Chapter 1

Chapter 1

1. 3 Approaches to Resolving Disputes

   • Power
     • Have the control to persuade other people to do things we want that they do
   • Rights
     • Socially accepted= equality
   • Interests
     • NEEDS
       • THINGS I CARE AND ALSO I WANT
       • Negotiations that is dedicated to the interests is better known as “interests-based
   • A conflict or a dispute starts when:
     • a person is not agree in the way of thinking of an other person.
       • Who can we solve a dispute?
         • When the 2 persons find an negotiated agreement
   • What “Better” Means: 4 Possible Criteria
     • Recurrence
     • Satisfaction with Outcomes
     • Satisfaction with Outcomes
     • Transaction Costs

2. Selecting a Strategy

   • STrategy: help us to have a rsuccessful result
   • KEY FACTORS
     • Both parts are going to agree the rules of the game because they have the same objective
     • If the relationship has a history of hostility, you may prefer not to negotiate, ot if you expect the relationship to continue in the future.
   • Negotiation Strategies
     • Avoiding (lose–lose):
     • Accommodating (lose to win):
     • Competitive (win–lose):
     • Collaborative (win–win)
     • Compromising (split the difference)
   • Keys to Successful Collaboration
     • understanding
     • providing
     • finding
   • Obstacles
     • One party does not see the situation as having the potential for collaboration.
     • One party is motivated only to accomplish its own ends
     • One party has historically been competitive; this behavior may be hard to change.
     • One party wants to be competitive and rationalizes this behavior.
     • One party is not willing to take the time to search for collaborative items.

3. Balancing Act: How to Manage Negotiation Tensions

   • The tension between creating and distributing value.
   • The tension between principals and agents.
   • The tension between empathy and assertiveness.
   • Distributing Value versus Creating It
     • Other negotiations potentially create value by expanding the universe of what is being negotiated
     • In a trade negotiation, political face-saving tactics may be as important as the tariffs being decided.
   • Empathy versus Assertiveness
     • Empathy could help us to understand ways to solve problems and ensure quality.
   • Being a Principal versus Serving as an Agent
   • Awareness Is Power

4. The Negotiation Checklist: guide for thinking about an important, upcoming negotiation.

   • A. About you
     • 5. What Is Your Resistance Point?
     • 4. What Is Your BATNA?
     • 3. How Important Is Each Issue to You?
     • 2. What Are the Issues?
     • 1. What Is Your Overall Goal?
   • B. About the Other Side
     • 1. How Important Is Each Issue to Them?
     • 2. What Is the Other Side’s BATNA?
     • 3. What Is the Other Side’s Resistance Point, if Any?
     • 4. What Is Your Target?
   • C. The Situation
     • 3. What Topics or Questions Do You Want to Avoid? How Will You Respond If the Other Side Asks Anyway?
     • 2. What Fairness Norms or Reference Points Apply?
     • 1. What Deadlines Exist? Who Is More Impatient?
   • D. The Relationship between the Parties
     • 5. Consult in Advance with the Other Party about the Agenda.
     • 4. What Are the Limits to the Other Party’s Authority?
     • 3. What Do You Know of the Other Party’s Styles and Tactics?
     • 2. Can You Trust the Other Party? What Do You Know About Them?
     • 1. Are the Negotiations Part of a Continuing Series?

5. Effective Negotiating Techniques.

   • Forbearance
     • Patience to work well
     • used by young negotiators that want everything hury and quickly
     • effectively used by the Quakers
   • Silence
     • POWERFUL
     • demonstrates self-control, confidence, discipline, and calm
   • Surprise
     • make yourself less predictable so that the other party doesn’t get too confident in their assumptions and demands.
   • Probing/Testing
     • Probe what you can do
   • Take a Break
     • Rest when you are tired
   • Express How You Feel
     • You can say what are you felling about something.

6. Closing Your Business Negotiations: relationship between the parties, objectives, cultural environment, etc.

   • Most Common Techniques
     • Summarizing
       • Summarize all the points have being discussed, emphasize the concessions made, and highlight the benefits of the other side would gain by agreeing to the proposal.
     • Splitting the difference
       • when the negotiation is about to close but a minimum part still needs to be negotiated to reach the final agreement
     • Concession
       • encourage the other party to finalize the talks.
   • Closing a Negotiation: Some Dos and Don’ts
     • Don´t
       • Be in a hurry to close
       • Make large concessions at the last minute
       • Rush into costly concessions because of deadlines.
       • Lose sight of your long-term objectives
       • Push your advantage to the point of forcing
       • Become too emotional when closing
       • Discuss the deal with the other side once you have agreed
     • DO
       • Anticipate
       • Agree
       • Listen
       • Emphasize
       • Make last offer
       • Clarify any points that you don’t understand, before signing.

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