Class 1 & 2

Fundamental
Negotiation

NEGOTIATION AND CONFLICT MANAGEMENT

8/12/19 1 7-1
 Learning outcomes

• After the lecture the student should:

- Discuss and explain the term negotiation
- List and discuss ways to resolve disputes
- Identify the various internal and external factors
impacting negotiations

7-2
 Key vocabulary

• Negotiation
• Negotiation - process whereby parties with
differing wants and objectives reach mutually
agreed outcome based on compromise
• Consultation - seeking for ideas/opinions
• Coerce - compel/force without regard for
individual wish
• Tactics - manoeuvres to achieve an aim
• Compromise - settlement of dispute by
concession/ midway between different things

7-3
 Warming up

• Practice greeting and giving compliments

• Why greeting and giving compliments are so
important
• Work in pair, practice greeting and making
compliments
• 3 pair will come to class and practice
• Other student will observe and comment on
• His/her confidence, calm, clear voice, eye
contacts, body language

7-4
 OPENING CASE
After a long trip visiting a relative, Mr. Duong is looking for a
present for his fiancée in Thai Nguyen. He thinks of a pretty pearl
necklace in a jewelry shop in Ha Noi. It’s quoted VND 6 million.
He made a counter offer of VND. 3 million.
- “Done!” the seller said right away (1) Give your
Mr. Duong feel surprise himself with his bargaining abilities. comment on the seller
The seller seems very happy. Actually, the seller offer his big and the buyer
customer a pair of eardrops free of charge. So both the necklace negotiation?
and eardrops cost him 6 million only. Mr. Duong start to (2) Why Mr. Duong
hesitate, there is a growing doubt in his mind. Whether he get an
hesitate? Why the
over price?
The seller promptly packs the gift box, warmly hug and wishing seller is happy?
Mr. Duong a happy family during sending Mr. Duong off. (3) What should be
said/done in order to
make both sides
happy?

7-5
 Small test on your negotiation
skills

• Please answer the following questions in order

to check your understanding of negotiations. For
each questions choose the most suitable answer
from 1 to 5:
1:Totally agreed
2:Agreed
3: I don’t know
4: Disagreed
5: Totally disagreed

7-6
 Small test on your negotiation
skills

1) I believe that everything can be negotiated

2) There must be a winner (gain advantage) and
a loser (suffer loss) after every negotiation
3) I try to gather information as much as possible
about my partner before every negotiation
4) My partner’s first offer will show me the
negotiation strategy to follow
5) I always try to make a new chance for
negotiation by positive actions, e.g. offer a small
concession
6) For me, the more you win each negotiation,
the more success you gain
7-7
 Small test on your negotiation
skills

For the question 1 3 5, your point = 6 - the

number you chose
For the question 2 4 6, your point = the number
you chose

Your total point:

Less than 19: you are not familiar with
negotiation
From 19 to 24: you are familiar with negotiation,
but need to reinforce
More than 24: you have good understanding of
negotiation
7-8
 “If you are going to play the game properly you’d
better know the ruler”
(The Essence of negotiation – Jean M. Hiltrop and
Sheila Udall – page 8)

8/12/19 9 7-9
Case 1: Miner’s boots dispute
(Page 1)

Tell me the real need of the miner

Did he really negotiate with the shift boss?
How you could talk to the boss in this case to get
what you need?
Why the superintendent of the mine have the
better procedures.

7-10
Dispute - 3 ways to resolve

• A dispute began when one person/party makes a

claim or demand on the other who rejects it
• The claim may arise from a perceived injury or
from a need, or aspirations
• To resolve a dispute means to turn opposed
positions (claim and its rejection into a single
outcome)
• Party may choose to negotiate for an agreement,
use arbitrator or just avoid it (drop the claim)

7-11
Dispute - 3 ways to resolve

Power
Higher based
cost Right
based

More
Interest sa1sfac1on
based

7-12
Reconciling interest

• Interest are needs, desires, concerns, fear, or

wants
• Involves probing for deep-seated concerns,
devising creative solutions, making trade-offs
and concessions where interests are opposed
• Negotiation – back-and-forth communication
intended to reach agreement
• Negotiations that focus primarily on interests
are interests-based negotiation (vs. rights-based
and power-based negotiations)
• Interests-based negotiation = problem-solving
negotiation
7-13
Right based

• Right define under law, contract, or socially

standards
• Rights are not clear and sometime contradictory
• Use 3rd party adjudication
• Public court
• Private arbitrations

7-14
Power based

• Power – the ability to coerce someone to do

something he would not otherwise do
• Exercise power – impose costs on the other side
or threaten to do so by 2 common forms: (1)
acts of aggression and (2) withhold the benefits
that derive from a relationship
• Power procedures: 2 types (1) power-based
negotiation (an exchange of threats) and (2)
power contests (parties take actions to
determine who will prevail)

7-15
Interrelationships among Interests,
Rights, and Power

Interests

Rights

Power

7-16
What is Negotiation

• Where When What How

• Negotiation takes place when two or more people,

with differing views, come together to attempt to
reach agreement on an issue. It is persuasive
communication or bargaining.

• “Negotiation is about getting the best possible deal

in the best possible way.”

7-17
Negotiation is

• Bargaining (give and take/ communication)

process between two or more parties (each with
its own aims, needs and viewpoints) seeking to
discover a common ground (mutual
benefits) and reach an agreement to settle a
matter of mutual concern or resolve a conflict

http://www.businessdictionary.com/

7-18
• Negotiation - process whereby parties with
differing wants and objectives reach mutually
agreed outcome based on compromise
• Compromise - settlement of dispute by
concession/ midway between different things

7-19
• Negotiation – central process of collective
bargaining and dispute resolution
• A daily reality in every relationship
• Everyone is always in a negotiation
• With education and training one can become a
better negotiator
• A complex process with many forces coming into
play

7-20
Who is the best negotiator?

Or

7-21
Children are the best negotiators

• Because they understand and

know what you want intuitively

7-22
So Negotiation is ???

• An art

• Or science

7-23
 THINGS TO AVOID

§ Time
§ Skills, Capabilities, Body languages
§ Prejudice
§ Who make final decision
§ Only one plan
§ Easy to give up
§ Unable to control time and place

8/12/19 247-24