Negotiations Test 2

How do you gain reciprocation?

Act first Say "I know you'd do the same for me" Also applicable to concessions

Studies show that males feel they have to _ , while females believe _

Advocate for themselves The org will eventually reward them for doing a good job

When should you negotiate salary?

After an offer, before you accept a position

10% rule of thumb

An initial offer may be 10% under what the employer can do

Fisher and Shapiro: Intangible interests

Appreciation Affiliation Autonomy Status Role

Developing your strategy: 1. _ : distributive, integrative 2. _ : communication medium, timing 3. _ : what info will you share or withhold? 4. How will you _ the issues you raise? 5. What will be your _ and _ ? 6. How will you deal with _ if they arise?

Approach Setting Info sharing Sequence Opening offer, concession patter Problems

According to Fisher and Ury, brainstorming session is designed to produce _ to solve the problem at hand. The key ground rule is to postpone all _ and _ of ideas

As many ideas as possible Criticism, evaluation

Questions that Encourage Discussion and are Open Ended (in order of most to least extreme) Remember its a diagonal

Asking about Feelings or Opinions Summarizing Clarifying

Ability to keep negotiations in perspective and manage stress

Attitude

Psychological foundation of bargaining style

Attitudes derived from family, gender, culture, experience

What did we notice in Argo?

Authoritative Standards Hardball

Research has shown that, with leverage, even an _ negotiator will do pretty well while without leverage only _ achieve their goals

Average Highly skilled

Psychological: Leverage

Aversion to loss

3 Examples from Shell on how to gain Leverage: 1. Shift the _ of needs 2. Leverage of the other party's _ 3. Generate competitive _

Balance Ego Pressure

High importance of relationship, high conflict over stakes

Balanced Concerns Collaboration, Compromise (integrative)

What is normative leverage?

Based on morals/standards/norms/principles that the other party views as legitimate and relevant to the resolution Use consistency principle to get them to stay on it

Psychological: Goals and Expectations

Beliefs about what is possible/what you deserve

What are some tradeoffs if salary is "nonnegotiable"?

Bonuses Benefits Insurance Retirement Profit sharing Travel expenses

Factors to Consider in a salary negotiation

Business climate (eg. state of economy) Company factors (profitability) Hiring Mgr (urgency of need to fill) Applicant factors (expertise, skill set)

Example of Transactions

Buying a car

To Manage and Resolve Conflict 1. Understand the _ of conflict 2. Look for _ and _ interests 3. Open up _ channels

Cause Conflicting, shared Communication

Negative or positive events that unfold during a negotiation

Changes in circumstance

Reference power

Charisma, charm, getting others to identify with you

One of the most important ways to gain all 3 types of leverage is by forming _

Coalitions Groups w those who share a common bargaining goal

Which sources of power are best in distributive? Integrative?

Coercive, legitimate Expert, reference

Forming a coalition

Commitment

Effective negotiators must draw on a wide range of talents (Shell) 1. Effective leaders: 2. Effective advocates: 3. Effective sales people:

Committing to specific, ambitious goals Developing arguments based on standards and norms Valuing relationships, role reversal

2 Types of Scarcity

Commodities Exclusivity of info

What did we learn in the Hangover? 1. Find _ 2. Know when to use _ 3. Know your _ 4. Maintain _ 5. Know when to _

Common ground Hardball tactics BATNA Eye contact Walk away

Consider the whole _ and negotiate multiple interests at the same time

Compensation package

When competition exists for something you or the other party wants

Competition

Holds that we have a psychological need to avoid behavior that is inconsistent with previously expressed, long held, or widely shared standards or beliefs

Consistency principle

The _ , _ and _ of your message is important

Content, structure, delivery

Benefits of using email

Convenience Time to consider Clear record Easy to convey large amounts of data Leveling the playing filed Power to quickly mobilize large coalitions

What are brainstorming rules?

