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Every negotiator has two universal concerns. The parties must balance their concern for the outcome of the negotiation with the relationship needs between the parties.5However, the degree of these concerns varies from one situation to another. In some situations, winning is all that matters, but in other situations, the value of the relationship may outweigh the need to win. In between these opposite extremes is the risk of obtaining a winning outcome while damaging the relationship, which affects the losing party's willingness to fulfill the agreement. A manager may need to work with this party in the future, and if the relationship is damaged, future transactions could be controversial. For example, when a subordinate requests a salary increase, the manager must weigh the need to manage the budget at the lowest cost with the need to maintain a positive relationship with the subordinate. If the subordinate's work performance is highly valued, the manager may want to make concessions to ensure continued good work. A manager's approach to the negotiation process may be served by referring to the negotiation styles that balance these universal concerns, as demonstrated in Chapter 10 (Figure 10-3), where a manager's concern for production is balanced against the concern for people. Knowing the appropriate negotiation strategy can help a manager reach success. A STRATEGIC MODEL FOR NEGOTIATIONS The best way to approach the negotiation process is through the strategic analysis of managerial communication illustrated in Chapter 2. The basic model of strategic managerial communication presented in Chapter 2 is shown here in Figure 11-1. To use the analogy from Chapter 2, we must peel
away the layers of the onion to develop a strategy. Discussion first focuses on the culture and climate (layer 1). Next, the sender (manager), the purpose or goal of the negotiations, and the receiver's (the adversary's) style are explored (layer 2). To develop a negotiation strategy systematically, one must also analyze style. One must analyze the time, environment, channel, and content of the message. These are the third layer of the onion. Although the following discussion treats these items independently, managers must consider all the layers simultaneously when developing a negotiation strategy (the core of the model) because they all affect each other. This chapter concludes with a description of six negotiation strategies at the core (or fourth layer) of our onion model. LAYER 1: CULTURE AND CLIMATE As mentioned in many places in this book, culture is a primary concern in any communication situation. "First seek to understand, then to be understood" is Stephen Covey's fifth habit of the Seven Habits of Highly Effective People.6Managers must review and analyze the situation that initiates the need to negotiate and the culture/climate that surrounds each negotiation scenario. Then the manager can begin to identify alternative ways to resolve the need for the negotiation process. True