Game Plan

Course Overview
Introduction to the University of Michigan

The Four-Stage Negotiation Process:

1.0 Prepare: Plan Your Negotiation Strategy
2.0 Negotiate: Use Key Tactics for Success
3.0 Close: Create a Contract
4.0 Perform and Evaluate: Finish the End Game

Apply Your Negotiation Skills: “The House on Elm Street” Negotiation

1.0 Prepare: Plan Your Negotiation Strategy

1.1 Preliminary Question: Should I negotiate?

1.2 Is this a position-based or interest-based negotiation?

1.3 Am I trying to resolve a dispute or make a deal?

1.4 How should I analyze a negotiation?

1.5 Is this a cross-cultural negotiation?

1.6 How should I handle ethical issues?

1.7 Should I use an agent to negotiate for me?

 Should I Negotiate?

YES

Negotiate?

NO
 Out-of-Class Negotiation
A large percentage of the class predicted that
most students would not be successful.

Results: 69% successful

Range: 6% to 100% discount

Average: 40% discount

Total Savings = $1580


Negotiation Strategies and Tactics
•  BATNA
•  Stretch goals
•  Relationship building
•  Unconventional:
ü  Poverty
ü  Stretching the truth
ü  Timing
ü  Sympathy
Feelings About the Negotiation
Didn’t Enjoy: Enjoyed:
Uncomfortable Pleased
Embarrassed Delighted
Terrified Thrilled
Hesitant Happy
Guilty Good
Weird Fun
Strange Enjoyable
Dreadful Excited
•  Negotiation professor buying a big-screen TV
•  Lots of research on different models and
dealer’s costs
•  Visited several dealers
•  Combined price of TV with installation,
satellite dish, etc.
•  Obtained price concession by mentioning
competitor’s offer
•  Saved $120. A successful negotiation?
Bazerman, Smart Money Decisions
•  College offers a job to professor
•  She replies by email: “Granting some of the following
provisions would make my decision easier…. Let me
know what you think.”
•  Examples of the provisions: a higher salary, “no more
than three new class preparations per year for the
first three years”
•  College search committee replied: We have “decided
to withdraw (the) offer of employment to you.”

Flaherty, “Negotiated Out of a Job,” Inside Higher Ed
 Conclusion: Should I Negotiate?

In making a decision about whether to

negotiate, consider your feelings about
negotiating as well as the potential risks
and rewards.