Strategy in Negotiation

Strategy in Negotiation

1. Contending

   • Def: Negotiators pursue their goals by trying to persuade the other party to concede. Also called: competition, distributive bargaining or claiming value.
   • Determinants: When limis are high, when there is high accountability to constituents, when there is surveillance by male constituents.
   • Contentious tactics are a defense basis.
   • Strategy of contending:
     • Harsh: tactics that manipulate the opponent and threats.
     • Intermediate: holding firm and arguing vigorously fore one´s position.
     • Mild: exemplified by ingratiation and requests for the other party to explain position.

2. Problem Solving

   • Def: Negotiators try to identify options that satisfy both parties´goals. Also called: collaboration, integrative bargaining or creating value.
   • Most efficient tactic: joint problem solving, but is hard to achieve.
   • Default option
     • It is difficult to yield
     • Contentious tactics seem infeasible or unwise
     • Delays are costly
   • Ground rules
     • Failure to reach agreement will lead to third party arbitration of the issues.
     • Advisory arbitration
     • Second chance negociation
   • Feasible
     • Less ambiitious the two parties´aspirations
     • Integrative potential
     • Trust

3. Yielding

   • Def: Negotiation involves diminishing one´s goal, that is, reducing one´s aspirations. Also called: accomodation.
   • Flexibility: in the sense that lower aspirations make a wider range of problem solving solutions available.
   • Encourages yielding
     • Common reaction to time pressure because it moves the negotiation rapidly and reliably toward agreement.
     • Positive sentiments toward the other party and a commitment to a working relationship.
       • Working relationships
         • Exists between individual negotiators, between groups or between nations.
         • Beneficial to members:
           • Encourage efficient negotiation
           • Encourage problem solving leading to win-win agreements.
           • Produce a long run exchange of favors
         • Encouraging the relation
           • Same enemy
           • The capacity to harm each other
           • Trust
         • Building
           • Rationality
           • Understanding
           • Communication
           • Reliability
           • Noncoercive Modes of Influence
           • Acceptance
   • Discourages yielding
     • Strong needs and feelings run deep (basic rights, self-esteem, ethnical principles.
     • When one´s aspirations are close to one´s lower limit. No middle ground,
     • Concessions imply loss rather than giving up gain
     • Hostility

4. The dilemma between contending and problem solving

   • Techniques for escaping the dilemma:
     • Sequencing in time. The sequence can go from problem solving to contending and vice versa.
     • Taking a contentious public stance coupled with covert problem solving. The covert problem solving can be through back channels, mediators or intermediaries.
     • Firm flexibility, negotiators are contentious about their basic interests, firmly committing themselves to those interests and requesting that the other party acknowledge them. But also engage in flexible problem solving about how these interests can be achieved.
     • Develop a working relationship with the other party.
       • Main norms
         • If one party asserts a strong need on an issue, the other will concede if his her needs are insubstantial.
         • Joint problem solving if both parties assert a strong need.
         • Weighing of relative needs if joint problem solving does not resolve the divergence of interests.
         • Truthfulness in statements about the strength of one´s needs.