Organisational Behaviour Notes
Essay by Kacang Putih • January 20, 2018 • Course Note • 463 Words (2 Pages) • 922 Views
Page 1 of 2
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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