Negotiation

Strategies-chapter 2
Prof. Ouijdane Iddoub
2018-2019
Today’s objectives
• Understand the process of negotiation.
• Look at the steps of an ideal negotiation process.
• Understand different negotiation styles and how they affect
others
• Understand and make the difference between integrative and
distributive bargaining
What is negotiation?
• Characterized by two or more interdependent parties who
have a conflict of interest, and who choose to address that
conflict by striving to reach an agreement through a process of
mutual adjustment of each party’s demand and concessions
Negotiation Process

Phase 1 • Preparation

Phase 2 • Developing a strategy

Phase 3 • Getting started

Phase 4 • Building understanding

Phase 5 • Bidding or bargaining

Phase 6 • Closing the deal

Phase 7 • Implementing the agreement

Negotiation Process: 1- Preparation
• Setting objectives
• Assessing the other side’s case
• Assessing strengths and weaknesses
How to set bargaining
objectives?

1
•Top line objective

2
•Target objective

3
•Bottom line objective
Negotiation Process: 1- Preparation
cont.
• Define the protocol to be followed in the
negotiation
• What is the agenda?
• Who will be there?
• Where will the negotiation occur?
• What is the time period?
• What might be done if the negotiation fails?
• How will we keep track of what is agreed to?
• How do we know whether we have a good
agreement?
Negotiation Process: 2-Developing a
strategy

• What style to adopt?

• What tactics to use?
Negotiation styles

Source: Based on Thomas-Kilman Conflict Model instrument; Dimensions of Conflict Behavior

Negotiation styles cont.
• The Dual Concerns Model assumes that parties’ preferred
method of handling conflict is based on two underlying
dimensions: assertiveness and cooperation.
• The assertiveness axis depicts the degree to which a party is
concerned with satisfying his/her own needs and interests.
• The cooperation axis depicts the extent to which a party is
concerned with satisfying the needs and interests of the other
party.
Negotiation styles cont.
Competition.
• Approach as win-lose situation; focused on winning in spite of
negotiating position
• Seek to dominate, control negotiation
• Pay less attention to customer relationship
Accomodation.
• High empathy; eager to meet needs of others
• Good relationship-building skills
• Give in to conflict because of concern for customer
relationship; being agreeable more important than winning
Negotiation styles cont.
Avoidance.
• Increase leverage by waiting for others to make first concession
• “I don’t want to talk about it;” miss opportunities for mutual gain by
ignoring problems
• Sidestep pointless conflict
Collaboration.
• Satisfy both parties’ goals for win-win
• See conflict as creative opportunity; create more value walking out
than envisioned walking in
• May spend more time/resources than called for
Negotiation styles cont.
Compromise.
• Expect give and take; value fairness
• Reasonable stance often results in efficient resolution
• May miss opportunities, neglect relationship aspects by
moving too fast
What tactics to use ?
What is the difference between strategy
and tactics?

Strategy is the overall approach for conducting the

negotiation.
Tactics are particular actions used to implement a
strategy.

Whereas a strategy provides the overall approach used

throughout the negotiation, a tactic is particular action
used at a specific time during the negotiation to serve a
more limited role or purpose.
What tactics to use

How to prepare for the first meeting?

• Where to negotiate
• When to negotiate
• The first meeting
Negotiation process : 4- Building
understanding
• Getting information
• Testing arguments and positions
• Using timing and adjournments
Negotiation process : 4- Building
understanding cont.

How to get information ?

• Open questions
• Probing questions
• Closed questions
• Hypothetical questions
Negotiation process : 4- Building
understanding cont.
How to test arguments and positions?
• Summarize regularly what has been said
• Avoid being sidetracked
• Say only what is needed
• Do not interrupt responses to your questions
• End each statement with a direct question
Negotiation process : 5-Bargaining

• Trading concessions
• Breaking deadlocks
• Moving towards an agreement
What is the difference between
negotiation and bargaining?
• Negotiation is a process by which we attempt to persuade
people to give us something we want in exchange for
something else.It includes the attempts to identify and assess
the perspectives,strategies,needs,expectations of the
participants and the discussions the parties hold with one
another.

• Bargaining on the other hand,is much more narrower than

negotiation.It refers only to discussions that take place,the
purpose of which is to persuade the other party to accept
your terms.
Bargaining = negotiation ??

The danger in using the two terms as synonoms is that it

encourages us to view negotiation as an event rather than a
process.We may thus neglect vital elements of that process.
Bargaining ….

“In its purest form,it is mind against mind.”

(John Illich,1980)

“It is better to give away the wool than the sheep”

(Italian proverb)
To avoid unwise concessions
A concession is a revision of a previous position you have
held and justified publicly.

• Know where to stop

• Repeat aloud the other party’s offer
• Use hypotetical questions
• Make conditional offers
• Use packages
• Value your concession in other party’s terms
• Think long-term consequences
• Be firm on interest, flexible on positions
Deadlocks…
Why do deadlocks arise?
• Both parties have widely divergent objectives
• One party mistakes firmness for rigidity and will not
make concessions even to keep the negotiation “alive”
• As a deliberate tactic during a negotiation to force the
other party reconsider its position and make concessions
Moving towards an agreement
• Advice and suggestions
• Promises
• Threats
• Explanations
• Praise
• Criticism
• Leading questions
• Apologies
• Reflecting
• Adjournments
• Humour
• Joint agreed summaries
• Proposals
Negotiation process: 6-closing
Formulating an agreement
1. Check all aspects for agreement
2. Ensure full understanding
3. Do not use ambiguous words or
phrases
Ensuring implementation
1. Clarify the terms of agreement
2. Ask yourself : how much of what,
when?
3. Try to get the agreement in writing

Reviewing your negotiating experience

Negotiation Strategies
Negotiation strategies…
What’s Integrative bargaining?

• Integrative bargaining (also called "interest-

based bargaining," "win-win bargaining") is
a negotiation strategy in which parties collaborate to find a
"win-win" solution to their dispute. This strategy focuses on
developing mutually beneficial agreements based on the
interests of the disputants.

The law of win/win says “Let’s not do it your way, or my

way; let’s do it the best way”
Greg Anderson
The 22 Non-negotiable
Ways of Wellness
Integrative bargaining
What’s distributive bargaining?

• Distributive bargaining, also

called "claiming value," "zero-
sum," or "win-lose" bargaining,
is a competitive negotiation
strategy that is used to decide
how to distribute a fixed
resource, such as money.
Distributive bargaining
Distributive Vs Integrative bargaining
Distributive Vs. Integrative bargaining
Why don’t we see more integrative
bargaining in organization?