Three Basic Types of Negotiation1-5

1. Deal making: purchase of a new home or car

2. Decision making: parties in a zoning case

3. Dispute resolution: litigation over property rights

While the three have subtle differences, all are

forms of negotiation

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 The Five Elements Common to 1-7
Negotiation Situations

1. Two or more parties (or interests)

2. Interdependence

3. Common goals

4. Flexibility

5. Decision-making ability

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 1- Parties and Their Interests 1-8

 Parties can view a conflict situation differently

 That view, or frame, leads them to focus on some
characteristics of the conflict and ignore others
 Relationship/task frame: Parties focus on either
ongoing relationship or the subject matter of the
dispute
 Emotional/intellectual frame: Parties pay
attention to the emotional components of the
dispute or behaviors of the parties
 Cooperate/win frame: Parties seeks to benefit
both parties or to maximize personal gain
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 1/1 Developing Negotiating Skills
1-9

 Negotiations are rarely pure win-lose or win-

win propositions
 Negotiations take place under conditions of
ambiguity and uncertainty
 Most negotiations involve existing or potential
sources of conflict that impede reaching
agreement

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 1/1 Developing Negotiating Skills
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 Negotiating progress comes in stops and starts.

Most complex negotiations take place between
agents of groups and not the groups themselves
 Complex negotiations often involve a team
approach
 Negotiating skills can be learned

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 1/1 Developing Negotiating Skills
1-11

 Negotiations are chaotic and seldom pass

sequentially through distinct phases such as pre-
negotiation, deal structuring, detailed bargaining,
and agreement
 Negotiations involving multiple parties and
complex issues challenge a negotiator
 Most negotiations are linked to other negotiations
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 1/2 Bargaining Styles: Dual Concern
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Model (assertiveness/cooperation)

Five bargaining styles

1. Avoiding

2. Accommodative

3. Collaborative

4. Competing

5. Compromising

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1/2 Dual-Concern Model of Bargaining 1-13
Styles

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½ Tactics for Success: Find Common Interests
1-17 by
Asking the Right Questions!
 Open-ended: “What were you hoping to settle
today?”
 Leading: “Don’t you think this proposal meets one
of your goals?”
 Clarifying: “Can you postpone collecting that fee
until next year?”
 Gauging: “How important to you is the 24-hour
service guarantee?”
 Seek agreement: “If we agree to your delivery
terms do we have a deal?”
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 2- Interdependency 1-18

 Without interdependency no reason to negotiate,

no motivation to reach agreement
 Degrees of interdependency include: one-shot
negotiation, repeat transactions, or long-term
relationship

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 3- Common Goals 1-19

The two most important types of goals

1. Content: the substance or specifics

2. Relationship: how the parties want to be

viewed by each other

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 3/1 Other Types of Goals 1-20

Prospective: initial objective

Transactional: objectives that arise during

negotiations

Retrospective: objectives that arise after

negotiations are complete

Collaborative: mutual objectives

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 4- Flexibility 1-21

 A power shift can quickly occur in a negotiation

situation. A negotiator must be able to respond in

a strategic way.

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 5- Decision-Making Ability 1-22

 Negotiation involves at least two people making

decisions that require judgments and choices
 Judgment involves recognizing and evaluating the
content of the options presented
 Choice involves actually selecting an option

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 5- Decision-Making Ability 1-23

 Parties often differ in how they think or process

information

 People develop schema as a way of organizing

current knowledge and as a way to process future

information

 Some schemas create biases

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 Biases That May Affect a Negotiator
1-24

 Availability bias: An outcome probability is based on

how easy it is to imagine
 Representativeness bias: Stereotyping
 Self-serving bias: Belief that an option is true
because it benefits them
 Self-enhancement bias: Belief that one’s own
behavior is more constructive
 Impact bias: One overestimates the positive/negative
satisfaction of an outcome
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 Multiparty Negotiations
1-25

(three or more parties or interests)

Usually present significantly different challenges

and negotiation techniques:
1. Coalitions form to control the outcome
2. Trade-offs can occur with one or more
3. Majority rule may ignore interests of minority
parties
4. Consensus does not mean all parties agree on
all issues, but on the whole
5. Communication is more difficult due to the
number of people and messages required
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 Negotiation Myths and Facts* 1-26

Facts
Myths 1. Good negotiators
1. Good negotiators are make concessions
born
2. Good negotiators
2. Experience is a great never lie
teacher 3. Good negotiators
look for common
3. Good negotiators take
interests
risks 4. Everyone is a
negotiator
4. Good negotiators rely
on intuition
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