Negotiation Chapters 2-5 (Jordan and Lee)

NC2: Strategizing, Framing, and Planning

• Strategies
• Setting goals--The Objectives That Drive A Negotiation Strategy
• Direct effects
• -Wishes are not goals
• -Our goals are often linked to the other party’s goals
• -There are limits to what our goals can be
• -Effective goals must be concrete/specific Indirect effects Forging an ongoing relationship
• Indirect effects
• -Forging an ongoing relationship
• + - Strategy--The Overall Plan to Achieve One's Goals
• + - Strategy, Tactics or Planning?
• Strategy: The overall plan to achieve one’s goals in a negotiation
• Tactics: Short-term, adaptive moves designed to enact or pursue broad strategies
• Tactics are subordinate to strategy
• Tactics are driven by strategy
• Planning: The “action” component of the strategy process; i.e. how will I implement the strategy?
• + - Strategic Options--Vehicles for Achieving Goals
• Alternative Situational Strategies
• Avoidance: The Nonengagement Strategy
• Active-Engagement Strategies: Competion, Collaboration, and Accommodation
• Planning
• 1. Defining the Issues
• 2. Assembling the Issues and Defining the Bargaining Mix
• Determine which issues are most important and whichare less important
• Determine whether the issues are connected (linked togeter) or separat
• 3. Defining Your Interest
• 4. Knowing Your Limits and Alternatives
• + - 5. Setting Targets and Openings
• Target Setting Requires Positive Thinking about One's Own Objectives
• Target Setting Often Requires Considering How to Package Several Issues and Objectives
• Target Setting Requires an Understanding of Trade-offs and Throwaways
• 6. Assessing My Constituents
• + - 7. Analyzing the Other Party
• Current Resources, Interest, and Needs
• Targets and Openings
• Reputation and Style
• Alternative
• Authority
• Strategy and Tactics
• 8. What Strategy Do I Want to Pursue
• 9. How Will I Present the Issues to the Other Party?
• 10. What Protocol Needs to Be Followed in This Negotiation?
• Framing--The process of "Framing" The Problem

o Why Frames Are Critical To Understanding Strategy

§ Because people have different backgrounds, experiences, expectations, and needs, they frame people, events and processes differently

Negotiators who understand framing may understand how to have more control over the negotiation process

Frames may be malleable and, if so, can be shaped or reshaped during negotiation

Frames shift and change as the negotiation evolves

o Types of Frames

• 1.Substantive--What the conflict is about
• 2.Outcome--The predispositions the parties have to achieving a specific result
• 3.Aspiration--Predispositions the parties have towards satisfying a broader set of interests
• 4.Conflict Management Process--How the parties will go about resolving their dispute
• 5.Identity--How the parties define “who they are”
• 6.Characterization--How one party defines the other party
• 7.Loss-gain--How the parties view the risks of particular outcomes

Another Approach to Frames: Interest, Rights, and Power

• Interests: Concerned about needs, desires or wants
• Rights: Concerned about who is right
• Power: Resolving a negotiation on the basis of power

The Frame of an Issue Changes as the Negotiation Evolvs--The manner in which the thrust, tone and focus of a negotiation change is called reframing

NC3: Strategy and Tactics of Distributive Bargaining

• The distributive bargaining situation
• The role of alternatives to a negotiated agreement
• Settlement point
• Bargaining Mix
• Fundamental strategies
• Discovering the other party's resistance point
• Influencing the other party's resistance point
• Tactical tasks
• Assess outcome values and the cost of termination
• Indirect assessment
• direct assessment
• Manage the other party's impressions
• Screening activities
• Direct action to alter impressions
• Modify the other party's perceptions
• Manipulate the actual cost of delay or termination
• Disruptive action
• Alliance with outsiders
• Schedule manipulation
• Positions taken during negotiation
• Opening offer
• Opening stance
• Initial concessions
• Role of concessions
• Pattern of concession making
• Final offer
• Commitment
• Tractical considerations in using commitments
• Establishing a commitment
• Public pronouncement
• Linking with an outside base
• Increase the prominence of demands
• Reinforce the treat or promise
• Preventing the other party from committing prematurely
• Finding ways to abandon a committed position
• Plan a way out
• Let it die silently
• Restate the commitment
• Minimize the damage
• Closing the deal
• Privide alternatives
• Assume the close
• Split the difference
• Exploding offers
• Sweeteners
• Hardball tactics
• Dealing with typical hardball tactics
• Typical hardball tactics

NC4: Strategy and Tactics of Integrative Negotiation

• An overview of the integrative negotiation process
• Creating a flow of information
• Attempting to understand the other negotiation's real needs and objectives
• Emphasizing the commonalities between the parties and mimimizing the differences
• Searching for solutions that meet the goals and objectives of both sides
• Key steps in the integrative negotiation process
• + - Identify and define the problem
• Define the problem in a way that is mutually acceptable to both sides
• State the problem with an eye toward practicality and comprehensiveness
• State the problem as a goal and identify the obstacles to attaining this goal
• Depersonalize the problem
• Seperate the problem definiton from the search for solution
• Understand the problem fully --Identify interests and needs
• Types of interest
• Some observation on interest
• Generate alternative solutions
• Inventing Options: generating alternative solutions by redefining the problem or poblem set
• Expand the pie
• logroll
• use nonspecific compendation
• cut the costs for compliance
• find a bridge solution
• Generating alternative solutions to the problem as Given
• brainstorming
• norminal groups
• surveys

NC5: Perception, Cognition, and Communication

• Perception and negotiation
• the role of perception
• perceptual distortion in negotiation
• framing
• Cognitive biases in negotiation
• Irrational escalation of commitment
• Mythical fixed-pie beliefs
• Anchoring and adjustmetn
• Framing
• Availability of information
• The winner's curse
• Overconfidence
• The law of small numbers
• Self-serving biases
• Endowment effect
• Ignoring other's cognitions
• Reactive devaluation
• Managing misperceptions and cognitive biases in negotiation
• Reframing
• What is communicated during negotiation?
• offers and counteroffers
• information about alternatives
• information about outcomes
• social accounts
• communication about process
• How people communicate in negotiation
• use of language
• selection of a communication channel
• How to improve communication in negotiation
• the use of questions
• listening
• role reversal
• Mood, emotion, and negotiation
• negotiations create both positive and negative emotions
• positive emotions generally have positvie consequences for negotiation
• negative emotions generally have negative consequences for negotions
• emotions can be used strategically as negotion tactics
• Special communication considerations at the close of negotiations
• avoiding fatal mistakes
• achieving closure