Negotiation/Conflict Resolution Planning III

Shaun Webbs
NegotiationConflictResolutionUnitIIIStudyGuideChapter4PresentationOverview.pdf

NEGOTIATION SEVENTH EDITION

• ROY J. LEWICKI  • DAVID M. SAUNDERS  • BRUCE BARRY

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Chapter 4

NEGOTIATION: STRATEGY AND PLANNING

© 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.

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GOALS – THE FOCUS THAT DRIVES  NEGOTIATION STRATEGY

• Determining goals is the first step in the  negotiation process

• Negotiators should specify goals and objectives  clearly

• The goals set have direct and indirect effects on  the negotiator’s strategy

© 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.

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GOALS, STRATEGY AND PLANNING

© 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.

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THE DIRECT AND INDIRECT EFFECTS OF  GOALS ON STRATEGY

• Direct effects  Wishes are not goals  Goals are often linked to the other party’s goals  There are limits to what goals can be  Effective goals must be concrete/specific

• Indirect effects  Forging an ongoing relationship

© 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.

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STRATEGY VERSUS TACTICS

• Strategy: The overall plan to achieve one’s  goals in a negotiation

• Tactics: Short‐term, adaptive moves  designed to enact or pursue broad strategies  Tactics are subordinate to strategy  Tactics are driven by strategy

• Planning: The “action” component of the  strategy process; i.e. how will I implement  the strategy?

© 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.

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APPROACHES TO STRATEGY

• Unilateral: One that is made without active  involvement of the other party

• Bilateral: One that considers the impact of the  other’s strategy on one’s own

© 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.

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STRATEGIC OPTIONS

• Per the Dual Concerns Model, choice of strategy is  reflected in the answers to two questions:  How much concern do I have in achieving my desired  outcomes at stake in the  negotiation?  How much concern do I have for the current and future  quality of the relationship with the other party?

© 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.

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THE DUAL CONCERNS MODEL

Avoidance: Don’t negotiate Competition: I gain, ignore relationship Collaboration: I gain, you gain, enhance relationship Accommodation: I let you win, enhance relationship

© 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.

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THE NONENGAGEMENT STRATEGY: AVOIDANCE

• If one is able to meet one’s needs without  negotiating at all, it may make sense to use an  avoidance strategy

• It simply may not be worth the time and effort to  negotiate

• The decision to negotiate is closely related to the  desirability of available alternatives

© 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.

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ACTIVE‐ENGAGEMENT STRATEGIES

• Competition – distributive, win‐lose bargaining • Collaboration – integrative, win‐win negotiation • Accommodation – involves an imbalance of  outcomes (“I lose, you win”)

© 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.

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UNDERSTANDING THE FLOW OF  NEGOTIATIONS:  STAGES AND PHASES

• How does the interaction between parties change  over time?

• How do the interaction processes relate to inputs  and outcomes over time?

• How do the tactics affect the development of the  negotiation?

© 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.

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UNDERSTANDING THE FLOW OF  NEGOTIATIONS:  STAGES AND PHASES

Negotiation proceeds through distinct phases or  stages

• Beginning phase (initiation)

• Middle phase (problem solving)

• Ending phase (resolution)

© 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.

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KEY STEPS TO AN IDEAL NEGOTIATION PROCESS

• Preparation  What are the goals?  How will I work with the other party?

• Relationship building  Understanding differences and similarities  Building commitment toward a mutually beneficial set  of outcomes

• Information gathering  Learn what you need to know about the issues

© 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.

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KEY STEPS TO AN IDEAL NEGOTIATION PROCESS

• Information using  Assemble your case

• Bidding  Each party states their “opening offer”  Each party engages in “give and take”

• Closing the deal  Build commitment

• Implementing the agreement

© 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.

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KEY STEPS TO AN  IDEAL NEGOTIATION PROCESS

© 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.

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GETTING READY TO IMPLEMENT THE  STRATEGY:  THE PLANNING PROCESS

• Define the issues • Assemble the issues and define the bargaining mix  The bargaining mix is the combined list of issues

• Define your interests  Why you want what you want

© 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.

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GETTING READY TO IMPLEMENT THE  STRATEGY:  THE PLANNING PROCESS

• Know your limits and alternatives • Set your objectives (targets) and opening bids  (where to start)  Target is the outcome realistically expected  Opening is the best that can be achieved

• Assess constituents and the social context of the  negotiation

© 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.

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THE SOCIAL CONTEXT OF NEGOTIATION:  “FIELD” ANALYSIS

© 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.

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GETTING READY TO IMPLEMENT THE  STRATEGY:  THE PLANNING PROCESS

• Analyze the other party  Why do they want what they want?  How can I present my case clearly and refute the other  party’s arguments?

• Present the issues to the other party

© 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.

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INFORMATION NEEDED TO PREPARE  EFFECTIVELY FOR ENGAGING THE OTHER 

PARTY • Resources, issues, and bargaining mix • Interests and needs • Walkaway point and alternative(s) • Targets and opening bids • Constituents, social structure, and authority to  make an agreement

• Reputation and negotiation style • Likely strategy and tactics

© 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.

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GETTING READY TO IMPLEMENT THE  STRATEGY:  THE PLANNING PROCESS

• Define the protocol to be followed in the  negotiation  Where and when will the negotiation occur?  Who will be there?  What is the agenda?

© 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.

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SUMMARY ON THE PLANNING PROCESS

“...planning is the most  critically important  activity in negotiation.”

© 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.

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