Negotiation Section 01: Negotiation Fundamentals

Transcript:Negotiation Section 01: Negotiation Fundamentals:
Negotiation Section 01: Negotiation Fundamentals Chapter 04: Negotiation: Strategy and Planning © 2019 McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw-Hill Education. Goals The first step in a negotiation strategy is to determine your goals. Substantive, intangible, or procedural goals. There are four direct ways that goals affect negotiation. Wishes are not goals, especially in negotiation. A negotiator’s goals may be linked to the other party’s goals. There are limits to what realistic goals can be. Effective goals must be concrete, specific, and measurable. Indirectly, short-term thinking affects our choice of strategy. We may lose sight of the relationship in favor of the outcome. Difficult or complex goals may require a long-range plan for goal attainment. 2 Strategy – The Plan to Achieve Your Goals After negotiators articulate goals, they move to the second element in the sequence. Selecting and developing a strategy. This is how business strategy experts define strategy. The pattern or plan that integrates an organization’s targets, policies, and action sequences into a cohesive whole. Here is the definition for strategy as applied to negotiation. The overall plan to accomplish one’s goals in a negotiation and the action sequences that will lead to the accomplishment of those goals. 3 Strategy versus Tactics A major difference between strategy and tactics is that of scale, perspective, or immediacy. Tactics are short-term, adaptive moves designed to enact strategies. Tactics are subordinate to strategy. A unilateral choice is made without active involvement of the other party. Here, a dual concerns model asks two questions of a negotiator’s unilateral choice of strategy. How much concern does the negotiator have for achieving the substantive outcomes at stake in this negotiation? How much concern does the negotiator have for the current and future quality of the relationship with the other party? 4 Figure 4.2: The Dual Concerns Model Jump to slide containing descriptive text. Source: Adapted from Newsom, Walter B., “The Dual Concerns Model,” The Academy of Management Executive. Briarcliff Manor, NY: Academy of Management, 1989. 5 Alternative Situational Strategies There are at least four different types of strategies. A strong interest in only substantive outcomes supports a competitive (distributive) strategy. A strong interest in only the relationship goals suggests and accommodation strategy. If both substance and relationship are important, pursue a collaborative (integrative) strategy. If