Summaries for Essentials of Negotiation

BEST PRACTICES IN NEGOTIATION
SUMMARY AND REFLECTION DONE BY
NAME: CHINENYE EZENDU
STUDENT NO: 2

The chapter focuses on the best practices in negotiation that a negotiator could apply in the negotiation process in order to achieve an objective or stated goal.

To be a good negotiator, the following steps could be adopted. First, being prepared for a negotiation is essential for achieving the interest and objective if the negotiation. Second, understanding their own strength & weakness, their needs and interest. Third, distinguishing between distributive and integrative negotiation is important or a blend of the two, and choose strategies and tactics accordingly. Fourth, Identify and work with the BATNA (Best Alternative to Negotiated Agreement) applying it in an instance where an agreement is not reached. Fifth, be willing to work away when there is no agreement, is often better than a poor agreement. Sixth, mastering the key paradoxes of negotiation such as claiming value versus creating value, sticking by your principles versus being resilient to the flow, sticking with the strategy versus opportunistic pursuit to new options, honest and open versus closed and opaque, trust versus distrust. Seventh, remember the tangibles, trying to see what is not there is essential for negotiation. Eight, actively managing coalitions. Ninth, savouring and protecting your reputation. Tenth, remembering that rationality and fairness are relative. Eleventh, continuing to learn from your experience. In adopting the best practices a person needs to be outstanding when negotiating to meet a specific goal.

REFLECTION

Anyone adopting these best practices of negotiation will definitely be a star negotiator; negotiation is the key to meeting an objective or a goal. In a negotiation, it could either be a win-win experience or a win-lose experience. If anyone needs to win and winning is their objective, mastering the best practices of negotiation will go a long way to assist them in the negotiation process.

STRATEGY AND TACTICS OF INTEGRATIVE NEGOTIATION

SUMMARY AND REFLECTION DONE BY

NAME: CHINENYE EZENDU

STUDENT NO: 2

The Chapter is a review of the strategy and tactics of integrative negotiation, in which both parties to the negotiation win. Integrative negotiation is always a win –win solution, allowing both parties to define their goals and achieve its objectives.

The chapter began with an overview of integrative negotiation process, in which the process would involve both parties to the negotiation to provide relevant free flow of information, comprehending each party’s needs and objectives and proffering solutions that will meet both party’s needs. For a negotiation to scale through successfully, it requires several processes. First, the parties must understand each other’s true needs and objectives. Second, they must avail to each other any information that would be necessary for both parties to carry out a successful negotiation. Third, they must focus on their similarities, emphasizing their commonalities rather than their differences. Fourth, gather solutions that will meet the needs of both sides.

Further to complement the overview of integrative bargaining, there are four major steps in integrative negotiation which are, identifying and defining the problem, identifying interest and needs, generating alternative solutions, and evaluating and selecting alternatives. It was emphasized that the first three steps are for creating value, while the fourth step of the negotiation, that is evaluation and selection of alternatives is for claiming value. Claiming value involves many of the distributive negotiation skills. The technique and tactics where further discussed.

Factors that facilitate successful integrative negotiation were discussed, which entails: First, both parties having a common goal or objective. Second, they must believe in their problem- solving ability. Third, the parties must be able to believe that the other person’s needs are valid. Fourth, they must share a motivation and commitment to work together. Fifth, it is important that both parties have trust in themselves and work hard to establish and maintain that trust. Sixth, there must be clear and accurate information about what each one wants and an effort to understand the others needs. The parties should view the needs of each other as important. Finally, there must be a firm understanding of the dynamics of integrative negotiation.

If parties cannot successfully apply the above conditions, there may end up not having a win-win solution

REFLECTION

In negotiation everyone wants to be the winning party nobody wants to lose. The chapter has illustrated ways any party could win a negotiation if the above steps are adhered to. Equipping one’s self with such tactics will make a person win most times.

TEAM 3

NAME- IKEGWUONU NNEKA UZOAMAKA

ESSENTIALS OF NEGOTIATION

CHAPTER 8: ETHICS IN NEGOTIATION

SUMMARY

Some Negotiators choose to use tactics that may be unethical, people see them as corrupt, degenerate or immoral they tend to regard other people’s unsavoury behaviour as caused by disposition or personality while attributing the causes of their own behaviour to factors in the social Environment.

Deception and subterfuge may take several forms in Negotiation and the use of deceptive tactics can be active or passive. A Negotiator uses deceptive tactic to deceive the other party about what he wants on the common value issue and then agrees to accept the other party’s preference which in reality it matches his own. The purpose of using ethically ambiguous Negotiating tactics is to increase the Negotiators power in the bargaining Environment.

However, a Negotiator who uses unethical tactics will experience consequences that may be positive or negative. One way of dealing with the other party’s use of deception is by asking probing questions.

