Dynamics of Negotiations UNI Test 2

brainstorming

- "A brainstorming session is designed to produce as many ideas as possible to solve the problem at hand. The key ground rule is to postpone all criticism and evaluation of ideas" (Fisher and Ury, Getting to Yes, p. 60) - Brainstorming "rules" - Often used when at impasse - Allow people to add to others' ideas - Define the purpose of the brainstorming, identify the participants, create an informal atmosphere and choose a facilitator. - During brainstorming, seat the participants side by-side, clarify the ground rules, including the no-criticism rule, and record the ideas in "full view." - After brainstorming, "star" the most promising ideas, "build on" ideas -- invent improvements --, set up a time and evaluate the ideas -- look for shared and differing interests. - Brainstorming can be done with your bargaining team/constituency groups or with the other side to the negotiation.

why should I negotiate?

- 10% rule of thumb: an initial salary offer may be 10% under what the employer can do - know what is you are looking for (priorities) and know the minimum amount you will accept - look for trade offs if salary is "non-negotiable" -- bonuses, relocation costs, PTO, benefits, insurance, retirement (401k), child care, etc

do's and don'ts of salary negotiation

- Consider the whole compensation package ... not just the base salary. - Avoid framing things in terms of "ultimatums." - Don't be afraid to "walk away", but don't burn bridges. If turning it down, be polite and communicate that you appreciate their interest. - Be prepared for exploding offers. Sometimes you need more time. Be considerate when asking. - Be pleasantly persistent when asking for non-salary items ... if they can't meet them, may give you more money instead. Make them want to fight for you. - What is not negotiable today may be negotiable tomorrow. - Sometimes rejecting an offer will bring you a better offer ... or just remaining quiet may get them to increase the offer. Be careful with this approach though. - Know when to stop negotiating. - Stop interviewing once you accept an offer (do not try to create a bidding war).

salary - big picture

- Don't bring up salary in the interview ... let the employer do that. - When asked to provide salary requirement, giving a number too high may get you screened out; giving a number too low likely reduces your job offer amount. - In terms of salary history, explain that as a student, your jobs were geared toward gaining experience and making money to cover educational expenses. - "Money is important to me but it is not the most important thing. I'm confident that if we both agree the job's a good fit for me, we can reach an agreement."

active listening

- Focus on what the other person is saying, understanding both the content and emotion - Key behaviors of good active listeners: Maintain eye contact Think only about what they are saying, don't formulate a response Take notes and use them to reflect their thoughts back Pay attention to body language Confirm that you heard and understand by summarizing (paraphrasing) - ask reflective and probing questions

communication

- Initial communication should be a discussion of ground rules and building rapport; most communication occurs during the exchange of offers and counteroffers - Active listening: repeating back to the other person what you think they said

common mistakes in salary negotiations

- Not knowing worth of yourself or the position (not conducting salary research) - Lying about past salary history or other offers - Failing to be realistic - Using email to negotiate salary - Not getting the offer in writing - Being too quick to accept an offer - Playing "hard to get" when you have no leverage

misconceptions about leverage from the Mel Gibson movies

- Patriot: leverage depends on the facts - Ranson: leverage is a constant and doesn't change

main points on rights, power, and interests

- Power and rights are used in distributive - Interests are used in integrative - If the other is negotiating from a rights and power perspective, match their strategy up to a point then make a de-escalation move -- break the conflict spiral - Opportunities for mutual gain occur through creative negotiation. This is always more likely with an interest-based approach. You can always fall back on power or rights if you have to.

finding common interests based on the book

- Role Reversal (Bargaining for Advantage, pp. 82- 83). - Financial and nonfinancial needs - "self esteem," "respect," "status," etc. (Bargaining for Advantage, p. 85). - "The shared interests that are hidden in all negotiation situations are the foundations on which to build your proposals" (Bargaining for Advantage, p. 85).

intangible interests based on the book

- Shell emphasizes the value of finding underlying intangible interests: "Often these reasons [for an impasse] have more to do with self-esteem, status, and other non financial needs of the individuals involved in the negotiation than they do with the more obvious institutional and dollar issues on the table" (p. 85). - Fisher and Ury identify the following "basic human needs" as the "most powerful interests" in their book, Getting to Yes: security, a sense of belonging, recognition and control over one's life (p. 48). - In Beyond Reason: Using Emotions as You Negotiate, Fisher and Shapiro likewise emphasize the important role intangible interests or "core concerns" play in a negotiation or conflict situation: "Core concerns are human wants that are important to almost everyone in virtually every negotiation. They are often unspoken but are no less real than our tangible interests - appreciation, affiliation, autonomy, status and role" (p. 15).

