‘Adkdtional MeGraw-Hil ternational Edtions ‘are avalable in the flowing subjects Accounting logical Sciences Business and Incuistri Managemant Chemisty and Chemical Engineering Economic Education octal Engineering Electronics and Computer Science Finance eology and Mineralogy IncustrilAts and Vocational Education Mechanical Engineering Meteorology Physics Pala Se Psychology TSwN 0-07-102325-6 WI ‘This book cannot be re-exported from the country to which itis sold by McGraw-Hill “The International Edition is not available in North America. INTERNATIONAL EDITIOF McGRAW-HILLNEGOTIATIONNEGOTIATION Fourth Edition Roy J. Lewicki The Ohio State University Bruce Barry Vanderbilt University Nashville David M. Saunders University of Calgary John W. Minton Havatar Associates, Inc. ER iewin Boston Bur Ridge, IL Dubuque, IA Macison, WI. New York Sanfrancisco St Louls Bangkok Bogots Caracas. Kusla Lumpur Lisben Londen Madtid Mexico Gity Milan Monteal New Deh Sartiago Seoul Singapore Sychey Taipei Toronto‘Mecron Water Edson [ADivsna The Meee il Conpenies ‘weconamion Publis by McCrossin ef Me Mini Compe In, 121 Aree of ‘he Amer, New York,NY 100 copia © 2008199, 94, ne by Ine Meow Ht Coop, ten Alrigb eed No para his pon maybe pode red eo by sey mean rare na dalton real atm, waect pr ween comet oe ‘McGrew Compre te ting. ed nay ae or es eager ‘tminns, bees france ng. See nar, ning cect nd eee ‘This bookie ined on ai ie pope domestic 234367 890D0cOC098 76543 inersion 234567 890BOGDOCO98 T6343, ISBN ores Sir ior Jn Weel Eel oda ina ager Sen meting manger fl Cary ‘Proc, Men eng: ar Mos Ser poet manger Critic A ong Proton pes Cin Hare, ocr tee Ss May Chriinon Sse protec. Clamen ‘Ser dita cone eva dan Mik ‘eric ver dep Sureh Sc ‘ypetce 0 Toes Roma Cpt lectoie abling Series. es THY Diner Dots tray of Congress Cataloging tn Pabietion Data Negation Roy Lewis. eat — he ste: Negation Roy J Ll ated BN 47.2404 a. oper SEN G07 123156 tert ape 1 ego in bases Lew Ray FM Leics ay 1 Nepaion woken on eseanso—acl ‘Copy © 203 Eclsive rghs by The MeGir¥-HE Companies, Ie. Fr manafotre and expr ‘Tur book notte expo om eon whee hey Hr Ml hes ions st eben Ame We dedicate this book to all negotiation, ‘mediation, and dispute resolution professionals who try to make the world a more peaceful and prosperous place.About the Authors Roy J. Lewd isthe Dean's Distinguished Teaching Professor and Professor of ‘Management and Humaa Resources atthe Max. M. Fisher College of Busines, The Ohio ‘tote Universiy. He as authored ce edited 24 books, aswell as numerous research arti- ‘les, rofesce Lewici has served asthe President ofthe Teterational Assocation of ‘Conflict Managemen, and recived the first David Bradford Outstanding Edvestor ward from the Organizational Behavioe Teaching Society for his contibations tothe field of teaching in negotiation and dispute resolution, [Bruce Barry is Associate Profesor of Management and Sociology at Vandertilt University, and also Director of the PhD. program at Vanderbilt's Owen Graduate School of Management. His research on negotiation, influence, power, and justice has ‘appeared in numerous scholarly journals and volumes. Professor Bary served a term 15 President ofthe International Association for Conflict Management (2002-2008), fessional society of researchers, teachers, and practitioners specializing in the fields of confit, dispute resolution, and negotiation, avid M, Saunders is Dean ofthe Haskayne School of Managemen atthe Univer sity of Calgary He has coauthored several ales on negotiation, confit resolution, employee voice, and organizational justice, Pio to accepting his current appointment he vas Director ofthe McGill MBA Iapan program in Tokyo, and he has aveled extensively throughout Asia, Europe, and South America. John W. Minton isthe President and CEO of Hovatar Associates Inc, manage- ‘ment consultation, development, coaching, and reritng frm specializing in meeting the needs of small and medium-sized organizations. He is taught in the business schools of Appalachian Sate and Duke Universities and at Pier Univesity where he was the Jefferson Pilot Professor of Management. He i eurrenily an Adjunet Professor 1 Gardner Webb University, and has served 38a volunteer mediator and arbitrator.EF Preface Welcome othe fourth edition of Negotiation. We are delighted to present this new ‘and updated revision to you. Fit, we weleome to the author teum Prof, Bruce Barry of Vanderbilt University Be has impressive profesional credentials asa researcher in the fields of negoi- tion and confit management, and as an experienced teacher of negotiation atthe Owen Graduate School of Management. For those of you who ae familie with the thied edition, you wll note litle change in the fundamental chapter erganizaton of the book. For those of you who are not fanular with previous editions, a brief overview is appropiate. The text i organized ito 13 chapters. The frst four chapters introduce the reader to negotiation fundamen- tals. Chapter 1 introduces the field of negotiation and conflict management, desribes the basic elements of interdependence with other people, and briefly explores the chal- lenges of managing tat interdependence. The second chapter describes the fundamen ‘al presork that negotiators must do to get ready fora negotiation: framing the dispute (cing what he negotition sal about), defining negotiation objectives, and plan- zing the steps one will pursue to achieve those objectives. Chapters 3and 4 thn present the two core approaches to negotiation: the basic dynamics of competitive (wit-ose) ‘bargaining (Chapter 3) and the basic dynamics of integrative (win-win) negotiation (Chapter 4, "The next three chapters prescat fundamental psychological subprocesses of nego- ‘ition: perception, cognition, communication, persuasion and leverage, and ethical jndgment. In Chapter 5, we review the basic processes of perception, cognition, and ‘communication in negotiation; we specifically examine communication dynamics, ‘8 number of common cognitive and judgment biases made by negotatrs. Ia Chapter 6, we look atthe ways negotiators ean use to pressure the other side, using the tols of ‘ower and persuasion to get the othe to change his or her perspective or give into thei ‘arguments. Finally, in Chapter 7, we examine the ethical standards and ertria that sur- round negosation and create unique challenges for negtiaters in deciding how fully ‘and completely they are going o disclose their bargaining positions. “The next four chapters examine the social contexts in which these negotiations nd which also therefore influence how they evlve. In Chapter 8, we spect cally examine the way’ that the negotiation process changes when the parties ave an ‘established relationship with each otbexPand how the type of relationship affects the negotiation process. We also examine how negotiations change when negsitors are representing the interests of other partis, ater thn simply negotiating for themselvesIn Chapter 9, we look atthe group context for negotiation; we show how many group ‘decision-making and problem-solving discussions ean be viewed as negations, and ‘how negotiators must often bul alliances and partnerships in onde to achieve a leger consensus ina group or organization, In Chapter 10, we delve ino the extensive wrk ‘that has been done to understand individual ciferences in personality sad gender, td how these differences might predict different approaches ta the negotiation proces ad conflict resolution. Finally in Chapter 11, we attempt to clarify how national eultaces ‘Shape the diverse ways that parties approach negotiations ‘The last two chapters emphasize the strategies that can be used by the pais to ‘resolve breakdowns inthe negotiation process. Chapter 12 explores the techniques tht ‘egotitors can use on ther own fo get negotiations back on track. Chapter 13 desribes ‘he ways that hid partes (arbitrators, medisors and facilitators) become involved to help the parties find a resolution, For those instructors who are familiar with previous eitions, the most visible ‘changes wil be inthe updated content ofthe book, fellows: 1, The content ofthe book has heen revised and updated. Every chapter was reviewed by the authors, based on extensive feedback fom faculty who have wed the Book in previous editions. Many of the chapters have been reorganized to present the ‘material more effectively 2 In our continued fort to enhance the book's readability, we have also updated and revised all of the “boxes” and cartoons that offer rea-lie perspectives on neqoti tion dynamics 3. Several ofthe chapters have been extensively revised and update, In Chapter2, we organized the conlenl and expanded the sections on framing dynamics and on the planning process. Chepter 5, we reorganized the content expanded the section on cognitive biases, and improved the discussion of eommniation poceses. In Chaplet 8, we elaborated and clarified the nature of regaining i elaonsips much new research has emerged in his ares In Chapter 12, ve ald a ection on the nate of intractable disputes and reorganized much of the content in this chapter, 4. The structure of this book parallels that of a completely revised readings and elass- room setivites book, Negotiasion: Readings, Evercises and Cases by Lewiels, ‘Saunders, Minton, and Barry 4th ed), also peblished by MeGraw-HilVirwin, This ‘ext and reader can be used together, or separately. A shorter version ofthis text, Essentials ef Negotiation, 3rd ed. 2003), by Lewick, Baty, Saunders sé Minion, «an also be used in conjunction with the readings book, We encourage instrctor 6 contact their loeal MeGraw-Hil/Lrwin epresenatve for an examination copy (OF all 800-634-3963, or visit the website at www me. com). ‘5, Instructional resources, including atest bank aid PowerPolnt ides, ae available {0 aecompany this volume. Instructors should contact theit MeCrew-Hirwin representative. Once again this book could not have bee! completed without the assistance of numerous people. We especially thank ‘+ Many of our colleagues in the negotiation and dispute resolution fel, whose research effort have made the growth of this Field possible, and who have given ‘Us belpful feedback about earlier editions to improve the content of his eiton + The excellent editorial assistance of Steve Stee, specifically for his help 09 copyediting, permissions, and bibliography. + The outstanding skills of Erie Pinews, for efining the est bank and PowerPoint slides. + The aff of McGraw-Hill, especially our current editor, John Weimelser, and our previons editors, John Bierna, Kurt Strand, ad Karen Johnson: Trina “auger and Tracy Jensen, editorial assistants who can solve almost any problem and Christine Vaughan, tireless project manager who turns our confusing instructions and tedious prose into eminently resdable and usable volumes! + Our faites, who continue to provide us withthe time, inspiration, and opper- nites for continued leaming about effective negotiation, nd the personal support, rere to sustain this project. Roy J. Lewiekd ‘Bruce Barry David M. Saunders John W. MintonContents in Brief The Nature of Negotiation = 1 ‘Negotiation: Strategising, Framing, and Planning 30 Strategy and Tactics of Distributive Bargaining 74 Strategy and Tactics of Integrative Negotiation 113 Perception, Cognition, and Communication 147 Finding and Using Negotiation Leverage 189 Ethics in Negotiation 234 Socis! Contest: Relatfonships and Representatives 277 Coalitions, Multiple Parties, and Teams 323 0 u 12 Manoging Difficult Negot 13 Managing Ditfieutt Negs : Individual Approaches 423 ‘Third-Party Approaches 463 Bibliography 499 Name Index $33 Subject Index $41Contents 1 The Nature of Negotiation 1 Joe and Sue Carter 1 troduction 3 Characteristics ofa Negotiation Situation 4 Abterdependence 7 \ Mutuel