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Negotiation

TCM 710 – Project Leadership Overview of Chapter 5 – Volume 2
From:
Verma, Vijay . The Human Aspects of Project Management – Human Resource Skills for the Project Manager, Volume Two. Upper Darby, PA: Project Management Institute.

be open and honest ▫ Generate options that advance shared interest  Evaluate options and choose the best one ▫ Results based on standard criteria  Must based on project objectives and success criteria Page 146 . be flexible in the ideas offered.About Negotiation • Principles of Negotiation ▫ Separate the people from the problem  Helps avoid the endless cycle of actions and reactions  Put yourself if the other person’s shoes ▫ Focus on common interests  Acknowledge the interest of the other party.

sensitive to personal feelings ▫ Hard Negotiation  Negotiators consider a situation a contest in which both parties take strong positions and are seen as adversaries ▫ Principle Negotiation  emphasizes resolving the issues based on merits rather than through a haggling process focused on what each side says it will and won’t do Page 147 . with a special emphasis on avoiding personal conflict.About Negotiation • Common Methods of Negotiating ▫ Negotiation Process  Pre-negotiation planning  Actual negotiations or agreement  Post-negotiation critique ▫ Soft Negotiation  Negotiators are friendly.

About Negotiation • Impact of Culture on Negotiating ▫ Material Culture ▫ Language  The physical objects or technologies created by people  A mirror of any culture. beliefs and attitudes effect daily life such as dress. literary traditions and other related customs and artifacts  Transmission of knowledge ▫ Aesthetics ▫ Education ▫ Religion. music. primary medium of communication  Refers to art. Beliefs. etc  The organization of negotiators into groups and the they structure their activities to accomplish goals  Important when governments are involved in joint ventures . eating habits. and Attitudes ▫ Social Organization ▫ Political Life Page 149  Religion is mainspring of a culture. dance.

About Negotiation • Impact of Culture on Negotiating ▫ The Pre-Negotiation Planning Phase  PM’s develop a plan or an approach to the negotiations ▫ The Negotiation Meeting Phase (five stages) Protocol – participants get acquainted Probing – communication begins Rough bargaining – going after what you want Closure – issues of cost. schedule and performance are settled  Agreement – final goal of negotiations     ▫ The Post-Negotiation Analysis  Provides feedback about how well the planning and negotiating was carried out Page 152 .

Negotiation Strategies • Types of Negotiations ▫ Distributive Negotiations (win-lose) ▫ Integrative Negotiations (win-win) ▫ Lose-Lose Negotiations ▫ Attitudinal Structuring  Occurs during intense conflicts over economic issues such as negotiating cost overruns or schedule delays  Used when both parties show flexibility and trust and are strongly motivated to solve problems and explore new ideas  Both parties take an extreme position and consequently no satisfactory agreement can be reached ▫ Intra-organizational Negotiations Page 155  Process by which the parties seek to establish desired attitudes and relationships  Negotiations are carried out be representative of each group by obtaining the agreements of their respective groups .

Negotiation Strategies • Basic Negotiation Model ▫ Unilateral Negotiation Strategies  Trusting Collaboration – use when both relationships and substantive outcomes are important  Open Subordination – negotiators are more concerned about positive relationships than about substantive outcomes  Firm Competition – used when substantive outcomes are important and relationships are not  Active Avoidance – used when neither the substantive outcomes nor the relationships are important to them or to their organization Page 155 .

Negotiation Strategies • Basic Negotiation Model ▫ Interactive Negotiation Strategies  Principled collaboration – both parties discuss openly  Focused subordination – open subordination can be modified by discovering and then agreeing to those key needs that are of interest to the other party  Soft competition – PM should soften strategy to avoid destroying relationships with people he/she may need later  Passive avoidance – avoid negotiation by delegating someone else to explore outcomes  Responsive avoidance – avoid negotiations by applying standard operating procedures or by developing new policies that address the other party’s concerns Page 124 .

Negotiation Strategies • Basic Negotiation Model ▫ Combining Unilateral & Interactive Strategies  Core Outcome conditions  One party values the relationship but the other party does not  One party does not value the relationship but the other party does  Both parties value the relationship. but one party does not values substantive outcomes ▫ Intergroup Confrontation Technique  Each group meets separately and prepares two lists  The two groups come together and share their perceptions  The groups separately look deeper into the issues  The groups meet together to share their new insights Page 160 .

but also ensures positive outcomes ▫ ▫ ▫ ▫ It produces unwise agreements It is inefficient It endangers an ongoing relationship Positional bargaining is worse when many parties are involved • Avoid Bargaining Over Positions • Separate the People from the Problem ▫ Negotiators are people first ▫ Negotiator’s interest both in the substance and relationship Page 161 .Practical Guidelines for Negotiation • Commit to Negotiate for Mutual Gain ▫ Use principled negotiation to achieve win-win outcomes ▫ This approach not only makes negotiating process easier.

not positions ▫ Reconciling interests leads to a wise solution  Interests define the problem  Shared and compatible interests lie behind opposing positions  Identifying interests  Communicating interests Page 164 .Practical Guidelines for Negotiation • Separate the Relationships from the Substance ▫ Perceptions – understanding things from another persons point of view ▫ Emotions – dampen negative impact of emotions ▫ Communication – key to successful negotiation ▫ Prevention • Focus on Interests.

Practical Guidelines for Negotiation • Generate Options for Mutual Gain ▫ Diagnosis          Premature judgment Searching for the single answer The assumption of a fixed pie Inability to address other party’s interests Separate inventing from deciding Broaden your options Multiply options by shuttling between specific and general Look for mutual gain Make their decision easy ▫ Prescription ▫ Insist on using object criteria ▫ Develop objective criteria ▫ Negotiate with objective criteria Page 168 .