Crazier ideas are better Don't criticize Allow people to add to other's ideas

Threats are effective only if they are _

Credible

The ability to understand your opponent's perspective may be the most _ skill and one of the _ to use in practice

Critical Hardest

time pressure felt to come to an agreement

Deadline

Issues of time

Deadline Changes in circumstance

In a group, be sure to identify the _

Decision maker

Steps to Finding out the Other Party's Interests (Shell) 1. Identify the _ 2. Look for _ (how it would serve their interests to help you achieve your goals) 3. Identify interests that might _ 4. Search for _ options to solve their problem while advancing your goals (think outside the box)

Decision maker Common ground Interfere w agreement Low cost

Process Techniques to Shape Their Perception 1. Identify the _ and take the discussion to them 2. Address needs of _ if the interests of the group are diffused 3. Frame the issue in terms of achieving _ for both parties 4. Share the _ of the problem to create support

Decision maker Individuals Common good Diagnosis

Psychological: Authoritative standards, norms

Deference to authority Consistency principle

"What salary are you looking for?" 3 responses, in order of best to worst

Delay if you can ("want to hear more about co") Open/flexible/negotiable/competitive Give a range (realistic, shows flexibility)

What are the 2 things to decide before communicating?

Directly or with an agent? What medium?

Power and rights are used to _ while interests are used to _

Distribute Integrate

Negotiators in a _ situation focus on positions while _ situation focus on interests

Distributive Integrative

Helps us gain influence bc others see us as strong, powerful, and authoritative

Dominance

What are the 2 paths to influence? Which is more effective in negotiations?

Dominance Prestige Prestige

Coalitions are helpful bc... 1. Group dynamics favor those who are first to achieve a _ in terms of numbers 2. Coalitions gain power from _ , or that people take cues from what others do 3. Can give you better _ or make the other side's worse

Dominant position Social proof Alternatives

Why don't women negotiate salaries?

Don't want to violate social expectations to be warm and kind

Before Accepting an Job Offer... 1. Clarify specific _ 2. Clarify _ expectations for the first year 3. Evaluate full _ package 4. Ask how performance will be _ , _ , and _ 5. Accept offer _ 6. Have offer presented in _ within 2-3 days 7. Follow up acceptance w a handwritten _ that confirms title, salary, and start date

Duties and responsibilities Performance Compensation Reviewed, evaluated, compensated Verbally Writing Thank you letter

Rapport is an _ with someone

Emotional connection

Credentials, establishing yourself as an expert

Expertise

Be prepared for _ , eg. decide by 4 PM

Exploding offers

Active Listening 1. Maintain _ 2. Think only about _ , understand content and emotion, don't formulate a response 3. Take _ and use them to reflect back 4. Pay attention to _ 5. Confirm you heard by _ and asking _ and _ questions

Eye contact What they are saying Notes Body language Summarizing, reflective, probing

Maintain eye contact to convey security and truthfulness

Eye movement

_ meetings give the most bandwidth, allowing you to read between the lines, gestures, facial expressions, etc.

Face to face

Can express anger, happiness, fear, concern. Be sure it clearly communicates what you are feeling

Facial expression

Negotiate salary to get _ and focus on the importance of the _

Fair market value Relationshp

Principles of Persuasion 1. Present the question in the most _ light 2. Arrange arguments _ to answer the question 3. Choose the most _ argument to support your position 4. Match your _ to your verbal

Favorable Logically Persuasive Nonverbal

Agent Costs

Fee Own agenda Bad feelings Miscommunication Self serving bias Time

Establish trust and credibility by presenting a weakness _

First

Competitive attitude

Fixed pie assumption

Example of Relationships

Friends Significant others

In terms of salary history, explain that as a student, your jobs were geared towards...