Adjustrent 9 1 Atoterdependence and Perceptions 14 ‘Aatue Creation 16 vConfiict 17 GQ) Bins Lees Cont, aeons ant Dr Suconf Coe. Pate That Make Cons Dificul to Manage. Conflict Management 20 ‘Overview ofthe Chapters In This Book 24 2. Negotiation: Strategizing, Framing, and Planning 30 Goals—The Objectives That Drive a Negotiation Strategy 31 Direc Eers of Goals on Chote of Stags. Indirect Eft of Golson Choice of Sates. Strategy—The Overalt Pan to Achieve One's Goals 4 Srategy Tacs, o Planning? Strategic Options Vehicles for Achieving Goals. Defining the Isues—The Proces of “Framing” the Problem 37 ‘Why Prames Are Criteal 0 Understanding Strategy. Types of Frames, Another Approceh to Frames: Interests, Righs, and Power. The Frame of an Tse Changes asthe Negonation volves ‘Understanding the Flow of Negotiations: Stages and Phases $0 Phase Model of Negotiation. Getting Ready to Lmplement the Strategy: The Planning Process 53 1. Defing the hse. 2. Assembling the Isues and Defining he Barglning Mi 4 Defining Your Interests 4. Knowing Your Limits and Alternatives. 5. Seting Tygts and Openings 6. Assessing My Constituent. 7. Analeing the Other Party. 8. WhorSrategy Do Want to Pursue? 9. How Wil Present th Ist tothe Over Par)? 10. What Pronocl Need to Be Followed in This Negotiation? Sumary onthe Planning Process ‘Chapter Summary 72st Contant 3° Strategy and Tacties of Distributive Bargaining 74 ‘The Distributive Bargaining Situation 75 The le ofAltemaives toa Nested Agreement. Sesenen Pot. Baring Fundamental Strategies 80 ‘Dicoering the Other Fry's Restance Pla. nuncing he Oder Party’ Resistance Point. iivencing ” Tact Tasks 83 Atte Oticome Values and the Cos of emination, Manage he ter ar’ Inpesions Mody the Other Party's Pcs Manip he evel Cos of Delay or Termination, “ Poston Taken ding Npatiatin 90 pening Ofer Opening Stance nol Concesons Roe of Cncsions. Paver efConeson dating. Fal Ofer Ccommitent 36 Tactical Consideration Ix Using Conmimens. Ealing o Conmiment Preventing the Other Par fom Comming Premanrely. Fading Weysto Abonion 1a Commited Postion, Cosing the Deal 102 Hardball Tats 103, Dealing wth Typical Hardball Tactics. Typical Handbul Tate. Chapter Summary 112 4 Strategy and Tactics of Integrative Negotiation 113 Tntroduction 113 What Mates Integrative Negvition Dierent? ‘An Overview of the Integrative Negotiation Process 118 Creating a Fee Flow of information. Avempting 10 Understand the Other Negotiator’ Real Needs and Objecives. Emphasizing the Contmonaltes between ‘the Parties and Minimizing the Diferences. Searching for Soltons That Met the Goals and Objectives of Both Sides ‘Key Steps in the Integrative Negotiation Process 117 Idemify and Define the Problem. Understand the Problem Fully—Ldentify Interests and Needs. Generate Altematve Solutions. Evaluation end Selection of Altematvs. Factors That Facilitate Suecessful Integrative Negotiation 135 Sime Connon Objective or Goat. Fathin One's Problem-Solving Abilis. A Belief inthe Nadir of One's Ox Postion andthe Other's Perspective. The Morvan and Commitment to Work Together. Trust. Clearand Accurte Commnicaton. A Understanding ofthe Dynamics of Iterative Negoiaten Sumas ‘Why Integrative Negotiation Is DiMeul to Achieve 143 The History af the Relaionship been the Parties, A Belief Tht an see Con Only Be Resolved Distribuivels The Mixed Mone None of Most Negtoring Situations, (Chapter Summary 145 | 5. Perception, Cognition, and Communication 147 Perception and Negotiation 148 “The Role of Perception. Perceptual Distortion n Negotiation. Framing. Section Sunn ‘Cognitive Biases in Negotiation 182 1. Iraional Excalation of Camnionnt. 2. Mythical Pied: Pie Belfi 2. Anchoring ‘and Adjustment. 4. Foaming. 5. Availablity of Information. 6. The Wiener Curse 7. Overeonidence. 8 The Law of Small Numbers 9. SelfServing Biases. 10. Endowment Effect. 11. Ignoring Other’ Cognins. 12. Reaive Devaluation Managing Misperceptons and Cognitive Bases in Negotiation 161 Reframing. ‘Communication in Negotiation 163 ‘Distortion in Communication, Phase Models of Cnumuicaion tn Negotiation. Whats Commonieated daring Negotiation? 168, ", Offers and Counterffers. 2. Information about Alternatives. 3. Information ‘bout Outcomes. 4. Scial Accounts. 5. Communication abou Process. Is More Information Always Beter? How People Communicate In Negotiation 172 Use of Language. Selection of a Communication Channel How to Improve Communication in Negotiation 175. “The Use of Questions. Listening. Role Reversal ‘Mood, Emotion, nd Negotiation 182 ‘Specat Communication Considerations atthe Close of Negotiations 185, "Avolding Fatal Mistakes. Achieving Closure Chapter Summary 187 6 Finding and Using Negotiation Leverage 189 ‘Leverage as Advantage: Why Is Power Important to Negotiators? 189, [ADeintion of Power 192 Sources of Power-—How People Acquire Power 193 ‘Power Based on Infomation and Experise, Power Based on Convol over Resources. Power Hage on One's Postion. Section Sina, Managing Power: Influence and Persuasion 202 ‘The Central Route to Influence: The Message and Ts Delivery 205 Message Content. Message Structure. Persuasive Sil: How to Pitch the Mesnage. Section Sunnary. Peripheral Route to Influence 211 “Aspects of Messages That Foster Peripheral Influence. Souree Characteristics ‘Tha Foster Peripheral Influence. Aspects of Contest Tha! Faster Peripheral Influence, Section Summary. ‘The Role of Recelvers—Targes of Inflvence 227 ‘Aneing to Others. Exploring or Ignoving the Other's Postion. Resisting the Other's Influence. Seton Summary. (Chapter Summary 232sh Coens 7 Ethics in Negotiation 234 ‘Why Do Negotiators Need 10 Know about Ethics? 234 ‘What Are Bthics and Why Do They Apply to Negotiation? 236, ‘What Are the Major Ethical Concerns That Apply to Negotiation? 238, End-Resule Ethics. Rule Ethics. Socel Contact Ethic. Personalise Bis, ‘What Major Types of Ethical and Unethical Conduet Are Likely to Occur in Negotiation? 