Negotiation

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6J:1303/30

Concepts and Terms

Robbins, Ch. 12Negotiation

definedNegotiation

processTwo types of

negotiation

Lecture SupplementsDistributive tacticsActivity and

lessons learnedSalary negotiation

tips

The Negotiation Process

Preparation & Planning

Definition of Ground Rules

Clarification & Justification

Closure & Implementation

Bargaining & Problem Solving

Distributive BargainingTarget pointsResistance pointsAspiration rangeHas to be an overlap in aspiration

rangesSettlement range

A’s Target Pt.

B’s Target Pt.

B’sResist. Pt.

A’sResist. Pt.

A’s Aspiration Range

Settlement Range

B’s Aspiration Range

Distributive Bargaining Tactics

Used to create psychological pressure that will get the other party to yield to you!

Silence or “is that the best you can do?”NibbleUse an ultimatumVerify authority

Negotiation

Activity

Negotiation Activity

Get with your case groups.Receive and read case hand-out. (5 min)Select your “negotiator” and a strategy to

follow… what are your target and resistance points? (5 min)

Pair up with other discussion groups, begin negotiation (10 min)… all other members watch and take notes.

Negotiation Format

Negotiation is unformatted, talk at will!Observers think about these questions:

Can you determine the other group’s target and resistance points?

What tactics are being used? How are the negotiators treating each other?

Negotiate with other groups2 vs. 3 8 vs. 94 vs. 5 10 vs. Jacks6 vs. 7 Casinos vs. Kings

Stars vs. Aces

Negotiation

Debrief

Two Approaches to Negotiation

Distributive Integrative Bargaining Bargaining

• Fixed amount of resources• I win, you lose• Opposed to each other

• Short term view

• Variable amount of resources • I win, you win• Convergent or congruent with each other• Long term view

Integrative BargainingWhat’s needed:

Open information & honest concerns. Sensitivity to other’s needs. Trust. Flexibility.

Strategies Begin with a positive overture. Address problems, not personalities. Create a trusting climate (listen, question,

avoid defensiveness).

Salary Negotiation Tactics

Emphasize noncontingent gains resulting from one’s employment (for employer).

Propose options for contingent mutual gain.Respond with silence to unreasonable offers,

or ask “is that the best you can do?” Insist on resolution before accepting offer.Reiterate issues until they are acknowledged.Reframe weaknesses as strengths.Recognize their use of tactics and diffuse

them.

Summary and Next Time

Summary Distributive negotiation -- pros, cons, and

tips Integrative negotiation -- pros, cons, and

tips Salary negotiation

Next Time Test #2 (remember its not a quiz)