Negotiation Basics
A formal discussion between people who are trying to reach an agreement
Negotiation
Negotiation Phases
1. Preparation
2. Opening
3. Bargaining
4. Closing and Implementation
2. Opening
3. Bargaining
4. Closing and Implementation
Why is negotiation important?
1. Results
2. Responses
3. Outcomes
4. Relationships
2. Responses
3. Outcomes
4. Relationships
T/F: Negotiations should involve more rationally-based responses than emotionally based
True
T/F: Emotional responses should be ignored during negotiations
False
What are the risks between balancing outcomes and relationships
(+) Outcome can cause negative relationship
(+) Relationship so settle for negative outcome
What do negotiations aim for
outcomes
What are examples of essential trains in a negotiator
positive attitude
knowledge of negotiation process
understanding of people
grasp of the subject
creativity
communication skills
knowledge of negotiation process
understanding of people
grasp of the subject
creativity
communication skills
T/F: Don’t go into a negotiation if you feel unsure of yourself
True
What is the term for believing in ourselves and in our negotiation skills means it will most likely go well?
Self-Fulfilling Prophecy
What are the steps of the negotiation process (once it has already started)
1. Relate
2. Explore
3. Propose
4. Agree
2. Explore
3. Propose
4. Agree
Which phase of the negotiation process do skilled negotiators use to get info
Relate phase
In what phase of the negotiation process are people talking about what they are interested in?
Explore phase
In what phase of the negotiation process are people bargaining and providing different ideas?
Propose phase
T/F: you should NEVER skip a step of the negotiation process
True
How can time of the negotiation influence outcome?
If they don’t have enough time to negotiate –> will not have time to explore deeply in depth and won’t have time to argue as much
How can you use body language in negotiation?
Determine if someone is trying to be misleading, determining your success
How can power influence negotiation?
Will they treat you as powerful if you are? If they are more powerful will they make you feel shunned?
What are the two ways most people make decisions in negotiation
Rational or intuitive
T/F: Negotiation requires an end agreement
True
How can you grasp the subject better before a negotiation?
Do your homework. Find out what you want, it’s value, what it would cost the employer, the other employees, compare to other places in the area, alternate ideas, consequences
Why is it important to be creative in negotiations?
1. develop novel win-win solutions
2. persuasive positions to support your position
3. solutions to implement after general agreement
4. alternative to the negotiated deal to make you less dependent on it
2. persuasive positions to support your position
3. solutions to implement after general agreement
4. alternative to the negotiated deal to make you less dependent on it
Purposes of good communication:
getting the info needed and developping rapport
T/F: Good communication involves talking>listening
False
Relative worth of an item based on its importance to the possessor
Value
T/F: Value is determined by both parties in a negotiation
True
T/F: Value is often the same in negotiations
False
What defines how you will approach negotiations
Value
What is the worst acceptable outcome
the least you hope to accomplish; “fallback”
What is the preferred course of action when goals aren’t met through negotiation?
Best alternative to negotiated agreement (BATNA)