245, The Range of Avallale Influence Tactics. Typololes of Deceptive Tactics and Ativades toward Their Use. Does Tolerance for Unethical Tactics Lead to Ther ‘Actual Use? Intentions and Motives to Use Deceptive Tactics 251 ‘The Motivation o Behave Uneticlly. The Consequences of Unethical Conduct. Explanations and Jstifiations ‘What Factors Shape a Negotiators Predisposition to ‘Use Unethical Tactics? 260 Demographic Factors. Personality Differences and Moral Development. Moral Development and Personal Values. Contextual Infuences on Unethical Conduct. How Can Negotiators Deal with the Other Party's Use of Deception? 271 (Chapter Summary 274 8 Social Context: Relationships and Representatives 27 ‘The Number of Parties in a Negotiation 278 [Negotiating through Others within a Relationship 279 The Adequacy of Pas Theory and Research for Understanding Negtiton within Relaionships. Forms of Relationship. Negotiations in Coramanel Relationship, ‘Key Elements in Managing Negotiations within Relaionships 289 Trust. Justice. Summary, Using Representatives. 298 ‘Audiences: Team Members, Constituents, Bystanders and Aulences, Tactical “Implications of Social Sructure Dynamics: The Negotiators Dilemma Advice 0 Negoiotors for Managing Their Consttuencies and hudiences Advice to Consents Manoging Agent. Section Summary (Chapter Summary 322, 9 Coalitions, Multiple Parties, and Teams 323 Situations with More Than Two Parties 323, Coalitions in Negotiation "325. What Is @ Coatiion? “Types of Coalitions. Understanding When and Why Coaltions Form. The “Tragedy of he Commons.” How Coalitions Develop. ‘Standards for Coalition Decision Mong. Power and Leverage in Coals How to Build Coalitions: Some Practical Advice. Section nary. ‘The Nature of Multiparty Negotiations 342, Diferencesberwcen Two-Party Negotiations and Maliparty Negeitions Managing Mulparty Negotiations 348 u 2 Comers a ‘The Prnegoiation Stage. The Formal Negotiation Stage—Monaging the Group Proce and Outcome. The Agreement Phase Interteam Negotiations 360, ‘Chapter Summary "362 Individual Differences 363 Early Research on Individual Differences and Negotiation 363 Personality and Negotiation 367 Confer Management Sie, Social Value Orientation, Interpersonal Tras. Self fleey and Locus of Control. Se’Montoring. Machivelanie The “Big Five” Personality Factors. Section Summary Sex, Gender, and Negotiation 377 Mole and Female Negosiarors: Theoretical Perspectives. [Nepolators: Recen Empirical Findings Section Summary. ies in Negotiation 385 Cognive Abily. Emotional Iseligence. Perspective Tang Abily ‘The Behavioral Approach to Diflerences among Negotitors 387 ‘Closing Comments: The Future of Research on Individual Dilferences In Negotiation 389 (Chapter Summary 391 Mate and Female Ai Global Negotiation 394 ‘The American Negotiating Style 395 Not Everyone Negotiotes Like Americans! 396 ‘What Males Cross-Border Negotatons Different? 398 “Emsironmental Context, Ininedate Comest, How Do We Explain Global Negotiation Outcomes? 404 Conceptuallaing Culture and Negotiation 40S {Culture 2x Learned Behavior Culture ox Shared Vues, Culture at Dialect Cature in Conte Hotstede's Dimensions of Culture 407 Indiviualin/Collecivin, Pomer Distance. Masculny/Feminnty. Uncertainty ‘Avoidance. Section Summary How Do Cultural Differences Inftvence Negotiations? 12 Culturally Responsive Negotiation Strategies 416 Low Fania: Moderate Fanart. High Fairy Chapter Summary 421 Managing Difficult Negotiations: Indivie Introduction 423 ‘The Nature of “Difficult o Resolve" Negotiations and Why They Occur 424 The Nature of mpasse. What Makes a Negotiation nracable? Characteristics ofthe Parties. Characteristics of the Negation Conte. Characerstes of the Tesues. Characters ofthe Conflict Resolution Processes. Seti Summary. lual Approaches 423,scones Strategies for Rev pase: Jat Approaches 435 eacng Tmo end Spc Desaon poi Re ec of Conmriction Conran ntues. Establishing Connon Grown. Entanch ‘the Desirability of Options to the Other Party. Section Summary. * Mimatched Models Inet and Orne Reponing othe rer Sie’ Han Dabo aces, Responding When te ther Side Has Hore Power. The Special Prosem ef ending imaruns, Repo When the ter Side Bt Dif Comper Smmary 6 13 Managing Diicult Negotiations: Third-Party Approaches 463 ‘ding Third Parts othe Two-Pary Negotiation races 463 ects Libis Pry hoon, Wh Ta ry lene Appropriate? Which Type of Intervention ts Appropriate? ™ {ype ThirPaty nerves 4 Forma trenton Mes 49 “Aviation Men. Ting Oh vanages nd Dene beat ‘eras Mediation Pos Conan me Informal ntervcton Metts 86 hick Apache More ce? Dsgte Reston Sytem: When he Oration he Third Par Chapter Summary 497 ys Bibliography 499 Name Index $33, Subject Index S41 CHAPTER 1 The Nature of Negotiation JOE AND SUE CARTER “The day started ealy, as usual. Over breakfast, Sue Carter raised the question of| ‘where she and her husband, Joe, would go for thet summer vacation. She wanted to ‘gn up fora tour of the Far East being sponsored by her college's alumni association, However, two weeks on a guided tur witha lot of other people was not what Je had inmind, He needed to getaway from people, crowds, and schedules, and he wanted to charter a sailboat and cruise the New England coast. Inadition, they wee sil not sre ‘whether the children would go with them, The two kids really wanted to goto eamp, 4nd Joe and Sue couldnt afford both summer camp and a vacation for the for of thm, ‘The Carters had not argued (yed), butt was clear that they had a real problem here. ‘Some oftheir fiends handled problems like this by taking separate vacations. With ‘ath of thm working full-time, though, one thing Joe and Sve did agree on was that they would take their vacation together. ‘As Joe drove to work, be thought about the vacation problem. What bothered Joe ost was that there seemed 1 be no good way to manage the conflict productively. ‘With some