MGT 7780 Negotiation Theory & Practice 2015 Syllabus

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MGT 7780: Negotiation Theory and Practice 1
SYLLABUS
Winter 2015
January 15-April 30, 2015
INSTRUCTOR
Professor Marick F. Masters
Director, Labor@Wayne, Professor of Business & Adjunct Professor of
Political Science
255 Reuther Library
5401 Cass Avenue
Wayne State University
TEL: (313) 577-5358
FAX: (313) 577-5359
E-mail: marickm@wayne.edu
LOCATION AND TIME
Thursday, 6-8:45pm
WSU Oakland Center
Room 0525
33737 West Tweleve Mile Road
Farmington Hills, MI 48331
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REQUIRED TEXTS
David S. Hames. 2012. Negotiations: Closing Deals, Settling Disputes, and
Making Team Decisions, Thousand Oaks, CA: SAGE Publications, Inc. [Referred
to as TEXT below.] This book is available at the WSU university book store.
Marick F. Masters. 2011. The Negotiating Executive. [Referred to as Masters; to
be distributed at no cost in class on January 9, 2014.]
BACKGROUND
Negotiation occurs on a daily basis in all aspects of our lives, even though we might not
recognize it as such. The 24/7 news cycle reveals the ubiquity of negotiating in diverse
contexts: The U.S. House and Senate negotiating a budget deal; Bristol and Astra negotiating a
deal in the pharmaceutical industry; AIG selling its jet leasing business; the UAW and Fiat
negotiating the former’s stake in Chrysler; TRW and GM negotiating a price increase; Mayorelect Duggan negotiating an operational plan with Emergency Manager Orr; the efforts to
negotiate a new WTO trade deal; and ongoing negotiations connected with the Detroit
bankruptcy. On a more personal level, we negotiate with family, friends, colleagues, and untold
others on everything from the time to arrange a social gathering to a pay increase and work
responsibilities. Negotiating is the basic method we use to make deals, resolve disputes, and
arrive at decisions in small-to-large groups.
Negotiations are as varied as there are people and contexts: informal settings between friends;
semi-formal work settings between peers; formal business-to-business negotiations over sales,
tie-ups, mergers, disputes; country-to-country summits over trade agreements. We should
always be on the lookout for opportunities to negotiate. It is increasingly rare where we can
simply dictate outcomes. We have to NEGOTIATE them.
Our ability to negotiate effectively is important because it affects the quality of lives we are
able to lead. Failing to negotiation well in certain situations, such as for your first or second job,
can have life-enduring consequences.
COURSE ORIENTATION
This course is designed from a generalist’s perspective. It focuses on negotiations in
organizational contexts involving different types of parties. The overarching goal is to provide
you with techniques and tools that can be applied in virtually any type of context. Obviously,
you will need to know the specific substance of a potential negotiation if you want to do well.
That is where your experience, education, and training in the basic functional aspects of your
profession, work, and management come into play. But this course does not assume that you
have any specialized knowledge.
As suggested, the concepts and principles of negotiations apply to any organizational setting in
which you might operate, such as the public or non-profit sector. Negotiation skills, principles,
and techniques are transferable across professional, personal, and social situations.
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Negotiating capability is very portable, and that is one of the reasons why you can benefit so
much from sharpening it. You want to hone the basic skills of effective negotiating.
Please note that most of the real learning that occurs in a course like this one is from role-play
simulations and de-briefing discussions. You will learn a lot from your colleagues, who bring a
wealth of knowledge and experience that is applicable, regardless of whether your job per se
depends on negotiating in a formal sense, as it might in sales or mergers and acquisitions or
labor-management relations. Take advantage of the wealth of experience and expertise that is
available in this class. Learn from the various media provided: readings, notes and slides,
discussions, role plays, de-briefings, videos, and preparation and reflection with your
colleagues.
We emphasize experiential learning—or learning through practice—in this course. Theory is
also important because it addresses the “why.” Why, for example, does a collaborative
approach to negotiations offer advantages? It is not because it will make you feel good or that
negotiation is about being nice. Rather, it is because it permits the fuller exploration of options,
which, in turn, increases your chances of reaching a superior outcome.
LEARNING OBJECTIVES AND OUTCOMES
