negotiations - ProFile 3 UNIT 7 Negotiations Some...

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Unformatted text preview: ProFile 3 UNIT 7 Negotiations Some negotiators will try to use all the possible tricks, ploys, and bluffs to gain the advantage. They tend to be confrontational rather than co-operative and think in terms of winners and losers. Any manipulative form of behaviour is acceptable to such people including displays of temper and bullying, unreasonable ultimatums, and walking out of meetings. By contrast, principled negotiation is co-operative rather than confrontational and recognizes the interests of the other party. Principled negotiators focus on interests and don’t get locked into one position. They will also avoid getting personal and are successful in separating issues from people. However, there are some common traits to all negotiators: for example, one feature of most negotiating situations is that both sides will try to ‘nibble’, i.e., take little bites from the other side. ZERO SUM Zero sum means that the sum of the gains and losses adds up to zero. In other words, if one person wins fifty euros then someone else loses fifty. This belief will inevitably lead to a confrontational negotiating style. WIN-WIN Win-win is the direct opposite of zero sum. A win-win philosophy believes that there doesn’t have to be a winner or loser. For example, a market can be increased and so be of benefit to both sides. PROXIMITY NEGOTIATIONS These occur when the two sides refuse to sit in the same room. This can occur in political or industrial relations negotiations, often in the course of long, bitter industrial disputes which have reached deadlock. In proximity negotiation, the different parties sit in separate rooms and a neutral broker transmits messages and suggestions between them. See the ProFile Student’s site: PENDULUM ARBITR ATION The problem with compromises is that they may please no-one. With pendulum arbitration, the arbitrator is the final judge and makes a final choice between one side or the other. Surprisingly, this can produce a judgement which is more acceptable to both sides. This is because before putting its case, each side tries to adopt a reasonable position which already includes a considerable amount of compromise. SPLITTING THE DIFFERENCE If someone suggests splitting the difference, this means that each side compromises by meeting half way between their respective positions. For instance, if the asking price of a sale item is $100 and the offer price is $50, splitting the difference would mean agreeing on $75. While this may appear a reasonable suggestion at first sight, the half way price of $75 might still be unreasonably high. TAKE IT OR LEAVE IT This is a typical Red Stylist gambit or ploy and tends to remove any room for further negotiation. It may actually be a simple case of bluff and can often be treated as such. NATIONAL NEGOTIATING STYLES It is a general belief that different nationalities or cultures have different negotiating styles. Stereotypes of any kind are dangerous, as you will always find people who do not follow the general rule. Nevertheless it is the nature of stereotypes that they contain a grain of truth so it is worth reading up on the preferred or most common form of negotiation in your target market. Photocopiable © Oxford University Press ...
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This note was uploaded on 12/12/2010 for the course RBS BCN taught by Professor Dekoe during the Spring '10 term at Rotterdam Business School.

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