...Negotiation Theory Types of Negotiation Table of contents 1. Introduction 2. Negotiation Theory: Foundations and Approaches 2.1. Basic concepts of negotiation 2.2. Negotiation approaches: An overview 2.2.1. Structural approach 2.2.2. Strategic approach 2.2.3. Behavioral approach 2.2.4. Processual approach 2.2.5. Integrative approach 2.3. Summary of approaches 3 Types of Negotiation Negotiation Theory and Practice: A Review of the Literature “major public policies are the outcome of a complex round of negotiation between interests, choices between values and competition between resources… there are no single ‘best’ options for any player in this game, for the ‘best’ outcome depends on what others do and what deals are possible.” (Davis et.al., 1993) 1. INTRODUCTION “Pure” conflict defined as the existence of competing interests between parties in absence of interests that are shared, is an anomaly in international relations where the defining feature of the relationship between states is mutual dependence. Such was the observation of Thomas Schelling, noted international economist, during the height of the Cold War. In the decades that have since transpired, globalizing developments in technology, communications, finance and trade have given rise to a world in which citizens, organizations and governments engage in millions of trans-national interactions on a daily basis. In the modern age, the need...
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...edition of Negotiation: Readings, Exercises and Cases by Lewicki, Saunders, and Barry. This article provides an excellent overview of negotiation techniques, avoiding impasses, and avoiding the pitfalls of hidden assumptions. This article is written for practitioners that conduct negotiations or plan to conduct negotiations in the future. The authors’ do not provide any reference to the academic literature (or any references at all). The portions of this article that cover negotiation techniques and avoiding impasses seem to provide a very thorough list of techniques, but the description of these techniques is generally limited to only one or two paragraphs. The portion of the article that describes avoiding the pitfalls of hidden assumptions is vague and lacking in substance. In addition, there is a glaring factual error in one of the examples provided by the authors, which may imply that there are other errors in this article. Despite these issues, Nierenberg and Calero (2009) have provided an excellent introductory overview of negotiation techniques and techniques to avoid impasses. This article is excellent reading for those that conduct negotiations in the performance of their job as well as those that are involved in negotiations for the myriad circumstances of day to day life. Nierenberg and Calero have conducted negotiations for several years and held hundreds of negotiation seminars (Nierenberg and Calero, 2009). This article describes negotiation strategies...
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...cultural negotiation skills becomes a prerequisite for success. Thus the importance of understanding cultural diffences becomes critical. Cross cultural negotiations are complex and involve both personal and cultural – they have an impact on both perception of conflicts and the methods used to solve them. Many factors influence the outcome of cross-cultural negotiations and should be considered before entering into negotiations with another culture. Negotiators who understand certain aspects of cross-culture negotiations have the advantage over the negotiator who is not well prepared to negotiate with their foreign counterpart. I will discuss a few negotiation factors which constitute a basic framework for identifying cultural differences that was presented during the cross cultural team presentations. Cultures have different views and reasons for setting their goals in negotiations; for example in North America the goal of any business negotiation is to reach a substantive outcome; time is money and the outcome of reaching an agreement is quick and formal. In Italy, quite the contrary is true; the goal for a negotiation is to focus on building long lasting and trustful relationships. Don’t expect to reach an agreement quickly; negotiations with Italians take long, fostering trust comes before reaching an agreement. Communication, both verbal and non-verbal play a very important part of the negotiation process and can hinder the progress of a successful negotiation if one...
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...Global Negotiation between FD and Conquip Conquip’s Solicitation Of The 10% RFQ Conquip sent the RFQ possibly attempting to anchor the negotiation and to prove its strong position towards the negotiation. This strategy is risky and could be harmful if the other party doesn't have this value between its reservation and target price (Chang, Chung, & Van de Vyver, 2014). During meeting 2, FD walked into the negotiation with a poor BATNA: no agreement meant FD risked losing all its Conquip business to FF. Conquip seemed to have a strong BATNA: the company could easily switch to FF filters. However, de Winter convinces Conquip of the value of LEIF’s innovative technology, and Conquip knew they wouldn’t have suppliers that would be equivalent to the patented LEIF product (Chang, Chung, & Van de Vyver, 2014). Both FD and FILTECH stated they could meet Conquip’s 10 percent price cut demand over three years and still enjoy healthy margins (Chang, Chung, & Van de Vyver, 2014). The Downside to the Negotiation Sometimes, even with the best of intentions and skill, a principled negotiator cannot bring the other side around. Sometimes, the other side simply won't play fair and use bullying, psychological warfare, or deliberate deception tactics (DAU, 2014). Without a BATNA, a negotiator doesn't know how important the negotiations are, and will be vulnerable to pressure from the other side, and that pressure will come. With a BATNA, the...