This course has three basic objectives: (1) to familiarize you with the overall process of
negotiation and its various dimensions, elements, and phases; (2) to develop and practice key
negotiating skills, strategies, and techniques; and (3) to promote team-based collaboration. By
focusing on these objectives, we will achieve several positive learning outcomes, giving you
greater capacity to understand the fundamentals of negotiation, more confidence in
negotiating across different situations, and improved negotiating results.
At the end of this course, if you apply yourself and keep an open mind, you will be able to:
1. Know when to negotiate and when not to negotiate;
2. Set realistic negotiating priorities and know when a good deal is within distance;
3. Negotiate with difficult counterparts and in difficult situations;
4. Prepare systematically for a negotiation;
5. Know when to walk away from the negotiating table;
6. Use collaborative and competitive negotiating techniques;
7. Understand how multilateral negotiations differ from bilateral talks;
8. Understand when you have negotiating power and how to use it;
9. Appreciate the role of differences in negotiations and how they offer a basis for
settlements;
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10. Break deadlocks and know when to use third-party dispute resolution procedures;
11. Appreciate cross-cultural differences in negotiations; and
12. Gain more experience in working in teams.
At the beginning of this course, you will conduct a self-assessment of your negotiations
activities, styles, and capability. You will also develop a personal action plan on what you plan
to achieve in this course. This course is a chance to set “stretch” goals and work towards
meeting them. Effective negotiators, regardless of their level of experience, learn continuously
from their mistakes and successes. Your knowledge and skill level in this field of practice is not
finite.
COURSE REQUIREMENTS
There are three sets of requirements in this course: (1) participation in six negotiation role-play
simulations; (2) a negotiations paper and class presentation; and (3) a final examination. These
requirements are described in more detail.
1. Role-Play Simulations. (60 percent of final grade; 180 points maximum; 30 points
per role play, split evenly between participation and peer evaluation of your
negotiating counterparts.) There are six required role-play simulations. These role
plays will occur in class. You will receive confidential instructions the week before
the role play. [You will have the week before the role-play to prepare.]These
CONFIDENTIAL instructions are not to be shared with any other person in twoperson or three-person negotiations. In team-based negotiations, you may prepare
for the negotiations with only your specific team members. IT IS ESSENTIAL TO
PRESERVE THE CONFIDENTIALITY OF SIMULATION MATERIALS. Team assignments
will be made in class on January 16th. You may not change your team assignment.
Attendance at the role plays is mandatory. If, for a university-sanctioned excuse,
you must miss a role- play assignment, you may complete an alternative assignment,
which is a three-page single-spaced memorandum detailing how you would conduct
the negotiation to which you were assigned. Alternative assignments are due within
one week after the date of the pertinent simulation. Failure to turn in this
alternative assignment within one week after the role play will result in zero credit
for that role play. If you need to miss a role-play simulation please let me know as
soon as possible in advance. The learning in this course is based heavily on
participating in the role plays. YOU WILL NOT RECEIVE ANY CREDIT IF YOU MISS A
ROLE PLAY WITHOUT COMPLETING AN ALTERNATIVE ASSIGNMENT IN THE TIME
PERIOD REQUIRED. YOU MAY NOT MISS MORE THAN TWO ROLE PLAY
ASSIGNMENTS. IF YOU MISS MORE THAN TWO ASSIGNMENTS YOU WILL
AUTOMATICALLY NOT RECEIVE CREDIT FOR ANY OF THE ADDITIONAL ASSIGNMENTS
MISSED. Specifics about the alternative assignment are provided below. You will
receive 15 points for your participation (i.e. attendance) in the role-play simulation.
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You may receive up to 15 points based on your peer evaluation, which is completed
by your counterpart in the negotiation. The peer evaluations focus on how well you
performed in the negotiation. Role-play simulations are NOT evaluated on the basis
of whether or not you reached an agreement or how “good” the agreement is.
2. Negotiations Paper and Class Presentation. (20 percent of final grade; 60 points
maximum; 30 points for paper and 30 points for class presentation.) Paper is due on
the day of your presentation (April 23). Presentation is to be 7 minutes absolute
maximum; presentations will be strictly timed. Paper should be five pages in length,
typed and double-spaced, and address these specific questions:

What were your principal negotiating strengths and weaknesses at the start
of this class?

What objectives did you set in your personal action plan at the beginning of
class?

How well did you meet those objectives and what concrete steps did you
take toward achievement?

What were the most effective and ineffective behaviors you observed during
the role-play simulations in class?

What are the three key lessons you learned from your experiences in this
class?

How will you apply what you have learned to your everyday activities?

What is the principal piece of advice you would give someone if they asked
you what they needed to do to become a good negotiator?
Your class presentation should also address these questions. You should prepare a
PowerPoint presentation to give to class. Your paper will be evaluated on the basis
of written clarity and coverage of the questions. Your presentation will also be
evaluated on the basis of your clarity and coverage. A copy of your presentation, as
is the case with your paper, is due the day of your presentation. A failure to provide
either one on time will result in zero points for this requirement.
3. Final Examination. (20 percent of final grade; 60 points maximum.) Your final
examination will consist of six short-answer questions, worth a maximum of 10
points each. The examination is comprehensive in terms of coverage of readings,
class slides and other relevant materials. The questions will assess your
understanding of and ability to apply relevant concepts covered in class. A study
guide will be provided the week before the final. The final will be on April 30th
during regular class time. You will have two hours to complete the final.
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GRADING
Grades will be assigned according to the following distribution of points:
276-300 points = A
92%
270-275 points = A-
90%
260-269 points = B+
86.6%
246-259 points = B
82%
240-245 points = B-
80%
230-239 points = C+
76.6%
210-229 points = C
70%
Less than 210 points = F
DE-BRIEFINGS
After each simulation (either immediately following or in the next class period), we will conduct
a de-briefing. This de-briefing will focus on a set of questions which are in the de-briefing
discussion form provided below. It is very important that de-briefings be taken seriously. This is
an opportunity to learn from each other. Building negotiation capability requires learning from
mistakes and a willingness to change behaviors and practices that are not working. We will
draw out lessons learned in these de-briefings.
CLASS SCHEDULE
The following is a list of topics, readings and activities.
Date
Topics
Reading
Assignments
Activities in Class
January 15
Introduction to
Negotiations
TEXT: Chapters 1
and 11
Core Competencies
Masters:
Introduction,
Chapters 1 and 2
Collect Student
Information Forms (at end
of syllabus)
Negotiations Activity,
Style, Self-Assessment,
Personal Action Plan
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January 22
Game: Airbus v. Boeing
Trial Negotiation
Team Plan
January 29
Getting Ready: How to
Prepare for a Negotiation
TEXT: Chapter 2
Video
February 5
Psychological and Social
Aspects of Negotiations
TEXT: Chapter 7
1st Required Role Play
February 12
Making Proposals:
Communications and
Decision-Making
TEXT: Chapter 6
Video
Masters: Chapter 3
Masters: Chapter 4
Telephone and ETechnology Negotiations
February 19
Negotiating Power
TEXT: Chapter 8
2nd Required Role Play
February 26
Win-Lose Negotiations
TEXT: Chapter 3
Video
Masters: Chapter 5
March 5
Win-Win Negotiation
TEXT: Chapter 4
3rd Required Role Play
Masters: Chapter 6
March 12
Dealing with Difficult
Negotiations and
Negotiators
Masters: Chapter13 Video
March 19
Spring Break
Spring Break
Spring Break
March 26
Closing
TEXT: Chapters 5
and 14
4th Required Role Play
Breaking Deadlocks and
Third-Party Dispute
Resolution
Masters: Chapters
7
9 and 10
April 2
April 9
Cross-Cultural
Negotiations
TEXT: Chapter 12
Ethics in Negotiations
TEXT: Chapter 9
5th
Required Role Play
Masters: Chapter
11
Video
Masters: Chapter
12
April 16
6th
Multi-Party and Agent
Negotiations
TEXT: Chapter10
Required Role Play
April 23
Best Practices in
Negotiations
Masters: Chapter
14
Student Reports
April 30
Final Examination
Final Examination
Final Examination
2 Hours
2 Hours
2 Hours
Masters: Chapter
13
We will adhere, unless necessary due to unforeseen circumstances, to the dates regarding the
required negotiations and other course requirements. The schedule of topics covered is an
admittedly ambitious one. We will make the effort to keep on schedule in terms of topics, but
we will not rush matters if more time is required on a particular topic. However, make the
effort to keep up with the readings. You will only be tested in the final examination on those
topics covered in class. I do introduce material from the TEXT into class slides for discussion,
though I might sometimes take a different approach from the TEXT. THERE IS NOT A SINGLE
BEST WAY TO NEGOTIATE. EXPERT NEGOTIATORS, IN FACT, DISAGREE ON WHAT IS BEST
PRACTICE IN CERTAIN RESPECTS. HOWEVER, THERE HAS BEEN A CONVERGENCE OF THOUGHT
AND PRACTICE IN THE FIELD ON HOW TO NEGOTIATE MOST EFFECTIVELY UNDER MOST
CIRCUMSTANCES. AND ONE OF THE EFFECTIVE PRACTICES IS TO BE ADAPTABLE, FLEXIBLE, AND
AGILE; ABLE, IN OTHER WORDS, TO THINK ON YOUR FEET. YOU HAVE TO EXPECT THE
UNEXPECTED.
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COMMUNICATIONS AND OFFICE HOURS
Class materials, except for confidential instructions for role-play simulations, will be posted on
Blackboard at appropriate times. Lecture notes for each week will generally be posted a few
