NEGOTIATION STRATEGY
A. BOOK SUMMARY
B. LECTURE SUMMARY
C. ARTICLE SUMMARY
----------------------------------
A. BOOK SUMMARY: Negotiation,
Seventh Edition by Lewicki, Saunders, Barry, 2015
CHAPTER 1: THE NATURE OF NEGOTIATION
Negotiation definition: A form of decision making in which two or more parties talk with one
another in an effort to resolve their opposing interests
Negotiations occur for:
(1) to agree on how to share or divide a limited resource (land, money, time)
(2) to create something new that neither party could do on his own
(3) to resolve problems or disputes between the parties
Terms used in the book:
Bargaining: competitive, win-lose situations such as haggling over the price of an item
Negotiation: win-win situations such as when parties are trying to find a mutually acceptable
solution
Important factors that shape a negotiation result (or the context around the negotiation) occur
before the parties start to negotiate.
Characteristics of negotiation situations:
1. Occur between two or more parties: individuals, groups, organizations
2. There is a conflict of needs and desires between two or more parties (what one wants
is not necessarily what the other one wants) and the parties must search for a way to
resolve it.
3. The parties negotiate by choice: negotiation is largely a voluntary process
,4. We expect a give-and-take process when negotiating. We expect both sides will
modify or move away from their opening statements, requests or demands.
5. Negotiation occurs when the parties prefer to invent their own solution for resolving
the conflict
6. Successful negotiation involves the management of tangibles and the resolution of
intangibles.
- Interdependence: when the parties depend on each other to achieve their own prefer
outcome.
o Independent parties are able to meet their own needs without help
o Dependent parties must rely on others for what they need
- Types of interdependence affect outcomes:
o Zero-sum (distributive situations)
o Non-zero-sun (integrative situations or mutual gains)
- Alternatives shape interdependence: BATNA (best alternative to a a negotiation
agreement): “whether you should or should not agree on something in a negotiation
depends entirely upon the atrractiveness to you of the best available alternative”
- Mutual adjustment: Both parties can influence the other’s outcomes and decisions,
and their outcomes and decisions can be influenced by the other.
- Concession making: when one party agrees to make a change in his position, a
concession has been made.
o Concession restrict the range of options within which a solution or agreement
will be reached
o The bargaining range is further constrained.
- Two dilemmas in mutual adjustment:
o Dilemma of honesty: how much the truth to tell the other party
o Dilemma of trust: how much negotiators should believe what the other party
tells them
- Value claiming and value creation:
o Value claiming: do whatever necessary to claim the reward => distributive
bargaining (one winner)
o Value creation: find a way for all parties to meet their objectives =>
integrative negotiation (all win)
,- Most actual negotiations are a combination of claiming and creating value
processes:
o Negotiators must be able to recognize situations that require more of one
approach than the other
o Negotiators must be versatile in their comfort and use of both major strategic
approaches
o Negotiators perceptions of situations tend to be biased toward seeing problems
as more distributive/ competitive than they really are
- Differences between parties:
o Differences in interests
o Differences in judgments about the future
o Differences in risk tolerance
o Differences in time preference
- Conflict: a sharp disagreement or opposition as of interests, ideas etc., included the
perceived divergence of interest or a belief that the parties’ current aspirations cannot
be achieved simultaneously.
- Levels of conflict:
o Intrapersonal conflict: conflicts within an individual
o Interpersonal conflict: conflicts between individuals
o Intragroup conflict
o Intergroup conflict
- Functions and dysfunctions of conflict:
o Competitive, win-lose goal
o Misperception and bias
o Emotionality
o Decreased communication
o Blurred issues
o Rigid commitments
o Magnified differences, minimized similarities
o Escalation of the conflict
- Functions and benefits of conflict:
o Make org members more aware and able to cope with problems
, o Promise org change and adaptation
o Strengthen relationship and heighten morale
o Promote awareness of self and others
o Enhance personal development
o Encourages psychological development
o Can be stimulating and fun
- Conflict Diagnostic Model (in dimensions):
o Issue in question
o Size of stakes
o Interdependence of the parties
o Continuity of interaction (will they be working together in the future?)
