Introduction Flashcards
(223 cards)
Quality of Alternative
Is a way to look at a negotiation to find the best possible outcome for your party
E.g. If a party has a good argument, they should content
If a party has a poor argument, the should concede
If all parties have good outcomes, they should look at finding more value in further negotiations - good both creative compromise
If all parties have poor outcomes, they should look at alternatives which keeps both parties at the bargaining table sine all parties will lose - clear-cut compromise
How do personalities affect negotiation
Personalities influence the way we think in negotiation and often turn the negotiation into a win or lose ‘competition’
Personalities can get other negotiators annoyed, lose their tempers and make unreasonable ultimatums
We cannot excuse our personality and behave as we wish and we cannot rely on on our personality as a substitute for becoming more competent
Our personality may not have a determining impact on negotiations but how we approach a negotiation certainly does
This can lead to an understanding of negotiation as a game or contest in which there are winners and losers
Meaning we tend to view negotiations as having completely competitive sctipr
How does one deal with differences
Take your time
Clearly state your perspective and expectations, that is, the issues and concerns which have to be addressed if there is to be an agreement
Present your position in the broader context so that it does not look like you are presenting a “take it or leave it” proposition.
Invite the other party to state and restate their positions and interests; allow them to do so without interruption.
Do your best to outline, albeit a bit at a time, the key drivers behind your position; encourage reciprocity through information drip feed;
Invite the other party to provide background information; reciprocate when they do
Give attention to building a good working relationship with the other negotiator
Ask ‘why’ from time to time (but don’t assume you are going to get the full answer to the first time you ask that question)
Encourage reciprocity by giving full answers
Summarise regularly
Accept that underlying interests might evolve as the parties sort out their priorities
Take a process perspective: if it seems to be getting positional, view this as differentiation, not closure
Put any suggested solutions on hold, but try to discern what motivated the suggestion.
Ignore any threats or closing statements from the other party, responding instead with a restatement of your own preferred position and why.
How to be strategic with time pressure
All negotiations have timeframe in which an agreement is required before the deadline.
This leads to more creativities ideas to get the ball moving again if there is a standstill in the negotiation and the deadline is fast approaching
Negotiators who are under more time pressure do less well as they concede more to achieve an agreement
If negotiators who are genuinely under a deadline tell the other party, tis puts the other party under the same deadline and subjects them to the same time pressure
If both parties are under the same time pressure they are more likely to make mutual concessions resulting in a better outcome for the party that initially experienced the greater time pressure
Effect of time pressure on strategy choice
low time pressure = content
high time pressure = concede
high time pressure = clear-cut compromise
low(ish) = creative compromise
Ways mediators can help in negotiations
If the Negotiation process has been poorly managed then efforts should be made to get the negotiations back in phase, perhaps with the involvement of a mediator
• A mediator can rebuild the process and get the parties to reconsider their positions on the issues in dispute
• mediators have to be as strategic as the negotiators
• The role of the mediator is not to fix the dispute but to help the parties fix their dispute themselves (and so be more committed to implementing the agreement)
• The mediator brings a skills set and experience which the parties might lack and so assists them through the remainder of their negotiation
SEE IMAGE ON SLIDE 2 2017
Rules of good negotiation
- Be friendly and make cooperative opening move
- Be firm and match the others behaviours
- Be forgiving
- Be facilitative
- Be friendly and make a cooperative opening move
Make a ‘yes-able’ proposition, rather than an excessive one which will indicate a degree of reasonableness and so show that you won’t expect the other party to make every single move to reach an agreement
Be firm and match the others behaviour
Be clear from the outset on any genuine non-negotiables; state and restate underlying interests; match the other party’s statements of interest/position with your own; make concessions to match the other party
Be forgiving
Do not try to recoup any ‘losses’ from a previous negotiation; do not focus on retrieving setbacks in the current negotiation – look at the overall package being negotiated.
Be facilitating
Hold positions on the issue and don’t press for change from the other party
Ways to arrive at creative compromises
• to propose or consider new options that will add value
• Adding value to the proposal can change direction of the negotiations as it provides new ground to which the other party can compromise to
• A creative compromise aims to produce options that will accommodate the interests of all parties
• The parties’ differences can be used to create
compromise
• Proposals should be weighed against a primary value for the party
• Discuss ways to improve the proposal
The effect of importance of issue to self and concern for other on strategy choice
Importance of issue strategy choice = high content THUS concern for other strategy choice = low contend
Importance of issue strategy choice = low content THUS concern for other strategy choice = high contend
Importance of issue strategy choice = low(ish) clear-cut compromise THUS concern for other strategy choice = high clear-cut compromise
Importance of issue strategy choice = high creative compromise THUS concern for other strategy choice = high creative compromise
SEE SLIDE 4
Behaviours associated with cooperative negotiations
Reciprocation
Develop Trust
Four Fs
Ethical behaviours
Reciprocation
If one party is cooperative, it is likely that the other will develop a similar approach.
Matching Behaviour – For each positive behaviour, it is likely the other party will match/equal the behaviour.
Information Exchange – Enables each party to better understand their position. Equal exchange of
information strengthens a party’s position through trust.
Develop Trust
Maintain integrity and predictability
Open discussion about how negotiations are unfolding – talk process
Build the other party’s confidence through reciprocation and information exchange.
Four Fs
Friendly – Through language and demeanour, show willingness to reach a solution.
Firm – Reciprocate, do not feel obligated to reduce your position to overcome impasse.
Forgiving – If a friendly attitude is not reciprocated, remain
firm, but do not seek to punish the other party.
Facilitating – Openly discuss the issues and process and ways to proceed.
Ethical Behaviour
Can be viewed as a scale of behaviours with some more acceptable and others leaning toward unacceptable.
Concealing a party’s lowest acceptable outcome, or tactical/competitive bargaining is viewed as acceptable.
Examples of unethical behaviour are manipulation, misrepresentation, bluffing and providing false information
Dimensions of cultural difference
Individualism or Collectivism
Power distance
Temporal perspective
Individualism or Collectivism
Degree of self reliance rater than reliance upon others
Power distance
Egalitarianism or Hierarchal - Level of acceptance of inequality as legitimate. This flows through into how relationships are organised, decisions are made and power in exercised
Temporal perspective
Attitude towards time (short or long term perspective) This flows through into evaluations of situations and issues, and influences how tasks might be approached
Mediating and managing negotiator’s behaviour - mediators obligation
Mediators must employ the same behavioural techniques as negotiators to manage the behaviour of each party.
Mediator’s reciprocity
The manner in which the mediation is conducted will create a sense of balance between negotiators