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Negotiating Strategies and Tactics
Chapter 4 Negotiating Strategies and Tactics
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Learning Objectives By the end of this chapter, you should --
be able to define such terms as strategy and tactic. be familiar with the five styles of negotiation and understand the differences. be able to differentiate between the core strategies and tactics in negotiation enhance your own skill level through practice and reflection
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Know what type of conflict you are involved in
It is important to know what kind of conflict you are in because the different kinds require different types of strategies and tactics. (Deutsch,1999).
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3 major types of conflicts
A. the zero-sum conflict (a pure win-lose conflict) B. The pure cooperative ( both can win and both can lose) C. the mixed-motive (both can win, both can lose, one can win and the other can lose)
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What style will I adopt? p24
Five distinct categories(The most popular way to divide the typical negotiation styles or approaches): Collaborating Compromising Accommodating Controlling Avoiding (Thomas and Kilmann,1974)
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Types of Negotiating Style
Competitive(Controlling) Style Accommodative Style Avoiding Style Compromising Style Collaborative Style To try to gain all there is to gain To be willing to yield all there is to yield To try to stay out of negotiation To try to split the difference or find an intermediate point according to some principle To try to find the maximum possible gain for both parties – by careful exploration of the interests of all parties – and often by enlarging the pie
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Competing (Controlling)
Collaborating Compromising Avoiding Accommodating Approach Press own goals Get both concern out Work on a few item postpone, delay Ask for other’s views issues Merits of own position Identify issues Stay in stated bounds Ask/say little, withdraw Accept other’s goals Information Exaggerate Share information Give some to get some Don’t appear Be tentative, modest difference Override other’s view Work out difference Split difference Change the topic concede Strategy Use subterfuge Seek options for joint satisfaction Stay calm Claim limited authority Avoid hurting feeling Relation Exploit vulnerability Trust other Moderately trust Straddle Seek harmony
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Choosing Negotiation Styles
Suitability Flexibility Diversity
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Negotiating Styles VS Degrees of AC
Compromising High assertiveness Competing (Controlling) Collaborating Med Avoiding Accommodating Low Low Med High Cooperativeness
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A variant of the dual concerns model
Based on Lewicki et al (2003) p.35. high Competition Collaboration Importance of outcome Compromise Accommodation Avoidance low Importance of relationship low high
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Quiz: Assessing your negotiating style
Read through the questionnaire, choose the extent to which you feel that statement is descriptive of you by using the scales given and then fill in the Negotiating style scoring table. Draw your personal negotiating style profile, transfer the total score for each style to the appropriate column in the figure available.
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Negotiation Strategy Strategy may be defined as the overall plan used to gain advantage over the opponent or achieve some end. It is a pre-determined approach or prepared plan of action to achieve a specific goal or objective to potentially find and make an agreement or contract in a negotiation with another party or parties. The purpose — to spell out what has to be done to produce a final agreement that is closer to one’s own opening position
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Two basic strategies Offensive strategy: to take the initiative
Defensive strategy: to observe and wait until opportunities come and necessary measures should be taken.
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Guidelines for strategy selection
What is the purpose of opening negotiations with this particular group? What is our main goal in the target market? Is it trade or investment? What level of agenda control can I or we expect? What level of experience does our team (opponent)have in this type of negotiation?
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Guidelines for strategy selection
What are the issues to be negotiated? What issues are considered to be needs or wants for our position? List the range of settlement for each want for optimal to minimal. Re-evaluate the need and want list.
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Negotiation Tactics Negotiation tactics are the detailed methods employed by negotiators to gain an advantage over other parties. Tactics are often deceptive and manipulative and are used to fulfill one party’s goals and objectives - often to the detriment of the other negotiation parties. This makes most tactics in use today ‘win-lose’ by nature.
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Negotiation Tactics We would like to urge negotiators to only use ethical tactics. We are against using most tactics in principle, and recommend instead that you seek a more collaborative, open and trust building approach wherever possible. It is however worth learning how to identify and defend against tactics.
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Matching Tactics to Strategy
Tactics must be devised to attain the goals. Many strategy categories can also be used as tactics. Tactical analysis of counterparts is of great importance. The choice of tactics is limited by the ability, experience, acumen and motivation of each negotiator.
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Negotiating tactics Offensive & Defensive Personal & Team
Legal & Illegal Verbal & Non-verbal Principled & Unprincipled
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Offensive Tactics e.g. Tit for tat
Feign a blow to the east and attack in the west Uncover the counterpart’s interest and the right answer
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Defensive tactics e.g Minimal response and feigned misunderstanding
Silence is golden. Side-stepping. The yes-but technique.
