Characteristics of Negotiation

Power Point by Prof. Dr. Carmen Paunescu

2016

1
Key Learning:

 Knowing what you want and preparing to get it

 Types of negotiation
 Characteristics of negotiation
 Principles of negotiation

 The golden rule of negotiation

2
What rule works better in negotiation?

The golden rule:

Treat others, as you would like to be
treated yourself!

The platinum rule:

Treat others, as they would like to be
treated themselves!

3
Knowing what you want and
preparing to get it

 Why are you not successful in

negotiation?
 Think of your life as a negotiation
 Do some long-range thinking about your life

4
Knowing what you want and
preparing to get it

 What is the direction in which your life is

headed (big picture)?
 The results of each negotiation should move
you along in that direction

5
Knowing what you want and
preparing to get it
 Create a master plan for yourself: a strategy
for achieving your goals, dreams, hopes
 A vision statement: a picture of the future you
see for yourself, clear, understandable,
descriptive, as visual as possible
 Values (and limits)
 Goals (short and long term)
 Action plan

6
Knowing what you want and
preparing to get it

 To picture your own future you should

learn to “think outside the box”

7
Knowing what you want and
preparing to get it

 What are you good at?

8
Knowing what you want and
preparing to get it

 What positive things other people said

about you? What have they thanked you
for?

9
Knowing what you want and
preparing to get it

 What would you like to achieve in the

next three years?

10
Knowing what you want and
preparing to get it

 What do you want to avoid?

11
Knowing what you want and
preparing to get it

 What do you look forward to doing when

you have enough time?

12
Knowing what you want and
preparing to get it

 What do you want your legacy to be?

What do you want to pass on to others?

13
Knowing what you want and
preparing to get it

 How your ideal day look like if you could

structure it your way?

14
Knowing what you want and
preparing to get it

 Are you willing to make a commitment?

 Envision your future now

15
Knowing what you want and
preparing to get it
 Evaluate your vision statement now

 Do you really own this statement? If not,

change it.

 How does it strike your senses?

16
Negotiation foundations

Value

Relationship

Communication

17
Value foundation

 Win-Lose assumption
Most negotiations are zero-sum transactions.

 Win-Win assumption
Most negotiations can have a positive-sum
component.
We may find ways to make negotiations
positive-sum affairs

18
Relationship foundation

 Length: short term or long term?

 Approach: win-lose or win-win?

Relationship length and negotiation approach

are choices and independent of each other

19
Communication foundation

Intended
message

Intent-
impact gap

Impact
generated

Every action or inaction sends a message

20
Types of Negotiation

 Deal making: purchase of a new home or car

 Decision making: negotiation at workplace

(Negotiation involves at least two people making
decisions that require judgments and choices)

 Dispute resolution: mediation, arbitration,

litigation

21
Types of Negotiation

A. Workplace

Work assignments, time-off, budgets, labor

contracts, customers, suppliers, co-workers

 Outsourcing and offshoring, partnerships with

other companies

22
Types of Negotiation

B. Personal

 Large purchases: real estate, automobiles

 Conflicts with businesses, family, friends, and

others

23
Characteristics of Negotiation

 Two or more parties involved

 There is a conflict of interest or opposite interest
between parties
 A better outcome is expected as a result of
negotiation
 The parties prefer mutual agreement above other
routes
 Involves both tangible and intangible issues
 Interdependence – both parties have something
to contribute and something to attain
24
A main rule in negotiation
 There is an interdependence between parties
– both parties have something to contribute
and something to attain

“People will not negotiate with you unless

they believe you can help them or hurt
them”

25
Exercise:
 You have invited three of your good friends over for
socializing and evening dinner. For dinner, the group
decides to order food from a Chinese restaurant,
which delivers home for a 10% service charge. You
call in and complete your order. The delivery is
expected in an hour.
 An hour and a half later, the food has not yet arrived.
You call the restaurant and you are told that the food
is on the way. People in the room are unhappy about
the slow service.
 It has been more than two hours now. You call again,
and while you are on the phone the food arrives.
Some appetizers are missing.

26
Exercise:

 How can you help the restaurant?

 How can you hurt the restaurant?
 What are the ways the restaurant can help or
hurt you?

27
Principles of Negotiation

Know when to negotiate and when to walk

away
Negotiate for outcome not ego
Negotiate issues not personalities
Know, at all times, what is relevant and what is
irrelevant
Talk in terms of benefits rather than features
Ask questions rather than make statements

28
Principles of Negotiation

Get the other side to commit first

Act dumb, not smart
Think in real money terms but talk funny money
Concentrate on the issues

Always congratulate the other side

29
House for rent
 You have been relocated by your employer to a new
city for an assignment that will probably last for two
years. You do not want to sell your home, a four-
bedroom, two-bath apt., so you decide to rent it.
 A friend of yours in real estate has a potential lessee
for you to meet. He is a 30-something, single doctor
beginning a two-year residency in the local hospital.
 You have some concerns about a single guy living in
your house and taking care of it the way you would,
but you agree to meet with him and possibly negotiate
a lease.

30
House for rent

 Who are the interested parties in this

negotiation and what are their prospective
goals?
 What are the tangible and intangible issues of
negotiation?
 Describe the interdependence between parties

31
Discussion:

 Recognize the value of negotiation by

positioning yourselves in the following
situations

32
Exercise: Negotiation

 Formal discussions in which parties try to

reach an agreement (or to resolve disputes),
to satisfy various interests
 Recognize interests of each party

 Situation: looking for a roommate

 Parties: a Romanian student and a foreign
student; both of them are looking for a Romanian
roommate

33
Exercise: Manipulation

 Behavior that influences someone or controls

something in a clever or dishonest way. The
process of skillfully handling, controlling, or
using something
 Recognize interests of each party

 Situation: relocating with job and family to a

smaller city in the mountains, as CEO of a
subsidiary of the company
 Parties: the president of the company and CEO
(you). There is a potential successful candidate for
your job position next year (you don’t know about)

34
Exercise: Blackmail
 The crime of making someone to give you
money or do what you want by threatening to
tell people embarrassing information about
them. The use of threats to persuade a person
to do what you want
 Recognize interests of each party

 Situation: hiring your old dear friend as CFO of your

company
 Parties: the CEO of the company and his old dear
friend from childhood, completely unskilled and
unqualified for the job

35