Gaining experience Making money to cover educational expenses

Questions that are closed and discourage discussion (from least to most extreme)

Gather info Making judgments Threatening

To gain scarcity, emphasize _ , _ and _

Genuine scarcity Unique features Exclusive info

Should match your verbal communication

Gestures

Reasons People Don't Negotiate Salary 1. Don't want to seem _ 2. Don't want to seem too _ 3. Worried they'll decide _ 4. Don't think they have any _ 5. Don't have a _

Greedy Aggressive Not to hire them Basis to ask for more BATNA

Initial communication should be a discussion of _ and building _ , most communication occurs during _

Ground rules, rapport Exchange of offers/counteroffers

In many cases, the reason other people are not listening to you is bc they don't feel their concerns have been _ . Once people know you have heard them, they will _ and _ about what they are saying

Heard Calm down Think

To succeed at negotiation, you must learn to ask how it might be in the other party's interests to _

Help you achieve your goals

The reasons underlying a negotiations position and the reasons for what you want or need for a successful negotitation

INterests

Ability to get the other party to identify with you

Identification

The better you are able to _ with a person's emotions, the better able you are to understand their interests

Identify

Brainstorming is often used when at an _

Impasse

A negotiator can use normative leverage to get someone to back down from a position by showing how it is _ with an agreed-upon standard they previously supported in the negotiation

Inconsistent with

Email pitfalls

Increased risk of impasse Careless clicking Delay Polarized decisions in groups

Power can be based on: 1. _ and _ 2. Control over _ 3. _ in an org The last two are exclusive to power

Info and expertise Resources Formal authority (title or position)

What are the 4 stages of negotiation?

Information exchange Proposing and concession making Commitment

What personality traits are helpful in executing the problem solving strategy that works so well in Balanced Concerns?

Insistent (not aggressive) Imagination Patience

Which type of interest is more motivating, according to Shell?

Intangible

Opportunities for mutual gain occur through creative negotiation, which is always more likely with a _ approach

Interest based

Every strong statement contains some underlying _ that prompted the statement. When people are emotional, you should go _ to discover their interests

Interest or concern Slowly

Focus on underlying needs, concerns, issues Focus for negotiation

Interests

Should you bargain over positions/issues or interests?

Interests

Why you identify w a party

Interests

Developing a specific plan 1. Consider the other side's _ 2. Consider your _ and ways to improve it 3. Consider your _ , how you will execute your plan

Interests/goals BATNA Strategy

More investment = more willing to compromise

Investment

According to Reardon's Becoming a Skilled Negotiator, negotiations begin with a mutual _ made by interdependent parties to grapple with shared concerns

Invitation

"Leverage depends on the facts"

It is based on the other party's perception of the situation, not the facts

Posture and physical movements (standing up, circling, walking out)

Kinesis

Nonverbal communication

Kinesis Eye movement Facial expression Gestures Time and space

Ability to predict and appeal to the other party's needs

Knowledge of needs

Negotiators respond to negative leverage bc potential losses loom _ in the human mind than do equivalent gains

Larger

Use of norms, standards, and other objective criteria

Legitimacy

Sources of Leverage

Legitimacy Precedent Morality Knowledge of needs Competition Rewards Punishment Risk taking Expertise Investment of time, money, energy Identification Persistence Attitude

If you have something the other negotiator needs, you have _

Leverage

What misconception did we see in Patriot?

Leverage depends on the facts Mel Gibson's character pretended he had a bunch of enemy soldiers held captive to get his men back, but they were just scarecrows

What misconception about leverage was displayed in the movie Ransom?

Leverage doesn't change Mel Gibson's character changed the ransom money into a reward for finding his son's kidnapper

"Leverage and power are the same thing"

Leverage is about situational advantage, not objective power

"Leverage doesn't change"

Leverage is dynamic and changes negotiations proceed

85% of _ feel comfortable measuring their worth in dollars while only 17% of _ do

Males Femalse

Negotiations Standards

Market rates Comparable house/car prices Efficiency Profitability Recognized/agreed on to provide basis for normative leverage

If the other party is negotiating from a rights/power perspective, _ their strategy up to a point then make a _ move. Break the conflict spiral

