Dysfunctions

Dysfunctions

Competitive processes.  Misperception and bias.  Emotionality  Decreased communicatio n.  Blurred issues.  Rigid commitments.  Magnified differences, minimized similarities.

The Dual Concerns Model
3

05/09/08

Discussion: Fisher Questions
 

What are 2 standard negotiating strategies? According to Fisher, what is a wise agreement List 3 reasons and explain them why the author rejects arguing over positions as a way to negotiate. How can the human element help or harm negotiations? How will perception of the other side help in negotiations? How can your own perceptions influence negotiations? Why should you give your interests and reasoning first and your conclusions and

• Social forces. • Argumentación.Argumentation vs. – Una mezcla delicada de: – Discusión racional. 05/09/08 – Retórico. – Fuerzas sociales. • Persuasión. – Presenting facts and data in logically sound ways in order to persuade someone to change belief or behavior. Persuasion 5 • Argumentation. . • Psychological forces. – Fuerzas psicologicas. – Presentación de hechos y de datos de maneras lógicamente sanas para persuadir alguien de cambiar creencia o comportamiento. – A delicate mix Of: • Rational argument. • Persuasion.

Ting Toomy .

El modelo dual de las preocupaciones 7 Mucho Preocupación por otra Accommodating Adaptarse Problem Solving Colaborador Compromising Compromiso Poco Inaction/Avoid Evitar Contending Competetivo Poco Mucho Preocupación por yo mismo 05/09/08 .

• You might work to help save another’s face. • Usted puede ser que trabaje para ahorrar su propia cara. 05/09/08 . • You might work to save your own face. • La cara es un concepto importante en negociaciones del conflicto. • La ahorra cara está evitando la verguenza.Face (Cara) 8 • Saving face is avoiding embarrassment. • Face is an important concept in conflict negotiations. • Usted puede ser que trabaje para ayudar excepto cara de otra persona.

. • Different ways of – "I" orientó la perspectiva que acentúa individualismo.Two Types of Cultures 9 • Collectivism. • Individualism – “nosotros" orientamos la perspectiva que acentúa relaciones. 05/09/08 metas y deber. • Individualismo – “I” oriented perspective that emphasizes individualism. • Diversas maneras de definir uno mismo. – “we” oriented perspective that emphasizes relationships. • Collectivism.

• “Cara que da" es la estrategia del facework usada para defender y para apoyar la necesidad de otra persona de la inclusión (collectivism). y para defenderla contra pérdida de libertad personal (individualismo). para preservar la autonomía. • “Face restoration” is the facework strategy used to stake out a unique place in life. • “Cara de la restauración" es la estrategia del facework usada para estacar fuera de un lugar único en vida. 05/09/08 . preserve autonomy. and defend against loss of personal freedom (individualism).Facework 10 • “Face giving” is the facework strategy used to defend and support another’s need for inclusion (collectivism).

Revised Conflict Map 11 05/09/08 .

The representative of the residents of the apartments is concerned that a nightclub will play loud music and the patrons of the nightclub might drink too much and become a nuisance in the neighborhood. Role 1: Ronaldo Role 2 Alfonso (Representative of Apartment)  . Ronaldo has purchased the property and has all of the necessary permits to begin construction on his nightclub.Negotiation Role Play    Ronaldo wants to start a nightclub in an old warehouse near the edge of a residential area with several apartment buildings. Ronaldo arranges a meeting with the representative of the residents of the apartments to negotiate terms of an agreement so that he can build his nightclub without causing problems with the residents.

Key Concepts 13 05/09/08 .

670 How much would you offer to pay for this watch?  .Negotiation Case  While on vacation you go into a jewelry store and see an attractive looking watch. You ask the store’s owner how much it costs and he replies $4.095.

When should you negotiate When should you never negotiate .

• Cuando las demandas son ilegales o inmorales.Lewicki: When Should You Never Negotiate 16  When you don’t care. • When they act in bad faith. • Cuando el esperar mejoraría su posición. • Cuando le no preparan. • When you could lose everything. . • Cuando usted podría perder todo. • Cuando usted no tiene tiempo.  Cuando usted no cuida. • When you don’t have time. • Cuando no hay nada usted podría ganar (el otro hace que nada usted quiera). • When there is nothing you could gain (the other has nothing you want). • When the demands are illegal or unethical. • Cuando actúan con maldad. • When waiting would improve your position.

