Chapter 1

An Introduction to Negotiation

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Negotiation.

A means of resolving conflicts for centuries An alternative to fighting, war Agreements can be made permanent through rules and laws Today a common means of resolving family, work, and societal disputes

Yet, many people avoid, even fear negotiation. Why?

How Important a Skill Is Negotiation?

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Negotiation is the pre-eminent form of decision making in personal and professional 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 behaviors used by skilled negotiators Skill 1.3: Recognize bargaining styles Skill 1.4: Set collaborative goals Skill 1.5: Avoid cognitive biases

Three Basic Types of Negotiation

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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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Chapter Case: Zoning Change

Sophia is seeking a zoning change Robert, an inexperienced attorney, is hired by Sophia to represent her before the Zoning Commission Neighborhood residents oppose Sophias proposed new condo development The Zoning Commission staff suggest a meeting of all parties to negotiate their differences

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The Five Elements Common to Negotiation Situations

1. 2. 3. 4. 5. Two or more parties (or interests) Interdependence Common goals Flexibility 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 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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Developing Negotiating Skills

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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Developing Negotiating Skills

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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Developing Negotiating Skills

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

Bargaining Styles: Dual Concern Model (assertiveness/cooperation)

Five bargaining styles
1. 2. 3. 4. 5. Avoiding Accommodative Collaborative Competing Compromising

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Dual-Concern Model of Bargaining Styles

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Big Five Personality Dimensions

DIMENSION
Neuroticism

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ASSOCIATIONS
Anxious, depressed, worried, insecure Sociable, assertive, talkative, active Imaginative, curious, original, open-minded Courteous, flexible, trusting, cooperative, tolerant Careful, responsible, organized, persistent

OPPOSING
Emotionally healthy, calm, free from persistent negative feelings Introversion, quiet, low-key, deliberate Conventional, narrow interests, straightforward, conservative Suspicious, unfriendly, uncooperative, critical, disciplined Unreliable, lack of ambition, easily distracted

Extraversion Openness

Agreeableness

Conscientiousness

Attributes of Bargaining Styles

Conflict style Avoiding Strong predisposition Defers confrontational negotiation As a positive attribute Displays tact and diplomacy As a negative attribute Causes stalemates Weak predisposition Prefers hard-nosed bargaining As a strategy When not interested in negotiating

Accommodating

Derives satisfaction from solving problems

Views negotiation as a game or sport to win

Good team builder

Excellent instincts for claiming value

May make unwise concessions

Focus on issues that are easy to define win-loss

Has little patience for other partys needs

Believes in treating people fair and avoiding needless conflict

When hostilities need to be lessened

When substantive interests are important but not the relationship Used when relationship and the substantive outcomes are important

Competing

Collaboration

Enjoys participating in joint problem solving

Instinctively tries to discover and satisfy the real interests of the parties

May transform a simple problem into a complex one

No patience for the give and take that comes with collaborative thinking

Compromising

Eager to conclude negotiation on fair standards

Best when stakes are small and time is short

Can rush the process and agree to unnecessary concessions

Refuses to compromise on principle

Used when stakes are small, time is short, or in a weak bargaining position

SKILLED NEGOTIATORS Considered a wide range of outcomes or options Gave over three times as much attention to common ground areas Anticipated twice as many longterm common areas Developed upper and lower limits for possible settlement points Flexible on the order of issues to discuss Used neutral phrases when proposing offers

AVERAGE NEGOTIATORS Considered a narrow range of outcomes or options Considered a third less common ground areas Anticipated half as many longterm areas Planned goals around fixed settlement points Addressed issues in a predetermined order Used judgmental phrases when proposing offers

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Tactics for Success: Find Common Interests by Asking the Right Questions!

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 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?

Interdependency

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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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Common Goals
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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Other Types of Goals

Prospective: initial objective Transactional: objectives that arise during negotiations Retrospective: objectives that arise after negotiations are complete Collaborative: mutual objectives

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Flexibility

A power shift can quickly occur in a negotiation situation. A negotiator must be able to respond in a strategic way.

Decision-Making Ability

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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

Decision-Making Ability

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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

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 ones own behavior 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 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*

Myths Facts
1. Good negotiators are 1. Good negotiators born make concessions 2. Experience is a great 2. Good negotiators teacher never lie 3. Good negotiators 3. Good negotiators take risks look for common 4. Good negotiators rely interests on intuition 4. Everyone is a *Leigh Thompson, The Mind and Heart of negotiator
the Negotiator