When a group of people have differing preferences they need to negotiate to reach a decision. When negotiating decisions, it is important to know that the input of each negotiator will have an impact on the final outcome. Chapter 10 of Bazerman and Moore’s Book (2013), Judgement in Managerial Decision Making, explains that you can improve decision making in negotiations by understanding the interests of all the parties involved, and using it to reach a settlement that will benefit all the parties (p. 176).
One approach to handling negotiations is the decision-analytic approach (Bazerman and Moore, p. 176). With this method three different factors are considered. First, each party needs to figure out their best alternative to a negotiated agreement (BATNA). By determining your bottom line best alternative to your decision, you know where you stand if negotiations stray from your first choice. This approach is often experienced when you sell or purchase a home. Often times, the seller lists the house for more than they are willing to accept, and the buyer will start the bidding lower than they are
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The more you understand about this, the better position you will be in to negotiate. There are several ways this can be approached. The easiest and most straightforward way is to simply share the information with each other, but this is only easily accomplished if the parties trust each other. Another opportunity to gather information is created by asking questions. This can be an effective way to learn critical information, even if the other party is not willing to disclose everything. If there is not an atmosphere of trust among the parties you might find that if you disclose some information about yourself, the other party might be willing to reciprocate. This sets the scenario for information sharing that could be beneficial to all the parties in a
Lewicki, J. R., Barry, B., & Saunders, M. D. (2010). Negotiation: Readings, exercises and cases
Many factors and players were involved in the negotiation; these all influenced the final decision.
Lewicki, J. R., Barry, B., & Saunders, M. D. (2011). Essentials of negotiation (5th ed.). New York, NY: McGraw Hill. ISBN-13: 9780073530369
“In sailing, you rarely if ever get to your destination by heading straight for it. In between you and your goal are strong winds and tides, reefs and shoals, not to speak of storms and squalls. To get where you want to go, you need to tack – to zigzag your way toward your destination. The same is true in the world of negotiation.” -William Ury
In order to reach a mutually satisfactory agreement in an efficient and amicable fashion, this book introduces us the strategy of breakthrough negotiation. The breakthrough strategy is counterintuitive: it requires us to do the opposite of what we might naturally do in difficult situations. In addition, the essence of the breakthrough strategy is indirect action. Rather than trying to break down opponent's resistance, we
The dynamic of a win-lose bargaining situation can cause negotiations to be exceedingly tense and volatile because only one side will gain at the end of these type of negotiations. This makes the concept of distributed bargaining controversial. Michael Wheeler, the author of the article, Three cheers for teaching distributive bargaining, discusses how many professors at an Academy of Management conference disapproved of distributive bargaining negotiation tactics. Wheeler explains, a huge majority of the attendees disapproved of exposing their impressionable pupils to the reality that in some negotiations, more for one party means less for the other” (Wheeler, 2012). The reluctance to teach the distributive bargaining tactic may be due to the fact that most teachings on negotiation skills are centered around the notion of all parties coming out of a deal with something they want.
Negotiations styles are scholastically recognized as being broken down into two general categories and those are distributive bargaining styles and integrative negotiation styles. Distributive bargaining styles of negotiation are understood to be a competitive type of negotiation. “Distributive bargaining, also known as positional bargaining, negotiating zero-sum, competitive negotiation, or win-lose negotiation, is a type or style of negotiation in which the parties compete for the distribution of a fixed amount of value” (Business Blog Reviews, 2011). This type of negotiation skill or style approach might be best represented in professional areas such as the stock market where there is a fixed goal in mind or even in a garage sale negotiation where the owner would have a specific value of which he/she would not go below. In contrast, an integrative negotiation approach/style is that of cooperative bargaining, or win-win types ...
The first common theme is the importance of clear strategic intent and big picture thinking in negotiations. Before taking the Negotiation Behaviour unit, I always perceived negotiation as a fixed-pie, a zero-sum gain situation, where one party wins and the other party loses. This belief has often led me to a competitive behaviour in negotiation by trading the big picture thinking with the need to win, getting too detailed too quickly, leading to a positional approach instead of having a broad goal and explore for ways around problems to create value and get the best outcome.
Whether or not we are aware of it, each of us is faced with an abundance of conflict each and every day. From the division of chores within a household, to asking one’s boss for a raise, we’ve all learned the basic skills of negotiation. A national bestseller, Getting to Yes, introduces the method of principled negotiation, a form of alternative dispute resolutions as opposed to the common method of positional bargaining. Within the book, four basic elements of principled negotiation are stressed; separate the people from the problem, focus on interests instead of positions, invest options for mutual gain, and insist on using objective criteria. Following this section of the book are suggestions for problems that may occur and finally a conclusion. In this journal entry I will be taking a closer look at each of the elements, and critically analyse the content; ultimately, I aim to briefly bring forth the pros and cons of Getting to Yes.
Negotiation, as we’ve learned, is the process of communicating where parties can discuss problems and/or targets and attempt to solve them via dialogue in order to reach a resolution. While many individuals feel successful negotiations are due to a natural skill, the truth behind reaching a prime agreement is preparation. You need to know the issue, know yourself, and know your party. This type of preparation also includes knowing your needs and limits, understanding what the other party wants and anticipating their limits, asking the right questions, and being creative in your counteroffers.
...an agreement, in which the superior may have a final say in the matter, this too can be detrimental to the business because it only serves to lower the morale of the manager, and confidence in the work he or she is trying to achieve. Secondly the attitudes of the negotiators can greatly affect the outcome. For example, if one negotiator has a competitive behaviour rather than a cooperative behaviour then it will most likely make the other negotiator adopt a more competitive attitude and thus decrease the likelihood of inducing counteroffers that can lead to an agreement (Fisher, Fredrickson & Peffer 2000). Negotiations can also cause those involved who disagree in significant and irreconcilable ways to accentuate those differences (Hilton 1994).
Lewicki, R., Saunders, D.M., Barry B., (2010) Negotiation: Readings, Exercises, and Cases. 6th Ed. McGraw-Hill Irwin. New York, NY
Does every thing in life revolve around negotiating? Your relationship with family, friends, significant other, school, church, work, does every thing have to be a negotiated? I feel the answer is of course "Yes." I want to feel I get value for what I’m spending, whether it is time, talent or money. As the payer I want the price to drop and you as the payee want the price to go up and get as much as you can. We both want to have a sense of achievement or movement. Reaching a deal reached between us is negotiating. Sounds easy doesn’t it. But the reality is that every negotiation is stressful and takes its toll on us.
Lewicki, R. J., Barry, B., & Saunders, D. M. (2007). Essentials of Negotiation. New York: McGraw-Hill/ Irwin.
An employee does an unsatisfactory job on an assigned project. Explain the attribution process that this person's manager will use to form judgments about this employee's job performance.