9.27. Negotiation Fundamentals

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Information about 9.27. Negotiation Fundamentals

Published on December 30, 2008

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Negotiation Fundamentals : Negotiation Fundamentals Kem Lowry Program on Conflict Resolution University of Hawaii at Manoa Objectives for this Session : Objectives for this Session Contrast conventional negotiation techniques with the interest-based approach to negotiation Examine key concepts including: positions, interests, principles, BATNA Practice negotiation skills Examine the role of culture in negotiations Conflict Inventory : Conflict Inventory Who has experienced a conflict (problem, issue, scrape, misunderstanding, etc) in the last month? How did you respond? What was your “conflict strategy?” Conflict Resolution Options : Conflict Resolution Options Avoidance Capitulation Suppression Accommodation Problem solving (e.g. conciliation, negotiation, mediation, facilitation) Escalation Confrontation Problem Solving Options : Problem Solving Options Conciliation: neutral 3rd party assists disputants by acting as go-between Arbitration: neutral 3rd party acts as judge Negotiation: parties confer to arrive at mutually satisfactory solution Mediation: neutral 3rd party assists parties in their own negotiations Facilitation: neutral 3rd party assists in group discussions Everyone Negotiates : Everyone Negotiates Buying a car, house or other object for which the price may not be fixed Establishing a salary, workplace tasks, office conditions, etc. Organizing team tasks or priorities Allocating household tasks Deciding how to spend a free evening Conventional Negotiations : Conventional Negotiations Focus on winning Assert positions/personal preferences Concede stubbornly Seek compromises based on arbitrary divisions (e.g. split the difference) Engage in threats, bluffs or other negotiation tactics Conventional Negotiation Tactics : Conventional Negotiation Tactics Good cop/bad cop Highball/lowball Bluff Threats Nibble Appeals to ‘reason’ An Alternative: Interest-Based Negotiations* : An Alternative: Interest-Based Negotiations* Separate the people from the problem Focus on interests, not positions Invent options for mutual gain Insist on objective criteria *Roger Fisher & William Ury. 1991. Getting to Yes. 2nd ed. New York: Penguin. Principle 1: Separate the People from the Problem : Principle 1: Separate the People from the Problem Disentangle the people from the problem Deal with the people problem: acknowledge perceptions, emotions Listen actively Speak to be understood Speak about yourself, not them Principle 2: Focus on Interests, Not Positions : Principle 2: Focus on Interests, Not Positions Positions: What disputants say they want in a negotiation: a particular price, job, work schedule, change in someone else’s behavior, revised contract provision, etc. Interests: Underlying desires or concerns that motivate people in particular situations (May sometimes be the same as their positions!) Focusing on Interests : Focusing on Interests Problem: barking dog My interpretation: my neighbor doesn’t care about my needs My position: quiet the dog My interest: I need sleep Issue: how to control the barking Focusing on Interests : Focusing on Interests Problem: reefs are dying My interpretation: inadequately controlled construction in near-shore areas results in runoff that smothers reefs. My position: stop or severely limit land disturbance Interest: reducing the rate of coral loss Issue: What’s the real source of reef degradation? How can runoff be reduced/ controlled? Types of Interests : Types of Interests Substantive: How people describe the issue: barking dogs, cars blocking driveway, dying reefs Relational: How people they should be treated or acknowledged. Procedural: How people think issues should be addressed (e.g. courts, ho`oponopono) Principle 3: Invent Options for Mutual Gain : Principle 3: Invent Options for Mutual Gain Focus on the variety of ways issues/ interests (yours/theirs) might be addressed? Avoid assuming there’s a single solution Separate brainstorming from evaluation of options Don’t assume zero-sum conditions Think creatively Principle 4: Insist on Objective Criteria : Principle 4: Insist on Objective Criteria Fair standards: market value, precedent, blue book value, professional standards, “best practice,” industry average, equal treatment, etc. Fair procedures: e.g. last best offers, taking turns, drawing lots When is the Interest-Based Approach Appropriate? : When is the Interest-Based Approach Appropriate? Other party is willing to problem-solve There is sufficient trust and information—or a willingness to develop them On-going relationships are important Commitment to carry out the agreement is needed Quality agreement is more important than an expedient one When is the Interest-Based Approach Unnecessary? : When is the Interest-Based Approach Unnecessary? On-going relationships are not important Negotiation is viewed as strictly distributive (e.g. buying a car) Lack of commitment to problem-solving on the part of one or more parties One or more parties see the negotiation as involving fundamental rights (but some contention about this) Prepping for Your Negotiation : Prepping for Your Negotiation What are our interests? What are theirs? How can we find out? What’s our BATNA? What’s theirs? What’s our WATNA? Theirs? What do we know about their circumstances that might affect the negotiations? What’s their negotiation style? Etc. A BATNA : A BATNA Negotiating Steps : Negotiating Steps Develop ground rules Jointly identify issues Explore interests Develop objective standards Brainstorm options Evaluate options using standards Try to reach consensus decision Adapting General Principles to Specific Negotiations : Adapting General Principles to Specific Negotiations Pacing: fast or slow? Formality: high or low? Oral or written agreements: which are more binding and inclusive? Bluntness of communication: direct or indirect? Time-frame: short or long term? Who negotiates: Equals or most competent? Sources of Negotiation Problems : Sources of Negotiation Problems Perceptual errors Unrealistic expectations about likely outcomes Unwillingness or inability to engage in real negotiations Perceived non-negotiability of some disputes

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