Negotiations Overview. Negotiation Skills. Communication

1.

Negotiations
BY KATALIN DIÓSSI PH.D.

2.

Introduction
Education
◦ MSc: Economics and Social Sciences
◦ PhD: Management and Business Administration
Professional experience
◦ Middle Manager in International Company
◦ Internal consultant and trainer
◦ Executive coach
◦ For profit and not-for profit organistation
Private
◦ Strong charity involvement
◦ Mother of 3 (2007, 2009, 2011)

3.

Topics of the Course
Negotiations Overview
Negotiation Skills
Communication

4.

Evaluation and Grading
oWork during the class
oTask
oFinal work

5.

Negotiation Overview
Definition
Negotiation is a dialogue between two or more people or parties
intended to reach a beneficial outcome.
www.wikipedia.com
Negotiation is a method by which people settle differences. It is a
process by which compromise or agreement is reached while
avoiding argument and dispute.
www.skillsyouneed.com

6.

Negotiation Overview
Definition
Negotiations is a bargaining (give and take) process between two or
more parties (each with its own aims, needs, and viewpoints)
seeking to discover a common ground and reach an agreement to
settle a matter of mutual concern or resolve a conflict.
www.businessdictionary.com

7.

Negotiation Overview
o Strategy
o Process
o Tools
o Tactics

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Communication Overview
Definition
Communicare (latin): share, divide, receive
„meaningful exchange of information between two or more
participant”
Activity, skill and art

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Communication Overview
Communication is
much more of an art
than a science.

10.

Communication Overview
Process

11.

Communication Overview
Noise: can disrupt or distort communication
Context
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Intrapersonal
Interpersonal
Group
Organisational
Mass
◦ Intercultural
◦ Gender
◦ Computer mediated

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Communication Channels

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Communication Channels
Channel
Verbal
Non-verbal
Facial
Expressions
Oral
Written
Gestures
Speaking
Writing
Body
Language
Listening
Reading
Proximity
Touch
Personal
Appearance
Silence

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Verbal Communication
Oral Communication
Speaking

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Verbal Communication
Oral Communication
◦ Speaking
◦ Face-to-Face
◦ Video conference
◦ Phone

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Verbal Communication
Meeting
◦ Place
◦ Time
◦ Accompanying documents

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Verbal Communication
Face-to-face
Video
Phone
Place
1
2
3
Time
4
5
6

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Verbal Communication
Oral Communication
Listening

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Verbal Communication
LISTENING
◦ Advantages
◦ Disadvantages
◦ Expected business impact
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Not listening
Pretend listening
Partially listening
Focused listening
Interpretive listening
Interactive listening
Engaged listening

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Verbal Communication
Written Communication

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Verbal Communication
WRITTEN COMMUNICATION
◦ Invitation
oFunction
◦ Agenda
◦ Hand-outs
◦ Minutes
◦ To Do List
oContent
oTiming

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Verbal Communication
WRITTEN COMMUNICATION
◦ E-mail
◦ Chat
◦ Social media

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Verbal Communication
WRITTEN COMMUNICATION
Official letters
oOffer
oContract
oRelease

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Non-verbal
Communication

25.

Non-verbal Communication

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Non-verbal Communication
Facial Expressions
Facial expressions are among the most universal forms of body
language. The expressions used to convey
◦
◦
◦
◦
fear,
anger,
sadness, and
happiness
are similar throughout the world.

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Non-verbal Communication
How to read faces?
◦ Eyes
◦ Lips
◦ Nose
◦ Eyebrows

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Non-verbal Communication

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Non-verbal Communication

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Non-verbal Communication
Gestures
◦ Stiff hands discourage
◦ Stay in the box!!!
◦ “Jazz” hands
=
lack of control

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Non-verbal Communication

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Non-verbal Communication

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Non-verbal Communication
Gestures
◦ Gestures can be some of the most direct and obvious signals.
◦ Some gestures may be cultural!