• Distributive negotiation is all about who gets (or pays) how much.Distributive Negotiation 17 • Goals of one party are in fundamental. It is also where more for me means less for you. conflicto directo a otro partido. • Maximizing the share of resources is the goal. • Los recursos son fijos y limitados. direct conflict to another party. • Las metas de un partido están en el fundamental. . • La negociación distributiva está todo sobre quién consigue (o paga) cuánto. • Resources are fixed and limited. • La maximización de la parte de recursos es la meta. Está también donde más para mí los medios menos para usted.

. • Acentúe los las cosas en campo común entre los partidos y reduzca al mínimo las diferencias. • Search for solutions that meet the goals and objectives of both sides. • Attempt to understand the other negotiator’s real needs and objectives. • Intente a entender las necesidades verdaderas y los objetivos del otro negociador.Integrative Negotiation 18 • Create a free flow of information. • Cree un libre flujo de información. • Busque para las soluciones que logran las metas y los objetivos de ambos lados. • Emphasize the commonalties between the parties and minimize the differences.

Positions and Interests .

• • Las posiciones son cosas concretas que usted dice que usted quiere.Position/Interest 20 • Positions are concrete things that you say you want. los miedos y las aspiraciones. • Interests are the tangible motivations that lead you to take that positions – needs. fears and aspirations. concerns. las preocupaciones. desean. desires. • Los intereses son las motivaciones tangibles que le llevan a tomar que las posiciones . .las necesidades.

most important  Find areas of agreement  Postpone decision while conducting additional research  .Managing simple conflict Clarify both perceptions of message  Focus discussion on issues  Use facts not opinions  Use structured problem solving  Compromise  Make conflict group concern  Tackle one issue.

rather than conflict to win Seek cool.conflict     Encourage active listening Keep discussion on key issues Turn discussion to problem to solve.Managing ego . calm climate    Be descriptive rather than evaluative Develop rules or procedures that permit differences of opinions Agree to disagree & return to areas of agreement .

Two Types of Negotiations .

. cooperative. or some of both.Negotiator's Dilemma   In any negotiation. David Lax and James Sebenius call this the negotiator's dilemma  Joint value  Joint gains  new developments are considered improvements by both sides. the parties must decide whether to be competitive.

Key Concepts .

– Interests. – People. • Principios Dominantes Modelo de GIOC. – Intereses. • (MANA). – Criteria. – Criterios. – Opciones. – Gente. – Options.Principled Negotiation 26 • Key Principles – PIOC Model. . • (BATNA).

• “central cues” – logic. tone. 05/09/08 . hechos. – Normative Influence. no adversarial. – “señales centrales" lógica. agradable. not adversarial. – Informational Influence. tono. postura. • Research on Influence. • “peripheral cues” nonverbal. • Future relationship importance considered.People 27 • Partnership in problemsolving. likable. posture. • La importancia futura de la relación consideraba. • Influencia Normativa. • Investigación sobre influencia. • Sociedad en la solucion de problemas. razonamiento. – "señales periféricas" nonverbal. • Influencia Informativa.

• Tiene en cuenta soluciones creativas. • Allows for creative solutions. – Conozca a sus audiencias. • Must prepare. hace la preparación. 05/09/08 . what you say you want. – Sepa sus el propios. • Qué usted necesita contra lo que usted le dice desee. – Know your own. – Know your audiences’. do homework.Interests 28 • What you need vs. • Debe prepararse.

– Ejemplo: Clip jerry de McGuire.BATNA/MANA 29 • Best Alternative to a Negotiated Agreement. cuál es su camina alternativa ausente? – Pese cada resultado sugerido contra su BATNA. – Example: Jerry McGuire clip. – If you can’t come to an agreement. • El mejor alternativa a un acuerdo negociado. 05/09/08 . what is your walk away alternative? – Weigh every suggested outcome against your BATNA. – ¿Si usted no puede venir a un acuerdo.