conflicts, they could compromise; but given what each wanted tis time, ‘compromise didn't seem possible. At other times they would flip a coin; thst might ‘work for choosing a restaurant, bt it seemed unwise in his ase because of how much ‘money was involved and how important vacation time was to them. Inadtion, fip- pings coin might be more likely to make one of them fee ikea lose and the other feel. guilty dhan wo help both fee realy sisted. ‘Walking through the parking ot, Joe met his companys purchasing manager, Ed Line. Je was the head ofthe engineering design group for MicroWatt, a manufacturer ‘of smal electric motor. Ed reminded Joe that they had to settle a problem created by the engineers in Joe's department: The engineers were contacting vendors directly rather tan going through MieroWt’s purchasing department. Joe knew that puchas ing wanted all contacts with a vendor to go through them; but he also knew that his engineers badly needed technical information fr design purposes, and waiting for the information to come through purchasing slowed things considerably. Ed Laine was ‘ware of Joe's views aboot this problem, and Joe thooght the two of them could prob- ably find some way to resolve theif they reall sat down to work on it Joe and Ed were so both aware that upper management expecied middle managers to sete diferences, mong themselves; if this problem “went upstairs" to senior management, it would make both of them look bad.2 Chopert TheNate of Negsaon ‘Shortly after reaching his desk, Joe received a telephone cal rom an automobile salesman with whom be had been taking about anew ea. The salesman aked how Sue fett about the car and whether she wanted to drive it. Joe wast quite sue that Sue [Nould go along with is choice; Jo had picked out axury import nd he expected ‘Su to say ts too expensive. Joe was pleased with the latest er te salesman had ‘made, but thought he might sl eta few more concessions out of in s Be inte. ‘duced Sue's concems to pat more pressure onthe salesman to lower the pice Assoonas Joe hang up the phone itrang again. Iwas Sue, calling to vet her is tration to Joe over some ofthe procedures a the local bank where she worked ss oe ‘io lean office. Sue was frustrated working for an old “family-run bank that was not ‘ety automated, was heavily bureaucratic, and was slow to respond to customer noes, ‘The competition would approve certain types of loans within thee hours tat ook Sue ‘week to get approved, While th bank staff wa oriented tothe public and poe to cos, tomers, they were losing clients to are state and multinational banks tht had enared the city and were providing more eficient services. I seemed that every week Sue wos Josing more and more of her elients tothe lager banks. Whenever she ried to discuss hi with senior management, she was met with resistance and a lctre on traditional values Most of Joe's afternoon was taken up by the annval budget meeting, Joc hated {ese meetings. The people fom the finance department came in and sir tat everyone's figures by 30 percent, and then all the manages hed to argue ence to {ty to get some oftheir new-project money reinstated, Joe had leaoed to work wigh 9 Jot of people, some of whom he did nt like very miach, but these people fom finance were the most arrogant and arbizary number crunchers imaginable, He comld nex Understand why the top brass didnot see how much harm these people were doing te {he engineering group's research and development efforts. Je considered inca ase sonable guy ut the way these people acted made him fel like he didn't want to give "hem an ich, He was prepared to draw the lin and fight it out fr as long ast tose In the evening, Sue and Joe atended a meeting of their town's Conservation Comn- rission, which, among other things, was charged with protecting the town's shane, etands, and nature preserves, Sue isa member ofthe Conservation Commission, and ‘Sue and Joe both strongly believe in sound environmental protection and mansgeriene ‘This evening's case involved a request by areal estate development fin to dian swampy aea and move a small ereck o build a new regional shopping mall. All pr sstions showed that the new shopping mall would attract jobs an venue tothe area ‘and considerably fatten the town's treasury. The new mall was badly needed to replace Several others that had closed, puting a sizable number of people at of work snd "educing the town's tax revenves. Bot the plan might also do ireparale damage tothe ‘Wetlands and the wildlife i tat area, Te initial plan proposed by the development firm had serious problems. and the commission had asked Sue tose if an aceptable solution could be developed. Eventually a site plan ha been worked oat that would ‘have considerably more benefits than drawbacks, But now Sue wes ving difoaten with some members ofthe commission who were ardent conservationists and argusd ‘apsinst any change inthe wetlands on tat lt In addition, word aboat the application ‘ha teed out, and even some members of the town council had decid 1 join the conservationist inthe fight aotacin 9 is home from the council Joe and Sue discussed their respective days as they drove resting Each hugh ates dof sang, because somtines ings ver Sony and ter ines has seam mich oo complicated. AS hy wet esp In, hey etch hove boi how they might ve aproacied cern feretly during the day and were thankful that they had a relationship where they could discus things openly with eachother. INTRODUCTION Pn mie le ie bs mie el wi he ne Coie eee dec ch evs on oath Buea fpr atl ano step. Lavy ng tlk ins ‘ty fot sn Te ple motte ihre fe oxi Nao scrote pe bore rete Neeson wna iil Soa wp pen ow rps SSmehing tht eeron des, int aly, Atoaph he takes ze os ics pe cr ole corte ren ei, eed Se Ce, pun someins pope mgt for ar hing ke ej ter ines er ‘Shively miner hing sh who wl wash the aes, Te Sere and process Seguin fdr the sae epson a ey