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Organisational Behaviour Notes

Essay by   •  January 20, 2018  •  Course Note  •  463 Words (2 Pages)  •  819 Views

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Structure of Negotiation

Congruent Aspect:

  • Identical preferences
  • Bring strategic advantage if you know which issues are congruent but your counterpart does not.
  • Ie: benefit by offering to concede on the congruent issues in exchange for preferable terms on another non-congruent issues

Distributive Aspect: (Positional bargaining)

  • Two parties have opposing preferences (equal intensity)
  • Ie: Monetary (Buyer want less)
  • Zero sum approach require one party to lose in order for the other party to benefit
  • Involves back and forth offers and counter offers
  • To maximise their gains by focusing on a specific idea & arguing for it irrespective of the underlying interests/ needs  
  • Shell (2006): Preparing, exchanging info, bargaining, committing and concluding

Integrative Aspect: (Principled negotiation)

  • Parties engage in creative problem-solving that aims to have a mutually beneficial outcome
  • Place relationship at the higher degree of importance  TRUST
  • Seeking win-win outcomes
  • Involve research & gather info
  • Aware of their Best Alternative to a Negotiated Agreement (BATNA) & WATNA (solution evaluation and measurement of success)

BATNA: Know minimum you are willing to accept & your walk away point

  • Benefit: Stronger BATNA provides you with a basis to persuade them to accept a specific agreement
  • Fisher, Ury & Patton (1991): Emphasis the need for clear communication regarding the needs of both parties

BATNA’s 4 Principles

Separate people from the problem

  • Focus on problem solving
  • Listen actively, suspend judgement and acknowledge substance
  • Ask relevant questions & build relationship

Focus on interests, not positions

  • Focus on what they need (interest), instead of what they want
  • Be specific and use examples
  • Better understand the problems

Invent options for mutual gain

  • Being tough on the problem & create space for collaboration
  • Brainstorm together and make a long list of possible solutions
  • No criticism & no judgement

Use objective criteria

  • Jointly agree on which objective criteria will be used
  • Include news, precedents, professional standards/ knowledge

Claiming Value:

Lax & Sebenius (1986): Doing what is necessary to claim the largest piece possible; self-interest (Distributive approach)

Tactic:

  • Raiffa (1982): Establish a reservation price (min acceptable value & smallest pie you’re willing to accept)
  • Leant other people RP & push them
  • Anchoring
  • When initial offer made become a mental reference point against which other possible solutions are judged
  • Being the first to make offer

Creating Value:

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