Importance of BATNA 30 • If no BATNA. – example: negotiating condo. stocks. acción. • Si ningunos BATNA. arriesgan el extender de ejemplo de la comisión: – condo de negociación. 05/09/08 . • Need to know when it is in your best interest to walk away. risk escalating commitment. • La necesidad de saber a cuando está en su mejor interés camina lejos.

Whatever hand you’ve been dealt. Weaken the other party’s BATNA. here are three potential approaches to strengthening    Improve your BATNA.  . Identify the other side’s BATNA.Improving Your Position  A Weak BATNA  Strengthening a BATNA    A weak BATNA is not the end of the world.

Options 32 • Expand the pie. • Implicación en la solución = más arriba probabilidad de la persuasión. • Amplíe la Pie. • Brainstorm solutions. • Involvement in solution = higher likelihood of persuasion. • Soluciones de la buena inspiración. 05/09/08 .

• La negociación está sobre más que una división fija de un solo recurso (pastel). • More than half. • Más que medio. • Make the “Pie” bigger so that you both get.“Expanding the Pie” 33 • Negotiation is about more than a fixed division of a single resource (Pie). • Haga la " pastel" más grande de modo que usted ambos consiga. • “Win-win” situation. 05/09/08 . • "Ganar-gane" la situación.

“Expanding the Pie” 34 • Clear Opportunities for Win-Win. Posibilidad de repartos laterales. 05/09/08 . • Possibility of side deals. Diversas preferencias de la cuestión en medio. • Negotiation on more than one issue. • Different issue preferences between. • Las oportunidades claras para GanarGanar. • Negociación en más de una cuestión.

Gama. ZOPA. Anchor/Counteranchori ng • Concession. Frame. . Ancla/Contra Ancla Concesión. • • • • • • • • • • • • Punto de la resistencia. Palancada. • Leverage. Marca. Range. ZOPA.Distributive Concepts 35 Resistance Point.

you walk away and take advantage of your BATNA • El menos punto favorable donde uno aceptará. usted camina lejos y se aprovecha de su BATNA . You set your BATNA at $20 and your Reservation Price at $35 • If owner won’t budge from $35. • Si el dueño no bulle a partir del $35. • Example: you are looking for larger office space. • Ejemplo: usted está buscando un espacio más grande de la oficina. • El "walk-away".36 Reservation Price/Ultima Precio • The least favorable point where one will accept. • Usted fijó su BATNA en $20 y su precio de reservación en $35. • The “walk-away”.

ZOPA 37 • Zone of Possible • Zona del acuerdo posible Agreement (ZOPA). • What happens if positions • ¿Qué sucede si se below are reversed? invierten las posiciones abajo? $250k ZOPA Seller’s Reservation Price Buyer’s Reservation Price $275k . • The difference between • La diferencia entre el the Seller’s Reservation precio de reservación Price and the Buyer’s del vendedor y el Reservation Price. (ZOPA). precio de reservación del comprador.

Anchoring / Counteranchoring .

Anchoring / Counteranchoring .

Concessionary Moves .

Negotiation .

  Martina is concerned about losing Isabella to another employer but is worried that her own company has not made a profit in the last two years.  Isabella has worked overtime on many occasions when Martina had special projects to complete. Isabella has worked as the executive assistant to Martina for ten years.  Isabella and Martina sit down in the conference room to negotiate a possible raise in salary for .  Martina has not given Isabella a raise in her salary for three years and Isabella is thinking about looking for a new position which could pay her more money.

More Theory .

13. CCH.Contract Negotiation Competencies  Mark H. pg. McCormack. (2005). best-selling author of “What They Don’t Teach You at Harvard Business School. Garrett.” has stated the perfect negotiator should have: • • • • • Faultless people sense A strong competitive streak A view of the big picture An eye for the crucial detail Unimpeachable integrity 44  Reference Text: Contract Negotiations. by Gregory A. Inc. .

Contract Negotiation Competencies 45 .

Negotiation Process .

Negotiation Process 3 Steps (Cronkite) .

