Welcome to Negotiations Chapter 1 Types

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Welcome to NegotiationsChapter 1 - Types

• Karen M. Ross, MBA, SPHR

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Objectives

• Distributive Negotiation Claiming Value
• Integrative Negotiation
• The negotiators dilemma trying to determine
  which game to play
• Multiphase multiparty negotiations
• Exercise
• Adjourn

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Distributive Negotiation Claiming Value

• In this type of negotiation one party competes
  with another for a fixed sum of value whether
  that value is perceived or real (do you have all
  the cards on the table?)
• A gain by one side is made at the expense of
  another
• Also called zero-sum or constant-sum

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Distributive Negotiation continued

• For example there is a seller and a buyer
• The goal of the seller is? To sell at the highest
  price (most often, not always! Zappos)
• Goal of the buyer? To obtain at the lowest price
  (if there is room for negotiation
• Each party plays tug of war until the final deal
  is made

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Distributive Negotiation continued

• In this type of negotiation the relationship
  reputation mean little to the other party (will
  they ever see each other again? Are they total
  strangers?)
• Soin this type of negotiation information
  becomes very important what you do know and
  what you may not know already

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Distributive Negotiationhow to work it

• The first offer places a psychological anchor
  (hint, hint)
• Authors say that it is good to reveal some but
  not all of what you know that would make the
  deal but does say that lettng the other side
  know you have good options if this falls through
  is a strategy
• Information is key how are you going to find out
  about the other side? Use it to your advantage

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Distributive Examples

• Buying a car
• Buying a house
• Being part of a neighborhood facilitation to
  discuss zoning
• Yellow-carding in to class?
• Asking for a particular salary upon hire or a
  raise once employed
• Why are some things fixed others not so much
  so? (trip to American Furniture)

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Integrative Negotiation Creating claiming
value

• Very different approach than distributive
• Here we want to establish maximum benefits by
  integrating interests in to an agreement
• Shared splitting of value of outcome is at stake
  for each party
• It helps parties create value (lasting) and the
  ability to claim it as their own

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Integrative Negotiation

• Often referred to as win-win
• Often seen during joint-ventures or outsourcing
  when the longer-term relationship is of interest
  to the parties (think about business
  acquisitions/mergers)
• There are tradeoffs not every action is 100
  satisfaction but maximum efficiency is strived
  for
• Mimicks getting to yes book its philosophy
• How long do you think it takes to get to yes?

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The negotiators dilemma trying to determine
which game to play

• While there is almost always an opportunity to
  compete/collaborate, there needs to be a
  recognition of the continuum
• Never purely integrative or distributive
• Knowing where to play on the continuum involves
  tension known as the negotiators dilemma
• Think about your strategic choices during the
  final exercise (and well see it again in Chapter
  6)

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Multiphase multiparty negotiations

• Wouldnt it be nice if this was just between 2
  peoplewho had some control of the outcome?
• No such luck most negotiations are more complex
  involve multiple parties at more than one
  meeting
• Think about buying a house who all has to
  negotiate for something to happen?
• Called multiphase multipartyhappens over time

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Multiphase multipartycoalitions

• What is a coalition? The ability of a weaker
  party to gain strength (in numbersperhaps)
• They can be natural where they share a broad
  range of issues or single-issue whereby they
  advocate for one thing at a time (zoning in ABQ)
• How might you manage these? (Silver Hills
  neighborhood)

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Tip check out page 144

• Preparing for a Negotiation (should you need to!)
• BATNA introduced (and we will talk more)
• Try it on

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Exercise

• How many of you are currently employed?
• Of those who are (working FT/PT) how did you
  negotiate your current salary how might you
  negotiate a raise now?
• Of those of you who are not, how might you go
  about establishing a baseline for your
  value/worth in an organization?
• Meet with the person next to you to discuss these
  options come back ready to share what you reveal

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• Thank you for your participation!
• QUESTIONS?
• Adjourn