups
InternationalNegotiations
Negotiation Outline: Where are We Going?
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Negotiation Fundamentals
Two or more
parties
Interdependence
Mutual
Adjustment
Perception and
Biases
The Negotiation
ProcessCourse outline
Sat. Structure
Structure
Grading
Syllabus
Negotiation Fundamentals Outline:
Where are We Going Today?
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Negotiations: Definition
When two or more parties have different preferences but need to reach a
joint decision they enter into a negotiation
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Negotiation Research from:
Psychology
Economics
Law
Political science
Communications
Sociology
Anthropology
Labor relations
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Some Characteristics of the
Negotiating Process:
Two or more parties
Parties have different or competing interests
Both parties think they can influence the other
Interdependence
Mutual Adjustment
Success involves managing psychological and perceptual as well as obvious
aspects of negotiating
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Interdependence
Both Parties can Benefit from Working Together Somehow
Distributive negotiations (Zero Sum):
Goals are completely conflicting
The more one wins the more the other looses
Integrative (Win-Win):
Both parties can achieve their goals together
Together both parties can create something that neither could create on its
own
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Mutual Adjustment
Your success depends on the actions of the other party in the negotiation
Dilemma of honesty:
How truthful should you be?
Dilemma of trust:
How much do you believe the other party?
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Both Parties Will Need to Adjust Their Behavior in Response to the
Others Actions
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Psychological Aspects of Negotiation
Need to look good
Esteem
Fear
Desire to win
Emotions
Culture
Values
Expectations
Power
Control
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Perception vs. Truth
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Reality is less important than peoplesperception of reality
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Negotiation Syllabus
Must participate in negotiations
If miss negotiations will miss the learning
Do not come to class late!!!!
Come at the right time!
Come prepared
Try your best
Must openly discuss what worked and did not work in class
Must accept slides after class, not before
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MGMT 235: Negotiations
Course Web Page: http://lmes2.ust.hk
Office Hours: By appointment
In general Tues & Thur 4:30 6:00 is a good time
Course Negotiation Materials
Handed out each week
You must pay HK $275
If you do not pay, you do not pass
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http://lmes2.ust.hk/http://lmes2.ust.hk/ -
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Negotiation Grading
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Exam 1 35%
Exam 2 35%
Negotiation Results 5%
Negotiation Quizzes 5%
Participation
Discussion 10%
Attendance 10%100%
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Name:
Student ID:
E-mail:
Major:
Where are you from:
Something interesting about yourself
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Stephen Nasons
Personal Background