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Non-verbal Communication

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Non-verbal Communication

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Non-verbal Communication

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Non-verbal Communication

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Non-verbal Communication

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Non-verbal Communication

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Non-verbal Communication

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Non-verbal Communication

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Non-verbal Communication

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Non-verbal Communication

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Non-verbal Communication

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Non-verbal Communication

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Non-verbal Communication
Body Posture
◦ The term posture refers to how we hold our bodies as well as overall
physical form of an individual.
◦ Standing
◦ Sitting
◦ Walking

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Non-verbal Communication

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Non-verbal Communication
Blog

49.

Non-verbal Communication

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Non-verbal Communication

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Non-verbal Communication

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Non-verbal Communication
Proxemics
◦ Highly cultural!

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Non-verbal Communication

54.

Non-verbal Communication
Touch
◦ Touch is not a widely used form of communication in western society.
Touch is usually reserved for most intimate relationships and for
communication between close friends.
◦ If used it usually expresses positive relationship. In situations when
used for guiding can be authoritative!
◦ BUT: handshake!

55.

Non-verbal Communication

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Non-verbal Communication
Silence
◦ By using silence at strategic times, you can sometimes get your
decoder to reveal certain feelings and attitudes that may be
hindering effective communication.
◦ Silence can be an effective technique to encourage feedback.
◦ Silence can give weight to your words.
◦ Silence can trigger help.

57.

Non-verbal Communication
Tricks and tips
◦ Stand straight at all times
◦ Release tense, tiredness
◦ Maintain eye contact
◦ Triangle method
◦ Purposeful gestures
◦ Centered positioning
◦ Handshake!

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Non-verbal Communication

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Non-verbal Communication

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Non-verbal Communication

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Non-verbal Communication

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Non-verbal Communication

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Non-verbal Communication

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Non-verbal Communication

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Non-verbal Communication

66.

Negotiation Overview
o Strategy
o Process
o Tools
o Tactics

67.

Negotiation Strategy

68.

Negotiation Overview
Dual Concerns Model

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Negotiation Overview
Situation
◦ Buying a car
◦ Strategic supplier
◦ Job offer
◦ Traffic situation
◦ Relationship/Marriage

70.

Negotiation Overview
Understanding the goal
o Direct effects
o
o
o
o
Wishes vs. goals
Linked goals
Boundaries
Concrete, specific, measurable
o Intangible goals
o Procedural goals

71.

Negotiation Overview

72.

Negotiation Overview
BATNA – Best Alternative to a Negotiated Agreement

73.

Negotiation Overview
Find the BATNA!
o Negotiating driver fare: University – Red Square
o Buying phone: iPhone 7

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Negotiation Overview
Reservation Price
Bargaining Zone
Reservation Price

75.

Negotiation Overview

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Negotiation Overview
Situations:
Observers:
◦ Buying a jacket
◦ Renting an apartment
oWhat went well
◦ Selling old bicycle
oWhat could be improved?
◦ Selling fruits

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Negotiation Overview

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Negotiation Overview

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Negotiation Overview

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Negotiation Overview
o “I can not go beyond this
point in this issue!”
Distributive
o“Can you explain why this
issue is so important to
you?”
Integrative

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Negotiation Overview

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Negotiation Overview
o Leather jacket
o Flat rental
o Bicycle
o Melons

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Negotiation Overview

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Negotiation Overview

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Negotiation Overview
o Strategy
o Process
o Tools
o Tactics

86.

Negotiation Process

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Negotiation Overview

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Negotiation Overview

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Negotiation Overview

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Negotiation Overview

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Negotiation Overview

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Negotiation Overview
1. Prepare: Know what you want. Understand them.
2. Open: Put your case. Hear theirs.
3. Argue: Support your case. Expose theirs.
4. Explore: Seek understanding and possibility.
5. Signal: Indicate your readiness to work together.
6. Package: Assemble potential trades.
7. Close: Reach final agreement.
8. Sustain: Make sure what is agreed happens.

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Negotiation Overview
1. Prepare: Know what you want. Understand them.
o Know what you want from the process
o understand the needs of the people involved
o be able to understand different positions and interests
o know your priorities and be able to identify boundaries

94.

