NEGOTIATION

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 Think big, ask for
what you want
B
B/L A
Goal T
MDO LAA
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A
Defining Your Negotiating Opportunity

MDO – Most Desired Outcome

LAA – Least Acceptable Agreement
B/L – Bottom Line
BATNA - Best Alternative to a Negotiated Agreement
 Think big, ask for what
you want
And Determine What They Need

MDO LAA
Yours

Mutual Motivation
Theirs

LAA MDO

Are the goals aligned?

 Never say No…or
Yes

NO!
NO!
NO!
NO!
 Ends discussions
 Is face losing

YES! The Negotiated Yes…"Yes, if"

 Invalidates last offer  Allows you to say yes
 Violates trust  Validates your opening offer
 Cuts off creativity  More engaging
 Removes give-and-take  More likely to generate creativity
 Make smaller
concessions
 Give value, but don’t rush
 Progressively smaller concessions
 Allow counterpart a sense of satisfaction

 And don’t forget to summarize early and often

 Always be patient
The Power (and risk) of time
 A quick solution may be a bad solution
 Patience softens expectations and encourages flexibility
 Patience allows them time to accept tough choices
 Beware, their patience may compel you to make unnecessary
concessions
 Deadlines force concessions
– Establish deadlines for them
– Probe any deadline they set
The most powerful thing you can do is
make offers and proposals.

 You cannot negotiate an argument

 You can negotiate proposals
 Proposals keep the other side engaged
 An offer or proposal compels a response:
 Accept
 Counteroffer
 Probe
 Never say No…or
Yes

When THEY say “No”: Handling Objections

You find out by probing:

1. “If we can find a solution on this one item, can we get a final
agreement today?”
2. “What if we…” (the hypothetical)
3. “In a perfect world, what would this look like to you?”
4. Maybe you need only to acknowledge the objection
The most powerful thing you can do is
make offers and proposals.

 You cannot negotiate an argument

 You can negotiate proposals
 Proposals keep the other side engaged
 An offer or proposal compels a response:
 Accept
 Counteroffer
 Probe
 Never say No…or
Yes

When THEY say “No”: Handling Objections

You find out by probing:

1. “If we can find a solution on this one item, can we get a final
agreement today?”
2. “What if we…” (the hypothetical)
3. “In a perfect world, what would this look like to you?”
4. Maybe you need only to acknowledge the objection
 Never say No…or
Yes
When THEY say “No”: Handling Objections

How well did you prepare?

1. Need more information on the other side?
2. Need more information on Your solution, position,
product, organization, market, etc.?
3. Need more information on stakeholders?
4. Are you talking to the right person/people?
5. Maybe this is not a good agreement?
6. Should you execute your BATNA?
NEGOTIATION
 PROCESS
 BETWEEN 2 PARTIES
 IN EXCHANGE F GOODS OR SERVICES
 ATTEMOPT TO AGREE UPON THE
EXCHANGE RATE FOR THEM
BARGAINING STRATEGIES
 DISTRIBUTIVE BARGAINING- SEEKS TO
DIVIDE UP A FIXED AMAOUNT OF RESOURCES: A WIN –
LOSE SITUATION

 INTEGRATIVE BARGAINING-SEEKS ONE

OR MORE SETTLEMENTS THAT CREATE WIN- WIN
SITUATION
DISTRIBUTIVE VS INTEGRATIVE
BARGAINING

Bargaining Distributive Integrative

Characteristic Characteristic Characteristic

Available resources Fixed amount of resources Variable amount of resources

to be divided to be divided
Primary motivations I win , you lose I win, you win

Primary interests Opposed to each other Convergent or congruent to

each other
Focus of relationships Short term Long term
NEGOTIATION PROCESS

Preparation & Planning

Definition of ground rules

Clarification & Justification

Bargaining & Problem Solving

Closure & Implementation

INFLUENCING POWER,
POLITICS & NEGOTIATION
INFLUENCING
 PROCESS OF AFFECTING OTHERS’
ATTITUDES & BEHAVIOR IN ORER
TO ACHIEVE AN OBJECTIVE
 3 TYPES
 INSTRUMENTAL COMPLIANCE
 INTERNALISATION
 IDENTIFICATION
INFLUENCING PROCESS &
OUTCOMES
 INSTRUMENTAL  COMPLIANCE
 INTERNALISATION  COMMITMENT
 IDENTIFICATION  COMMITMENT
 UNSUCCESSFUL
 RESISTANCE
 EXCUSES
INFLUENCING  PURSUADE TO WITHDRAW
PROCESS  CREATE DISSENTING
GROUP
 DELAY
 PRETENSE
 REFUSE
INFLUENCING TACTICS
 RATIONAL  LEGITIMISATION
PURSUASION  PRESSURE
 INSPIRATIONAL
APPEALS
 CONSULTATION
 INGRATIATION
 PERSONAL APPEALS
 EXCHANGE
 COALITIONS
CONTINGENCY APPROACHES TO
INFLUENCING TACTICS
 DIRECTION-upward, lateral,
downward
 SEQUENTIAL DIFFERENCES-initial
requests, follow ups
 EFFECTIVENESS- individual tactics-
combined tactics
 Influential tactics
TACTIC DIRECTION SEQUENCE TYPE

