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Best Practices in Negotiation
Negotiation strategies and their strengths and weaknesses
Best Practices in Negotiation
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Dirty tricks
Since time immemorial, business activities have continuously been controlled by the forces of demand and supply. In light of this, it is evident that prices of commodities are achieved through an in-depth analysis of demand and supply. Nonetheless, driven by selfish reasons as well as in the quest to increase profits and consequently reduce losses, thus maintaining relevance in a competitive business environment, entrepreneurs’ apply dirty tricks as ingredients in the negotiation process. In a business environment, negotiation is prevalent as parties involved apply various strategies to achieve a win-win or win-lose situation to an argument. The negotiation process can be a tiresome experience. In this regard, it is important as
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For this reason, to counter the theatrics of dirty tricks there is need to separate personalities from the problem. This means that a negotiator should be inclined towards settling a problem but not the person engaging in the process. In an example, when negotiating on the best president of the United States, the general populations as the negotiators should desist from securing thoughts of the personality thus concentrate on the political manifesto brought forth. Additionally, to deal with dirty tricks; a negotiating party is advised to focus on interests as opposed to positions. This means that parties should concentrate on arriving at mutual interests for better decision making. According to the authors of Getting to Yes book, there is need to enlighten the parties involved in the bargaining process on the demerits of going against a particular school of thought. In essence, politicians are the best bargainers when it comes to soliciting votes from the electorate as they try to outshine one another. Using this as an example, politicians devise strategies to swindle the perceptions of many voters by providing the costs involved in agreeing to a contrary version. For example, opponents to President Obama’s leadership capitalize on his origin as opposed to the fantastic and development-conscious policies that he has increasingly put across …show more content…
For this reason, it is evident that parties to a business negotiation are able to field various questions as well as look out for tactics. In this regard, the author points out that the meeting place should be open. This is meant to propagate confidence on the deals. On the other hand, making the first offer is tricky particularly because of the costs involved in the negotiation process notably monetary and time-wise. In essence, making an offer sends signal on the desired expectations. Nevertheless, it is proportionally relevant to quote a figure or else make an offer that is justifiable. For example, when selling a car, it is important to quote a particular amount of money that is commensurate to the inbuilt capacities. This makes the other negotiating party to partly negotiate from a known standpoint unlike beating around the bush. Conversely, it is incongruent to overprice a commodity or service especially in modern day liberalized business environment (Fisher, Ury and Patton 1991).
Question 4: “How do I try out these ideas without taking too much risk?”
In business, risks are inevitable. This means that for a business idea to flourish, one is expected to put extra energy into it including and not limited to injection of adequate capital as well as engage in limitless advertisements. The authors point out that making an investment is an indelible ingredient to ensure that business survives harsh economic
Knight. Though it was integrative negotiation, Petersen gained strong lead by opening formula price reduction, TexasAgs could have dampened the “first offer effect” by introducing new negotiator (Lewicki, Saunders, Barry, 2011, p. 41).
Planning for this negotiation was more difficult than the first negotiation in class. The first negotiation had a point system; therefore I knew what the maximum, minimum and average amount points were. Not only does the Texoil negotiation not have a point system, but there were two people on my side (sellers) and only one on the other side (buyer).
The power of manipulation is a very powerful tool and can easily be misused to benefit
“In sailing, you rarely if ever get to your destination by heading straight for it. In between you and your goal are strong winds and tides, reefs and shoals, not to speak of storms and squalls. To get where you want to go, you need to tack – to zigzag your way toward your destination. The same is true in the world of negotiation.” -William Ury
Lewicki, R., Saunders, D.M., Barry B., (2010) Negotiation: Readings, Exercises, and Cases. 6th Ed. McGraw-Hill Irwin. New York, NY
The dynamic of a win-lose bargaining situation can cause negotiations to be exceedingly tense and volatile because only one side will gain at the end of these type of negotiations. This makes the concept of distributive bargaining controversial. Michael Wheeler, the author of the article, Three cheers for teaching distributive bargaining, discusses how many professors at an academy of management conference disapproved of distributive bargaining negotiation tactics. Wheeler explains, a huge majority of the attendees disapproved of exposing their impressionable pupils to the reality that in some negotiations, more for one party means less for the other” (Wheeler, 2012).
Negotiation is a fundamental process used in resolving conflicts, making business deals, and in managing working relationships with others. Negotiations occur for two reasons: (1) to resolve a problem or dispute between parties, or (2) to create something new that neither party could do on its own.