communication in negotiations

- Use a two-sided approach - Identify small issues over which the parties can first reach agreement -- break up a large issue into packages of smaller issues -- "one-small step" procedure (pg.189-190) - Repeat your key points (pg.52-53) - Use distractions and "credible" threats sparingly (pg.95-96)

interests

- are the reasons underlying negotiations position and reasons for what you want or need for a successful negotiation - can be classified as tangible or intangible

don't bargain over positions

- arguing over positions produces unwise outcomes, is inefficient, and endangers an ongoing relationship - for a wise solution, reconcile interests instead of positions - interests are desires and concerns; these motivate people - positions are something you have decided upon

factors to consider in salary negotiations

- business climate: state of overall economy and industry, overall employment rate, demand for industry and profession - company factors: profitability, position in business cycle - hiring manager factors: urgency to fill position, decision making authority, staffing budget - applicant factors: expertise, knowledge, skill set, level of competition/availability of other candidates, other job offers may give you leverage

handling the question - what salary are you looking for?

- delay if you can - open or flexible or negotiable or competitive - give a salary range

fundamental paths to influence

- dominance: helps us gain influence because others see us as strong, powerful, and authoritative - prestige: helps us become influential because others respect and admire us

employment negotiations

- fear of leaving money on the table - reasons many do not negotiate salary: they will think i am greedy i will appear too aggressive they won't like me and will decide to not hire me i don't have any basis for asking for more i don't have a BATNA - importance on finding objective criteria to support salary request - value of a BATNA and the possibility of improving you BATNA via another job offer

communication/persuasion process

- get the other side to actively participate in the negotiation - use "intense" language to highlight key points and maintain eye contact -- watch your body language - paraphrase

consistency principle

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

negotiation leverage and influence in negotiations

- leverage and power relate to our attempts to persuade people to see things "our way" - power can be based on our: (1) information and expertise, (2) control over resources or (3) title or position (formal authority) in an organization (CEO vs department secretary)

males vs females in salary negotiations

- males are much more willing to try negotiating for a higher salary. - studies show that males feel they have to advocate for themselves, while females believe the organization will eventually reward them if they do a good job. - 85% of males feel comfortable measuring their worth in dollars; 83% of women are uncomfortable doing so. - 70% of males believe they are entitled to more than others, but 71% of women believe they are entitled to the same as others - research of new graduates by Babcock between 2003-2007 showed that 57% of men tried to negotiate salaries as compared to only 7% of women. - students who did negotiate improved salaries by 7.4% - women worry a lot about violating social expectations they are warm and kind. They do much better if negotiating on behalf of someone else. - 2018 research (de Janasz & Cabrera) suggests that 20% of females NEVER once try to negotiate salaries during their lifetimes. - average negotiation for new hires now approximately $7,000 ... missing that results in losing between $650,000 - $1 million over a 45- year career. - keys for females: prepare fully, cultivate positive emotions, boost emotional intelligence, negotiate communally, and negotiate a package

intangible interests examples

- may be less visible things such as a feeling of being respected, treated fairly, etc. - this is often more important, but not always

positions vs interests

- negotiators in distributive bargaining situations focus on positions while negotiators involved with integrative negotiations focus on the parties' interests - a position is a specific bargaining proposal or demand while an interest is the underlying reason for the position. Positions are singular while interests can be multiple

power vs leverage

- power is positional and static while leverage is situational and dynamic - if you have something the other negotiator needs, you have leverage - leverage increases with: the other side's needs, availability of good alternatives, controlling the status quo, having time on your side, ability to create a vision that the other side has something to lose from no deal - "To gain real leverage, you eventually persuade the other party that he or she has something to lose in the transaction if the deal falls through" (pg. 98)

two types of intangible interests

- process based: "how" something is done -- the way the dispute is to be resolved or the decision made - relationship based: recognition (status), respect (appreciation), security, a sense of belonging, control over one's life, affiliation

Cialdini's 6 principles of influences from the in class video

- reciprocity: give and take, people say yes due to obligation, you gain competitive advantage when you engage in this because then people are willing to do it back to you - scarcity: if you can't have it I want it, scarcity of commodities-- explain this to people to make them realize they cannot get something like this anywhere else, people are motivated by losing something then gaining the same thing, exclusivity of info -- info is more powerful when it's new - authority: if an expert says it it must be true, needs to be knowledgeable expert and they must establish trustworthiness, release a weak point first and then all the strong points after - consistency and commitment: people are more likely to say yes to something they have already done - consensus: looks at what others like them are doing - liking: people prefer to say yes to those they know and like, similarities compliments and cooperative efforts increase this

common communication issues

- should you use an agent? - person to person, video conference, telephone, email, text

