craft

DISTRIBUTIVE NEGOTIATION

The objective of distributive negotiation is to achieve an efficient compromise by focusing on the distribution of outcomes as opposed to meeting the needs of the parties involved.

MIXED-MOTIVE BARGAINING

POWER TACTICS IN NEGOTIATION

HARDBALL TACTICS

INFORMATION SHARING IN A DISTRIBUTIVE NEGOTIATION

A situation when the negotiating agenda has “significant elements of conflict and considerable potential for integration.

At the most basic level there are two components of leverage or power in a negotiation: the benefits the negotiator brings to the table and the counterpart’s BATNA (Best Alternative to a Negotiated Agreement).

There are a variety of power tactics that can be used to gain an advantage. Tactics are the specific behaviors used by a party in a negotiation.

Rationality: involves the use of reason and logical presentation of facts or data.

Ingratiation: involves being friendly to the other party to get him to like you.

Coalition building: involves obtaining the support of and forming an alliance with others.

Exchange: is quid pro quo bargaining—you scratch my back and I’ll scratch yours—and is the basis for barter systems.

Assertiveness: involves using a direct and forceful approach to push your own agenda and/or attack the other party’s position.

Upward appeal: involves obtaining support for your position from people in higher positions of authority.

Imposing sanctions: involves the use of coercive power to achieve the desired results.

LEVERAGE/POWER

TACTICS TO CHANGE POWER

Improve the quality of your own BATNA: Involves increasing the attractiveness of your best alternative or finding another more attractive alternative

Decrease the quality of the other party’s BATNA: You increase your power by decreasing the value of the other party’s best alternative, making him more dependent on what you have to offer.

Decrease your value of the other party’s contribution: Decreasing the value you place on the other party’s contribution decreases her power.

Increase the value of your contribution: To increase your power in a negotiation is to increase the value of your contribution.

Highball/lowball: where one party makes an extreme opening offer in an attempt to throw the other party off balance

Bluffing: Basically it involves going head to head with the other party to see who will back down first.

Intimidation: It may involve name-dropping to imply a closer relationship with those in power or statements

Bogey: involves including issues in your opening offer that are really not important to you, but give you something to trade later.

The “nibble”: involves asking for additional small things after negotiation has begun or even reached tentative agreement on the main issues.

Overwhelming the other party with information: It involves providing the other party with so much information that he is left feeling distracted and overwhelmed

Good cop/bad cop: It is rooted in the scenario of two police officers trying to convince a suspect to confess.

Since distributive negotiations are competitive in nature, the sharing of information is more guarded so as to protect one’s position.

HARDBALL TACTICS: RESPONSES

There are four basic tactics for responding to hardball tactics: preventing it, ignoring it, discussing it, and responding with hardball tactics of your own.

CLAIMING VALUE

Negotiators use their power and sometimes hardball tactics to get as much of the settlement range as possible.

CONCESSIONS

Concessions are what you give up and are expected in any negotiation.

COMMITMENT

Concession making can also involve the tactic known as logrolling; the exchange of support or favors.

The final step in any negotiation is obtaining commitment from the parties on all issues involved in the negotiation.

IMPASSE

If the parties do not reach an agreement. the parties are said to come to impasse.