Negotiation Process 4 Steps (Shell) .

Golann) .Seven Stages (Folberg.

Negotiation Considerations .

Negotiation Considerations  Triad of concerns  Social  How will others view the agreement  Emotional  How will you feel about the agreement  Successful Negotiations  Lewicki and .

Power of Pre-negotiation

Step #1: Preparing Your Strategy
 

Assess the situation. There are four basic bargaining situations depending on: (1) The perceived importance of the ongoing relationship and (2) the perceived conflict over the the stakes involved (to what degree do both sides want the same limited resource such as money, power, terms, etc.)

The Situational Matrix
Perceived Conflict Over Stakes
High Low

High

Importance of Relationship

Low

I: Balance d (Busine p ss

Negotiating in the Quadrants

Quadrant IV: Tacit Coordination - Calls for tactful avoidance of conflict, not negotiation. Quadrant III: Transactions - Stakes are substantially more important than relationships. Leverage counts. Competition, problem solving. Quadrant II: Relationships - Treat the other party well, generously, the stakes are secondary. Accommodate. (Einstein job offer, e.g.) Quadrant I: Balanced Concerns - Problem solving or compromise

.Prepare a Bargaining Plan  Make a list of questions you intend to ask at the beginning of the negotiation in order to assess the assumptions of the other side:  Is a relationship most important to them?  Are the stakes most important to them?  Do they believe it is a Balanced Concerns situation?  Prepare your bargaining plan based on the other side’s assumptions.

.en negociaciones competitivas y de colaboración. • Tener artículos múltiples en la mezcla de negociación y el ser creativos haciendo frente a ellos pueden ser muy provechosos . substantial differences between the parties in the importance of various issues.Bargaining Mix 57 • Set of issues that are or could be considered in the negotiations. diferencias substanciales entre los partidos en la importancia de varias ediciones. • Often.in both competitive and collaborative negotiations. • Sistema de las ediciones que son o se podrían considerar en las negociaciones. • A menudo. • Having multiple items in the bargaining mix and being creative in dealing with them can be very helpful .

Step #2: Exchanging Information  The information exchange step has several phases:  Developing rapport between the individual negotiators  The surfacing of underlying interests. and perceptions that concern both parties  The initial testing of expectations  As we share information. issues. we test our counterpart’s commitment to the norm of reciprocity. .

sports. and understanding. rapport. hobbies.tough to build trust. etc. not online or over the phone -.similarity.  We like and trust people exactly like ourselves -.  Research the decision maker’s likes and dislikes.”  We prefer to say “yes” to someone we like and trust. thoroughly  Negotiate face-to-face.Developing Rapport  The “liking rule. .

Relationships according to Salacuse .

disclose later. Issues.and remember the cardinal rule of discovery:  Probe first. and Perceptions (reconassance)   Exchange information without giving up anything. Ask questions -.don’t be a blabbermouth -.Obtaining Information on Interests. sure you understand  Test for understanding  Make  Summarize .

 Signal your expectations and leverage.  Sell all the deal terms early.Signaling Expectations and Leverage  Deliver bad news (deal breakers. .  Indicate where you can and cannot be flexible (credibility). threats) early in a negotiation.

Signaling Leverage Your Leverage as You See It Strong Firm Weak How You Want to Act Flexible Make conf credible th .

By revealing your alternatives and not using them. you get credit for being generous and reasonable.  . Get Credit for It  Let the other side know what alternatives you have before you show you are not going to use the alternatives (BATNAs).If You Are Going to Be Flexible. but always make sure you get credit for being fair.  Be fair.

fierce competitors. too. Once again.  Yell back  If  they are bullies.  Train people to be cooperative. the reciprocity principle at work.  If the they are screaming. confront them early. .Match the Other’s Side’s Style  Tit for tat in style. they will like and respect you if you are like them. tough.

etc. which depend on the situation. relationship vital.Step #3: Opening and Making Concessions  The bargaining stage is dominated by tactics. . plausible (in their mind) offer.  Competitor Vs competitor.  Bargaining formally begins when negotiators on one side open with a concrete.

