Negotiation Value: Previous Sessions (Recap) PDF

PREVIOUS SESSIONS (RECAP) The Nature of Negotiation Characteristics of a Negotiation Situation Interdependence Mutual Adjustment Value Claiming and Value Creation Conflict  Negotiation is a process by which two or more parties attempt to resolve their opposin...

PREVIOUS SESSIONS (RECAP) The Nature of Negotiation Characteristics of a Negotiation Situation Interdependence Mutual Adjustment Value Claiming and Value Creation Conflict  Negotiation is a process by which two or more parties attempt to resolve their opposing interests. Lewicki, R. J. (2024). Negotiation (9th ed.). McGraw-Hill Education. SESSION OBJECTIVES UNIT I: INTRODUCTION TO NEGOTIATION b) The Value of Negotiation The Role of Perception The Need for Satisfaction Failures and Negotiation Nightmares The Four Challenges we face  We, the sovereign Filipino people, imploring the aid of Almighty God, in order to build a just and humane society, and establish a Government that shall embody our ideals and aspirations, PREAMBLE promote the common good, conserve and develop our patrimony, and secure to ourselves and our posterity, the blessings of independence and democracy under the rule of law and a regime of truth, justice, freedom, love, equality, and peace, do ordain and promulgate this Constitution. https://www.set.gov.ph/resources/philippine-constitutions/1987-constitution/  Negotiation is a necessity, a process, and an art It’s necessary because life is not fair, and you have to engage in agreements throughout life that take care of your interests even when it requires you to look after their interests. Gates, S. (2023). The negotiation book: Your definitive guide to successful negotiating. Wiley. The Value of Negotiation | So what is Negotiation?  Learning about negotiation is an exercise in self-awareness because understanding yourself and what effect a negotiation can have on you, enables you to accommodate the pressures, dilemmas, and stresses that go with it. Self-awareness helps us to recognize why we do the things we do and the effect this has on our results. It also helps us adapt our approach and our behavior to suit each negotiation rather than trying to make one approach fit every situation, simply because it suits our personal style. The Value of Negotiation Gates, S. (2023). The negotiation book: Your definitive guide to successful negotiating. Wiley. The Value of Negotiation | Why bother negotiating?  Just because everything is negotiable doesn’t mean that everything has to be negotiated. The value of your time versus the potential benefit that can be achieved by negotiating is always a consideration. Gates, S. (2023). The negotiation book: Your definitive guide to successful negotiating. Wiley. The Value of Negotiation | Why bother negotiating? Is negotiating the same as selling? or When do we sell or negotiate?  Negotiating versus Selling Selling - To sell is to promote the positives, the match, to align the solution to the need. It requires explanation, justification, and a rational case. Negotiation - involves planning, questioning, listening, and making proposals, but it also requires you to recognize when the selling has effectively concluded and the negotiation has begun. It also involves silence, where appropriate. Rudd, J. E. (2020). Negotiation preparation. Routledge. The Value of Negotiation | The Role of Perception  Perspective: Viewing Ourselves and Others in Conversations Perspective is crucial in identifying causes of disagreement or conflict in negotiations, especially international ones. Understanding another's culture helps in comprehending their messages, intentions, and strategies. The Value of Negotiation | The Role of Perception Rudd, J. E. (2020). Negotiation preparation in a global world. Routledge.  Barlund’s Six Person Model Hofstede’s Cultural Dimensions 1. How you view yourself 1. Power Distance Index (high versus low) 2. How you view the other person 2. Individualism Versus Collectivism 3. How you believe the other 3. Masculinity Versus Femininity person views you 4. Uncertainty Avoidance Index (high 4. How the other person views him versus low). or herself 5. Long- Versus Short-Term Orientation. 5. How the other person views you 6. Indulgence Versus Restraint. 6. How the other person believes you view him or her The Value of Negotiation | The Role of Perception Rudd, J. E. (2020). Negotiation preparation in a global world. Routledge.  Barlund’s Six Person Model (How you view | 1 - 3) 1. How you view yourself – influenced by your past, your current view, and how you think of you in the future. 2. How you view the other person – can be attributed mainly to our past experiences. 3. How you believe the other person views you – How I think you view me affects my behavior toward you. The Value of Negotiation | The Role of Perception Rudd, J. E. (2020). Negotiation preparation in a global world. Routledge.  QUESTION! What are the three ways we can gain knowledge about others we know little about according to Berger and Calabrese (1975)? active interactive (first-hand interactions), passive (observation), or active (researching information about the other person such as stories about the person shared by others, readings, media, etc.). The Value of Negotiation | The Role of Perception Rudd, J. E. (2020). Negotiation preparation in a global world. Routledge.  Barlund’s Six Person Model (How other person views | 4 - 6) 4. How the other person views him or herself – The other’s self-awareness imprives the communication interaction in negotiation perspective. 5. How the other person views you – determines your credibility, their strategy choice and in general, their willingness to work with you. 6. How the other person believes you view him or her The Value of Negotiation | The Role of Perception Rudd, J. E. (2020). Negotiation preparation in a global world. Routledge.  