days in advance of the relevant session. The best way to communicate with me is e-mail
(marickm@wayne.edu). I generally try to answer my email within 24 hours. I do not keep
regular office hours, as my schedule is far too crowded to permit such a luxury. I do, however,
always try to find mutually convenient times to meet in order to be as accessible as possible. If
you need to talk to me by phone, call me at (313) 577-5358. If I am not in and you need to
leave an important message, call my assistant, Ms. Octavia Eaton, at (313) 577-5382. Her office
location is 249 Reuther Library. For your convenience, the best times to reach me are probably
right before or right after class. My office is 255 Reuther Library. The Reuther Library is on the
same street as the School of Business, where I also have an office. ALWAYS TRY LOCATING ME
AT MY REUTHER OFFICE NUMBER AND TELEPHONE NUMBER (AS ABOVE).
RELEVANT POLICIES (Withdrawals, Incompletes, Attendance, Disabilities, Religious
Observances, and Class Etiquette)
Drops and Withdrawals. According to the University’s 2014-2015 Academic Calendar,
the last day to drop a class with a tuition cancellation is January 1, 2015. You may drop a class
through the end of the fourth week of classes. After that, at the beginning of the fifth week,
you must withdraw from class, which requires the consent of the instructor. It is your
responsibility to adhere to these deadlines and associated requirements and conditions. The
last day to withdraw from a class, according to the University’s Academic Calendar for 20142015, is March 29, 2015.
Incompletes. Except under unusual circumstances, I am disinclined to grant an
“incomplete,” particularly in a course such as this. If your schedule is such as to lead to several
absences, I strongly suggest you drop the course. You may choose to enroll in a subsequent
semester when your schedule is more amenable to attendance. Granting an “incomplete”
generally does no one a favor, and only compounds the difficulties students encounter in
finishing coursework. For undergraduate and graduate students, Wayne State University policy
states that “I” grades automatically convert to an “F” after one calendar year if the work is not
completed. There are no exceptions to this statute of limitations.
Attendance. Attendance is required, as noted above, in the required role plays and
strongly encouraged in all classes. You are also required to give a class presentation on the
date designated above. You are permitted to complete an “alternative assignment” if you miss
up to two role-play simulations. If you do not complete the alternative assignment and turn it in
one week after the assigned role-play, you will receive zero points for that role play. Any
missed simulation after that will result in zero points being assigned to you for grading
purposes.
Disabilities. Wayne State University provides support and reasonable accommodations
for persons with disabilities. If you are a student with a disability and need special
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accommodations, please let me know before the end of the second week of class. In order to
qualify for special accommodations, you must contact Student Disability Services at 1600 David
Adamany Library (313) 577-1851; Fax (313) 577-4898; www.studentdisability.wayne.edu.
Religious Observances. It is Wayne State’s policy to respect the faith and religious
obligations of students, faculty and staff. Students with exams or classes that conflict with their
religious observances should notify me well in advance so that we can work out a mutually
agreeable alternative.
Class Etiquette. How you conduct and comport yourself in negotiations is very
important. It is obviously important in any aspect of life. In this course, we will insist on civil
discussions and polite manners. Turn off cell phones and other electronic devices during class.
Do NOT email, text, or otherwise attempt to conduct other electronic business during class.
Listen respectfully to your colleagues even if you disagree with the point they are making. Do
not conduct distracting sidebar conversations. Treat people as you would like to be treated.
Inclement Weather. During Winter semester, inclement weather may lead to the
cancellation of classes by Wayne State University. Please monitor for Wayne State University
cancellation notices.
TEAM WORK
As noted, some of our role-play simulations are team-based. You need to learn to work well as
a team. You will prepare a team contract in class. IT IS YOUR OBLIGATION AS A TEAM TO WORK
OUT WHATEVER DIFFERENCES YOU MIGHT HAVE REGARDING THE PERFORMANCE OF ANY ONE
OF YOUR TEAM’S MEMBERS. WE MAY DO A COLLECTIVE CLASS “TEAM CONTRACT.”
COURSE CHANGES
Due to unforeseen circumstances or other developments, I reserve the right to make changes in
the course syllabus, including the schedule and requirements. However, these changes will be
made for the benefit of the class, not its hardship.
COURSE CONCERNS
If you have concerns about class or your performance in class, please let me know as soon as
possible. It is generally advised that we discuss these concerns in confidence, so please arrange
a time to talk with me at your earliest convenience.
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ONE-ON-ONE PEER EVALUATION FORM
Your Name:_______________________________________________
Name of Negotiating Counterpart:____________________________
Date:____________________________________________________
Negotiation Case:_________________________________________
DIRECTIONS: Please circle the number below that best describes your assessment of your
negotiation counterpart in this specific case. Please be as objective and fair as possible.

