BUS432 NEGOTIATION TECHNIQUES
What is negotiation? Definitions and concepts
What are the negotiators and their characteristics?
Distributive and Integrative Negotiations
Negotiation Techniques and Tactics
Negotiation skills
Negotiation ethics and cultural factors
Negotiation examples
What is negotiation?
Etymology:
Borrowed from Middle French négociation, or from Latin negotiatio (“the carrying on of
business, a wholesale business”), from negotiari (“to carry on business”)
In cases where interests conflict, and even if these interests do not conflict, there is such a
possibility; individuals, groups, businesses, institutions, states; all they are involved in joint
decision-making on the conflict issue. This process is called negotiation.
Negotiation is a process carried out at every moment of daily and social life. More generally, it is
the name given to the negotiations held to carry out economic, commercial, political and
international relations.
Negotiation x Bargaining
Negotiation and bargaining do not mean the same thing. The basic principle that distinguishes
negotiation from bargaining is that the parties negotiate for cooperation. Bargaining can be
thought of as one stage of the negotiation process.
Basic principles of negotiation
The most important reason for negotiation is that there is a conflict or problem that needs to be
resolved.
Negotiation is carried out between the parties. Therefore, there must be more than one party to
the negotiation.
Negotiation parties can be natural persons or legal entities (institutions, representative groups,
enterprises, states).
It is essential that participation in the negotiation be voluntary.
It requires mutual interaction and information exchange.
It is a dynamic process.
 Interdependence
 Perceived conflict
 Opportunistic interaction
 Possibility of reaching an agreement
 Continuity
 Using the power of persuasion
 Decision making process
Negotiation process
Negotiation conditions: topic, parties, environment in which ideas can be exchanged or
decisions made, and outcome.
During the negotiation: Various tactics and methods are used to carry out this process. At the
end of the process, after the discussions, a decision is reached on the issue being negotiated:
an agreement can be reached or the negotiation process can fail.
Stages of negotiation
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Planning and preparation
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Definiton of ground rules
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Clarification and justification
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Bargaining and problem solving
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Closure and implementation
Negotiation is a process of dialogue between two or more parties to resolve points of difference,
gain an individual or collective advantage, or create outcomes that satisfy various interests. The
parties wish to reach an agreement on issues of mutual interest. The agreement may be
beneficial to all or some of the parties involved.
People often carry out the negotiation process without considering it a negotiation. It can be
said that negotiation has infiltrated the mutual communication of people in daily life.
Negotiations are conducted by institutions, including businesses, non-profit organizations, and
governments; Sales transactions can also be made in personal situations such as marriage,
divorce, parenthood, friendship.
Negotiator
Everyone in social life is a negotiator.
Professional negotiators are usually specialized people. Examples of professional negotiators
include union representatives, purchasing representatives in companies, and peace
negotiators. These people may also work under other titles, such as diplomat, legislator or
arbitrator.
Negotiations can also be conducted by algorithms or machines, known as automated
negotiation.
Individual Factors Affecting Negotiation
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Personality Traits
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Emotional State
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Gender Differences
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Communication Style
Types of negotiators
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Soft
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Hard
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Principled
What does it take to make a great negotiator?
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Planning
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Thinking clearly under stress
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General practical intelligence
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Verbal ability
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Knowledge
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Personal integrity
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Ability to perceive and use power
Active Listening
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Being present in the conversation.
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Practicing good eye contact.
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Noting non-verbal cues.
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Asking open-ended questions to build on previous responses.
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Withholding judgement.
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Emotional Intelligence
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Preparation and Research
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Patience and Persistence
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Building Rapport
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Creativity and Problem-Solving
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Clear Communication
Five Styles of Negotiation
 Competing
 Collaborating
 Compromising
 Avoiding
 Accomodating
The Competitor
Characteristics of Competitor Negotiators
 Highly comfortable with conflict
 Loves to debate substantive issues
 Poor listeners
 Direct
 Impatient
 Thrives under pressure
The Collaborator
Characteristics of Collaborator Negotiators
 Desire to provide value to both sides
 Willingness to work together
 Patient
 Empathetic
 Communicative
 Trust-driven
The Compromiser
Characteristics of Compromiser Negotiators
 Trusting
 Rational
 Knowledgeable
 Passive
 Quick
The Avoider
Characteristics of Avoider Negotiators
 Quiet
 Passive
 Hates direct conflict
 Deferential
 Poor communication
The Accommodator
Characteristics of Accommodator Negotiators
 Good communicators
 Well-liked
 Peacemakers
 Compassionate
 Excellent listeners
Factors Related to the Environment That Affect the Negotiation Process
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Space/Place
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Physical Order
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Time Range and Expiry
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Audience Characteristics
Negotiaton Approaches
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Distributive Negotiation
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Integrative Negotiation
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Text-based Negotiation
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Integrated Negotiation
What is the difference?