Math De-escalation

70% of _ believe they are entitled to more than others, while only 29% of _

Men Women

Research of new grads showed that 57% of _ negotiated their salaries while only 7% of _ did so Those who did improved salaries by _ %

Men Women 7.4

You may need to get in sync with the other person to build rapport 1. Physically _ their behavior (esp. anger/sarcasm) 2. Matching the _ of their emotions (be careful w happiness/crying) 3. _ can help the other person feel heard 4. The possible use of _ 5. When people feel they are being heard and not lectured, they may be better able to clarify _

Mirror Intensity Active listening Apologies Their interests

Appealing to what's "fair" and "right"

Morality

You should reconcile interests instead of positions because interests are desires and concerns that _ people and positions are something you have _ bc of interests

Motivate decided on

Identifying interests 1. Realize each side has _ 2. Make a _ 3. Make your interests come _ 4. _ their interests 5. Look _ , not back 6. Be _ but flexible 7. Be hard on the _ but soft on the _

Multiple List Alive Acknowledge Forward Concrete Problem, person

Leverage increases with... 1. The other side's _ 2. Availability of good _ 3. Controlling the _ 4. Having _ on your side 5. The ability to create a vision that the other side has something to _

Needs Alternatives Status quo Time Lose from no deal

Leverage is balancing _ and _

Needs Fears

What is positive leverage?

Needs based You have something the other party needs/can't do without

Be pleasantly persistent when asking for _ items, bc if they can't meet them, they may give you more money instead

Non salary

It is important to find _ to support your salary request and the value of finding a _

Objective criteria BATNA

Reciprocation

Obligation to give back to you the same behavior you show me People say yes to those they owe

Women do better when negotiating...

On behalf of someone else

Leverage is your power to obtain an agreement _

On your own terms

Benefits of empathy 1. Expands the _ you have, bc it makes you more likely to find a solution 2. Doesn't guarantee success, but a _ of it guarantees failure 3. Needed most with people who seem to _

Options Lack Deserve it least

_ and _ help with buy in

Paraphrase, acknowledgements

Becoming a Skilled Negotiator Questions are a means of influencing the other side to _ in the discussion, bc people are more willing to commit to something they are more involved in

Participate

When individuals tell you want they want in a negotiation, it is often a _ or _. They won't always want/be able to tell you _ , what they think/feel, and people tend to minimize each other's

Particular position General issue INtersts

Why is it so hard to get into someone else's shoes? (3 reasons)

Partisan perspective Competitive attitude Difficult to identify shared goals

Consistency/Commitment

People are more likely to say yes to something they've already said yes to, especially if its in public and written

Liking

People say yes to those they like

Scarcity

People what more of what they can't have Emphasize with people

Stems from asking more than once and having a consistent message

Persistence

Ability to show the immediate value and relevance of your proposals to the other party's needs

Persuasive capacity

Identifying w a political party position or interest?

Position

Legitimate power

Position, approval, authority

During the Salary Convo 1. Think about the best way to _ and _ your opening offer 2. Assume the offer is _ 3. Review your _ and _ - what needs to be done for you to agree 4. Do not reveal your _ or _ 5. _ and _ 6. Imagine you are negotiating _

Position, present Negotiable Needs, rationale BATNA, reservation price Rehearse, practice On behalf of someone else

3 Types of Leverage

Positive Negative Normative

Skilled negotiators (experience, judgment, imagination) focus 40% of their time on _ and develop twice the number of _

Possible areas of shared interest Settlement options

Finding and identifying both types of interest is particularly useful when there is a _ gap

Power

The ability to force the other to accept the outcome you desire

Power

_ is positional and static while _ is situational and dynamic

Power Leverage

3 Approaches to Reaching Agreements

Power Rights Interests

Consensus

Power of the crowd If others like them are doing it

Making Proposals Following Brainstorming (Getting to Yes) 1. Search for _ standards- base your argument on something they've made in a previous situation 2. Making threats is _ - consider how they might be criticized if they adopt it 3. Make _ proposals

Precedent/objective Not enough Yesable

Relying on how similar instances have been handled in the past

Precendent

Helps us become influential bc others respect and admire us

Prestige

How something this done, the way the dispute is to be resolved or the decision made

Process Based

What are the two types of intangible interests?

