UNIT III PROJECT NEGOTIATION
NEGOTIATION SEVENTH EDITION • ROY J. LEWICKI • DAVID M. SAUNDERS • BRUCE BARRY 11 Chapter 4 NEGOTIATION:
STRATEGY AND PLANNING © 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
4-2 GOALS –THE FOCUS THAT DRIVES NEGOTIATION STRATEGY • Determining goals is the first step in the negotiation process • Negotiators should specify goals and objectives clearly • The goals set have direct and indirect effects on the negotiator’s strategy © 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
4-3 GOALS, STRATEGY AND PLANNING © 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
4-4 THE DIRECT AND INDIRECT EFFECTS OF GOALS ON STRATEGY • Direct effects Wishes are not goals Goals are often linked to the other party’s goals There are limits to what goals can be Effective goals must be concrete/specific • Indirect effects Forging an ongoing relationship © 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
4-5 STRATEGY VERSUS TA C T I C S • Strategy: The overall plan to achieve one’s goals in a negotiation • Ta c t i c s:Short‐term, adaptive moves designed to enact or pursue broad strategies Ta c t i c s are subordinate to strategy Ta c t i c s are driven by strategy • Planning:The “action” component of the strategy process; i.e. how will I implement the strategy? © 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
4-6 APPROACHES TO STRATEGY • Unilateral: One that is made without active involvement of the other party • Bilateral: One that considers the impact of the other’s strategy on one’s own © 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
4-7 STRATEGIC OPTIONS • Per the Dual Concerns Model, choice of strategy is reflected in the answers to two questions: How much concern do I have in achieving my desired outcomes at stake in the negotiation? How much concern do I have for the current and future quality of the relationship with the other party? © 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
4-8 THE DUAL CONCERNS MODEL Avoidance: Don’t negotiate Competition: I gain, ignore relationship Collaboration: I gain, you gain, enhance relationship Accommodation: I let you win, enhance relationship © 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
4-9 THE NONENGAGEMENT STRATEGY: AVO I DA N C E • If one is able to meet one’s needs without negotiating at all, it may make sense to use an avoidance strategy • It simply may not be worth the time and effort to negotiate • The decision to negotiate is closely related to the desirability of available alternatives © 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
4-10 ACTIVE‐ENGAGEMENT STRATEGIES • Competition – distributive, win‐lose bargaining • Collaboration –integrative, win‐win negotiation • Accommodation –involves an imbalance of outcomes (“I lose, you win”) © 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
4-11 UNDERSTANDING THE FLOW OF NEGOTIATIONS: STAGES AND PHASES • How does the interaction between parties change over time? • How do the interaction processes relate to inputs and outcomes over time? • How do the tactics affect the development of the negotiation? © 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
4-12 UNDERSTANDING THE FLOW OF NEGOTIATIONS: STAGES AND PHASES Negotiation proceeds through distinct phases or stages • Beginning phase (initiation) • Middle phase (problem solving) • Ending phase (resolution) © 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
4-13 KEY STEPS TO AN IDEAL NEGOTIATION PROCESS • Preparation What are the goals? How will I work with the other party? • Relationship building Understanding differences and similarities Building commitment toward a mutually beneficial set of outcomes • Information gathering Learn what you need to know about the issues © 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
4-14 KEY STEPS TO AN IDEAL NEGOTIATION PROCESS • Information using Assemble your case • Bidding Each party states their “opening offer” Each party engages in “give and take” • Closing the deal Build commitment • Implementing the agreement © 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
4-15 KEY STEPS TO AN IDEAL NEGOTIATION PROCESS © 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
4-16 GETTING READY TO IMPLEMENT THE STRATEGY: THE PLANNING PROCESS • Define the issues • Assemble the issues and define the bargaining mix The bargaining mix is the combined list of issues • Define your interests Why you want what you want © 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
4-17 GETTING READY TO IMPLEMENT THE STRATEGY: THE PLANNING PROCESS • Know your limits and alternatives • Set your objectives (targets) and opening bids (where to start) Ta r g e t is the outcome realistically expected Opening is the best that can be achieved • Assess constituents and the social context of the negotiation © 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
4-18 THE SOCIAL CONTEXT OF NEGOTIATION: “FIELD” ANALYSIS © 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
4-19 GETTING READY TO IMPLEMENT THE STRATEGY: THE PLANNING PROCESS • Analyze the other party Why do they want what they want? How can I present my case clearly and refute the other party’s arguments? • Present the issues to the other party © 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
4-20 INFORMATION NEEDED TO PREPARE EFFECTIVELY FOR ENGAGING THE OTHER PA R T Y • Resources, issues, and bargaining mix • Interests and needs • Walkaway point and alternative(s) • Ta r g e t s and opening bids • Constituents, social structure, and authority to make an agreement • Reputation and negotiation style • Likely strategy and tactics © 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
4-21 GETTING READY TO IMPLEMENT THE STRATEGY: THE PLANNING PROCESS • Define the protocol to be followed in the negotiation Where and when will the negotiation occur? Who will be there? What is the agenda? © 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
4-22 SUMMARY ON THE PLANNING PROCESS “...planning is the most critically important activity in negotiation.” © 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
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