Negotiating Flashcards
When is negotiation must effective
When collaboration is used to create a solution that satisfies key needs on both sides
Negotiation
- Process when two or more parties work together to reach agreement on a matter.
- Involves distinguishing between needs and wants
Needs
Are essential to a leader’s goal
Wants
Are attractive not not really essential
Negotiating grievances and contract interpretations
Are to be conducted in the existing legal frameworks
Approaches to negotiation include
- Soft negotiators
- Hard negotiators
- Principled negotiation
Soft negotiators
- Value the relationship more than the outcome
- Will back down on issues in the interest of reaching an agreement - even if they are no longer getting what they need
Hard negotiators
Are committed to winning, even at the cost of the relationship
Principled negotiation
- Negotiator aims for mutual gain
- Applies interest-based rational negotiating or integrative barganing
Interest-based relational negotiating (integrative bargaining)
- Focus on the problem instead of personal differences
- Focus on mutually beneficial outcomes rather than hard positions
- Identify common interest and make them a goal for the negotiation
- Creative - with options on both sides
- Goal is win-win requiring some sacrifice
How to approach a negotiator who bullies, manipulates or deceives
- Persist with commitment to win-win
- Do not retreat or concede to their negotiating position
- May walk away if needed
HR actions to unethical behaviors in negotiations
Violation should be documented and reported to involved parties
Steps in the negotiation process include
- Preparation
- Relationship building
- Information exchange
- Persuasion
- Concessions
- Agreement
Preparation step in the negotiation process
- Negotiator should identify critical needs and wants that could be concessions and possible demands from the other side
- Defining your BATNA
Defining your BATNA
- Best alternative to a negotiated agreement
- Knowing your possible alternatives if negotiation fails to establish more accurate value and proposal you can live with
- Should also be performed from the other side to anticipate reactions
Relationship building step in the negotiation process
- Creating atmosphere that encourage comfort and openness.
- Trust is built with the exchange of personal information that reveals character.
Information exchange step in the negotiation process
- Positions and needs are explained on both sides
- Perspective talking First offer “anchors” or defines negotiating point.
Perspective talking
Seeing the issue from the other side
Perspective talking advantages
- Helps negotiators anticipate reactions to proposals and overcome negotiating obstacles
- Approach problem from different angle
- Expands options
- Propose win-win solutions
- Makes first offer an advantage
Persuasion step in the negotiation process
- Negotiators seek mutually beneficial options rather than trying to win the other side to their own position.
- Possible since both sides understand the other side
- Negotiators focus on dividing interests rather than sticking to distinct positions
Concessions step in the negotiation process
- Both sides find wants that are not essential to agreement.
- Some negotiators plan to make small concessions, while others never make concessions—at least, formally.
- In a multi-party negotiation, one can try to get the other participants to bid against each other in the manner of an auction.
Agreement step in the negotiation process
- Agreements may be legal instruments or verbally expressed understandings.
- Requirement of a legal contract may itself be offensive to some cultures, who view it as a sign of lack of trust in the relationship.
- Negotiators must also be alert to agreement that is only apparent and may result from a desire to avoid conflict.
Negotiating in Multicultural Settings
- Be aware of influence of culture on negotiating styles
- Apply synergistic approach
Synergistic approach
Recognize the differences in negotiating styles across cultures and uses those differences to craft agreements that allow both sides to win.
How to apply synergistic approach to negotiation
- Try to understand the values the other side brings to negotiations and what they hope to achieve through negotiation.
- Creates ease, trust, and respect.
- With understanding differences - negotiators can avoid having to compromise their desires.
- Since each side may want different things, it may be possible to reach win-win agreements more easily.