Negotiations styles are scholastically recognized as being broken down into two general categories and those are distributive bargaining styles and integrative negotiation styles. Distributive bargaining styles of negotiation are understood to be a competitive type of negotiation. “Distributive bargaining, also known as positional bargaining, negotiating zero-sum, competitive negotiation, or win-lose negotiation, is a type or style of negotiation in which the parties compete for the distribution of a fixed amount of value” (Business Blog Reviews, 2011). This type of negotiation skill or style approach might be best represented in professional areas such as the stock market where there is a fixed goal in mind or even in a garage sale negotiation where the owner would have a specific value of which he/she would not go below. In contrast, an integrative negotiation approach/style is that of cooperative bargaining, or win-win types ...
Lewicki, R. J., Saunders, D. M., & Barry, B. (2011). Essentials of Negotiation (5th ed.). New York, NY, US: McGraw-Hill.
Lewicki, R. J., Barry, B., & Saunders, D. M. (2007). Essentials of Negotiation. New York: McGraw-Hill/ Irwin.
Whether or not we are aware of it, each of us is faced with an abundance of conflict each and every day. From the division of chores within a household, to asking one’s boss for a raise, we’ve all learned the basic skills of negotiation. A national bestseller, Getting to Yes, introduces the method of principled negotiation, a form of alternative dispute resolutions as opposed to the common method of positional bargaining. Within the book, four basic elements of principled negotiation are stressed; separate the people from the problem, focus on interests instead of positions, invest options for mutual gain, and insist on using objective criteria. Following this section of the book are suggestions for problems that may occur and finally a conclusion. In this journal entry I will be taking a closer look at each of the elements, and critically analyse the content; ultimately, I aim to briefly bring forth the pros and cons of Getting to Yes.
Negotiating styles are grouped into five types; Competing, Collaborating, Comprising, Avoidance, and Accommodating (Colburn, 2010). Even though it is possible to exhibit different parts of the five types of negation styles in different situations, can see that my tendencies seem to default to, Compromise and Accommodating. In reviewing the course work and reviewing my answers for Questionnaire 1 and 5, I find that the data reflects the same assumption. The accommodating profile is one where relationship perseveration is everything and giving what the other side wants is the route to winning people over. Accommodators are well liked by their colleagues and opposite party negotiators (Colburn, 2010). When analyzing my accommodating tenancy in negations, I find often it is easier to give into the demands when they are within a reasonable range. I often consider it the part of providing a high level of customer service. It has been my experience that continued delaying and not coming to an agreement in a topic will only shorten the window in which you will have to meet the request since. The cons to this style are by accommodating highly competitive styles the accommodator can give up to much ground in the process. “Giving away value too easily too early can signal to your negotiation counterpart that you've very deep pockets, and your gift is just a taster of bigger and better gifts to come”. The other negations type I default to is compromising. Compromising “often involves splitting the difference; usually resulting in an end position of about half way between both parties’ opening positions” (Colburn, 2010). In the absence of a good rationale or balanced exchanged concessions, half way betwee...
Negotiation approaches are generally described as either distributive or integrative. At the heart of each strategy is a measurement of conflict between each party’s desired outcomes. Consider the following situation. Chris, an entrepreneur, is starting a new business that will occupy most of his free time for the near future. Living in a fancy new development, Chris is concerned that his new business will prevent him from taking care of his lawn, which has strict requirements under neighborhood rules. Not wanted to upset his neighbors, Chris decides to hire Matt to cut his grass.
Negotiation has been used as a vital communication tool not only in business but also in social intercourse. It helps people make common agreement and avoid conflict. So we need to use the tactics which we learned from this course and books to do more practice, only in this way we can gain advantages in negotiation.
Sia’s maximum that he would be willing to pay, is $12,000 and Mike’s minimum he would be willing to accept is $10,000. An agreement, if one is reached, will create $2,000 in integrative value compared with no deal, because Sia one-sidedly values the car $2,000 more than does Mike. How that $2,000 is divided between them whether, let 's say, the price agreed to is $10,000, $11,000, or $12,000 is a matter of distributive negotiating: any gain for Sia means pain for Mike, and the other way around. It’s, therefore, fair to describe this as generation of $2,000 in distributive value, distributed in accordance with distributive negotiating skills. On the other hand, what if Mike is an exceptional mechanic and enjoys spelunking in his spare time. Sia, conversely, can’t fix anything, and he hates having to take his car to unfamiliar mechanic shops since he fears that they will take advantage of him. These details propose that more integrative value might be created by the sale of the car if Mike will guarantee to repair any item that breaks for 9 months after the transaction. Let’s assume, for example, that this would cause Sia’s maximum price to increase to $12,500, while Mike minimum price would increase only to $10,200. Any deal that incorporated the repair agreement would be collaborative because it would generate more integrative value than the parties could achieve through the sale of the car alone. The additional $300 can be explained as the value that can be created by the negotiators’ integrative negotiating skills. “In addition, positive emotions make the parties less contentious and more optimistic about the future, which, in turn, increases the chances they will search for multiple alternatives and find a better integrative—win–win—agreement.