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...Negotiation techniques- types of negotiations Distributive negotiations are negotiations that usually take place between people or companies that have not done business before and it is usually a one-time deal and one person is going to get a better deal than the other. This kind of negotiation could include selling a car or a house or buying something and bargaining the prize down. In this type of negotiations each person has their own interest at heart and tries to get the best deal possible and is not thinking about the other person and since this is a one-time deal with a stranger the way the other person sees him does not really matter. When you enter into a distributive negotiation it is important to try to make the other person make the first offer and then you can counter offer, also not to give out any information that could help the other person get leverage over you and therefor get the better deal. Integrative negotiations are negotiations that take place between one or more individuals and/or company’s. It usually involves dealing with many issues instead of just one like in distributive negotiations. In these kinds of negotiations everyone is going to benefit from the deal and the people involved try to find a solution that will be good for everyone, of course one can have more strength and therefor walk away with the better end of the deal but the purpose of this negotiation is to find mutual grounds that they all can agree on. These kinds of negotiations could...
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...In the dynamic world of business, negotiations often involve incredibly complex proceedings that are determined by a myriad of diverse factors. Four specific features of the negotiation framework, namely power, trust, emotions and culture, intrigued us extensively, and so we sought to examine the impact that these factors had on the course of a negotiation, paying particular interest to the tactics employed and its effectiveness at the bargaining table. To achieve our objective, we interviewed three successful working professionals with diverse corporate experiences and backgrounds (Refer to Appendix A). Power/Influence in Negotiations Past researches have examined the ways in which persuasion and influence were employed in negotiations, either through direct or subtle means, to achieve desired outcomes. This can be achieved when power is strategically employed in the negotiation process to effectively orientate and influence the counterparty in one way or another. The employment of power in a negotiation can best be described as “the capabilities negotiators can assemble to give themselves an advantage or increase the probability of achieving their objectives” (Lewicki, Saunders & Barry, 2011). The concept of power as an underpinning construct within the negotiation framework can be largely explicated by the underlying mechanics encircling power distribution. Parties entering a negotiation begin the process on either a neutralized grounding or on an unequal footing...
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...Marie S. Hemsley Contract Negotiations Mon-Wed. 7-8:20pm Chapter 6 – Section VIII NEGOTIATIONS Negotiating government contracts and modifications is an art, a science, and an acquired skill. In order to acquire the skill, the negotiator must have a firm knowledge of the basic rules of government contract law and appropriate contract procedures. A successful negotiation depends on communication, price demands, and complete preparation. Negotiation without adequate preparation invites failure and is, in fact, a breach of the negotiator's obligation to oneself, the government, and to the public trust. Adequate preparation enables the negotiator to negotiate with strength to take and hold the initiative throughout the negotiation conference and to meet any challenge with confidence. It is emphasized that lack of preparation for negotiations places the government in a position of distinct disadvantage. The discussion contained in this chapter is based on the assumption that negotiation after receipt of proposals is considered necessary. That is, for any situation where adequate price completion has not been assured via competitive bids, technical requirements, or proposals taken with the view of an award based upon the lowest reasonable price. VII. Negotiation Exchange with offerors after establishment of the competitive range. Negotiation are exchanges, in either a competitive or sole source environment, between the Government and offerors, that are undertaken with the...
