Negotiation Strategies

Competitivestrategy distributivebargaining

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Unformatted text preview: olutions to problems that are not exclusively of interest to only one of the negotiators. 35 Concepts for Integrative Bargaining • • • • Separate people from the problem Focus on interests, not positions Invent options for mutual gains Insist on using objective criteria 36 Distributive versus Integrative Bargaining 37 4. ACCOMMODATIVE STRATEGY Win­lose strategy (I lose, you win) The negotiator wants to let the other win, keep the other happy, or not to endanger the relationship by pushing hard to achieve some goal on the substantive issues 38 Accommodative Strategy Accommodative Strategy is often used; When the primary goal of the exchange is to build or strengthen the relationship and the negotiator is willing to sacrifice the outcome. If the negotiator expects the relationship to extend past a single negotiation episode. 39 • “In a successful negotiation, everyone wins. The objective should be agreement, not victory." • “The key to successful negotiation is to shift the situation to a "win­win" even if it looks like a "win­ lose" situation. Almost all negotiations have at least some elements of win­win. Successful negotiations often depend on finding the win­win aspects in any situation. Only shift to a win­lose mode if all else fails.” Professor E. Wertheim, College of Business Administration, Northeastern University 40 NEGOTIATION STRATEGIES 1. 2. 3. 4. 5. 6. 7. 8. 9. No­Concessions No Further Concessions Making Only Deadlock­Breaking Concessions High Realistic Expectations With Systematic Concessions Concede First Problem Solving Goals Other Than To Reach Agreement Moving For Closure Combining Strategies 41 • NO­CONCESSIONS • NO FURTHER CONCESSIONS • MAKING ONLY DEADLOCK­BREAKING CONCESSIONS SÜMEYRA KARATAŞ 42 1. NO­CONCESSIONS A No­Concessions Strategy is tough and dangerous, since concessions usually are expected. With a no­concessions strategy, the negotiation becomes a unilateral process. 43 NO­CONCESSIONS A no­concessions strategy is suitable for aggressive, competitive and self­centered goals. A no­concessions strategy is not suitable for cooperative and defensive goals. 44 WHEN TO USE NO­CONCESSIONS When the balance of power is strongly in your favor. When you are in a disproportionately weak position. When the dollar amount is too low or time is too short. 1) Cost Efficiency 2) Available Time 45 WHEN TO USE NO­CONCESSIONS When the same terms must be available to everyone. When bids or written proposals are sought When another party is waiting in the wings. 46 DRAWBACKS OF THE NO­CONCESSIONS STRATEGY Might preclude an agreement the terms of which, although less favorable, are still acceptable. A strategy shift away from no concessions might be read as a failed attempt at bluffing, a position to be avoided. 47 DRAWBACKS OF THE NO­CONCESSIONS STRATEGY Avoid inadvertent bluffs by rashly miscalculating the use of this strategy. It may also be helpful to accompany the demand with reasons why your side is notin a position to offer anything else, and to explain how the demand is fair. 48 COUNTERING TIPS FOR THE NO­CONCESSIONS STRATEGY 1. Appeal to a higher level of...
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