tangible interests examples

- something like a specific salary amount, a new job title, moving expenses, etc

importance of interests and overcoming the power gap

- stated "positions" should not automatically be equated with a person's interests. - tangible interests are usually the most easily detected interests in a dispute or negotiation; however, intangible interests tend to be key to finding a creative and long lasting solution. - finding and identifying tangible and intangible interests is particularly necessary when people must rely on others over whom they have no formal authority in order to accomplish tasks (power gap) - 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

salary negotiation

- the process of reaching an agreement on what the organization will pay for your skills, knowledge, and experience. - it is in both the organization's and your best interest to come to a mutually beneficial agreement. - they're not out to get you. They are interested in you but you're not the only concern they have.

to manage and resolve conflict well

- understand the causes of conflict - recognize that we have three common responses to conflict/impasse -- strike back, give in, or break off - look for interests -- both conflicting and shares - get people "talking" -- open up communication channels

positions and issues vs interests

- when individuals in conflict tell you what they want, it often is a particular position like "I want $80,000, I want to keep the house, etc" or it's a general issue like "she drinks too much, you are a terrible partner, etc" - from positions and issues, you need to identify the interests - interests are underlying needs and are defined by individuals perceptions - individuals won't always want or be able to tell you what their interests are - people tend to minimize other's interests

when to use rights or power

- when the other party will not come to the negotiating table - when the negotiations are at an impasse and all attempts to focus on interests have been exhausted

misconceptions about leverage

1) leverage and power are the same thing - leverage is about situational advantage, not objective power 2) leverage is a constant that doesn't change - leverage is dynamic, not static and it changes as negotiations proceed 3) leverage depends on the facts - is it based on the other party's perception of the situation, not the facts 4) leverage is defined by your alternatives - not what side has better alternatives but which side has most to lose from failing to reach an agreement

3 types of bargaining leverage

1) positive or "needs-based" bargaining - You have something the other party needs - Positive Leverage was described by Donald Trump as follows: "Leverage is the biggest strength you can have. Leverage is having something the other guy wants. Or better yet needs. Or best of all, simply cannot do without." 2) negative or "threats-based" leverage - You have the power to make the other side "worse off." - Negotiators respond to negative leverage because "potential losses loom larger in the human mind than do equivalent gains." - Because threats often create resentment, ill will and resistance, negotiators must use them sparingly - like handling explosives. 3) "normative" leverage - It's based on morals/standards/norms/principles that the other negotiator views as legitimate and relevant to the resolution of the underlying dispute. Once these norms are identified, the negotiator with normative leverage will attempt to remind the other side of his/her need to act consistently with the norms -- e.g., prior commitments in negotiations, a company's mission or policy statements, one's religious beliefs, etc. - a negotiator can use normative leverage to cause us to back down from a proposal or position by showing how our current proposal or position is inconsistent with an agreed-upon standard or a position we previously supported in the negotiation

three approaches to reaching agreement

1. Power: comes in many different forms and it's the ability to force the other to accept the outcome you desire 2. Rights: standards from law, contracts, cultural norms 3. Interests: focus on underlying needs, concerns, issues

sources of power:

1. Reward: raises, perks, promotions 2. Coercive: punishment, firing, walk away 3. Legitimate: position, approval authority 4. Expert: specialized knowledge 5. Reference: charisma, charm, getting others to identify with you - integrative = reference and expert

7-38-55 percent rule

7% of a message based on the words 38% of a message comes from the tone of voice 55% of a message comes from the speaker's body language and facial gestures

situational and fit assessment matrix

SEE PICTURE - numbers are situations - italicized are strategies 1) balanced concerns example: salary negotiation 2) cooperative relationship example: relationship with work team 3) competitive transactions example: ? 4) tacit coordination example: four way stop sign, seats on an airplane

tools for persuasive communication

create leverage through persuasion: - Verbal communication: direct single dialogue to present a position, followed by silence (use tone, pitch, and volume of your voice to convey meaning) - Nonverbal communication: can add emphasis through body language, facial expression and actions - Kinesis: posture and physical movements (standing up, circling, walking out) - Eye movement: maintain eye contact to convey security, truthfulness - Facial expression: can express anger, happiness, fear, concern. - Be sure your expressions clearly communicate what you are feeling - Gestures: Should match your verbal communication - Time and space: arriving on time, provide a pleasant meeting space

persuasion through process

process techniques to shape the other party's perception: - Identify the decision maker: take the discussion to him or her. - Address the needs of individual team members if the interests of the groups are diffused. - Frame the issue in terms of achieving common good for both parties, or meeting shared core values. - Share the diagnosis of the problem to create support from both parties.