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Negotiation

Negotiation. Tips #13. Background. Negotiation is a process in which two or more parties exchange goods or services and attempt to agree upon the exchange rate for them. The term may be used interchangeably with bargaining distributive (zero-sum) integrative (win-win).

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Negotiation

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  1. Negotiation Tips #13

  2. Background • Negotiation is a process in which two or more parties exchange goods or services and attempt to agree upon the exchange rate for them. • The term may be used interchangeably with bargaining • distributive (zero-sum) • integrative (win-win)

  3. Key Behavioral Dimensions • Consider the other party’s situation • Plan a concrete strategy before negotiating • Begin with a positive overture • Address problems, not personalities • Maintain a rational, goal-oriented frame of mind • Don’t take initial offers very seriously • Emphasize win-win solutions • Insist on using objective criteria

  4. Role Playing Aka practice

  5. Preparation • Negotiating is one of the more complex skills to demonstrate, practice & evaluate • As you work with these role plays, remember to integrate many of the behavioral dimensions found in • listening • persuasion • politicking • resolving conflicts

  6. Round 1 Debbie Actor A Chris Actor B Observer Pat Round 2 Round 3 Debbie Actor A Debbie Actor A Chris Actor B Chris Actor B Observer Observer Pat Pat

  7. Round 1 Chris Manager Lee Manager Observer Round 2 Round 3 Car Buyer Rusty Manager Car Seller Manny Manager Observer Observer

  8. Timing • Since you should take 3-4 minutes before beginning the negotiation to • plan your strategy • develop • aspiration ranges • target points • resistance points, etc. . . • 10 minutes will be allocated for each round, with 2 additional minutes provided for observer feedback.

  9. Questions

  10. Debriefing • Regarding Exercise 3 • How many teams reached a win-win solution? • What elements did your packages include? • If you did not reach a win-win outcome, what difficulties did you encounter?

  11. Key Behavioral Dimensions • Consider the other party’s situation • Plan a concrete strategy before negotiating • Begin with a positive overture • Address problems, not personalities • Maintain a rational, goal-oriented frame of mind • Don’t take initial offers very seriously • Emphasize win-win solutions • Insist on using objective criteria

  12. Modeling ExerciseA Raise for Lisa

  13. I need 2 volunteers “Terry” & “Dale”

  14. Instructions • While “Terry” & “Dale” conduct their meeting, the rest of us will play the role of observers, using the worksheet for observers. • “Terry” & “Dale” will have about 12 minutes to conduct their meeting. • This will be followed by class discussion.

  15. Key Behavioral Dimensions • Consider the other party’s situation • Plan a concrete strategy before negotiating • Begin with a positive overture • Address problems, not personalities • Maintain a rational, goal-oriented frame of mind • Don’t take initial offers very seriously • Emphasize win-win solutions • Insist on using objective criteria

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