Negotiation ** Negotiation is a exchange process; it amounts to an exchange of goods and services for something of value.
** Bargaining Strategies Distributive Bargaining A win – lose negotiation ** Labor-management negotiations over wages for example. Integrative Bargaining A win-win negotiation Attitudinal Structuring Changing the other party’s attitude toward you Intraorganizational Bargaining Process of convincing people on your own side that your are doing the best you can for them.
Bargaining Strategies Distributive Bargaining Fixed amount of resources to be divided I win, you lose Opposed to each other Short term focus Integrative Bargaining Variable amount of resources to be divided I win, you win Convergent or congruent with each other Long term focus
The Negotiation Process Closure and Implementation Bargaining and problem Solving Ask for Clarification and justification Action steps Establish Parameters ** Preparation - where the negotiation will be held, and who will be involved,
Negotiations 3-L 3-M Strategy and Response 1 1 2 1 2 2 4 3 Labor 3 3 5 Caucus 4 4 2 1 Management 5 5 Caucus 3 4 5 Where does negotiations occur? Strategy and Response
Third Party Negotiators ** Conciliator – uses informal communicationandprovides an informal communication link between the negotiator and the opponent Mediator – uses reasoning and persuasion. Consultant – is a problem solver, a fact finder. ** Arbitrator – a third party with the authority to dictate an agreement
Pitfalls in Negotiating Never use offensive or off-color language to make a point. One looses respect when it occurs. Do not draw a line in the sand. No ultimatums. Control those on your negotiating team. There is no such thing as a “deal breaker.” Lastly, to be a successful negotiator, a person must be able to walk away from a negotiation without a deal.
Other Issues for Discussion Ethical conduct during negotiations Gender differences in negotiations – research has shown there are no real differences in gender in their ability to negotiate The service business and customer satisfaction
Summary These skills may be useful in many different areas of your life. Learn them well. Distributing bargaining is a win-lose approach. Integrative bargaining is a win-win approach. Negotiation has three stages – preparation, action, and closure and implementation. Proper ethical conduct is important.