work-9
Negotiation
Negotiation: give-and-take process between conflicting independent parties.
Two types:
- Distributive
- Focuses on claims made by each party
- Leads to win-lose outcomes
- Integrative or Principled
- Goal is to base the outcome on the merits of individual claims
- Leads to win-win outcomes
How can we negotiate successful agreements?
Gaining integrative agreements:
- Separate the people from the problem.
- Focus on interests, not on positions.
- Generate many alternatives before deciding what to do.
- Insist that results are based on some objective standard.
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How can we negotiate successful agreements?
All negotiation situations are susceptible to conflict and require exceptional communication and interpersonal skills.
Negotiation goals and approaches:
- Substance goals.
- Concerned with outcomes.
- Tied to the “content” issues of negotiation.
- Relationship goals.
- Concerned with processes.
- Tied to the way people work together.
- Effective negotiations occur when …
- Issues of substance are resolved.
- Working relationships are maintained or improved.
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How can we negotiate successful agreements?
Criteria for effective negotiation:
- Quality.
- Negotiating a “wise” agreement that is truly satisfactory to all sides.
- Cost.
- Negotiating efficiently, using minimum resources and time.
- Harmony.
- Negotiating in a way that fosters interpersonal relationships.
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How can we negotiate successful agreements?
Common negotiation pitfalls:
- Falling prey to the myth of the “fixed pie.”
- Nonrational escalation of conflict.
- Overconfidence and ignoring other’s needs.
- Too much “telling” and too little “hearing.”
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How can we negotiate successful agreements?
Ethical issues in negotiation …
- High ethical standards should be maintained.
- Profit motive and the competitive desire to win sometimes lead to unethical behavior.
- Unethical negotiating behavior can lead to short-term gains but long-term losses.
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Added-Value Negotiation
- Added-Value Negotiation - cooperatively developing multiple-deal packages while building a long-term relationship
Added-Value Negotiation
Steps
- Clarify interests
- Identify options
- Design alternative deal packages
- Select a deal
- Perfect the deal
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Seven Steps
To Negotiating Your Salary
Know the going rate
Don’t fudge your past compensation
Present cold, hard proof of your value
Let the other party name a figure first
Don’t nickel-and-dime
Avoid extravagant extras
Seek incentives and practical perks