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1

Influence of disclosure of information • Helps build trust

• Trust determines the simplicity or complexity of the solution

• Trust is also dependent on the simplicity or complexity of the problem

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Negotiation Outcome

• Agreements must meet the following criteria-

– Wise

– Efficient

– Implementable

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MANAGING NEGOTIATIONSDUAL CONCERN - MODEL

CO

NC

ER

N A

BO

UT

OT

HE

RS

’ OU

TC

OM

E

High

YIELDINGACCOMMODATION

PROBLEM-SOLVING

Low

INACTIONCONTENDING COMPETITION

HighCONCERN ABOUT OWN OUTCOME

4

STEPS OF NEGOTIATING

• Prepare

• Argue

• Signal

• Propose

• Bargain

• Close

• Agree

5

INFORMATION• Be clear and well informed

• Your starting point

– What do you want

– What do you really need

– What are you willing to sacrifice in exchange

– What are your priorities of needs and wants?

– What are your pressures, limits, or constraints:

• Economics

• Time

• Legal6

COMMON NEGOTIATING MISTAKES

• Inadequate preparation

• Not trying to problem solve

• Not listening

– Tone

– Key issues

– Signals of others

• Pulling rank/browbeating

2

7

COMMON NEGOTIATING MISTAKES (Cont...d)• Scoring points for personal satisfaction

• Being aggressive

• Arguing

• Ignoring conflict

• Impatience

• Failing to end on a positive note

8

Tricky Tactics

• Deliberate deception with phony facts

– Cross-check the facts independently

• Ambiguous authority-after getting a firm agreement, indicate that someone else’s approval is needed. “A second bite at the apple”

– Before starting on give and take, find out who has authority on the other side

– Insist on reciprocity, neither side committed to the draft

• Good guy/bad guy routine. Two people on the same side stage a quarrel. One tough and the other apparently accommodating

– Recognize the psychological manipulation

– Ask for reason

• Stressful situations. Sometimes setting deliberately designed to make you want to conclude quickly

– If the physical surroundings appear prejudicial, do not hesitate to say so

– Suggest changing places, taking a break, adjourning to a different place and time

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PRINCIPLES OF PROBLEM SOLVING IN NEGOTIATION

• A sense of cooperation rather than competition

• An abundance mentality

• A systems mentality: you & your partner are part of the entity

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Effective Negotiations

• Goodwill on both sides

• Giving and getting information

• Different people want different things

• People are willing to deal with you again

• Both parties confident the agreement will hold

• Each side has achieved something