Process based Relationship based

Why should you open communication channels? 1. People can easily switch to more _ communication when they feel their needs are being addressed 2. People usually want a _ response to their strong statements

Productive Constructive

Establish your position of authority through what?

Professionalism Industry knowledge your credentials Admitting weakness first

Use of threats to corner the other party to your preferred outcome

Punishment

Coercive power

Punishment, firing, walking away

Before brainstorming, define the _ , identify the _ , create an _ atmosphere, and choose a _

Purpose Participants Informal Facilitator

What is empathy?

Putting yourself in their shoes

Role reversal allows you to answer their _ , think about _ to agreement, and consider what they would _ from you to reach an agreement

Questions Barriers Need

Reward power

Raises, perks, promotions

What are Dr. Cialdini's 6 principles?

Reciprocation Scarcity Authority consistency/commitment Consensus Liking

Psychological: Relationships

Reciprocity norms

In a SHRM survey, 80% of _ were willing to negotiate salary and benefits while only 33% of _ were

Recruiters Applicants

Sometimes _ an offer or remaining _ will bring you a better offer, but be careful with this approach

Rejected Quiet

Recognition, status, respect, appreciation, security, a sense of belonging, control over one's life, affiliation

Relationship based

High importance of relationship, low perceived conflict

Relationships Accommodation, Collaboration, Compromise

Positions of Strength for New Grads

Relevant work experience Leadership experience Offers from other co's Technical experience International experience

On avg, recruiters spend 15 sec reviewing a _ and will know after 60 sec _

Resume If they will offer them a job

5 Sources of Power

Reward Coercive Legitimate Expert Reference

Use of rewards to induce the other party to your preferred outcome

Rewards

When you get a new piece of info that supports your point, share it when?

Right away newer, more power

Standards from law, contracts, cultural norms

Rights

Stems from who has more to lose from no deal

Risk taking

Pretending to be the other negotiator

Role reversal

The process of reaching an agreement on what the org will pay you for your skills, knowledge, and experience

Salary negotiation

Common Mistakes in Salary Negotiations 1. Not conducting _ (knowing your/position's worth) 2. _ about past salary history/other offers 3. Failing to be _ 4. Negotiating salary over _ 5. Not getting the offer in _ 6. Being too _ to accept an offer 7. Playing _ when you have no leverage

Salary research Lying Realistic Email Writing Quick Hard to get

Where are some websites you can go to to do some research and know your worth?

Salary.com Jobvent.com (companies)

What are the 3 misconceptions about leverage? 1. Leverage and power are the _ 2. Leverage doesn't _ 3. Leverage depends on the _

Same thing Change Facts

It is important to understand what is making the other party _

Say no

Example of Tacit Coordination

Seats on an airplane 4 way stop

Fisher and Ury: Intangible Interests

Security A sense of belonging Recognition Control over one's life

Leverage and power relate to our attempts to persuade people to...

See things our way

Psychological: The other party's interests

Self-esteem and self-interest

To get reciprocation, give _ , _ , and _

Service, info, concessions

During brainstorming, seat the participants _ , clarify the _ , including no criticism rule, and record the ideas in _

Side by side Ground rules Full view

Verbal Communication Direct single dialogue to present a position, followed by _ . Use _ , _ , and _ of your voice to convey meaning

Silence Tone, pitch, volume

3 things that establish liking

Similarities Compliments (genuine) Opportunities for cooperative efforts

Basic Steps in Prep 1. _ assessment 2. Determine _ between your style and the situation 3. Develop a specific _

Situational Fit Plan

Start with consistency and commitment by...