Distributive Negotiation
 Information is kept.
 Interests conflict.
 There are individual goals.
 It involves coercion.
 It is discussion oriented.
 Relationships are sacrificed.
 It compels people.
 Zero-sum game:
The result is an advantage for one side and an equivalent loss for the other.
«The minimization of loss over the maximization of gain»
Integrative Negotiation
 Information is shared openly.
 Valuable interests are achieved together.
 There are mutual purposes.
 It is problem solving oriented.
 It is explanation oriented.
 Relationships are preserved.
 It compels the problem.
 Win-win game:
The game that produces a mutually beneficial outcome for two or more parties.
«Compensating the loss of one item with gains from another»
Text-based Negotiation
 Constitutions
 International agreements
«Nothing is agreed until everything is agreed»
Integrated Negotiations
 Bad Faith
 International Negotiation
Strategies and Tactics in the Distributive Negotiation Approach
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Good Guy / Bad Guy tactic
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Bogey tactic
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Highball / Low-ball tactic
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Silence tactic
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The Nibble
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Chicken tactic
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Snow Job
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Time Jump
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Ultimatum
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Auction
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Brinkmanship
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Calling a higher authority
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Defense in depth
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Flinch
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Mirroring
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Deadlines
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Anchoring
Integrative Negotiation Approach
Does the Negotiation Involve More than One Issue?
Can Different Issues Be Included in Negotiation?
Do the Parties Have Different Preferences Regarding Negotiation?
Strategies Used in Integrative Negotiation
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Gaining Perspective
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Collecting Information About Priorities and Areas of Interest
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Provide Information About Your Priorities and Interests
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Proposing Multiple Offers of Equal Value at the Same Time
Group Composition in Negotiations
 Multi Party
 Team
 Women
 Academic Negotiation
Mediation in Negotiation
Mediation
 Mediation is a method used to resolve disputes by inviting an independent third party to
facilitate discussions and suggest solutions.
 Mediation involves the intervention of a neutral third party or what we call the mediator.
 The mediator meets the parties both jointly and separately to discuss the point of the
issue and suggest solutions.
 The mediator proposes a solution to the dispute. However, it is up to the parties if they
will adopt the solution or not.
 In mediation, the outcome is controlled by the parties in dispute.
Negotiation
 Negotiation is a method used through discussion between representatives or party
members of the parties where a mutually acceptable agreement is sought.
 Negotiation does not involve the intervention of a neutral third party to resolve the
dispute.
 The members or representatives of the parties present their interests, and demands,
and talk about their rights.
 The members or representatives discuss and decide a possible outcome that is
acceptable to both parties.
 In negotiation, the outcome is based on the relationship between the parties involved.
The Process of Mediation
 The mediator states his or her neutrality in the dispute
 The opening statement of the parties in dispute
 Outlining the issue at hand
 Exploring the issues
 Private discussion
 Joint session
 Outcome/closure
Ethics in Negotiation
 Golden Rule
 Universality
 Utilitarianism
 Distributive Justice
Criterion
Description
Golden Rule
Treat others the way you want them to treat you.
Universality
Other people cannot be used as a means to an end.
Utilitarianism
Do the best you can for as many people as possible.
Distributive Justice
Everyone should be better off after your behavior.
Unethical Behaviors and Tactics in Negotiations
 Traditional Competitive Negotiation
 Attacking the Social Relations of the Other Party
 Not Keeping Promises on Agreements
 Giving Untrue Information
 Collecting Information through Improper Means
Emotions in Negotiation
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Positive
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Negative
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Poker Face
Genuine (Real) vs Strategic Emotion
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Real vs Strategic Negative Emotion
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Emotional Consistency
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Disappointment vs Anger
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Anger, Power and Threats
Positive Emotion
Less aggressive more cooperative
Emotional Intelligence and Negotiated Outcomes
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Emotional Intelligence
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Accuracy
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Self-Efficacy
Dealing with Emotions
 Monitor Your Emotional Displays
 Beware of What You Are Reinforcing
 Reevaluation is More Effective Than Suppression
 Emotions Are Contagious
 Understand Emotional Triggers
 Make Emotions Explicit and Validate
 Allow Time to Let Off Steam
 Symbolic Gestures
 Empathy
United Nations Peacekeeping
Peacekeeping
 Conflict prevention and mediation
 Peacemaking
 Peace enforcement
Peacebuilding