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...In an international business there has to be at least 2 parties, from different countries, negotiating a business deal. There are 2 factors in the international negotiation. The environmental context – this Includes environmental forces that neither negotiator controls that influence the negotiation The immediate context – this Includes factors over which negotiators appear to have some control The following diagram below shows the context of international negotiations. According to the above diagram, the 6 factors in the environmental context that makes international negotiation different from the national are: (1) Political and legal pluralism Firms from different countries work with different legal and political systems. There are large concerns about the political risks. (2) International economics The value of foreign currencies which fluctuates from time to time; this factor needs to be negotiated. (3) Foreign governments and bureaucracies The level of governmental meddling in business in many nations is wide-ranging. In countries firms are free from government regulations while in others they are not. Parties need to know whether the governments should be included in their negotiations or not. (4) Instability Instability can be caused due to lack of resources (electricity/computers), shortages of other goods and services (water, transportation and proper food) and political instability (government policies). (5) Ideology & Culture ...
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...The Art of Negotiation Goals & Objectives: To list examples that require successful negotiating skills in your personal and professional life To explain the elements of successful negotiation To describe the barriers to successful negotiation Outline: Elements of Successful Negotiation Preparation Preparation Goals Preparation Limits Communication Skills Active Listening Clarity Body Language Emotional Control Final Negotiations – Closing the Deal Final Tips Traits of a Great Negotiator Successful Techniques Unsuccessful Techniques Summary The Art of Negotiation Objectives: Successful negotiation is an art form that comes naturally to some, but must be learned by most. This module will discuss skills necessary to successfully negotiate goals and objectives in your personal and professional life. Skills will be broken down into specific elements that may enhance or impede any outcome. Introduction If we poll an audience and ask them for the first thought that comes to mind when they think of the term ‘negotiation’, the most often responses will include labor, contract or political negotiations. Yet negotiations play a major role in all aspects of our professional and personal lives.1 In the workplace we negotiate with our patients and their families and friends to obtain their full consent and cooperation. We negotiate with our peers, managers, physician staff and other healthcare workers, state and federal regulators and the list goes...
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...Negotiation Negotiation Plan Team D (NAC) Walden University Negotiation Plan One of the main challenges in the upcoming negotiations with the USSL is the cultural differences between our countries. In order to overcome this barrier, we have to plan our negotiation approach very careful and detailed. According to Lewicki, Saunders, and Barry (2011), “The dominant force for success in negotiation is in the planning that takes place prior to the dialogue” (Lewicki, Saunders, & Barry, 2011, p. 97). The main issues in the upcoming negotiations are: * Number of vessel used per year * Logistics support during the ocean and ground transportation * Freight cost and terms of payment * Geographic distribution over the Americas and other continents With accordance to the presented issues, the objectives in each negotiation session will be as following. Stage 1: A general agreement on the concept of operations, including reaching of consensus regarding further negotiations. Stage 2: Strategic Objectives. 1. Creation of harmonious relationships, based on the integrity and reliability; 2. Determination of the volume of transportation over the five-year period, including general understanding regarding an obligation per each year; 3. Principal agreement on the financial relations; 4. General agreement regarding potential geographic areas /states...
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...Article Analysis: The Chinese Negotiation Jamelia Harper-McGee 3-27-12 MGT/445 Sandra Sessoms-Penny Article Analysis: The Chinese Negotiation The name of the article that I read was "The Chinese Negotiation", it discussed the cultural values of Americans (Westerners) and the Chinese and touches on the fact that the way they view each others values affects their negotiations being that their approaches often appear incompatible. In order to do this research, a business trip to China is taken. Their goal in doing this was to "help Western and Chinese negotiators learn to work together more efficiently with mutual respect and gain the ultimate prizes". The Chinese have four thick threads of culture that differentiate them from Americans. The first thread is Agrarianism. The US population is mostly urban and most of the Chinese population still lives in rural areas where their traditional agriculture is peasant farming and their survival depends on group harmony. The Chinese moral values express themselves in their negotiating style. Chinese negotiators are more concerned with the process than the overall goal and believe in haggling until a compromise is made. Americans tend to take things more to the heart and will argue their side of what they feel is right or wrong and sometimes will get angry. The second thread is morality. They had what is called “The writings of Confucius" which served as the foundation of Chinese education...