Negotiation Overview
o Determine how to get there:
o know what resources you can tap into
o develop a strategy that you can work with
o have a walk-away position

95.

Negotiation Overview
o Set a time and place: Once you have all the information
you need, set up an appropriate time and place for the
negotiation to take place.

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Negotiation Overview
2. Open: Put your case. Hear theirs.
o Be confident.
o Demonstrate to the other party that you know what you
are doing.

97.

Negotiation Overview
o State your case:
o paint the context of your negotiation
o verify your need and what you want as a result
o position yourself to frame the outcome appropriately

98.

Negotiation Overview
3. Argue: Support your case. Expose theirs.
o Respond to the other party’s views or argument by
o minimizing their benefits to you
o weakening their argument
o managing their needs all the same

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Negotiation Overview
o Strengthen your argument by
o maximizing the benefits for them
o strengthening your truth
o legitimizing your needs

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Negotiation Overview
4. Explore: Seek understanding and possibility.
o Find areas where you both agree.
o Both parties can agree on some things, so make sure to
find areas of difference that can be amplified into
agreements.

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Negotiation Overview
o Once you know where you agree and disagree, then you
can work to find ways to reach an agreement by looking
into criteria and outcome.

102.

Negotiation Overview
o Move forward by
o seeking variables
o managing information
o keeping your main goal clear and flexible

103.

Negotiation Overview
5. Signal: Indicate your readiness to work together.
o Show the other party that you are ready to move forward,
wait for their signal, and move towards concession.

104.

Negotiation Overview
6. Package: Assemble potential trades.
o Identify agreeable trades and put together potential
agreements.
o Make proposals that offer concessions.
o Have your trade package ready that you believe satisfies
both sides of the table.

105.

Negotiation Overview
7. Close: Reach final agreement.
o Agree on the details and confirm the agreement.
o Sign a legitimate contract.
o Closing a negotiation deal can also be shaking hands, or
agreeing to what has been said.

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Negotiation Overview
8. Sustain: Make sure what is agreed happens.
o Burning bridges: Ensure there is no way that either party
will back out of the negotiation.

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Negotiation Overview
o Evidence stream: Show whoever you negotiate with that
the change they want to take place is happening.

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Negotiation Overview
o Golden handcuffs: Keep key people in the process around
with delayed rewards.

109.

Negotiation Overview
o Involvement: Give each person who is important to the
negotiation an important role.

110.

Negotiation Overview
o Reward alignment: Align the rewards with the desired
behaviours or actions that you want to see take place.

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Negotiation Overview
o Rites of passage: Use formal rituals to confirm change is
taking place.

112.

Negotiation Overview
o Strategy
o Process
o Tools
o Tactics

113.

Negotiation Tools, Tactics
Ask for more than you expect to get!
1. You might just get it.
2. It makes it easier to get what you really want.
3. It raises the perceived value of what you’re offering.
4. It prevents deadlocks with an egotistical person who wants to “win”.

114.

Negotiation Tools, Tactics
o Never talk about price before you have built an emotional connection with
the other side.
o Project to the other side that you are prepared to walk away.
o Fall in love with three, not just one.

115.

Negotiation Tools, Tactics
o The Monkey on your Back
o I can only afford 10,000 EUR. The budget will not stretch any further…
o What to do?
o Find out if the budget is real without getting embarrassed!

116.

Negotiation Tools, Tactics
o The Use of Higher Authority
o I need to have this agreed by my Board of Directors.
(1) the negotiator really does lack authority and will have to bring the proposed agreement back
to the individual or group with the final authority,
(2) the negotiator states that their authority is limited when in fact they could conclude the
proposed agreement, or
(3) the negotiator technically lacks the authority but knows that in all probability the "higher
authority" will approve their recommendations.
o What to do?
o If you can't make the decision, let me talk to the person who can.

117.

Negotiation Tools, Tactics
o Nibbling
o Just one more thing…
o What to do?
o Give in if it does not hurt.
o Insist on revising the terms of agreement.
o Make them look cheap.