Finally, Negotiators forget that although unethical or expedient tactics may get them what they want in the short run, these same tactics typically lead to tarnished reputations and diminished effectiveness in the long run.

REFLECTION

I am a Chartered Accountant and the professional body, Institute of Chartered Accountant of Nigeria (ICAN) has ethics governing the body. Unlike ICAN , Negotiators do not have generally accepted ethics or rules governing Negotiation.

I think the outcome of a Negotiation is based on the Individualistic tendencies of the Negotiators. A selfish person who negotiates would definitely want to cheat the other party but there is a difference between a layman negotiating and a trained Negotiator. A trained Negotiator would produce the best result.

Finally, Negotiators who are considering the use of deceptive tactics should ensure that they achieve their objective, maintain a good relationship with the other party and that the use of the tactics would not affect his reputation as a Negotiator.

TEAM 3

NAME- IKEGWUONU NNEKA UZOAMAKA (STUDENT NO:13)

ESSENTIALS OF NEGOTIATION

CHAPTER 9: RELATIONSHIPS IN NEGOTIATION

SUMMARY

The focus here is on the ways, past and future relationships impact present Negotiations, the important rules for Negotiating in a relationship is to recognize a long term business deal as a continuing Negotiation, consider mediation/Conciliation and do not rush prenegotiation.

Reputation, trust and justice are some elements that are intensified in Negotiations within relationships. Within relationships we see that parties shift their focus considerably, moving away from a sole focus on price and exchange to also attend to the future of the relationship including the level of trust between the parties, questions of fairness and to build strong positive reputation.

However, trying to overcome a bad reputation, rebuilding trust or restoring fairness to a relationship are much easier to talk about than to actually do, if the problem has persisted for a time or the breakdown creates serious costs for one or both sides, third parties will probably have to intervene.

REFLECTION

Many Negotiations concern how to work (and live) together more effectively over time, how to coordinate actions and share responsibilities or how to coordinate actions and share responsibilities or how to manage problems that have arisen in the relationship.

Trust, justice and reputation are all central to relationship Negotiations and feed each other. For example, when one party feels the other has acted fairly in the past or will act fairly in the future, he or she is likely to trust the other.

Finally, I believe trust is a key factor in Negotiation because if you cannot trust the other party to exchange all relevant information or to invent options for mutual gain it becomes descriptive Negotiation infact most of the time there is no conclusion.

TEAM 3

NAME: IKEGWUONU NNEKA UZOAMAKA

ESSENTIALS OF NEGOTIATION

CHAPTER 10 : MULTIPLE PARTIES AND TEAMS

SUMMARY

Multiparty Negotiation is one where more than two parties are working together to achieve a collective objective. Many Negotiations are multilateral or group deliberations, each with his or her own interests, positions and the group must arrive at a collective agreement regarding a plan, decision or course of action. The differences between two-party negotiations and multi party negotiations include number of parties, social complexity, procedural complexity, Informational and computational complexity and strategic complexity.

The three key stages that characterize multilateral negotiations include prenegotiations ; which focuses on informal contact among the parties, the Actual Negotiation and managing the agreement. Several group decision making techniques that can be used to achieve the objectives of Negotiations include the Delphi technique, Brainstorming and Nominal group Technique.

Finally, in multiparty Negotiations there is need to manage conflicts effectively, manage problem team members, manage the decision rules and thank the group for their participation, their hard work and their effort.

REFLECTION

This chapter is all about multiple parties and teams in Negotiations. Multiple parties must work together to achieve a collective decision or consensus.

A lot of factors make multiple party Negotiations difficult such as Individual preferences, number of teams, tribe, culture and differing interest of teams.

However, if there is a chair, he or she can ensure that the group receives input from each group member, that various constituencies and stakeholders have an opportunity to provide input and that relevant reports, documents or statistical analyses are circulated and discussed.

TAJUDEEN BABALOLA

TEAM 1,STUDENT NO-24.

SUMMARY FOR Essentials of Negotiation

CHAPTER 1: THE NATURE OF NEGOTIATION

The nature of negotiation, occur daily in our life even without us knowing. We negotiate on what to do, where to go, options to take as individual or group. This chapter shows us different story on issue, problem of decision to take. In a family, organization, e t c. how to handle different situation in our daily work and family life.

We saw how change Yang had to negotiate for another use car to replace the one he had, also read about the Janet and Jocelyn with different life staying together and the carter family Joe and Sue facing different problem on vacation, work, and family e t c

Characteristics of negotiation with Joe and Sue story highlight the variety of situation that can be handled by negotiation, there are two or more parties that is, two or more individuals, groups, or organization. There is a conflict of need and desire between two or more parties that is, what one wants is not necessarily what the other one wants the parties negotiate by choice.

