NEGOTIATION/BARGAINING

VIEWS DISTRIBUTIVE BARGAINING –DIVIDE A FIXED AMOUNT –WIN-LOSE INTEGRATIVE BARGAINING –TRY TO CREATE WIN-WIN

NEGOTIATION SKILLS REMEMBER, IT IS NEGOTIATION NOT WAR! WE ARE OPPONENTS NOT ENEMIES.

RESEARCH THE OPPONENT GOALS INTERESTS STRATEGY PREDICT RESPONSES FRAME SOLUTIONS IN TERMS OF HIS/HER INTERESTS

BEGIN POSITIVE BEGIN WITH SMALL CONCESSION CONCESSIONS USUALLY RECIPROCATED

ADDRESS PROBLEMS FOCUS ON THE PROBLEM DO NOT FOCUS ON PERSONALITIES “MANAGE” EMOTIONS MAY “WIN THE BATTLE BUT LOSE THE WAR”

FIRST OFFER IS JUST BEGINNING INITIAL OFFER IS POINT OF DEPARTURE

EMPHASIZE WIN-WIN LOOK FOR INTEGRATIVE SOLUTIONS USE ABUNDANCE MENTALITY

ACCEPT THIRD PARTY ASSISTANCE IF STALEMATE, USE NEUTRAL 3RD. PARTY

HINDERANCES TO NEGOTIATION Robbins, S. (1994). Management, 4th. Ed. Englegood Cliffs: Prentice Hall,

ESCALATION OF COMMITMENT WON’T PULL OUT OF A “BAD DEAL” “SUNK COSTS” CAN’T BE RECOVERED SHOULD NOT BE CONSIDERED

FIXED PIE WIN-LOSE MISS TRADE-OFFS THAT COULD BENEFIT BOTH SIDES

ANCHORS GET “HUNG UP” ON SOMETHING –INITIAL OFFER –HAVE TO “WIN” –SET ON A SOLUTION –SET ON A CERTAIN PROCESS –“PUBLIC” STATEMENT

FRAMING THE NEGOTIATIONS FRAME OF REFERENCE –A SEEKS $4 RAISE –B OFFERS $2 –IS THIS A $2 GAIN OR LOSS TO A? –B SHOULD TRY TO FRAME AS $2 GAIN.

AVAILABILITY OF INFORMTION READILY AVAILABLE = IMPORTANT? –“EXPERIENCE” IS READILY AVAILABLE –VIVID EVENTS READILY AVAILABLE, I.E. REMEMBER MUST DISTINGUISH BETWEEN EMOTIONALY FAMILIAR AND RELEVANT/RELIABLE

WINNER’S CURSE REGRET FELT AFTER CLOSING –COULD YOU HAVE GOTTEN BETTER DEAL? –PAY TOO MUCH? REDUCE BY GETTING MORE INFORMATION BEFORE YOU BEGIN

OVERCONFIDENCE IN JUDGMENT, CHOICE “EXPERIENCE,” MENTAL SETS –ARE SURE –IGNORE CONTRADICTORY INFO –LESSENS INCENTIVE TO COOPERATE