118.

Negotiation Tools, Tactics
o Good Guy / Bad Guy
o Hurt and rescue principle
o What to do?
o Fight fire with fire
o Expose the technique

119.

Negotiation Tools, Tactics
o The use of Silence
o -
o What to do?
o Ask open ended question

120.

Negotiation Tools, Tactics
o The Vice
o You will have to do better than that!
o What to do?
o Ask to be more specific:
o “Where in particular do we need to be better?”
o “Exactly how much better than that do I have to do?”

121.

Negotiation Tools, Tactics
o Take It or Leave It
o This is our best and final offer. Take it or leave it!
o What to do?
o Use a big question:
o “What will happen if we do not get this dispute resolved?”
o Call you bluff
o “Okay then, you might as well leave now.”
o Ignore and continue negotiating

122.

Negotiation Tools, Tactics
o High Ball / Low Ball
o What to do?
o Low Ball:
o Walk away
o Repeat your original offer
o Withdraw your offer and start with a higher new one
o High Ball
o Know the market!
o Know your BATNA (or bluff it)
o Ask for price break down

123.

Negotiation Tools, Tactics

124.

Negotiation Tools, Tactics
1. The Use of Higher Authority
2. The Monkey on your Back
3. Take It or Leave It
4. The Vice
5. Nibbling
6. High Ball / Low Ball

125.

Negotiation Tools, Tactics
o The Russian Front
o Presented with 2 options, A and B, one worse than the other.
o What to do?
o Remember two wrongs don’t make it right
o Attach your own considerations

126.

Negotiation Tools, Tactics

127.

Negotiation Tools, Tactics
o Life of Brian
o Willingness to negotiate

128.

Negotiation Tools, Tactics
o Fifth Element
o Preparation – understanding our negotiation partner

129.

Negotiation Tools, Tactics
o Up in the air
o Preparation – understanding our negotiation partner

130.

Negotiation Tools, Tactics
o Just go with it
o Negotiation process

131.

Negotiation Tools, Tactics
o Wedding Crashers
o Emotional engagement

132.

Negotiation Tools, Tactics
o Erin Bronkovich
o Preparation
o Using tactics

133.

Negotiation Tools, Tactics
o Jobs
o Preparation
o Building emotional connection
o Negotiation

134.

Negotiation Tools, Tactics
o American Hustle

135.

Negotiation Tools, Tactics
o Night Crawler

136.

Multi-Negotiation
o Cross-cultural negotiation
o Multi-party
o Multi-issue
o Multi-strategy
o Team negotiation

137.

Multi-Negotiation
o Cross-cultural negotiation
o Language
o Nonverbal behaviours
o Values
o Thinking and decision-making processes

138.

Multi-Negotiation
o Language
o Comprehension
o Misuse of language
o Translators

139.

Multi-Negotiation
o Language
o No
o
CHN 1,5
SPN 23,2
BRZ 41,9
RUSS 23,6
USA 55,1
BRZ 90,4
o You
o

140.

Multi-Negotiation

141.

Multi-Negotiation
o Goal
o “Contract” as goal
o Spain: 74%
o India: 33%

142.

Multi-Negotiation
o Attitude
o Win-win
o Japan: 100%
o Spain: 33%

143.

Multi-Negotiation
o Personal Style (perceived meaning)
o Formality vs. Informality
o Respect
o Coldness

144.

Multi-Negotiation
o Direct – Indirect communication
o Saying “NO”
o Rude to argue
o
Interruptions
USA 5,1
BRZ 14,3
ISRL 30,1

145.

Multi-Negotiation
o Timing
o Punctuality
o Pacing
o Time is money

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Multi-Negotiation
o Emotion
o Display of emotions
o Latino vs. Nordic

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Multi-Negotiation
o Agreements
o General vs. Specific
o USA: very specific to cover all possible aspects
o China: agreement of general principles

148.

