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CHAPTER ONE

The Nature of Negotiation

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Introduction
Negotiation is something
that ! oes, almost
aily

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Negotiations
½ Negotiations occur for several reasons:
½ o agree on how to share or ivie a limite
resource
½ o create something new that neither party
coul attain on his or her own
½ o resolve a problem or ispute between the
parties

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Approach to the Subject

?ost people think bargaining an negotiation mean the
same thing; however, we will be istinctive about the
way we use these two wors:
½ ^: escribes the competitive, win lose
situation
½ "#refers to win win situations such as
those that occur when parties try to fin a mutually
acceptable solution to a complex conflict

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Three Important Themes

| he efinition of negotiation an the basic
characteristics of negotiation situations

 nterepenence, the relationship between people
an groups that most often leas them to negotiate
 nerstaning the ynamics of conflict an conflict
management processes which serve as a backrop
for ifferent ways that people approach an manage
negotiations

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Characteristics of a
Negotiation Situation
½ here are two or more parties
½ here is a conflict of nees an esires
between two or more parties
½
arties negotiate because they think they can
get a better eal than by simply accepting what
the other sie offers them
½
arties expect a ³give an take´ process

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Characteristics of a
Negotiation Situation
½
arties search for agreement rather than:
± Fight openly
± Capitulate
± Break off contact permanently
± ake their ispute to a thir party
½ uccessful negotiation involves:
± ?anagement of tangibles (eg, the price or the terms of
agreement)
± Resolution of intangibles (the unerlying psychological
motivations) such as winning, losing, saving face
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Interdependence
n negotiation, parties nee each other to achieve
their preferre outcomes or objectives
½ his mutual epenency is calle interepenence
½ nterepenent goals are an important aspect of
negotiation
½ in lose:  win, you lose
½ in win: Opportunities for both parties to gain

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Interdependence
½ nterepenent parties are characterize by
interlocking goals
½ aving interepenent goals oes not mean
that everyone wants or nees exactly the same
thing
½  mix of convergent an conflicting goals
characterizes many interepenent
relationships

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Types of Interdependence
Affect Outcomes
½ nterepenence an the structure of the situation
shape processes an outcomes
± Zero sum or istributive ± one winner
± Non zero sum or integrative ± mutual gains situation

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Alternatives Shape Interdependence

½ valuating interepenence epens heavily
on the alternatives to working together
½ he esirability to work together is better for
outcomes
½ Best available alternative: B N
(acronym for Best lternative to a Negotiate
greement)

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?utual Adjustment
½ Continues throughout the negotiation as both parties
act to influence the other
½ One of the key causes of the changes that occur
uring a negotiation
½ he effective negotiator nees to unerstan how
people will ajust an reajust an how the
negotiations might twist an turn, base on one¶s own
moves an the other¶s responses

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?utual Adjustment and

Concession ?aking
½ hen one party agrees to make a change in his/her
position, a concession has been mae
½ Concessions restrict the range of options
½ hen a concession is mae, the bargaining range is
further constraine

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Two Dilemmas in
?utual Adjustment
½ ilemma of honesty
± Concern about how much of the truth to tell the other party

½ ilemma of trust
± Concern about how much negotiators shoul believe what
the other party tells them

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åalue Claiming and åalue Creation

½ Opportunities to ³win´ or share resources
± Claiming value: result of zero sum or istributive
situations where the object is to gain largest piece
of resource
± Creating value: result of non zero sum or
integrative situation where object is to have both
parties o well

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åalue Claiming and åalue Creation

½ ?ost actual negotiations are a combination of
claiming an creating value processes
± Negotiators must be able to recognize situations that
require more of one approach than the other
± Negotiators must be versatile in their comfort an use of
both major strategic approaches
± Negotiator perceptions of situations ten to be biase
towar seeing problems as more istributive/ competitive
than they really are

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åalue Claiming and åalue Creation

åalue ifferences that exist between negotiators
inclue:
½ ifferences in interest
½ ifferences in jugments about the future
½ ifferences in risk tolerance
½ ifferences in time preferences

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Conflict
Conflict may be efine as a:
"sharp isagreement or opposition" an
inclues "the perceive ivergence of interest,
or a belief that the parties' current aspirations
cannot be achieve simultaneously"

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Aevels of Conflict
½ ntrapersonal or intrapsychic conflict
± Conflict that occurs within an iniviual
½ e want an ice cream cone baly, but we know that ice
cream is very fattening
½ nterpersonal conflict
± Conflict is between iniviuals
½ Conflict between bosses an suborinates, spouses,
siblings, roommates, etc

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Aevels of Conflict
½ ntragroup Conflict
± Conflict is within a group
½ mong team an committee members, within
families, classes etc
½ ntergroup Conflict
± Conflict can occur between organizations, warring
nations, feuing families, or within splintere,
fragmente communities
± hese negotiations are the most complex

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unctions of Conflict
| ?akes organizational members more aware an able to cope
with problems through iscussion


romises organizational change an aaptation
 trengthens relationships an heightens morale

romotes awareness of self an others
 nhances personal evelopment
 ncourages psychological evelopment²it helps people
become more accurate an realistic in their self appraisals
 Can be stimulating an fun

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Dysfunctions of Conflict
| Competitive, win lose goals

 ?isperception an bias
 motionality
 ecrease communication
 Blurre issues
 Rigi commitments
 ?agnifie ifferences, minimize similarities

 scalation of conflict

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The Dual Concerns ?odel

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Styles of Conflict ?anagement

| Contening
± ctors pursue own outcomes strongly, show little concern for
other party obtaining their esire outcomes

ieling
± ctors show little interest in whether they attain own outcomes,
are quite intereste in whether the other party attains their
outcomes
 naction
± ctors show little interest in whether they attain own outcomes,
little concern about whether the other party obtains their
outcomes

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Styles of Conflict ?anagement


roblem solving
± ctors show high concern in obtaining own
outcomes, as well as high concern for the other
party obtaining their outcomes
 Compromising
± ctors show moerate concern in obtaining own
outcomes, as well as moerate concern for the
other party obtaining their outcomes

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