Negotiation Techniques Overview

Negotiation

• Distributive Bargaining: Divides a fixed amount of resources, a win-lose situation. Resources are fixed, primary motivations are opposing (I win, you lose), and relationships are short-term.
• Integrative Bargaining: Seeks multiple settlements creating win-win solutions. Resources are variable, motivations are congruent (I win, you win), and relationships are long-term.
• Target and Resistance Points: Target point is the ideal outcome, resistance point is the lowest acceptable offer.
• Negotiation Process:
• Preparation/Planning: Do your homework, understand goals, and develop a strategy (BATNA). Define ground rules (who negotiates, where, timing, constraints). Parties exchange initial proposals.
• Clarification and Justification: Parties clarify, amplify, and justify their original demands.
• Bargaining and Problem Solving: Parties make concessions, and work towards an agreement.
• Closure and Implementation: Formalize agreement and develop procedures for implementation, and monitoring.

Individual Differences in Negotiation Effectiveness

• Personality: Agreeable individuals can do well, or poorly; confident negotiators usually reach agreement faster.
• Emotional Intelligence: High emotional IQ leads to gains in negotiation performance.
• Gender Differences: Anger can be a negotiating tactic, but using it effectively depends on power balance.
• Mood/Emotions: Anger might induce concessions, but showing anger when having less power can be counter-effective.

Third-Party Negotiations

• Mediator: A neutral third party uses reasoning and persuasion to facilitate a solution.
• Arbitrator: A third party with authority to make an agreement decision.
• Conciliator: A trusted third party serves as a communication link between parties, trusted by both parties.

Leadership

• Leadership vs. Management: Leaders influence based on more than position (transformational), managers carry responsibilities and exercise authority.
• Trait Theories: Focus on personality, social, physical, intellectual traits (leaders are born, not made).
• Behavioral Theories: Behaviors differentiate leaders from non-leaders, concerned with production or people.
• Contingency Theories (Fiedler Model): Leaders have certain styles, situations have favorable/unfavorable components that impact leader success.
• Situational Leadership Theory: Leader participation in decision-making should be determined according to subordinate readiness/capabilities.
• Leader-Member Exchange (LMX) Theory: Leaders build groups (in-groups, out-groups); in-group members perform better.
• Path-Goal Theory: Leaders help workers achieve goals, ensuring compatibility with overall organizational objectives.
• Charismatic Leadership: Followers attribute heroic/extraordinary abilities to leaders with vision, sense of mission, willingness to take personal risks, and sensitivity to followers' needs.
• Servant Leadership: Leaders go beyond self-interest and act to support follower growth, development, and success.
• Mentoring: More senior employees provide guidance to less experienced ones.

Power and Politics

• Power: Capacity/discretion/means to enforce one's will, relying on follower dependence.
• Power Tactics: Legitimacy, inspirational appeals, consultation, exchange, pressure, coalitions, rational persuasion, and personal appeals.
• Political Behavior: Activities that aren't formally required but attempt to influence distribution in the organization. Factors include individual characteristics, organizational investment, job alternatives, perceptions of success, and resource reallocation.

Impression Management

• Impression Management (IM): Individuals attempt to influence perceptions by others. Techniques include conformity, excuses, apologies, self-promotion, flattery.

Issue Selling

• Issue selling: To influence high-level managers to prioritize particular concerns/issues.
• Importance: Organizations/managers prioritize issues, resources may be needed, and lower-level involvement in issue-raising is important.
• When Issue Selling Should be Done: When they perceive managers will listen, the organization is changing, and people are not afraid to damage their reputation.
• Issue Selling Tactics: Bundling (connect to other issues), framing (opportunity vs. threat), involvement, approach, timing.