Negotiations CH.5: Developing a Negotiation Style

Positive negotiation style

- Facilitate creative thinking -More info exchange -Cooperative strategies -More alternatives -fewer contentious tactics -build rapport Downside: Can be too cooperative

Soft Negotiator disadvantages (4)

- Generous concessions - reveal reservation point -Gives up too much of bargaining pie -Agrees too readily

Tough Negotiator disadvantages (6)

- Makes high demands - Concedes little - holds out until the end - Rejects offer in bargaining zone - walks away from profitable deals - Stubborn reputation

How to shift Rights/Power to Interest approach

-Do not reciprocate! -Dont get personal: Use self-discipline --> Focus on the conflict & issues -Process intervention: Pie expanding strategies -Strategic cooling off period -Let's talk and then fight -Paraphrasing: Make them restate your point before stating theirs

When should Rights and Power based be used? (5)

-Other party refuses to come to table -Impasse (suboptimal) -Law broken/violation -Social change is necessary -Negotiators are moving towards an agreement and positioning themselves

3 types of motivational styles

1) Competitive 2) Cooperative 3) Individualistic

Emotional Strategies when dealing with negative emotions (3)

1) Re-evaluate rather than suppress emotions 2) Convey positive emotions 3) Understand emotional triggers

Competitive orientation - what tools can help you more effective

1) think about pie expansion 2) Ask more Q's 3) Respect other person's self esteem 4) Do not haggle

7 tools for the cooperative negotiator

1. Avoid concentrating too much on your bottom line 2. Develop your BATNA 3. Get an agent and delegate the negotiation task 4. Bargain on behalf of someone or something else, not yourself 5. Create an audience 6. Say "You will have to do better than that because...," not "Yes" 7. Insist on commitments, not just agreements

1. What are the fundamental differences between tough and soft negotiators, and what are the disadvantages of adopting either stance?

1. Neither negotiation style is particularly effective in simultaneously expanding and slicing the pie. The tough negotiator is unflinching, makes high demands, concedes little, holds out until the very end, often rejects offers that are within the bargaining zone, often walks away from potentially profitable deals, and gains a reputation for being stubborn. The soft negotiator offers too many and too-generous concessions, reveals his or her reservation point, gives away too much of the bargaining pie to the other party, and agrees too readily. (p. 91)

7 tools for the competitive negotiator

1. Think about pie-expansion, not just pie-slicing 2. Ask more questions than you think you should 3. Rely on standards 4. Hire a relationship manager 5. Be scrupulously reliable 6. Do not haggle when you can negotiate 7. Always acknowledge the other party and protect that person's self-esteem

3. What are some effective strategies for dealing with negative emotions at the bargaining table?

3. Do not acquiesce to negative behavior, re-evaluate rather than suppress emotions, convey positive emotions because emotions are contagious, and understand emotional triggers. (pp. 119-120)

4. What are some of the main differences between cooperatively-motivated groups of negotiators and individualistically-motivated negotiators?

4. When both negotiators have a cooperative orientation, they can be more effective in terms of maximizing the pie. For example, cooperatively motivated negotiators outperform individualists in terms of pie-expansion. Highly cooperative negotiators use more integrative strategies (such as information exchange), make more proposals for mutual coordination, and use fewer distributive tactics. Moreover, the more cooperatively motivated people present in a negotiation, the more integrative information is exchanged. When individualistically-motivated negotiators are at the table, distributive strategies increase. Cooperators and individualists take different roads to reach win-win outcomes. Individualists use the multiple-offer strategy and indirect information exchange strategy; in contrast, cooperators share information about interests and priorities directly. (p. 96)

5. Assess your own emotional style by completing the questionnaire in Exhibit 5-9. What are the advantages and disadvantages of each emotional style?

5. The pros and cons of using a positive negotiating style: negotiators process information differently when working out of a positive mood, and these positive moods can facilitate creative thinking. Negotiators with a positive negotiating style use more cooperative strategies, engage in more information exchange, generate more alternatives, and use fewer contentious tactics than do negative-style negotiators. Negotiators who experience positive emotions see relationships among ideas and link together non-typical ideas. This response builds rapport, which in turn helps to avoid impasse and facilitates the negotiation process. However, positive-style negotiators must watch their emotions and their desire for harmony and avoid the trap of being too cooperative in their negotiation style. The pros and cons of using a negative negotiating style: negotiators who are strategically angry are more likely to gain concessions from their opponent because the counterparty will assume the angry person is close to their reservation point. Angry negotiators induce fear in their opponents, and their opponents are more likely to succumb when they are motivated. However, negotiators who show true anger, rather than strategic anger in negotiation, feel little compassion for the counterparty and are less effective in terms of expanding the pie than are happy, positive negotiators. (pp.113-118)

6. What are some personal strategies a negotiator can use to move the counterparty away from rights and power based arguments to an interest-based focus?

6. Resist the urge to reciprocate. By not reciprocating, you refocus your opponent. Getting parties together for informal discussions can move them toward interests. Make sure that you stay focused on the conflict and the issues and don't use personal attacks. Make sure that you are not rewarding the other party's rights or power-based behavior. One effective strategy is to reciprocate rights or power, but combine it with interests-based questions or proposals. The use of process interventions that are interests-based which can include any of the pie-expanding strategies (ex: multiple offers, revealing information about priorities) as well as dispute resolution strategies. Another strategy is to agree to talk and listen to each other for 20 minutes and then argue. The use of built-in cooling off periods can allow parties to better assess their own needs and interests, independent of rights and power issues. Make it a rule that you can't make your point until you restate the other person' point to his or her satisfaction. Recognizing and labeling a power or rights based tactic as ineffective can neutralize or refocus negotiations. (pp. 105-107)

7. In what situations are the use of rights and power-based negotiation tactics justified?

7. Rights and power may be appropriate to use in the following situations: the other party refuses to come to the table. Negotiations have broken down and parties are at an impasse. The other party needs to know you have power. Someone has violated a rule or broken the law. Interests are so opposed that agreement is not possible. Social change is necessary. Negotiators are moving toward agreement and parties are positioning themselves. (pp. 111-112)

Cooperative Motivational style

Equality and to minimize the difference btwn negotiators outcomes

2. Assess your own motivational orientation by completing the questions in Exhibit 5-3. Given that a key to self-insight is recognizing the external factors that shape your motivational orientation (following Richard Shell's list), what tools do you need to help you become more effective at pie-slicing and pie expansion?

If the student scores high as a competitive negotiator, the following tools can help keep him or her balanced in a negotiation: think about pie-expansion, not just pie-slicing; ask more questions than you think you should; rely on standards of fairness and objectivity; hire a relationship manager; be scrupulously reliable; do not haggle when you can negotiate; always acknowledge the other party and protect that person's self-esteem. (p.94)

Individualistic Motivational style

Max their own gain and indifferent how much other person gets

Competitive Motivational style

Maximize the difference btwn their own profits and those of other party

Interests approach

Negotiators attempt to learn about the other party's underlying needs, desires, and concerns

Power Approach

Negotiators who focus on power use status, rank, threats, and intimidation to get their way

Rights Approach

Negotiators who focus on rights apply standards of fairness to negotiation, including contracts, legal rights, precedent, or expectations based upon norms

Integrative self-efficiency

Refers to a negotiator's belief in her or his ability to create resources

Distributive self-efficiency

Refers to a negotiator's belief in his or her ability to claim resources effectively

Positive effects of cooperation

When two cooperators negotiate they are more effective in growing the pie, they use integrative strategies (such as info exchange), make more mutual coordination proposals, and use fewer distributive tactics