Multi-Negotiation
o Top-down or Bottom-up?
o General vs. Specific
o USA: specifics to form basis for general
o France: basic principals guide details

149.

Multi-Negotiation
o One leader vs. Consensus
o One leader
o Fast
o Full authority
o Group
o May anticipate problems before they occur

150.

Multi-Negotiation
o Risk taking
o Poorer countries take more risk
o Individualistic cultures take more risk

151.

Multi-Negotiation
o Understand cultures – especially yours!
o Gather intelligence and use it!
o Do not just adjust to cultural differences, exploit them!

152.

Multi-Negotiation
o Cross-cultural negotiation
o Multi-party
o Multi-issue
o Multi-strategy
o Team negotiation

153.

Multi-Negotiation
o Cross-cultural negotiation
o Multi-party
o Multi-issue
o Multi-strategy
o Team negotiation

154.

Multi-Negotiation
o Pecking order
o Information puzzle
o Variety of agendas
o Chaotic Order vs. Ordered Chaos

155.

Multi-Negotiation
o Pecking Order
o Status
o Authority levels
o Danger: power struggle!

156.

Multi-Negotiation
o Information Puzzle
o Facts and figures
o Projections
o Expert opinions
o Extraneous analysis

157.

Multi-Negotiation
o Variety of Agendas
o Individual viewpoints
o Individual issues
o Individual objectives
o Key: maintaining unified direction!

158.

Multi-Negotiation
o Chaotic Order vs. Ordered Chaos
o Taking turns
o Dominant person to lead
o …

159.

Multi-Negotiation
o Primary Considerations
o Non-Agreement Consequences
o Costs and consequences of non-negotiation
o Decision Making
o Unanimous Consensus
o Majority Rule
o …
o First Agreement Objectives

160.

Multi-Negotiation
o Managing the Process
o Appoint a Chairperson
o Neutral facilitator
o Filling in the Information Frame
o Big picture

161.

Multi-Negotiation
o Attention!!!
o Intolerance
o Emotions in Check - ventilation
o Preparation

162.

Multi-Negotiation
o Positive Discussion Strategies
o Delphi Technique
o Brainstorming
o Nominal Group Technique
o Agenda

163.

Multi-Negotiation

164.

Multi-Negotiation
o Cross-cultural negotiation
o Multi-party
o Multi-issue
o Multi-strategy
o Team negotiation

165.

Multi-Negotiation
o Multi-issue
o Time constraints
o Information state
o Number of items
o Interdependencies of the items

166.

Multi-Negotiation
o Multi-issue
o Package deal
o Simultaneous negotiation
o Sequential negotiation

167.

Multi-Negotiation
o Package Deal
A package deal is a deal that
provides a range of benefits,
services, or concessions, all of
which need to be accepted or
rejected in one go.

168.

Multi-Negotiation
o Package Deal
o Examples
o Advantages
o Disadvantages

169.

Multi-Negotiation
o Package Deal
Crete package deals to help Santa
downsize his workload!!!

170.

Multi-Negotiation
o Simultaneous Negotiation
o MESO - Multiple Equivalent Simultaneous Offers
o Identify and prioritize issues
o Identify different likely outcomes for each issue
o Create equivalent offers (at least three)

171.

Multi-Negotiation
o MESO
o Salary
$ 40,000 – $ 65,000
o Vacation
2 – 4 weeks
o Travel
5 – 30%
Create equivalent offers (at least three)!

172.

Multi-Negotiation
o Sequential Negotiation
o High importance on the order – negotiation agenda!!!
o Subjective emotions -> spill-over effect!

173.

Multi-Negotiation
o Cross-cultural negotiation
o Multi-party
o Multi-issue
o Multi-strategy
o Team negotiation

174.

Multi-Negotiation
o Team Negotiation
o can create new opportunities for integrative solutions
o stimulate more discussion and more information sharing
o feel more powerful and more advantaged
o Must agree on key issues!!!

175.

Multi-Negotiation
o Roles
o
o
o
o
o
o
o
Leader
Critic
Relater
Expert
Recorder
Builder
Observer