Negotiation/Conflict Resolution Planning III
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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