Negotiation INTRODUCTION. Definition How would you define negotiation? Why do we negotiate?

Slides:



Advertisements
Similar presentations
James M. Goldberg SGMP 2014 National Education Conference.
Advertisements

Negotiations Judgments and Decisions Psych 253. Negotiation: A process by which two or more people come to agreement on how to allocate scarce resources.
Psych 253 Judgments and Decisions Negotiations
Copyright © Houghton Mifflin Company. All rights reserved. 13 | 1 Pricing …the amount of money a seller is willing to accept in exchange for a product.
Building Blocks of Negotiation
BUSINESS EGGS NEGOTIATION. RELATIONSHIP CONFLICTS Strong Emotions Misperceptions or Stereo types Poor or miscommunication Negative behavior DATA CONFLICTS.
Conflict Definition: A process that begins when one party perceives that another party has negatively affected,or is about to negatively affect,something.
Negotiating Your Compensation Package. Agenda Negotiating – what it is and isn’t Compensation – any wiggle room? Other Benefits – getting more? Work-life.
Negotiation DISTRIBUTIVE BARGAINING (CONTINUED). Distributive Bargaining (recap) This type of negotiation is called distributive bargaining. There is.
Strategy and Tactics of Distributive Bargaining
Negotiation & Conflict Management Class 1 John D. Blair, PhD
Introduction to International Negotiations
INFM 718A / LBSC 705 Information For Decision Making Lecture 11.
Agenda Exam Comments (posted by code) I will add 2% to exam grade Extra credit (in-class survey next week) If you don’t have a boss, I will figure something.
QBook UNIT 4 Distributive Bargaining. QBook INTRODUCTION  During a basketball game, every time one team scores two points, the other team falls behind.
Coffee Contract Role of seller Role of buyer
1 “A Behavioral Theory of Labor Negotiations” Walton and McKersie Advanced the proposition that the process of labor-management negotiation comprises four.
Getting to Win-Win in Negotiation Government Finance Officers Association Art Hinshaw Director, Lodestar Dispute Resolution Program Sandra Day O’Connor.
Negotiation Organizational Communication. 2 Main take-aways Principles of negotiation can be used in any situation of interpersonal conflict Principles.
Distributive Bargaining
University of Alabama at Birmingham
Negotiating Strategies
DISTRIBUTIVE BARGAINING. There are two ways in which the parties to the negotiation can try to meet their needs. They can each try to claim as large a.
McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved ChapterChapter 10 Networking and Negotiating.
Networking and Negotiating
Negotiation Weeks 8, 9 & 10 PowerPoint Summary of: Key Negotiation Concepts.
Session 8 University of Southern California ISE544 June 18, 2009 Geza P. Bottlik Page 1 Outline Two party distributive negotiations (Win/Lose) –Case history.
Strategy and Tactics of Distributive Bargaining
Chapter 6 Strategy Strategy. Strategy versus Tactics What is the difference between strategy and tactics? What is the difference between strategy and.
Edit the text with your own short phrase. The animation is already done for you; just copy and paste the slide into your existing presentation.
Strategy and Tactics of Distributive Bargaining
Agenda: session 4 Distributive Negotiation
2-1 McGraw-Hill/Irwin ©2006 The McGraw-Hill Companies, Inc., All Rights Reserved CHAPTER TWO Strategy and Tactics of Distributive Bargaining.
Strategy and Tactics of Distributive Bargaining McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.
Positional Bargaining.  Positional bargaining is a negotiation strategy in which a series of positions (alternative solutions that meet particular interests.
ZOPA – “Zone of Potential Agreement” What is a ZOPA? The area where two or more parties to a negotiation have common ground, in which an agreement can.
Welcome to class of Negotiations by Dr. Satyendra Singh University of Winnipeg Canada
Lecture by way of a “quiz”…to be completed in groups.
Crisis And Conflict Management. Conflict Negotiation Lecture 31.
Conflict and Negotiation
Main Topics Negotiating Sessions: “At the table” Critical Elements in a Negotiation Information Ethics negotiation Bargaining Strategies Distributive Bargaining.
Business Negotiation Designed by Tao 2014 Directed by Nancy 2014.
1 Integrative negotiations Multiple issues Differing strengths of preference Differing interests Future relationship Multiple alternatives.
Chun hua Zheng.  Why are you here?  What I hope you will learn: ◦ Principled negotiation ◦ Creating a framework ◦ Relationship management  How I will.
Presented by Thomas J. Dixon | INTRODUCTION TO NEGOTIATION CONCEPTS.
Terms Distributive negotiation Reservation Price BATNA Target Price Bargaining Zone/ZOPA negative positive.
The Negotiation Process- General Observations Course - INTERNATIONAL NEGOTIATIONS & STRATEGY Presented by Zinash Diresse ID- (152SIS82) 29 March
Edit the text with your own short phrase. The animation is already done for you; just copy and paste the slide into your existing presentation.
협상의 요소 II.  Possible solutions to satisfy interests Interests are the building blocks of a possible agreement Options are ways to fit those building.
Negotiation Class 7. Questions about Negotiation Do all negotiations have a winner and a loser? Is the best strategy to be tough or soft? Are the best.
Negotiation and Problem- Solving Class 1. Administrative  Give quiz  Return critiques at end of class  Thursday we are scheduled to have a quiz and.
The Distributive Bargaining Situation
Introduction to Negotiation Concepts Richard A. Posthuma, J.D., Ph.D., GPHR, SPHR 2010.
Negotiations and Distributive Negotiations
Business Management 12 Ms. Melbourne
Building Blocks of Negotiation
ESSENTIALS OF NEGOTIATION SIXTH EDITION
Negotiation Reflection
McGraw-Hill/Irwin Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
How could the following be negotiated?
Distributive Negotiation: Slicing the Pie
Distributive Negotiation
Distributive Negotiation
Distributive Negotiation
Lodi Wine Grape Growers
Welcome to class of Negotiations Dr
How to engage in Distributive Bargaining
McGraw-Hill/Irwin Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
Strategy and Tactics of Distributive Bargaining
Factors affecting Negotiations
Presentation transcript:

Negotiation INTRODUCTION

Definition How would you define negotiation? Why do we negotiate?

Distributive Bargaining Used Car Read instructions (5 minutes) Negotiate over the car (10 minutes) Discussion Questions (next slide)

Used Car - Discussion Did you reach an agreement in this negotiation? If so, how satisfied are you with the price? If not, are you satisfied that you did not agree? Why? If you reached a settlement, how does the settlement price compare to your target price, to the buyer’s opening offer, and to the lowest (highest) price that you were willing to accept? Who made the first offer? Does it matter who puts out the first number? Do you want to be the person making the first offer, or the person hearing the first offer? Why? Under what circumstances might your answer be different?

Who made the first offer? ◦Buyer or seller What was the first offer? Final price of the car?

Key Concepts Best alternative to a negotiated agreement (BATNA) – aka “best outside option” or “plan b” Reservation Point (RP) – indifference point ◦Your bottom-line, walking away point ◦Your BATNA +/- things that make you want this deal Target price or aspiration point ◦Sometimes people have two: “optimistic” and “realistic” – could focus on one: “ambitious yet imaginable” Zone of potential agreement (ZOPA) or bargaining zone ◦Space between two party’s RP’s; can be negative.

Used Car What was your reservation point? ◦Buyer, Seller What was your BATNA? ◦Buyer, Seller Are these two points equal? What separates these two points?

Used Car Buyer ◦BATNA: $3800 Malibu ◦RP: $4700 money you have Seller ◦BATNA: $4400 dealer trade-in ◦RP: $4400 ZOPA: area between two RP ◦$ $4700

Salary Negotiation New Hire (you) ◦What is the BATNA in salary negotiations? ◦What is the reservation point? ◦What is the target or aspiration point? Employer ◦What is the BATNA? ◦What is the reservation point? ◦What is the target or aspiration point?

Salary Negotiation – Scenario 1 New Hire (you) ◦BATNA: Another job offer, salary $60,000 ◦This is the lowest you’ll go ◦What is the reservation point? ◦What is the target or aspiration point? Employer ◦BATNA: Another employee, budget restriction, $65,000 ◦This is the highest they’ll go ◦What is the reservation point? ◦What is the target or aspiration point?

Bargaining Zone – ZOPA Employer’s aspiration range Your aspiration range Employer’s aspiration level: $55,000 Your reservation point: $60,000 Employer’s reservation point: $65,000 Settlement range Your aspiration level: $70,000

Salary Negotiation – Scenario 2 New Hire (you) ◦BATNA: Another job offer, salary $65,000 ◦This is the lowest you’ll go ◦What is the reservation point? ◦What is the target or aspiration point? Employer ◦BATNA: Another employee, budget restriction, $60,000 ◦This is the highest they’ll go ◦What is the reservation point? ◦What is the target or aspiration point?

Negative ZOPA Employer’s aspiration range Your aspiration range Employer’s aspiration level: $55,000 Employer’s reservation point: $60,000 Your reservation point: $65,000 Settlement range Your aspiration level: $70,000

BATNA Distinguishing reservation point (indifferent point) from target point (aspiration level) BATNA ◦Best Alternative To Negotiated Agreement ◦Should equal reservation point How do you determine your BATNA? How do you use BATNA in negotiations? What about the other party’s BATNA?

Take away Distributive Bargaining This type of negotiation is called distributive bargaining. There is a fixed amount and you must negotiate to distribute between the two or more parties Know when you’re in a distributive bargaining situation. Gather information, develop BATNA Make the first offer, be aggressive, Know your reservation point and DO NOT go beyond it. Engage in tit-for-tat concession-making.