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...| Budget MotelIntegrative Negotiation | | | | Winnie Wang Hotel Owner 2/2/2015 | | In this case, I negotiated with Ilyas Abayev, who was playing the role of a representative | | for Green Roof Inn. The negotiation started off rocky and unfortunately, never really | | recovered. I felt rather uncomfortable from the start and I think that affected our | | ability, or rather lack of, to come to a compromise. We could not reach a conclusion | | and because of the tension in our negotiation, it made it easier for me to walk away. I did | | not want to help him, especially if it meant some sacrifice on my part. | | | | We were unable to create any sort of value in this case. Although unknown at the time, | | our bargaining zones had zero overlap, but because as the hotel owner, I was looking | | for a place to live, but any Green Roof Inn property provides housing for its general | | managers. Had Ilyas and I been more open with our communication and developed | | some form of trust, we may have found common ground. Because I felt guarded and | | confused, I had a hard time finding things that would be mutually beneficial. Had the | | Green Roof Inn provided me and my spouse housing, then I would’ve been more willing | | to take a lower offer because I would not have as many expenses. | | | | Ilyas started off very “relaxed” about everything, even before the negotiation started. He | | asked for some time to review...
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...A negotiation performs many roles in life and is a skilled art that demonstrates the ability to reach a mutual agreement inadvertent of the situation. Regardless of personality type, the ability to negotiate is widely recognized as a form of powerful communication. Communication demonstrates good judgment of all available channels and translates one’s ability as a key facilitator and adept negotiator. This paper will address a negotiation situation that I have participated in. Analyze the roles of communication and personality leading up to the negotiation and discuss how it detracted from the outcome. Negotiation Situation “Negotiation is defined as a discussion among individuals where everyone contributes equally to reach to a conclusion benefiting all.” (Management Study Guide, 2008). A negotiation situation I have participated in is the purchase of my first home. At the time the real estate market started to flourish and the scramble for me to own a home wasn’t the only caveat to achieving the American dream. My wife and I had two children, a third on the way with a small amount of money tucked away at a local community bank. The thought of providing a home for an impending family life change, was the positive action required of me to meet growing responsibilities, so I thought. I developed an action plan not really understanding that the rewards would only come from my actions prior to the negotiation. Roles of Communication and Personality To bargain successfully...
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... Weaver 09Mar13 Negotiation is a key art in the modern business world, none more so than in an investment stage start up where I currently work. These negotiation strategies range from being able to secure the best possible deal for oneslf in a ruthless winner take all style of negotiation to the everybody wins, collaborative style of negotiation. The question we must answer though, is how can negotiation be viewed outside of a business contract contect but rather within our day to day work routines and particularly in resolving workplace conflict. In the book, 5 Dysfunctions of a Team author Patrick Leoncioni discusses workplace conflict in a positive, challenging manner (ref). I find myself in agreement with this mindset but negotiation can assist us when discussing viewpoints that are in disagreement. There are two theories that are critical in the negotiation process. They are the BATNA in a negotiation, that is the best alternative to a negotiated agreement which refers to the bottom line. If a negotiated agreement isn't better than the BANTA there is absolutely no reason for us to accept it. The other serious consideration is the negotiator's dilemna which details that movement toward a consensus of mutual gain reduces the individual self-gain and therefore self gain can restrain movement toward the mutual (Hellreigel & Slocum, 2011). It is this latter theory that most likely contributes to the majority of failed workplace conflict negotiations. However, let us consider...
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...Negotiations occur more often in our lives than we think they do. Whether it a major negotiation on how to divide property or resources to how much one is willing to pay for a purchase, negotiation is part of the process to come to an agreement. Sometimes people don’t realize that certain situations can be negotiated and fail to do so. I’ve learned that everything in life is negotiable and one doesn’t have to settle for the first initial offer. Negotiation isn’t always a win-lose situation it can be a win-win situation where both parties can both find a suitable solution to a difficult problem and can be creative where solutions also can be invented to meet intentions of the parties involved. When negotiations are dependable on both parties to achieve their own preferred outcome it is referred to as interdependent and has potential consequences resulting in conflict. Negotiation happens on many levels and other factors play an important role when setting the scene for a negotiation. The important factors that shape a negotiation happen before the actual act of negotiating. Different types of perception and emotions have an effect on individuals and can be based on stereotyping, culture, selective perception, and projection. It is important to be aware of those types of barriers when negotiating to set the tone of the negotiating process. One particular situation that I had to use my negotiating skills occurred when I was employed as a store manager for a very popular shoe...
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