the zone of realistic expectations. or demands. always open first:  It lets you fix the range -. interests.  Most important.  Sometimes forces the other side to rethink its goals. allows you to set the anchor.Opening Tactics: Open First?   If you are uninformed about the other side’s business.  We tend to be heavily influenced by first . If you are well informed. never open first.

they adjust their expectations (unconsciously) accordingly. As high as possible--as close to the other side’s walk-away as possible (that’s the home run).  Outlandish numbers at the beginning can kill the deal or destroy your credibility if you drastically reduce the offer later.  The first offer anchors the other side’s perception of your walk-away price (NBC Super Bowl).Anchoring  When the other side hears a high or low number.   First offer must be somewhat reasonable (no more than 50% higher than you will settle for). .

or characterization to define the problem or to advocate a solution of that problem. metaphor.Framing   Framing is a process of describing or explaining a situation a particular way.  . Framing is the use of analogy.

emphasize the pain and shame of losing.  Framing provides justification for the other side to make concessions.emphasize benefits.Framing  Frame all of your offers. a win -.  “Just pennies a day” frames an offer. For those who are afraid to lose (losses loom larger than gains to many). . frame as a possible loss -.  Framing emphasizes the value of your offer. frame as a gain.   To those who like to win.

”  Don’t open high if you have no leverage and the other side knows it. but not too high) .  Make the highest opening you can “with a straight face.High.Open optimistically (high.Opening: Optimistic or Reasonable  Depends on the situation:  Relationship . generous  Transaction . .the highest for which there is a supporting standard or argument enabling you to make a presentable case.

.000 (supported by presentable.000 seems reasonable and gives the perception of getting a good deal.  The contrast principle: If I want you to pay me $500.000 and only come down to $500. “straight-face” argument).Optimistic Openings  Take advantage of two psychological tendencies: The Contrast Principle and the Norm of Reciprocity. and I open with $750. the contrast would have been small and the deal not satisfying.000 for a schedule. my settlement of $500.000. If I had opened for $550.

. and you reject it.000).000).Optimistic Openings  The Norm of Reciprocity: I make an optimistic opening ($750. and you feel obligated to accept it (reciprocity).“door in the face” -second offer seems reasonable.  I moderate my offer by making a significant concession ($650.  Big then small offer -.

believable terms that you accept the legitimacy of their demands and recognize the necessity to cooperate and sacrifice to get a fair deal. . Concessions are the language of cooperation. They tell the other side in concrete.Concession Tactics   Open optimistically and have room to make concessions.

agree on small.  Price   to get a desired deal term or payment.  Give a trade or concession in your least important area. Try not to give the first major concession (it raises expectations and confuses people). . e.g.show that agreement is possible. The other side’s first concession is in its least important area of concerns. easy issues first.  Put the major issues aside.Concession Tactics  To get movement. offer a small trade -.

the more value they have.  Make concessions progressively smaller. they will appreciate it more.  A fast concession makes the buyer feel awful and devalues the product.  The slower you give them.  Make them work hard for every concession.Concession Tactics  Give small concessions and give them slowly. .

0 4. 100% 5.Concession Tactics  Which tactic is best? 1. 30% 25% 25% 25% 50 % 0 50% 0 0 100% 0 0 0 20% 30% 40% 20% 10% 5% . 25% 2. 0 3. 10% 6.

Split the Difference?  Not unless it’s in your favor.  Split the split. .  If the other side offers it. it usually isn’t.

the “If-Then…” scenario.  Sides trade issues in clusters: “If you give me what I want on issues A and B.Integrative Bargaining  Tactics for integrative bargaining in which both sides start with a complete bundle of offers. demands. .  No issue is closed until all issues have been decided. and interests are as follows:  After a discussion of all the issues (without offers). I’ll give you what you want on X and Y” -. both sides trade issues and try to problem solve.

For next class  Fisher through CH 6  What  Fisher through CH 6  One is a wise agreement  Law of the Sea Negotiation  Kennedy and Nuclear Test Band Treaty  Nasar and Israel  text negotiation  Carter  Circle Model for creating Options  Perceptions  Sadat and Israel   .

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