o Structure of the parties (how cohesive, organized they are)
o Involvement of third parties
o Perceived progress of the conflict (balanced or unbalanced)
- Conflict style:
o Integrating
o Obliging
o Dominating
o Avoiding
A. BOOK SUMMARY
B. LECTURE SUMMARY
C. ARTICLE SUMMARY
----------------------------------
A. BOOK SUMMARY: Negotiation,
Seventh Edition by Lewicki, Saunders, Barry, 2015
CHAPTER 1: THE NATURE OF NEGOTIATION
Negotiation definition: A form of decision making in which two or more parties talk with one
another in an effort to resolve their opposing interests
Negotiations occur for:
(1) to agree on how to share or divide a limited resource (land, money, time)
(2) to create something new that neither party could do on his own
(3) to resolve problems or disputes between the parties
Terms used in the book:
Bargaining: competitive, win-lose situations such as haggling over the price of an item
Negotiation: win-win situations such as when parties are trying to find a mutually acceptable
solution
Important factors that shape a negotiation result (or the context around the negotiation) occur
before the parties start to negotiate.
Characteristics of negotiation situations:
1. Occur between two or more parties: individuals, groups, organizations
2. There is a conflict of needs and desires between two or more parties (what one wants
is not necessarily what the other one wants) and the parties must search for a way to
resolve it.
3. The parties negotiate by choice: negotiation is largely a voluntary process
,4. We expect a give-and-take process when negotiating. We expect both sides will
modify or move away from their opening statements, requests or demands.
5. Negotiation occurs when the parties prefer to invent their own solution for resolving
the conflict
6. Successful negotiation involves the management of tangibles and the resolution of
intangibles.
- Interdependence: when the parties depend on each other to achieve their own prefer
outcome.
o Independent parties are able to meet their own needs without help
o Dependent parties must rely on others for what they need
- Types of interdependence affect outcomes:
o Zero-sum (distributive situations)
o Non-zero-sun (integrative situations or mutual gains)
- Alternatives shape interdependence: BATNA (best alternative to a a negotiation
agreement): “whether you should or should not agree on something in a negotiation
depends entirely upon the atrractiveness to you of the best available alternative”
- Mutual adjustment: Both parties can influence the other’s outcomes and decisions,
and their outcomes and decisions can be influenced by the other.
- Concession making: when one party agrees to make a change in his position, a
concession has been made.
o Concession restrict the range of options within which a solution or agreement
will be reached
o The bargaining range is further constrained.
- Two dilemmas in mutual adjustment:
o Dilemma of honesty: how much the truth to tell the other party
o Dilemma of trust: how much negotiators should believe what the other party
tells them
- Value claiming and value creation:
o Value claiming: do whatever necessary to claim the reward => distributive
bargaining (one winner)
o Value creation: find a way for all parties to meet their objectives =>
integrative negotiation (all win)
,- Most actual negotiations are a combination of claiming and creating value
processes:
o Negotiators must be able to recognize situations that require more of one
approach than the other
o Negotiators must be versatile in their comfort and use of both major strategic
approaches
o Negotiators perceptions of situations tend to be biased toward seeing problems
as more distributive/ competitive than they really are
- Differences between parties:
o Differences in interests
o Differences in judgments about the future
o Differences in risk tolerance
o Differences in time preference
- Conflict: a sharp disagreement or opposition as of interests, ideas etc., included the
perceived divergence of interest or a belief that the parties’ current aspirations cannot
be achieved simultaneously.
- Levels of conflict:
o Intrapersonal conflict: conflicts within an individual
o Interpersonal conflict: conflicts between individuals
o Intragroup conflict
o Intergroup conflict
- Functions and dysfunctions of conflict:
o Competitive, win-lose goal
o Misperception and bias
o Emotionality
o Decreased communication
o Blurred issues
o Rigid commitments
o Magnified differences, minimized similarities
o Escalation of the conflict
- Functions and benefits of conflict:
o Make org members more aware and able to cope with problems
, o Promise org change and adaptation
o Strengthen relationship and heighten morale
o Promote awareness of self and others
o Enhance personal development
o Encourages psychological development
o Can be stimulating and fun
- Conflict Diagnostic Model (in dimensions):
o Issue in question
o Size of stakes
o Interdependence of the parties
o Continuity of interaction (will they be working together in the future?)
o Structure of the parties (how cohesive, organized they are)
o Involvement of third parties
o Perceived progress of the conflict (balanced or unbalanced)
- Conflict style:
o Integrating
o Obliging
o Dominating
o Avoiding