ae ate ie ‘Baan export eves _ eit on of oe) ed meting nx a terpenes om or) ees ole owe tech tes A le mumbo pespines can wed nnd ot net Ot reson, sadn hay and escrh rom economics, yelp ‘Sess comminetn ier rans, lw ology. a anepln: The same beyonce ay sho tepid simaensnl fm eve fee pe ifs ot Hea rel 1996, Or, aa, nd ary 14 ras, Sid 196, W199 ee pol cn nein st ‘Say fea ings neg he aes pcs f esti ‘Ssmtl or anyone wo wos with ote pope We wil rw fom ee ‘Sou coe tooo eBook ou foes wil nays be on romong 2 {eeperundertaing of te negotiation process - Somcines po a oan ese hey ont reco tha hey terpnng tonto By cing sioner an pti, ty my al et Serta thre no yy ie ei Fes tatty mii pc aya spi he eo ging Pte ty miss nd oe gn ea Ewing yd Prt 1990, Atri book peopl shad wel = pared eg msn sons; understand wate procs of Brg Stsinor io teat ingen sna stim hse ob beter negation nome an fore ‘Wns he wns rain nt nei ern at he took Inns conan wets ean he amet bt omens hye ithe nen itrentings For svamp brain ke th compete hg tog4 Chapeet The ue of etn ‘ver price that happens during ayer sale or flea market, whereas negotiation is more formal proces that ecus when partes are tying tofind a matualy acceptable solution to ® complex confit. In Chapters 3 and 4, when we describe the differences between {wo very ferent forms of negotiation, we wil ell one bargaining andthe other ner ‘tin to make the comparisons between the two clearer, ‘To itlstrate further what ths book is about, nd the breath and scope of negot= ation in ou professional and personal lives, we will tur to the hypobeteal, bus not ‘unrealistic, Je and Sue Carer story that opened this ehaper, (CHARACTERISTICS OF A NEGOTIATION SITUATION ‘The Joe and Sue Carter story highlights the variety of situations that ean be han- led by negotiation. Any of us might encounter one or more of thes stations ver he couse of few dys or weeks We identify ther as nepoiation sation Beenie hey ‘ve fundamentally the same characteristics as peace negotiations between counties Jha: business negotiations between two corporations, ora standoff between police and hostage takers. There are several characteristics common to all negotiation stations (Gee Levick, 1992; Rubin and Brown, 1973) 1, ‘here are two or more parice—that is, two or more inividals, groups or ‘rzsnzations. Although people can “negotiate” with themscives—as when tone, (ne debates wheter to spend the afteoon studying, paying teas or going othe football game—we will discuss negotiation as an inerperaonal,Invagreup, or interaroup process. Inthe Care tory, Joe negotiates with hs wife, the prchaig ‘manager, and the auto salesman, and Sue negoite with her husband senior many ‘agement at the bank, andthe Conservation Commission, among ethers 2. There isa conflict of interest between two or more partes iat i, what ‘fe wants not necessarily what the other one wants—and the parties must scare fora way to resolve the confit. Joe and Sue negotiate over vacitions, Balees sutomobies, and company procedures, 43, The partis negotiate because they think they can use some form of infu nee to get a better dea thst way than by simply taking what the other side wil ‘olutarily give them or let them have. Negotiation i largely a voluntary process tis astrategy pursued by choice; seldom are we required to negwtete oc TT for examples of when we shoud nor nepaiate, ‘4 The parties, atleast for the moment, prefer to search for agreement rather than to fight openly. have one side capitulate, permanently break off contac oe {ake their dspote ta higher authority to resolve it Negotiation occurs whee here {sno system—no fixed o established sto rules or procedures for solving the conflict. oF when the paris prefer to work outside ofthe system to invent shee cn solution. f we keep a rented movie too fon, the store wl eharge usa fa, bu we might be able to negriate that fee if we havea good excuse aso why the {ape is being retured late, Similarly, atomeys negotiate or ples-brgain for het liens who would rather be assured of a negotiated settlement then take thee ances with a judge and jury inthe eourcoom. Inthe Carter story, Joe purses ‘egotation rather than letting his wife decide onthe vacation, aoseptng'« feed Character ofa Neston Salon Box 1a ‘When You Shouldn't Negotiate ‘ioe ee on nn Bea Snort ten . TET ST eat dt oot wa cae wm ‘Doa't negotiate if your counterpart asks for something that you canaot support were ela eh nore = Fn . WEST NSTsnyt ncsne np ene rg a my i ee sheath or eee ta i en ances rence Seta et tr ‘When waiting would improve your postion ey yer have ch sean Muy ofan son wil improre.Ancter opportunity may presen ise Ifthe ods ate god hat youl ain ound with del, wit When you're not prepared utes ye de yo kf a re isn es son onthe way bone. Gathering yor ecoanasance ad reeasng the regtison ay ff handsomely I your ot ey, jut "no" Enc. Lem. a. Win cr ais: cen apo an Taco Get Wor ow Wan Ne Yr: oka Wey. Ire pn She Wey Son ic forthe cr, or ocepting the get ct without question, Sue ses gt Savy ching an padres ae on scrping he ss, tnd ae wos infence te ote of the shopping mal plan aber han et tng ther dels om to esove he problem or wang gota coun 5. Wien we nego, we expect give nike We expt tat bot sides wl mosiy or give In somewhat on he opening Semen’, eet, of Seman6 cChopert The Nau Nesta BOX 12 ‘The Dangerous Rae of Fein Negataton "Expericaced negotiators understand that he proces fresching an aprecmea an aften ‘be emetina nd aumatc. However savy negotiators als kno tat slowing eatin "9 color their perception of sneptiied etcome can be devastating Take, fr example, dsessons surounding corperate mergers. Theoretical, mete une cororateakeoverscrene computes at re un) management ees ss ‘both organizations However, ifsome members of top mtaerent eam refs sare ower or give up cont the rest an bea missed meger opportunity ht would have Provided Beets o bot companies an ote shareholdr