S Communication and Negotiation

Communication and
Negotiation
BC-II
Communication and Negotiation
“Negotiation” is a process by which two or more individuals

communicate with the purpose of furthering or achieving differing or
conflicting perceived interests or objectives.
The parties may desire to:
◦ align their actions (or inactions) in support of an interest or
objective, or
◦ resolve a problem or dispute that exists (or may arise) between
the parties by eliminating the point of conflict or difference.
Characteristics that are common to
all negotiations
Parties
Conflicts, Disputes or Misalignment of interests
Willingness
Ability to improve one’s position
Contraints
Types of conflicts
 Intra-personal Conflicts (or Intra-psychic conflicts)
 Interpersonal Conflicts
Intra Group Conflicts
Inter Group Conflicts
Negotiation: Types
1. Distributive Negotiation
 Win-Lose Situations
2. Integrative Negotiation
 Win-Win Situations
3. Compatible Negotiation
The level of “Dependence” in a
conflict negotiation
 Independence Negotiations
 Dependent Negotiations
 Interdependent Negotiations
Dual-Concern Model: Conflict Management
Strategies
Few Key Terms in Negotiation
 BATNA (The “Best Alternative to a Negotiated Agreement”): It is the most advantageous alternative for a negotiator
if no agreement is reached via negotiation.
 The “reservation point” (also known as a resistance point) is the minimum acceptable term or terms that a
negotiator is willing to accept before she ceases to negotiate and walks away.
 The “Zone of Potential Agreement” or ZOPA: if the negotiators are able to agree upon terms that are better than
their individual reservation points (means that they are within the ZOPA), it should result in a negotiated agreement.
 “Concessions” or adjustment of the bargaining position: A party’s adjustment of her position in the negotiation is
known as a “concession”. More specifically, a concession is an adjustment by one party in favor of the other party as a
result of a tactic employed by the other party.
 The “anchor points” and the “bargaining range” in a negotiation: The parties generally open up a negotiation with
an “offer” by one party and a response to the offer or “counteroffer” by the other party. The opening offer and
response are known as the parties’ “anchor points”. the anchor points establish the “bargaining range” for the
negotiation. Rarely do parties arrive at a negotiated agreement outside of this range.
Personal and situational factors affecting
Negotiation
Context Relationships
Objectives or Interests Ethics
Perception or Cognition Culture
Creativity Medium of communication
Strategy & Tactics Intermediaries
Communication Process
Trust
Approach for dealing with a
distributive & Integrative bargaining
situations
Approach for dealing with a distributive bargaining situation.
• Step 1: Determine the interest or benefit at stake.
• Step 2: Assess your BATNA (and seek to improve it).
• Step 3: Determine your reservation point (do not reveal it).
• Step 4: Research the counterparty’s BATNA and estimate her reservation point.
• Step 5: Determine your target point (be realistic, but optimistic).
• Step 6: Assess your strategic position and objectives.
• Step 7: Set your Anchor.
• Step 8: Plan your concessions.
• Step 9: Make a final offers.
1. Distributive Negotiation
Some “distributive negotiation tactics” Some general choices about “how to respond”
 Good Cop, Bad Cop Dialogue
 Lowball – Highball  Ignore them
 Bogey  Respond in Kind
 The Nibble  Co-opt the other party
 Chicken
 Intimidation
 Aggressive Behavior
Snow Job
The personal characteristics of negotiators that facilitate a successful
integrative negotiation
 Common, Shared, & Joint Objectives or Goals.
 Confidence in Problem-solving Ability
 Openness to alternative perspectives
 Motivation and Commitment to Work Together
 Clear and Accurate Communication
 Trust
Some general tactics to facilitate (of finalize) a
bargain that is within the zone of agreement
 Provide Alternatives
 Assume the Close
 Split the difference
 Exploding offers
 Sweeterners
Some “integrative negotiation tactics” Some “integrative negotiation tactics”
 Expand and Modify the Resource Pie Perspective-taking
 Use Nonspecific Compensation  Unbundling and Bundling
 Cut the Costs for Compliance  Logrolling
 Find a Bridge Solution  Multiple Simultaneous Offers
 Super-ordination  Contingency Contracts
 Compromise Common errors followed by Negotiators
 Brainstorm  Over-commitment
 Take-Surveys  Compromise
 Relationship Focus
Communication and Negotiation
The significance of “communication” in a negotiation

Verbal Communication
Non Verbal Communication
 Communication Channel
 Negotiation through electronic channels such as: E-mail, Teleconferencing,
instant messaging, Text messaging
 Face to Face Negotiation
 Negotiation over the telephone
 Negotiation in writing
What is communicated during a
Negotiation?
 Offers, Counteroffers, and Motives

 Information about Alternatives
 Information about Outcomes
 Explanations
 Procedural Matters
How to improve communication in
Negotiation?
 Ask Questions
 Listening
 Role Reversal
What communication-related tactics do
negotiators use to influence the other party?
 Direct Presentation
 Vague Reference
 Screening Activities
 Contextual Modification

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Communication and

“Negotiation” is a process by which two or more individuals

The significance of “communication” in a negotiation

 Offers, Counteroffers, and Motives

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