1. Getting to YES Negotiation Agreement Without Giving In 092SIS82 Hwa Jung, KIM 092SIS71 Wang NANA 092SIS81 Jim Min, KIM 092SIS73 Zhang JING 102SIS34 Bo Kyeong, KIM

2. Page  2 I.Don’t Bargain Over Position II.Positional Negotiation vs. Good Negotiation III.Problems of Positional Negotiation IV.Principle 1: Separate the people from the problem V.Methods to overcome in human problem in negotiation process VI.Prevention Overview

3. Page  3 Role play_ Positional Negotiation Company: JK-007 Situation: Salary re contract between boss and employee

4. Page  4 Don’t Bargain Over Position 1. Positional Negotiation vs. Good Negotiation Wise Agreement Efficient However, Three Criteria of good Negotiation Good Relations HOWEVER Bargaining over position cannot achieve three criteria!!!

5. Page  5 Arguing Over Position 1. Unwise Agreement2. Inefficient 3. Endangers an Ongoing Relations Don’t Bargain Over Position 2. Problems of Positional Negotiation

6. Page  6 1. Unwise Agreement  Tend to lock themselves into those positions.  Your Position=Your Ego  New Interest: Saving Face => Ignore original interests of both side => Difficulty in Wise Agreement!!!  Tend to lock themselves into those positions.  Your Position=Your Ego  New Interest: Saving Face => Ignore original interests of both side => Difficulty in Wise Agreement!!! Positional Bargaining Don’t Bargain Over Position 2. Problems of Positional Negotiation

7. Page  7 2. Inefficience  Creates incentives that stall settlement  Take Extreme position, holding to it for more favorable settlement  Smaller the concessions => Increase the time and costs of reaching agreement!!!  Creates incentives that stall settlement  Take Extreme position, holding to it for more favorable settlement  Smaller the concessions => Increase the time and costs of reaching agreement!!! Positional Bargaining Don’t Bargain Over Position 2. Problems of Positional Negotiation

8. Page  8 3. Endangers an Ongoing Relations  Becomes a contest of will, a battle  Anger and Resentment: Result as one side sees itself bending to the rigid will of the other while its own legitimate concerns go unaddressed  Enforce opposite to surrender => Shatter the relationship!!!  Becomes a contest of will, a battle  Anger and Resentment: Result as one side sees itself bending to the rigid will of the other while its own legitimate concerns go unaddressed  Enforce opposite to surrender => Shatter the relationship!!! Positional Bargaining Don’t Bargain Over Position 2. Problems of Positional Negotiation

9. Page  9 Don’t Bargain Over Position 2. Problems of Positional Negotiation Participatns are adversaries, The goal is victory, Be hard on the problem and the people, Distrust others, Make threats, Insist on your position, Try to win a contest of will...... Participants are friends, The goal is agreement, Make concession, Change your position easily, Make offers, Try to avoid a contest of will......... Which Game Should You Play???

10. Page  10 Role play: good example: principled bargaining

11. Page  11 Alternatives: Can apply to almost case 1 2 3 People: Separate the people from the problem Interest: Focus on interests, not position Options: Generate a variety of possibilities before deciding what to do 4 Criteria: Insist that the result be based on some objective standard

12. Page  12 Principle 1: Separate the people from the problem Solution Result Assumption Human Aspect (emotion, misunderstanding…. ) Real Negotiation What kind of methods?

13. Page  13 Principle 1: Separate the people from the problem 1. Negotiators are people first Fist------------------  Last Am I focus on Personal aspect? 2. Two interests 1.Mix between substance interest and human aspects Assumption Result Alternatives Substantive Interests Human Aspect 1.Attack substance interest, not an opposite person 2.Deal with own human aspect and opposite person’s human aspect Own interest Good Relation s Human Relations Own Interest

14. Page  14 Principle 1: Separate the people from the problem - Methods to overcome in human problem in negotiation process 3. Don’t blame them for your problem 1.Put yourself in their shoes 2. Don’t deduce their Intentions from your fears 7. Give them a stake in the outcome by making sure they participate in the process 8. Face saving 4. Separate person who talk with you and substance 5. Discuss each other’s perceptions 6. Look for opportunities to act inconsistently with their perceptions

15. Page  15 Principle 1: Separate the people from the problem - Methods to overcome in human problem in negotiation process 4. Don’t react to emotional outburst 5. Use symbolic gesture 1. Recognize and understand emotions 2. Make emotions explicit and acknowledge them as legitimate 3. Allow the other side to let off steam

16. Page  16 Principle 1: Separate the people from the problem - Methods to overcome in human problem in negotiation process 1.Netogiators don’t talk to person or ignore opposite person’s Understanding process 2. The opposite person don’t listen carefully 3. Misunderstanding: Mis interpretation of opposite’s intention  Three problems in communication What is solutions?

17. Page  17 2. Role play - Miscommunication caused by prisoner’s dilemma  Conditions 1.Korean Air orders 100 airplanes 2.Mutually benefit ($ 250 million), if airbus and boeing bid same price (50:50 market share) 3.If one bid lower price that another, it will get more portion (70%) Boeing Airbus $ 5 million $ 4 million $ 5 million $ 250 million $ 280 million $ 150 million $ 4 million $ 150 million $ 280 million $ 200 million

18. Page  18 1 Pay attention, Listen actively 2 Speak to be understood 3 Speak about yourself, not about them 4 Speak for a purpose The best time for resolution is “Before occurring problems” Principle 1: Separate the people from the problem - Solutions in miscommunication

19. Page  19 Preventions 1.Make private and organized relationship with opposite -Make favorable relationship Assuption: before negotiation!  Make fundamental trust 2.Separate substance from human relationship - Go agaist ’Substance’, not person. Hostile relations (X) Accompany (O) Preventions

20. Page  20 Thank You