Jn cones, tp leaders willngness 1 talk candy soot individ roles ad "esponsiblis as pat of the merger nezoiton can pave the ay for soem fore ‘operations, When Loctheed and Mai Maret merged in 184th two chief exces ked candy aboot their expectations and were sabsequeny able to ialiee thet szrangement in. threes hone cl Lethe shiman Dail Telly was 62 yrs ‘ld andi ot wan't give p immediate corr! s soem before ete Man Ms a's cieferecues a 538 years lid ot fel the sme ine pressures, The tna seed that Fee woul serve firs as both chairman and CEO of Laced Marin te new co ny, bur would phase Marie's CEO, Norman Augustin no bth abs over near Pio. They agred that Tellp would etre tts formal ta fal contol ost ‘Augustine a that ime. Because both men were willing odscss tt emote! Pec andl he merger produced the worl’ Target eeospace and defense compa th relely ie commotion, so. Sen LiL Mary Neg De Fg a Pe Py ees int Wa Ta" ‘The Sena aps 2 pC Ce ™ Although the parties may a fst argue stenvously for what they wan each push: ng the other side or concessions, usually both side wil mel their postions and each will move toward the other As we wil discuss, however, uly creative nego ‘iations may not require compromise; instead the parties may inveta solution tat meets the objectives ofall sdes, 6, Successful negotiation voles the management of intangibles aswell asthe resolving oftangibles (eg. the pice or the terms of sprement). Itai factors are the underlying psychologic! motivations that may directly orindetl influence the partes during a negotiation. Some examples of intangibles are () the need to “ook good" to the people you represent, (b) the desire to Book more busines than anyother salesperson in your office, and (e) the Tear of sting precedent in the nego. Latins. Intangibles ca also include core beliefs and values Intangible factors can have an encrmous influence on negtatan processes and outcomes, and ned oe ‘managed prostvely during negotiations. Fr example, Joe may not want to ake Et Line angry about the purchasing problem hecae he needs Ed's support in the "upcoming budget negotiations, but Je also doesnt watt lose face toh eninces, ‘who expect him to back them up (See Box 1. about the dangerous role of exo) Imtepesinse 7 INTERDEPENDENCE, In egsiation oh paris ned each cer. buyer cznot Boy unless someone else trl and vie wes This station of mt ependency eld itenependence Tnterdependeat cation are comple and have thst own pil calegs Tey se tnore Spe thn statons in ubichene pny independent of tbe be er which tne i simply deeadet on he ter Independent artes can i hey coe, ae a ‘level ethene, uninvolved ouloak One wha is pendent on aber tint sep and commode that ter pays demands and spree, Ror ‘amp ncmployes oly dependet onan employe fo 4, he emposee Stn ser doth jobs insted rg Tersependent pres howe ae opportunity once cach ote and many opin are open obs. Managing nd eaing with hve options canbe dict, however bees ofthe compen of the inerdependent linship Tncrdpeneatlaorsbis ave ciated by inching gost pis need encheter incr soompi te goal erties pret ak ‘genet eam no dle pon sald complete plex projet lone within eine Tiitnpoad bythe pratt ea osccmpish pal ach ern nee toe ons eptember at soe th al ote jest ea tersare repent Noe hat ang erent goals ent mean ha vy te nots om eat the ane ing Diet rot tea emer ay 860 {een tigs, they mst vr ogee This ni of pana an group ons peal tf nerd etalon Another example of inedependnce wo peopl plying 2 Compete fame ef sh, On te one hing, bt players wnt wn he me, other falar oft ly ve person cn win) Ont aerha bth at ply he {une sigs onege (on cane flay eqush lo). Ti of omegen and Eeniing eas characte many interdependent elatoshp Gee Bor 12). Tnterependen goals on ipertan soot of segtaton. Te sce of the inrkpendecebetwer erent ppaating pres derma he rng of possible Cutconn of he egtston nd sages the apropit sales nd tacts hat he tegotatr shold we For instance, the nerdepennce aiden” situation thar isthe mre on pany gx, he more the ote ary lotes—thn th negation "ifn oto ga fe mm ocean calf i eo ons determining the price of «mr spliance or vile (Sih sation now sda zine dct dean Caper 3) Amer pe Independence ocr ina "win visitation tat, soln ei 0 tht both aries can well nthe egoiion. An expt of hit type of negation neler Inning te reltoniip tween two compan n jit vente Such stations, now as integrative negotiation are discussed in detsit n Chapter) The type of incrdependene ewecn he ngsiing pari il eterno bh We ngs of por "ble negation salon andthe ye of sates the negate soul we. ‘The ierdependence of people's oasis the basis for mach cil nterstion. By cxamaning be waysin wich he oa ae inerdpendent we an cx what pe Of ‘harvest ely emerge When tego of oer are peopl eine pexed that onto ca ceve te gost—ncha wining ld el nace tre he s competitive station, also Krown zeros or tue station, aCher) Theat of Neziton meta quercetin, anger than sos thm have ‘been lve. During the cours of hatin, Ihave developed deep eatcnhipe—cahigs and parterhis—ith many of the exectes wih whom Ido tines. We have done shoves of deals wih one anche oer the years. Thre bat been contention td es ‘Tere have been misunertanings tines Buin he end ot ole mings We ave stayed tps, raved ferward, sd pron. That kindof shred telaonnip se tne ‘els ina foundation of wist an respect ats immeasurable ‘But that Kind of trust mos be earned. understood this when Tid my ft deal 23 ‘earsago.A basic premise of my clr carers been he knowlege tt wll be werk. lng with he same people agin a agai. Thal mens tt a ways thangs hc ea am making ht ow bt aso abou gen player oe els. Itmeans ce he ter party as «potential pare, no ara foe tobe vanished. fit were not forthe team ones would aot have a profession. they dint fe ‘hat they coull operate a. roi, we would not bive a intry.T may believe tht ayer deserves every penny bei pod, et hat oly athe eatin, The er Pal