the three key questions of a negotiation
1. Is the substantive issue important to you?
2. Do you value your relationship with the other party?
3. Is time a factor?
2. Do you value your relationship with the other party?
3. Is time a factor?
The issue is important to you in what 2 strategies
win-win
win-lose
win-lose
Use this strategy if you value this relationship
win-win
lose-win
lose-win
Use this strategy if you have enough time to find an approach that works for all
Win-Win
Use this strategy if the relationship doesn’t matter
win-lose
use this is if you want to break even
win-lose
use this strategy if you have time to wait it out
Win-lose
Use these strategies if the issue isn’t important
lose-win
lose-lose
lose-lose
Use this strategy if the preserving the relationship is better in the long run
lose-win
Use this strategy if the issue is unimportant to both parties
lose-lose
use if time is a primary concern to both
lose-lose
Signs that they can be a partner vs opponent
amicable negotiation
willingness to see your viewpoint
willingness to see your viewpoint
T/F: Partnership vs being an opponent builds the foundation for long-term relationships
True
T/F: The better the understanding of goals and how to offer points for negotiation, you will have increased opportunity to advance goals with greater chance of success
True
What are perks of a partnership vs being opponents
more pleasant negotiation
see things from each other’s sides
clearer understanding of goals and how you can work together
Why is it important to know who makes decisions in a business in terms of negotiation
you might be negotiation with a manager (head decision maker) or a HR rep (no say in decision making)
Considerations if you have a good relationship in a negotiation
maintain it
less aggressive/not pushing it til things get bad
less aggressive/not pushing it til things get bad
Considerations if you have a bad relationship
may want to improve it (not always necessary)
plan to be accommodating and help achieve objective (shared goals)
Considerations if you have no relationship
competitive strategy
maximize negotiations for goals
develop relationship (optional)
5 key components to planning and setting goals
achievements
limits
offers
alternatives
agenda
limits
offers
alternatives
agenda
Perks of negotiating on your turf
no travel costs
psychological comfort
you control environment
psychological comfort
you control environment
Ideal location for the inexperienced negotiatior
negotiator’s own turf
Downside of negotiationing on negotiator’s own turn
opponent gets to see how your department runs/the flow/strategies
What type of turf is a sterile environment and is chosen often out of tradition
neutral turf
Types of communication methods for negotiations
in person
phone
email
fax
phone
fax
Considerations when determining communication type of a negotiation
time
geographic location
number of people
rapport established
complexity of issue
will interaction be long or short term
documents that everyone needs to read beforehand
geographic location
number of people
rapport established
complexity of issue
will interaction be long or short term
documents that everyone needs to read beforehand
What does the initial phase of negotiation consist of
setting the tone and opening the conversation
Term: Built through observing and interacting with another party over time
Rapport
3 ways to facilitate rapport
trust
collegial atmosphere
long-term relationship
collegial atmosphere
long-term relationship
how to establish trust in a negotiation
make sure other party feels valued personally and professionally
Term: negotiation should be an extension of a relationship
collegial atmosphere
Ways to build rapport
(+) Discussions about business
prove your worth
patience
be supportive — not selfish
prove your worth
patience
be supportive — not selfish
Term: position or rank relative to tohers
Status
T/F: You should try to establish a status that is either greater or equal to your opponent’s
True
How is status determined
by what value or potential value you can bring to those you negotiation with
T/F: You shouldn’t try to improve leverage in a negotiation
False
T/F: If you already have a relationship with someone, you may still need to establish rapport
False
Term: Shared guidelines that establish a framework for pending negotiations
Rules of Engagement
The rules of engagement clarify expectations on what two specific things
Purpose and length of negotiation
T/F: The Rules of engagement can be written or verbal, but written is often better so it can be referenced
True
What 3 factors determine a negotiation timeline
deadlines, time needed to understand material, how much negotiation is involved
The two steps of communicating results of the negotiation
1. documentation
2. implementation
2. implementation
step of negotiation that is “a game of give and take”
bargaining
Power: trusted b/c one’s opinion is respected
expert power
Power: trusted b/c percieved to be trustworthy, competent, and motivated by good will
Personal power
Power: able to give something others don’t want
Reward power
Power: able to punish others who don’t conform
coercive power
Power: in a position that entitles you to give power
legitimate power
T/F: In a negotiation, we shouldn’t expect to have to make concessions in order to reach agreement
False
What process do we use to move from opening bids to desired targets
bidding process
How does a competitive relationship affect negotiation
push the other side to move their stance
How does a cooperative relationship affect negotiation
be prepared for both sides to move equally
3 mistakes negotiators can make
cling
surrender
change
surrender
change
Mistake: person holds fast to desired outcome leading to angry parties; standoff with no satisfactory resolution
Cling
Mistake: person makes a deal but not a very good one; more focused on reaching agreement; settles on an inferior deal
Surrender
Mistake: person switches direction midway; breakdown in talks or settlements making little sense later
Change
What phase of negotiation involves implementation
Closing phase
6 components of implementation of a negotiation
Review
Write
Clarity
Shake (hands not booty)
exchange
celebrate
Write
Clarity
Shake (hands not booty)
exchange
celebrate