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NEGOTIATION PROCESS
What is negotiation?
Characterized by two or more interdependent
parties who have a conflict of interest,and who
choose to adress that conflict by striving to
reach an agreement through a process of
mutual adjustment of each party’s demand and
concessions
Behavioral definition of negotiation
The process by which we search for the terms
to what we want from somebody who wants
something from us
NEW NEGOTIATING EDGE
(NEGOTIATION STYLES)
Red Style
Blue Style
Purple Style
RED STYLE
They believe manipulation is normal and
they behave as they believe
Main attitudes:
Aggressive
Intimidatory
Manipulatory
BLUE STYLE
Looking for both winning of two sides
Main attitudes:
Cooperative
Trusting
Conciliatory
PURPLE STYLE
Win-Win Approach
“Give me some of what (red style),I will
give you what you want (blue style)”
“Taking while giving”
“It is a two way exchange”
Negotiation as an Alternative
Persuasion
“We deserve a break”
Giving in
“OK,you deserve a break”
Instruction
“Give me a break”
Coercion
“Give me a break-or else!”
Negotiation as an Alternative
Litigation
“I’ll sue to get a break”
Problem solving
“How can we both get a break?”
Chance
“Heads I get a break?”
Arbitration
“Which of us deserves a break?”
When should you negotiate?
The most important motivation for
negotiating is the necessity of securing
the consent of those who have what
you want.
Withholding consent is a key feature
of decision making.
Negotiation as a universal process
“While every negotiation is unique,every
negotiation is also the same”
KEY ELEMENTS O F NEGOTIATION
Interdependence
Mutual dependence implies limits to how much
one party can do alone, or what cost, or how
desirably.
The more diversified products and market, the
more interdependence we face
SOME PERCIEVED CONFLICT
Increase interdependence of diverse people
virtually guarantess the potential for conflict
Real conflicts will some times be diagnosed as
‘failures to communicate’ or ‘personality
problems’
OPPORTUNISTIC INTERACTION
Guarding some information, moving to stake
out favorable position, seeking to mold
perceptions and aspirations.
THE POSSIBILITY OF AGREEMENT
People can negotiate to arrive at a joint
decision that is better than their unilateral
alternatives
BARGAINING
“In its purest form,it is mind
against mind.”
(John Illich,1980)
“It is better to give away the wool
than the sheep”
(Italian proverb)
TO AVOID UNWISE CONCESSIONS:
Where to stop
Provide a rationale
Repeat aloud the offer
Use hypotetical questions
Make conditional offers
Use packages
Value in other party’s terms
Think long-term consequences
Firm on interest,flexible on positions
BREAKING DEADLOCKS
Why deadlocks arise?
-Both parties have widely divergent
objectives
-One party mistakes firmness for rigidity
and will not make concessions even to keep
the negotiation “alive”
-As a deliberate tactic during a negotiation
to force the other party reconsider its
position and make concessions
CLOSING
“Nothing is settled until it is settled right”
Louis D.Brandeis
BASIC PRINCIPLES
“If you are going to play the game
properly you’d better know the rules”
Barbara Jordan
US Congress(1975)
WHAT ARE THESE RULES AND
PRINCIPLES?
Negotiating is a voluntary activity,
A negotiation usually starts,
Entering negotiation requires acceptance by both parties
that aggrement between them is required,
Timing is a critical factor,
Successful outcome is getting what both sides want,
Negotiation is influenced by the personal
values,skills,perception,attitudes and emotions
What are the implications of
these principles for an actual
negotiation?
