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TRANSCRIPT
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Chapter 1
An Introduction toNegotiation
http://www.business-english-training.com/enter.htm -
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Negotiation.
A means of resolving conflicts for centuries
An alternative to fighting, war
Agreements can be made permanentthrough rules and laws
Today a common means of resolvingfamily, work, and societal disputes
Yet, many people avoid, even fearnegotiation. Why?
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How Important a Skill Is
Negotiation?
Negotiation is the pre-eminent form ofdecision making in personal andprofessional life
-William Ury
Getting Past No
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Five Negotiation Skills
Skill 1.1: Recognize the five essential
elements in a negotiation Skill 1.2: Model bargaining behaviorsused
by skilled negotiators
Skill 1.3: Recognize bargaining styles Skill 1.4: Set collaborative goals
Skill 1.5:Avoidcognitive biases
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Three Basic Types of
Negotiation1. Deal making:purchase of a new home or
car
2. Decision making:parties in a zoning case3. Dispute resolution:litigation over
property rights
While the three have subtle differences, allare forms of negotiation
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Chapter Case: Zoning Change
Sophia is seeking a zoning change
Robert, an inexperienced attorney, is hired
by Sophia to represent her before theZoning Commission
Neighborhood residents oppose Sophiasproposed new condo development
The Zoning Commission staff suggest ameeting of all parties to negotiate theirdifferences
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The Five Elements Common toNegotiation Situations
1. Two or more parties (or interests)
2. Interdependence3. Common goals
4. Flexibility
5. Decision-making ability
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Parties and Their Interests
Parties can view a conflict situation differently That view, or frame, leads them to focus on
some characteristics of the conflict and ignoreothers
Relationship/task frame: Parties focus on eitherongoing relationship or the subject matter of thedispute
Emotional/intellectual frame:Partiespayattention to the emotional components of thedispute or behaviors of the parties
Cooperate/win frame: Parties seeks to benefit
both parties or to maximize personal gain
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Developing Negotiating Skills
Negotiations are rarely pure win-lose or
win-win propositions
Negotiations take place under conditionsof ambiguity and uncertainty
Most negotiations involve existing orpotential sources of conflict that impedereaching agreement
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Developing Negotiating Skills
Negotiating progress comes in stops and
starts. Most complex negotiations takeplace between agents of groups and notthe groups themselves
Complex negotiations often involve a teamapproach
Negotiating skills can be learned
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Developing Negotiating Skills
Negotiations are chaotic and seldom pass
sequentially through distinct phases suchas pre-negotiation, deal structuring,detailed bargaining, and agreement
Negotiations involving multiple parties andcomplex issues challenge a negotiator
Most negotiations are linked to othernegotiations
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Bargaining Styles: Dual
Concern Model(assertiveness/cooperation)
Five bargaining styles
1. Avoiding
2. Accommodative
3. Collaborative
4. Competing
5. Compromising
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Dual-Concern Model ofBargaining Styles
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Big Five PersonalityDimensions
DIMENSION ASSOCIATIONS OPPOSING
Neuroticism Anxious, depressed,
worried, insecure
Emotionally healthy, calm,
free from persistent
negative feelingsExtraversion Sociable, assertive,
talkative, active
Introversion, quiet, low-key,
deliberate
Openness Imaginative, curious,
original, open-minded
Conventional, narrow
interests, straightforward,
conservative
Agreeableness Courteous, flexible,
trusting, cooperative,
tolerant
Suspicious, unfriendly,
uncooperative, critical,
disciplined
Conscientiousness Careful, responsible,
organized, persistent
Unreliable, lack of
ambition,easily distracted
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Attributes of Bargaining Styles
Conflict style Strongpredisposition As a positiveattribute As a negativeattribute Weakpredisposition As a strategy
Avoiding Defersconfrontational
negotiationDisplays tactand diplomacy Causesstalemates Prefers hard-nosedbargaining When notinterested in
negotiatingAccommodating Derives satisfaction
from solving
problemsGood team
builder May makeunwiseconcessions
Has little patience
for other partys
needsWhen hostilities
need to be
lessenedCompeting Views negotiation
as a game or sportto win
Excellent
instincts forclaiming value
Focus on issues
that are easy todefine win-loss
Believes in treating
people fair andavoiding needless
conflict
When
substantiveinterests are
important but
not the
relationship
Collaboration Enjoys
participating in
joint problemsolving
Instinctively
tries to discover
and satisfy thereal interests of
the parties
May transform a
simple problem
into a complexone
No patience for the
give and take that
comes withcollaborative
thinking
Used when
relationship and
the substantiveoutcomes are
importantCompromising Eager to conclude
negotiation on fair
standards
Best when
stakes are small
and time is shortCan rush the
process and
agree to
unnecessary
concessions
Refuses to
compromise on
principleUsed when
stakes are small,
time is short, or
in a weak
bargaining
position
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SKI LLED NEGOTIATORS AVERAGE NEGOTI ATORSConsidered a wide range of
outcomes or options Considered a narrow range ofoutcomes or optionsGave over three times as much
attention to common ground
areas
Considered a third less common
ground areas
Anticipated twice as many long-term common areas
Anticipated half as many long-term areas
Developed upper and lower limits
for possible settlement points
Planned goals around fixed
settlement pointsFlexible on the order of issues to
discuss
Addressed issues in a
predetermined orderUsed neutral phrases when
proposing offersUsed judgmental phrases when
proposing offers
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Tactics for Success: Find Common
Interests by Asking the RightQuestions!
Open-ended: What were you hoping to settle
today? Leading: Dont you think this proposal meets
one of your goals?
Clarifying: Can you postpone collecting that fee
untilnext 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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Interdependency
Without interdependencyno reason tonegotiate, no motivation to reach
agreement Degrees of interdependency include: one-
shot negotiation, repeat transactions, or
long-term relationship
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Common Goals
The two most important types of goals
1. Content: the substance or specifics
2. Relationship: how the parties want to beviewed by each other
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Other Types of Goals
Prospective: initial objective
Transactional: objectives that arise duringnegotiations
Retrospective: objectives that arise after
negotiations are completeCollaborative: mutual objectives
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Flexibility
A power shift can quickly occur in anegotiation situation. A negotiator must be
able to respond in a strategic way.
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Decision-Making Ability
Negotiation involves at least two peoplemaking decisions that require judgments
and choices Judgmentinvolves recognizing and
evaluating the content of the optionspresented
Choiceinvolves actually selecting anoption
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Decision-Making Ability
Parties often differ in how they think orprocess information
People develop schemaas a way oforganizing current knowledge and as away to process future information
Some schemas create biases
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Biases That May Affect a
Negotiator
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 truebecause it benefits them
Self-enhancement bias:Belief that ones ownbehavior is more constructive
Impact bias: One overestimates the
positive/negative satisfaction of an outcome
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Multiparty Negotiations(three or more parties or interests)
Usually present significantly different challengesand negotiation techniques:
1. Coalitionsform to control the outcome
2. Trade-offscan occur with one or more
3. Majority rule may ignore interests of minority
parties4. Consensusdoes not mean all parties agree on
all issues, but on the whole
5.Communicationis more difficult due to the
number of people and messages required
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Negotiation Myths and Facts*Myths
1. Good negotiators are
born2. Experience is a greatteacher
3. Good negotiators
take risks4. Good negotiators rely
on intuition
*Leigh Thompson, The Mind and Heart ofthe Negotiator
Facts
1. Good negotiators
make concessions2. Good negotiators
never lie
3. Good negotiators
look for common
interests
4. Everyone is a
negotiator
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