1. Rational Superiors Initial Soft-either

persuasion Subordinates Either Soft-combine
2. Inspirational Subordinates Either Soft-combine
appeals Subordinates Initial Soft-combine
3. Consultation Lateral Either Soft-either
4. Ingratiation Subordinates Follow up, Soft-either
5. Personal Appeals Immediate
Lateral Hard-use alone
6. Exchange Subordinates Follow up, Delay Hard-use alone
7. Coalitions Subordinates Follow up, Hard-use alone
8. Legitimization Immediate
9. Pressure Follow up, Delay
POWER
 LEADERS’S POTENTIAL INFLUENCE
OVER FOLLOWERS

 AS DIFFERENT FROM INFLUENCE WHICH

IS A PROCESS OF AFFECTING OTHERS’
ATTITUDES & BEHAVIOR IN ORDER TO
ACHIEVE AN OBJECTIVE
 SOURCES AND TYPES OF POWER

 LEGITIMATE-User’s
LEGITIMATE- position given by org
 REWARD-user’s ability to influence others with something
of value to them
 COERCIVE-negative reward influence
i for non compliance
 CONNECTION-user’s
CONNECTION- relationship with influential people
 INFORMATION-user’s
INFORMATION- data desired by others
 EXPERT-user’s
EXPERT- skill & knowledge
 REFERRENT-user’s
REFERRENT- personal relationship with others
 SOURCES AND TYPES OF POWER WITH
EQUIVALENT INFLUENCING TACTICS

Position Power Personal Power

Legitimate Reward Coercive Connection Information Expert Referent

Legitimization Exchange Pressure Coalitions No equivalent No Equivalent Personal

Appeal
ACQUIRING & LOSING POWER

 POWER CAN CHANGE OVER TIME

 2 MAJOR THEORIES OF HOW POWER IS
ACQUIRED, ATTAINED OR LOST IN
ORGANISATIONS
 SOCIAL EXCHANGE THEORY-INDIVIDUAL

POWER LEVEL OF ANALYSIS

 STRATEGIC CONTINGENCIES THEORY;i)expertise

in coping with important problems, ii) centralization of

unit within work force, iii extent to which unit is unique
or substitutable
POLITICS
 PROCESS OF GAINING & USING
POWER
 POLITICS IS A MEDIUM OF
EXCHANGE-MEANS OF GETTING
WHAT WE WANT
POLITICAL BEHAVIOR
 POLITICS & SUPPORT ARE RELATED TO
JOB SATISFACTION, COMMITMENT &
TURNOVER INTENTIONS.
 HOW WELL YOU PLAY POLITICS
DIRECTLY AFFECTS YOU.
 NETWORKING, RECIPROCITY &
COALITIONS ARE COMMON
ORGANISATIONAL POLITICAL BEHAVIOR
POLITICAL BEHAVIOR
 NETWORKING- developing
relationships for the purpose of
socializing & politicking
 RECIPROCITY-creating obligations &
developing alliances, & using them
to accomplish ongoing objectives
 COALITION- developed to achieve
specific objective
 GUIDELINES FOR DEVELOPING
POLITICAL SKILLS

Guidelines
RECIPROCITY COALITIONS
Learn org culture & power players

Develop good working relationships, esp with mangers

Be a loyal & honest team player

Gain recognition

NETWORKING
NEGOTIATION
 PLAN- research the other party, Set Objectives,
Develop options& tradeoffs, anticipate Questions,
objections & prepare answers
 DEVELOP RAPPORT & FOCUS ON OBSTACLES
NOT THE PERSON
 LET THE OTHER PARTY MAKE THE FIRST
OFFER
 LISTEN & ASK QUESTIONS TO FOCUS ON
MEETING THE OTHER PARTY’S NEEDS
 DON’T BE TOO QUICK TO GIVE IN & ASK
SOMETHING IN RETURN