10 = My counterpart was very well prepared and performed very well in the
negotiation.

9 = My counterpart was well prepared and performed well in the negotiation.

8 = My counterpart was adequately prepared and performed adequately in the
negotiation.

7 = My counterpart was less than adequately prepared and performed less than
adequately in the negotiation.

6 = My counterpart was poorly prepared and performed poorly in the negotiation.

5 = My counterpart was very unprepared and performed very poorly in the
negotiation.

0 = My counterpart just showed UP.
NOTE: Scores are multiplied by 1.5 to convert to 15-point scale for grading purposes.
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TEAM-BASED PEER EVALUATION FORM
Your Team’s Name:____________________________________________
Your Counterpart Team’s Name:_________________________________
Date:________________________________________________________
Name of Negotiation Case:_____________________________________
DIRECTIONS: Please circle the number below that best describes your team’s assessment of
your counterpart team’s performance in this negotiation. Please be as objective and fair as
possible. NOTE that this is a team evaluation, so you must decide, as a team, your
assessment of the other side. TURN IN ONE FORM PER TEAM.

10 = Our counterpart team was very well prepared and performed very well in the
negotiation.

9 = Our counterpart team was well prepared and performed well in the negotiation.

8 = Our counterpart team was adequately prepared and performed adequately in
the negotiation.

7 = Our counterpart team was less than adequately prepared and performed less
than adequately in the negotiation.

6 = Our counterpart team was poorly prepared and performed poorly in the
negotiation.

5 = Our counterpart team was very unprepared and performed very poorly in the
negotiation.
0 = Our counterpart team just showed up.
NOTE: Scores are multiplied by 1.5 to convert to 15-point scale for grading purposes.
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ALTERNATIVE ASSIGNMENT INSTRUCTIONS
If you should miss a required negotiation role-play simulation, you may complete this
alternative assignment to receive credit. You are permitted to miss NO MORE THAN TWO
ROLE-PLAY SIMULATIONS WITHOUT LOSING ALL POINTS for each additional missed required
negotiation role-play. Complete this assignment and submit it no later than the class period
immediately following the assigned Thursday evening role-play simulation during which you
were absent. Assignments may be submitted to me electronically at marickm@wayne.edu.
You will need to acquire the confidential instructions pertinent to the role play in order to
complete this assignment.
ASSIGNMENT
For the role-play simulation you have been unable to attend, prepare a three-page, typed,
single-spaced memorandum describing your plan on how to conduct the negotiation from the
perspective of the role you are assigned. If you miss a one-on-one negotiation, address the
memo to yourself; if it is a team-based negotiation, address the memo to the chief negotiator
of your team. Answer each of these questions in your memorandum:
1. What are the key issues involved in the negotiation?
2. What asking, target, and reservation prices would you set?
3. What is an ideal settlement from your perspective?
4. What is the best settlement realistically attainable?
5. What are the other side’s likely priorities in the negotiation?
6. What are the key interests of your side and the other side?
7. What is your best alternative to a negotiated agreement (BATNA)?
8. What are the other side’s possible best alternatives to a negotiated agreement?
9. What kind of objections do you anticipate to your negotiating proposals?
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DE-BRIEFING QUESTIONS
After each role play simulation (either during the same class period or the following one), we
will conduct a de-briefing. We will ask some of these questions during each de-briefing:
1. What were the principal outcomes of the negotiation?
2. How do the outcomes compare to your asking, target, and reservation prices?
3. Are you satisfied with the outcomes?
4. What key effective and ineffective behaviors did you observe during the negotiation?
5. What would you do differently if given the chance to do the simulation again?
6. What advice would you give to the other side to help them improve their
performance?
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STUDENT INFORMATION FORM
DIRECTIONS: Please complete this form and submit it at the end of the January 9th class
period. Thank you.
Your Name:_______________________________________________
Your Current Occupation:____________________________________
Your Current Employer:______________________________________
Years of Work Experience:____________________________________
Undergraduate Degree (Institution and major):___________________
Professional Goal:___________________________________________
E-mail:_____________________________________________________
TEL (Day Number best to reach you):____________________________
1. Why did you sign up for this class?
2. What are your top three objectives in this class?
3. Have you had prior formal education or training in negotiations or conflict resolution?
If yes, be specific as to what type of education or training.
4. What types of negotiations do you want to practice in this class?
5. Give a brief description of a recent negotiation in which you have been involved at
work? (You need not mention any names.)
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