Interdependence is one of the key characteristic of a negotiation situation is that the parties need each other in order to achieve preferred objective or outcome. Mutual adjustment when parties interdependent, they have to find a way to resolve their differences both parties influences the others outcome and decisions.

Conflict is one potential consequence of interdependence relationships, these can result from strongly divergent needs of the two parties or from misperception and misunderstandings with both parties wanting different outcomes. Negotiation can play vital role in solving it .

In conclusion there are four key elements of the negotiation process, managing interdependence, engaging in mutual adjustment, creating values, and managing conflict.

TAJUDEEN BABALOLA

TEAM 1,STUDENT NO-24.

SUMMARY FOR Essentials of Negotiation

CHAPTER 2: STRATEGY AND TACTICS OF DISTRIBUTIVE BARGAINING

In a distributive bargaining situation, the goals of one party are usually in fundamental and direct conflict with the goals of other party, with limited resources both parties want to maximize their share; the use of strategies will be deployed to maximize his or her part of the shares.

To influence the other party’s belief about what is possible and to learn as much as possible about the other party’s position, particularly about their resistance points. Negotiators should get to know distributives bargaining to help them face interdependent situation that are distributives and how it will work them.

Tactical tasks within the fundamental strategies of distributive bargaining we take some important aspect, assess the other party’s target, resistance point and cost of terminating negotiation, when a negotiator has to obtain information about the other party s target and resistance point.

Position taken makes the negotiation effective by the understanding the process of taking position during bargaining , opening offer and opening stance, the role of making concessions throughout the negotiation process.

TAJUDEEN BABALOLA

TEAM 1,STUDENT NO-24.

SUMMARY FOR ESSENTIALS OF NEGOTIATION

CHAPTER 4: STRATEGY AND PLANNING

Strategy and planning are very effective factor for achieving negotiation objectives, without these negotiators we may not understand the strength and weakness of their position. Focusing on goal setting is also very important for effective preparation required a thorough, thoughtful approach to these goals. Listing of these goals they wish to achieve in the negotiation, determine the priority among these goals identifying potentials multigoal packages and evaluating possible trade- offs among multiple goals.

Once goals are set and articulated, the next thing is developing strategy, these are plans that integrate an organizations major targets, policies, and action put into a cohesive whole.

Understanding the complexity of the bargaining mix, interests at stake that underlie the issues.

CHAPTER 7

FINDING AND USING NEGOTIATION POWER

OMONOSOSE EJEDEWE

This chapter is about the nature of power in negotiation. Power is the abilities negotiators put together to give themselves an advantage or increase the probability of achieving their objectives. Two major ways to think about power were highlighted “power over” and “power with”. Power over is that power is fundamentally dominating and coercive in nature while power with suggests jointly shared power with the other party to collectively develop joint goals and objectives. Power is often seen as “power over” rather than “power with” but as discussed in this chapter and base on the review of the basic negotiation strategies, “power with” is important for a successful integrative negotiation.

Five major sources of power were identified and discussed:

· Informational sources of power: This is information and expertise

· Personal sources of power: This is psychological orientation, cognitive orientation, motivational orientation, moral orientation and certain disposition & skills.

· Position-based sources of power: This is legitimate power and resource control.

· Relationship-based power: This is goal interdependence and referent power.

· Contextual sources of power: This is BATNAs, agents, and the organizational or natural culture in which the negotiation occurs.

Although there are many ways of attaining power, power can be highly elusive and fleeting in negotiation. This chapter brought out the facts that almost anything can be a source of power if it gives the negotiator any advantage over the other party. Power is only the ability to influence and using that power and skillfully exerting influence on the other needs a great deal of sophistication and experience

CHAPTER 5 :

PERCEPTION COGNITION & EMOTION

OMONOSOSE EJEDEWE

This chapter took a multifaceted look at the role of perception, cognition, and emotion in negotiation. The first portion of the chapter presented a brief overview of the perceptual process and discussed four types of perceptual distortions: stereotyping, halo effects, selective perception, and projection. The chapter also looked at how framing influences perceptions in negotiation and how reframing and issue development both change negotiator perceptions during negotiations.

The chapter then reviewed the research findings from one of the most important recent areas of inquiry in negotiation, that of cognitive biases in negotiation. The effects of 12 different cognitive biases were discussed: irrational escalation of commitment, mythical fixed-pie beliefs, anchoring and adjustment, framing, availability of information, the winner’s curse, overconfidence, the law of small numbers, self-serving biases, endowment effects, ignoring others’ cognitions, and reactive devaluation. This was followed by consideration of ways to manage misperception and cognitive biases in negotiation, an area that has received relatively little research attention. Finally the chapter considered mood and emotion in negotiation.