MOVING TOWARDS AGREEMENTS
Advice and suggestions
Promises
Threats
Explanations
Praise
Criticism
Leading questions
Apologies
Reflecting
Adjournments
Humour
Joint agreed summaries
Proposals
COMMON NEGOTIATING MISTAKES
Entering negotiation with a preset mental mindset,
Not knowing who has final negotiating authority,
Not knowing precisely what power they possess,
Entering negotiation with only a general goal,
Failing to advance positions and arguments of substance,
Losing control over factors such as timing and the
ordering of issues,
Failing to let the other side make the first offer,
Ignoring time and location as a negotiating weapon,
Giving up when negotiation seems to have reached a
deadlock,
Not knowing the right time to close
Negotiation often fail for
predictable reasons
The most common include:
The
The
The
The
The
“One-Track” Syndrome
“Win-Lose” Syndrome
“Random Walk” Syndrome
“Conflict Avoidance” Syndrome
“Time Capsule” Syndrome
INTERESTS:
The Measure Of
Negotiation
Intrinsic and Instrumental Interests
Process Interests
“Relationship” Interests
Interests In Principles
Assessing Interests
Assessing Which Interests Are At Stake
Assessing The Interests Of Others
Assessing The Trade-offs
When To Focus On Interests and When
On Issues
NEGOTIATION IS CENTRAL TO
THE MANAGER’S JOB...
Dealing Outside The Chain Of
Command:
(Indirect Management)
Dealing With Subordinates
Commands
Management Systems
The Cooperative Approach
Dealing With Superiors
RESISTANCE TO THE ROLE OF
NEGOTIATION
BARGAINING=NEGOTIATION??
Negotiation is a process by which we attempt to
persuade people to give us something we want in
exchange for something else.It includes the attempts to
identify and assess the
perspectives,strategies,needs,expectations of the
participants and the discussions the parties hold with one
another.
Bargaining on the other hand,is much more narrower
than negotiation.It refers only to discussions that take
place,the purpose of which is to persuade the other party
to accept your terms.
BARGAINING=NEGOTIATION??
The danger in using the two terms as
synonoms is that it encourages us to view
negotiation as an event rather than a process.We
may thus neglect vital elements of that process.
BARGAINING
“In its purest form,it is mind against mind.”
(John Illich,1980)
“It is better to give away the wool than the
sheep”
(Italian proverb)
Getting and making concessions
A concession is a revision of a
previous position you have held and
justified publicly.
TO AVOID UNWISE CONCESSIONS:
Know where to stop
Provide a rationale
Repeat aloud the other party’s offer
Use hypotetical questions
Make conditional offers
Use packages
Value your concession in other party’s terms
Think long-term consequences
Be firm on interest,flexible on positions
BREAKING DEADLOCKS
Why do deadlocks arise?
-Both parties have widely divergent objectives
-One party mistakes firmness for rigidity and will
not make concessions even to keep the negotiation
“alive”
-As a deliberate tactic during a negotiation to force
the other party reconsider its position and make
concessions
Calling an outside party
CONCILIATION: A conciliator works with the two
parties to help them reach agreement.
MEDIATION: is a more direct form.Here,both parties
agree to consider a solution suggested by the outsider.
ARBITRATION:is the most powerful and risky
form.Both parties bind themselves in advance to accept
the third partys’ solution.
MOVING TOWARDS AGREEMENTS
Advice and suggestions
Promises
Threats
Explanations
Praise
Criticism
Leading questions
Apologies
Reflecting
Adjournments
Humour
Joint agreed summaries
Proposals
CLOSING
“Nothing is settled until it is settled right”
Louis D.Brandeis
GAMES NEGOTIATORS PLAY
Expertise: The purpose of this game is to give the impression
one’s homework has been done by establishing at the
beginning of the negotiation that one has a knowledge of facts.
Snow job [ikna etme sanatı]: This game is similar to expertise
in that facts and figures are used to overwhelm the other.
So what?: Regardless of the importance,you say that the item
was really not important in the first place.
Wheat and chaff: This is played by putting not really priority
items(chaff) in order to obtain priority items (wheat)
GAMES NEGOTIATORS PLAY
Wooden leg: The argument here is that one is suffering
from a limitation that makes further movement
impossible.
Sandbagger: which is a term in golf,means reflecting
yourself weak in order to win
Boredom: In this game,body language is used to nitfy
the other party that their points fail to impress.
Yes..but..: Every time a solution is suggested,the other
party derides it with a “Yes...but...”