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