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Major Personal Tactics
Aggressive Compliant Passive Impassive Intimidation Technical Financial Legalistic Secretive Deceptive Exploitive Stubborn Ambivalent Pragmatic Brinkmanship Arrogant Self-righteous Overwhelming Fleeting Stern Social Theft Indulgent
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Major Team Tactics CONSENSUS COWBOYS PLATOON DIVIDE AND CONQUER
JEKYLL AND HYDE HIERARCHICAL HORIZONTAL DEPARTMENTAL
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Consensus It allows team to disperse authority and responsibility.
Difficult to penetrate. Counterparts may be worn down by the slowness. A very time-consuming style. Decision-making process is slow.
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Cowboys A highly individualistic approach to business.
Individuals who are not merely specialists but staff who also exhibit generalist management talents. Extremely flexible and adaptive to up-and-coming negotiators. Tips:strong leadership, excellent communication skills, loyalty, well-brifed team,etc.
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Platoon Similar to Cowboy teams but with small subteams.
Independent team leaders are answerable to a single CN. Useful when you have large teams.
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Divide and Conquer Isolation of one or more members of the other team for the purpose of soliciting information. A technique older than Caesar. Cowboys : particularly susceptible.
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Jekyll and Hyde Also known as “Good cop,bad cop.”
Some take a very hard-line approach while another act on behalf of the opposition. Inexperienced teams are susceptible. Effective when third parties are included.
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Hierarchical Pass all decisions through the chain-of-command for approval. (e.g. when a strong CN has a weak team) Focus the power and all the possibility on one person.
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Horizontal Similar to Consensus teams,but without the benefit of the CN’s oversight. Used primarily by very large internaional corporations who plan to farm out parts of a contract to various subsidiaries. It demands strong leadership. Key— to make counterparts believe that they are dealing with separate entities.
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Departmental A more self-conscious version of the Hierarchical method but with the dispersal result of Horizontal negotiating. Specialty-based “departments” only negotiate within narrow ranges. CN has the option of overseeing the negotiations from a remote location.
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LEGAL TACTICS CULTURAL AGGRESSION GENDER PASSIVITY RACIAL IMPASSIVITY
TECHNICAL FINANCIAL STATUTORY STUBORNNESS PRAGMATISM AGGRESSION PASSIVITY IMPASSIVITY INTIMIDATION FORTHRIGHTNESS DELAY DISTRACTION LINGUISTIC LOCATION
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ILLEGAL TACTICS SURVEILLANCE EXTORTION DETAINMENT FRAUD STEALING
PHYSICAL FORCE BRIBERY
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Fisher, Ury and Patton’s ‘Getting to Yes’
Separate the people from the problem Focus on interests, not positions Generate a variety of options Problem solving approach Use objective criteria When preparing, consider Interests Options Alternatives Legitimacy Communication Relationship Commitment (Fisher and Ertel, 1995
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Principled Tactics Negotiators are problem-solvers.
The goal is a wise outcome reached efficiently and amicably. Separate the people from the problem. Be soft on the people, hard on the problem. Proceed independent of trust. Focus on interests, not positions. Explore interests. Avoiding having a bottom line.
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Principled Tactics (Cont.)
Invent options for mutual gain. Develop multiple options to choose from; decide later. Insist on objective criteria. Try to reach a result based on standards independent of will. Reason and be open to reasons; yield to principle, not pressure.
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Unprincipled Tactics Deliberate Deception Phony Facts
Stessful Situation Personal Attacks Extreme Demands Calculated Delay Take It or Leave It Please refer to Negotiating Globally (P242)
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Team Role Play Read the background information carefully and allocate the roles. Prepare carefully for the negotiation. Discuss and make a note of what you’ve learnt.
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Post-Class Tasks Read the article ‘ Getting to Yes’(on Blackboard) concerning Harvard negotiation . Supplementary Reading: “Negotiating Globally”(P208~P244)
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Homework: A Group Presentation
Attention: It is worth 10% of the total marks for the unit presented in class. Tasks: 1 Consult with your lecturer beforehand to ensure that your topic and approach is appropriate. Focus on a specific aspect of negotiation and be imaginative. 2 Planning the presentation 3 Prepare the handouts for your fellow students 4 Group Presentation 5 Conduct a short discussion with the class to explore the chosen topic further
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Assessment Criteria Criteria one: Criteria two:
to what extent did the presentation focus on an aspect of negotiation in a way in which the audience could learn something useful? Criteria two: to what extent does the handout provide useful insights to the practical application of theory and research?
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Checklist Do you consider the audience? Do you have clear objectives?
Is your presentation well-prepared? Is there a clear structure? Have you considered timing? Do you speak clearly/at the right speed? Do you use your body to emphasize meaning? Do you appear confident and positive? Are the visual aids clear? Do you use the equipment professionally?
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