Small and build With existing commitments From public positions Toward voluntary choices

Bc threats often create resentment and resistence, negotiators must use them _

Sparingly

Expert power

Specialized knowledge

After brainstorming, _ the most promising ideas, _ ideas (invent improvements), look for shared and differing _

Star Invent Interests

Watch our for _ behavior

Stereotyping

Know when to _ negotiating, and stop _ once you accept an offer

Stop Interviewing

3 Common Responses to Conflict

Strike back Give in Break off

Example of Balanced Concerns

Suppliers Partnerships

Low importance of relationship, low perceived conflict

Tacit coordination Avoidance, accommodation, compromise

A _ interest is something like a specific salary amount An _ interest may be less visible things such as a feeling of being respected

Tangible Intangible

_ interests are usually the most easily detected, however, _ interests tend to be key in finding a creative and LT solution

Tangible Intangible

How should you start the conversation about salary?

Thank them for the offer Say you're excited Voice your concerns Talk about what you deserve and why and why you want it

Putting yourself in their shoes allows you to anticipate what they need or want so you can frame proposals in a way...

That they will say yes to

Who should bring up salary?

The interviewer

Authority

The most powerful types of authority have knowledge and trustworthiness

How did leverage switch in the Republic video?

The workers held a protest, so soon they had the power of public opinion and the bank gave credit to the company

When should you use an agent?

They value more than they cost Imbalances in bargaining styles or expertise Sometimes they can get you a better deal than you could yourself

Arriving on time, provide a pleasant meeting space

Time and space

What is not negotiable today may be _

Tomorrow

Low importance of relationship, high perceived conflict

Transactions Competition, collaboration, compromise (distributive)

T/F: It is both the org's and your best interest to come to a mutually beneficial agreement

True, they're not out to get you

Communication in Negotiations 1. Use a _ approach- both sides are active participants 2. _ - break up a large issue into packages of smaller issues 3. Repeat your _ 4. Use _ and _ threats sparingly 5. Use _ language to highlight key points 6. Maintain _ and watch your _ 7. _

Two sided Bundling Key points Distractions, credible threats Intense Eye contact, body language Paraphrase

Avoid framing things in terms of _ and don't be afraid to walk away, but don't _

Ultimatums Burn bridges

Why should you not bargain over positions? 1. Produces _ 2. Is _ 3. Endangers _

Unwise outcomes Inefficient Ongoing relationships

How are Transactions more complicated than they seem?

Usually a working relationship is formed until the deal is closed, so there needs to be some form of civility

Prepping for Salary Negotiations 1. Figure out what you really _ 2. Do your _ 3. Determine your _ and _ 4. Research their _ 5. Determine the _ mix 6. Practice several _

Want HW BATNA, aspiration level BATNA Issue Scenarios

Why (according to Shell) is leverage a difficult subject for people who negotiate infrequently?

We assume people with a lot of power will have more leverage We see situations as fixed We believe our power to influence our surroundings depends on the facts

Partisan perspective

We see the world through the lens of our own interests

What is a power gap?

When people must rely on others over whom they have no formal authority in order to accomplish tasks

_ and _ questions find underlying interests

Why and why not

When to use rights or power 1. When the other party _ to the negotiating table 2. When the negotiations are at an _ and all attempts to focus on interests have been exhausted

Will not come Impasse

7-38-55 Percent Rule 7% of a message is based on _ 38% is based on _ 55% comes from

Words Tone of voice Body language, facial gestures

Skillsets for Email Negotiators 1. _ ability 2. _ management- managing our and their _ 3. _ management- setting the _ , building _ , showing _ 4. _ management- _ , _ , _

Writing Message, anxiety Relationship, stage, rapport, e-empathy Content- clarity, building, framing

How does leverage change in a family situation?

You can't walk away Urgency works

What is negative leverage?

You have the power to make the other side worse off

Brainstorming can be done with _ or _

Your bargaining/constituency groups With the other side

Unleash people power (consensus) by...

responses of many others Other's past success Testimonials of similar others