sepends upon whee he owner blows he ea prof ty making that payer ‘These ar ot showdown. Inthe eo they are cllbatons, We each haves ner ‘xt in he sucess and heath ofthe other las ai want profession srs to sane and thrive, The various leagues ned estes sappy of uality players whoa aig ‘rope, Each sie as something to offerte other, Eich sie pends ome ohes Tn any industry in which repeat busrese ie done wit these arcs tse aways 4 belace between posing the limit on any parla negotiation an aking ate he ‘ter pay—and your relationship wit hin—survives intact. This not tsps het You shorinate your interests © his. But sometne sn out tet long lere ince fo eave something onthe table especial te oer pay has made a eorthl worke to your advange "Noon kes being ten advantage of Wear man beings, Welle the poten til make amish, Nomutirhow mach eth side steses peptone ho ey zai vey facto ina ngition, There may be times rng the roves wet one pry sealizes he has made an ener in ac ulation or inept and my ack att poe be revised, There maybe ines where ems hat bean are tb the ther party the sre ! mistake ad asks yo foe i the back You do ve todo cel sk te ‘that eit. Bat you ned ask yous, ei wert Ts wha have wo gaa ee teh what i ose in tess of tis person's willingness occ. with mente fe? inant ‘ses, the longer elatoshi such more valuable hn the she in, Sometimes the other party may make a mistake and not no i There are nes ‘hea the GM or ower am dang with makes a major erin his alas or com, ‘its a major oversight nd T an easily take advantage ofthat a jl hn ‘hich “individuals are so linked together that there isa negative corcaton between their goal atainments" (Deutsch, 1962, p76). To the degre that one person achieves bis or her goa, the other's goal ttainment i blocked, In contrast, when parties” goals sar inked so that one person's goal achievement eis others to achieve tei goals, we BOX 13 (Concluded) Perspective But don't He shows me his ops, nd instead fsasing i 1 pall eck. might ven pont out his err. Becanse fT do ersh him, be will evntaly rie And Sktough I mip make ailing on that pti del 1 wil alo ave led ou ele- inship and very kel, any possibly of fur agreements. Ori might be ha he per Sen's mistake cos hm isbn whi ase someon ele mght ake his place—who is ‘much rougher to deal with ands inet on paying me bck for taking his predecessor to (he cleaner. ScuRc: Leigh Sey, Wining hei (Sew Yr Rao Hw, 1958, pp. 217-18 ‘et wth permis ‘have 2 matual-gains situation, also known asa non-zro-sum or integrative situation, ‘where there is a postive corelaton between the goal attainment of both partes. The rnutre ofthe interdependence will havea major impact onthe nature of the relationship, the way negotiations aze conducted, and the outcomes of negotiation (Neslin and Greenhalgh, 1983; Raffa, 1982), Fisher, Uy, and Patton (1991, in their popular book Getting to Yes: Negotiating “Agreement without Giving In, also sess the importance of understanding the nature of Jnerdependence. They suggest that knowing and developing altematives to eaching an agseement with the other party in a negotiation is a important source of power. They rote that, “whether you should er should not agree on something in @ negotiation “scriptive approach advocating problem solving regardless ofthe situation and toward a ‘contingency approach advocating thatthe strategy selected should be based on the ‘objectives of the partes and the nature of their dispute. Although a fledged con- tingeney approach to conflict management hss Yet tobe aiculated and supported by research, mach work has been done to delineate some of the conditions under which cach strategy is appropriate or inappropriate (se Figure 14). (OVERVIEW OF THE CHAPTERS IN THIS BOOK “The book is organized into four parts with 13 chapters, and can be viewed schematically in Figure |, Part 1, Negotiation Fundamentals, contains three chapters in addition to this introductory chapter an examines the basic processes of negotiation, In Par 2, Negotiation Subprocesses, three chapters examine the key subprocesses of negotiation to help explain why negoition unfold as they do. Part 3, Negtiation Con- texts, contains four chapters that place negotiations in broader contexts. The book con- cludes with Part 4, Negotiation Remedies, which contains two chapters that explore Individual and third-party approaches to managing dificult negotiations Negotiation Fandamentals continues with Chapter 2, in which we explore strategizing {in negotiation and the key ole ha planning and preparation play in making negotiation ‘Overview ofthe Chips in Tis Book 28 FIGURELA Spjes of Handling lterprtons! Conf nd Situations Where They Are ‘Appepsnte or Inappropine int Sole ~_ Stations Where Appropriate ___Shation Wer Inappropriate Teeging in cong TT pon isin 2 Sponsored come wp 2 lmao eon ap Commitment sneiet fom tee guste nite iain 4 Orta nthe en: 5. One party lnc aor le the pole, (Resources posi hy rn pes escdedvo whe ei cars probes Obiging 1. Ytelive at yoomay ewes. | eee impaot 9, 2 taweis mre impr tthe ear. 2 Yortebeve tt oa ht 5 Youarevillega pep someting ie .The ctr pry wrong abi fey inte re. +o ae ding om poston of 5. Peseing esnips importa. Donmiieg 1 teeta 1. snes conpe. 2 Spend decison fended 2 toe a pena ye. 2. Unpopar couse of bon 3. pares a eal power nlm {Desens net ve te ae 4 Nesnry overcome aeive a, ‘rte 5. Schone oes igh deo 5. Untintedecsce by heer pay compen, yb coy ys. (6 Schrinces aexperi make tei dessin “lees ng 900 ‘Acting — ls ia, 1. tae nga yu 2 Pec fence eft of 2. ier pony make cefoing ie ter pry ureihs iin: a Poth sei ee ne 3. Cooling off period is needed, i 4 Prom att I ed Compomising 1. Gos prin are tal eishe, 1, On pty nce power 2. Pais ae aly power 2. Problem comple eonph 48 5.Comens cnet Be ache olen siag speach ‘ingaing orden lm Tempo aon complex potion ete RA Nataly li of in, rangi Pn ‘Sie Ph Fes Al a eon Farrel paw eae ee