Negotiation tactics
- big name theory/framework/various school of thoughts of
negotiation strategies/tactics
Negotiation is a dialogue between two
or more people or parties who have conflicting interests. Business negotiating occurs with the intent
to either gain a financial or business advantage over the other party or to
reach a level of understanding, compromise, and resolution with them. In general,
business negotiation is intended to aim at a compromise between or among
conflicting points of interest.
Theory Framework, and Schools of
Thought: Negotiation Strategies and Tactics
The
Basic Breakdown
§ One view is that negotiation involves
three elements: process, behavior,
and substance. Process referes to how the parties negotiation which includes the parties involved, the tactics used by
the parties, the context and setting of the negotiations. Behavior
refers to the type of relationship
exhibited among these parties, the communication between then, and the styles
they adopt. Substance refers to what the
parties are negotiating over (including the issues, the agenda, positions and
interests), the options, and the agreements reached.
§ Another view of negotiation compromises
four elements: strategy, process, tools,
and tactics. Strategy includes
relationships and final outcomes. Processes
and tools include the steps that
will be followed and the roles taken in both preparing and negotiating with
other parties. Tactics includes more
detailed statements and “micro” level actions and responses to others’
statements and actions.
The
Two Basic Different Approaches: Adversary or Partner
§ If the approach is distributive, each
side is vying for the largest piece of the pie. Therefore the “other” may be
regarded as an “adversary,” and the negotiation occurs under competition. But if the need is to
devise and implement an agreement that is mutually beneficial to all parties, a
cooperation based approach and the
other is regarded as a partner.
Studies show that cooperative behavior can lead to effective outcomes. Note:
“Cooperative” doesn’t mean “pushover”.
§ Another consideration is to add persuasion and influence to the aforementioned outlined views.
Employing
an Advocate
There may arise a need for a skilled
negotiator to serve as an advocate for one party to the negotiation with the
aim to obtain the most favorable outcome possible for that party. The
advocate must determine the minimum outcome(s) the other party is willing to
accept and then adjust the negotiating strategy according. The advocacy approach is deemed to be “successful,” when the negotiator
is able to obtain all or most of the outcomes their party desires, without
driving the other party to break off negotiations, unless Best Alternative to a
Negotiated Agreement (BATNA)
is acceptable.
Framework & Tactics
§Negotiation
tactics vary from a straightforward presentation of demands or setting of
preconditions, to more deceptive approaches such as “cherry picking” or
intimidation or “salami tactics.” Teenage pregnancy levels
contribute to the low levels of girls attending secondary school in Sierra
Leone, according to Kanu. Just 17 percent of girls and 21 percent of boys
attended secondary school from 2000-2007, according to the UNICEF’s 2009 State of the World’s Children’s report.
§ Positional
Bargaining (mechanical meet in middle)
§ Principled Negotiation (successful tenets)
o
Not person, carry on in a way that will help
future negotiations
o
Soft on people, hard on principle
o
Two approaching one task
o
Gratitude for an offer, can indicate pleased
NOT with terms but with FACT of offer
o
Review terms
o
Not based on will, rather based on rationale
§ Win-Win
Negotiating
Styles: R.G Shell’s Five Styles/Responses to Negotiation
1.
Accommodating:
Enjoy solving other party’s problems and preserving personal relationships;
Sensitive to the emotional states, body language, and verbal signals of the
other parties; may feel taken advantage of wen other party does not put
emphasis on the relationship.
2.
Avoiding: Do
not like to negotiate and don’t do it unless warranted; tend to defer and dodge
the confrontational aspects of negotiating; however, they may be perceived as
tactful and diplomatic.
3.
Collaborating: Enjoy
negotiations that involve solving tough problems in creative ways.
Collaborators are good at using negotiations to understand the concerns and
interests of the other parties. They can, however, create problems by
transforming simple situations into more complex ones.
4.
Competing: Enjoy
negotiations because they present an opportunity to win something. Competitive
negotiators have strong instincts for all aspects of negotiating and are often
strategic. Because their style can dominate the bargaining process, competitive
negotiators often neglect the importance of relationships.
5.
Compromising: Eager
to eager to close the deal by doing what is fair and equal for all parties
involved in the negotiation. Compromisers can be useful when there is limited
time to complete the deal; however, compromisers often unnecessarily rush the
negotiation process and make concessions too quickly.
Note:
Please see Alvarez and Kennedy for these concepts as displayed in the attractive
“$1000 Game”.
Word Count: 793
References:
Legace,
Martha, Harvard Business School Working Knowledge, “Negotiating in Three
Dimensons,” <http://hbswk.hbs.edu/item/5497.html>
August 7, 2013
Malhotra,
Deepak Harvard Business School Working Knowledge, “Six Ways to Build Trust in
Negotiations”, < http://hbswk.hbs.edu/item/4033.html>August
7, 2013
Alvarez
and Kennedy, “Negotiation Theory & Practice”, Stanford, <http://med.stanford.edu/careercenter/management/Negotiation_Skills_MA_JMK_2_16_06.pdf
> 2013.
Pruitt
and Kim, “Social Conflict: Escalation,
Stalemate and Settlement: “Dual Concerns Model”, McGraw-Hill, 1994.
Shell,
R.G. (2006). Bargaining for advantage. New York, NY: Penguin Books
Photo Credit
See image: Mobius, <http://www.mobiusnz.com/resources>
August 7, 2013.
No comments:
Post a Comment