DISCUSSION How to Combat the Perception Issue in Negotiation? Thi s Photo by Unknown Author i s l icensed under CC BY-SA  Understanding Identity Influence on Perception Two types of identity that impact your role in negotiation are social identity and personal identity. Social identity is the individual’s reference to her membership of a collective group. Deaux (2001) discussed five types of social identity: 1. political affiliations, 2. stigmatized groups, 3. personal relationships, 4. vocations and avocations, and 5. ethnicity and religion. Personal identity is based upon the unique characteristics, behaviors, and attitudes that we have The Value of Negotiation | The Role of Perception Rudd, J. E. (2020). Negotiation preparation in a global world. Routledge. PPT #2: Self-monitoring Self-monitoring is an important personality factor that helps us better understand differences in communication behavior adaptability. One’s ability to perceive the cues that are present in social interactions is influenced by one’s ability to self-monitor. Snyder (1974) defines self-monitoring as a personality trait-like variable that reflects an individual’s ability to adapt, regulate, or control his or her verbal and nonverbal behaviors in social situations. Individuals differ in the extent to which they monitor (observe and control) their expressive behavior and self-presentation. Out of a concern for social appropriateness, the self-monitoring individual is particularly sensitive to the expression and self- presentation of others in social situations and uses these cues as guidelines for monitoring and managing his own self-presentation and expressive behavior. Thi s Photo by Unknown Author i s l icensed under CC BY-NC-ND The Case for Collaboration If you prefer collaborative negotiations it could be because: You need the commitment and motivation of the other party in order to deliver on what you have agreed; You prefer to work within a range of variables that allow us to consider all of the implications and the total value in play; You regard it as a better way of managing relationships, or you simply fear conflict and the potential negative consequences of the negotiation breaking down. Whatever your reason, you should ensure that it is because it’s more likely to meet your objectives rather than simply a style preference that provides for a comfortable environment. How appropriate this is depends on how honest you are with yourself about your motives and the benefits that collaboration will bring.  The skill in building enhanced agreements through trading off against different interests, values, and priorities is negotiation. In the business context, it is known as the skill of profit maximization. The Value of Negotiation | Why bother negotiating? Gates, S. (2023). The negotiation book. Wiley.  Price is but one variable you can negotiate over. It is possible to get a great price and feel as though you have won and yet get a very poor deal at the same time. In negotiation, your ego and your competitiveness might fuel the need to “win,” especially where you allow a sense of competition to become involved. However, negotiating agreements is not about competing or winning; it is about securing the best value. The Value of Negotiation | Why bother negotiating? Gates, S. (2023). The negotiation book. Wiley.  Proactivity and control Your first task is to be proactive – to take control of the way you negotiate. Remember, price is only one element of the deal and winning on price may not result in your attracting the best deal. You may need cooperation to the point where the other party not only agrees to go ahead but is also prepared to honor their commitment. There is no place for your ego in your negotiations. The single thing that matters is the total value over the lifetime of the agreement. The Value of Negotiation | So what is Negotiation? Gates, S. (2023). The negotiation book. Wiley.  Becoming comfortable with being uncomfortable by negotiating, you are involved in a process, and the people you negotiate with need time to adjust as part of engaging in this process. Typically this is when: any new risks, obligations, conditions, or consequences are presented; and any new proposals that you make, which materially change the value of the agreement. The Value of Negotiation | So what is Negotiation? Gates, S. (2023). The negotiation book. Wiley. The Value of Negotiation | The Need for Satisfaction  In business, what is the right price for people to be satisfied? The answer depends on a whole range of other issues, which, need to be negotiated. The psychological challenge here is to provide the other party with the satisfaction of having achieved, through hard work, a great deal for themselves. In other words, letting them “win,” or letting them have your way. The Value of Negotiation | The Need for Satisfaction Rudd, J. E. (2020). Negotiation preparation in a global world. Routledge. The Value of Negotiation | Failures and Negotiation Nightmares  Failure: An Emerging Perspective For many years researchers have examined, discussed, and debated negotiation process in the context of the success framework. How to successfully “get to yes”? What strategies assure collaboration? What is the best negotiation personality and characteristics? How do cultural dimensions determine best tactics? This is not to say that what we have learned about negotiation success is not relevant, but this perspective may limit our ability to see an expanded view of the complex nature of our actions and agreements. Yet we know that there is something that we are missing. Some throw up their hands and conclude it is just the nature of negotiation. Others dig deeper and look for the answer: what did we miss? The Value of Negotiation | Failures and Negotiation Nightmares Rudd, J. E. (2020). Negotiation preparation. Routledge.  DISCUSSION What are the cost of avoiding failure? Thi s Photo by Unknown Author i s l icensed under CC BY-SA  QUESTION! If I had performed differently or taken different decisions, could I have secured a better deal? The Value of Negotiation | Failures and Negotiation Nightmares Rudd, J. E. (2020). Negotiation preparation. Routledge. DO YOU HAVE A PARTICULAR WHAT HAVE YOU LEARNED SITUATION WHEN THE FROM THAT SITUATION? NEGOTIATION FAILED? Thi s Photo by Unknown Author i s l icensed under CC BY-NC-ND The Value of Negotiation | The Four Challenges We Face  The Four Challenges We Face Challenge 1 Challenge 2 Challenge 3 Challenge 4 This is all There are no Know when Nothing about you rules you have happens by performed accident well The Value of Negotiation | The Four Challenges We Face Gates, S. (2023). The negotiation book. Wiley.