Topic 5

 There are many reasons why negotiation fails. Many factors influence a negotiation process and
all of them need to be identified and considered.

1. One useful and simple way would be to divide negotiation into two poles.

 At one pole consider interpersonal skills, personal attitude and approach to negotiation while on
the other there should be an understanding of the negotiation process and strategies.

 There are many training courses that are available in the market created to hone interpersonal
skills.

 The danger to the unknowing student of neglecting negotiation process and strategy can be
severe.

 Many still consider that a successful negotiation process comprises of merely relying upon on an
individuals communication and persuasive skills, or the ability to hold the reins of a meeting

 Apart from personal performance, if certain other elements are kept in mind during a
negotiation process, success will be more assured

2. A second important principal element is that of preparation

 No matter how good a speaker you are, a complex process like negotiation requires solid backup
in the form of facts, credible information and an appropriate strategy

 All the above aspects affect negotiation, the outcome of which depends on how seriously you
are taking the whole process.

 3. A third area to consider that leads to inefficient negotiations is the effort of certain
negotiators to control the final outcome of the meeting and the decisions and actions of the
party they are negotiating with.

 To succeed in negotiation, focus on the areas that you can control - your actions, decisions and
emotions.

 A clear vision of your goals, the discipline to back your strategy and the subsequent right
decisions that flow from this will definitely make you a better negotiator.

 This is where preparation also comes into play.

 To make wise and firm decisions you need to have an appreciation for the parameters and
context, your real limitations and your BATNA (Best Alternative to a Negotiated Agreement)

 4. Fourthly, to become an effective negotiator and to hone your skills you really do need
practice.

 Negotiation is an applied rather than a theoretical science.

 So just as you would not expect to transform your abilities through the mere reading of books
on golf and horse riding, don’t expect similar results from reading negotiation books alone
Topic 6

1. Distinguish between Distributive and Integrative negotiations?

 Integrative negotiation, sometimes called principled negotiation, the focus is on the ‘merits’ of
the issue. Everyone involved tries to enlarge the available ‘pie’ rather than stake claims to
certain portions of it.

 sometimes referred to as problem-solving, or interest-based negotiations.

 In distributive negotiation, the focus is on ‘positions’ that conflicting parties stake our or declare

 Each party is trying to ‘claim’ certain portions of the available ‘pie’

 Distributive negotiation is sometimes referred to as competitive or positional negotiation

2. Critical examine some of the key characteristics and processes in both Distributive and
Integrative negotiations

 There are four (4) major steps in the integrative negotiation process:

 (1) Indentify and define the problem;

 (2) Understand the problem and bring interests and needs to surface;

 (3) Generate alternative solutions to the problem; and

(4) Evaluate those alternatives and select among them.

 The first three (3) steps of the integrative process are important for creating value.

Distributive

 ‘Hard’ distributive negotiation takes place when each party holds out to get its own say

 This leads to competition, where each party seeks dominance over the other and tries to
maximize self-interests

 ‘Soft’ distributive negotiation takes place when one party is willing to make concessions to the
other to get things over with.

 In this case, one party tries to find ways to meet other’s desire.
3. By way of discussion, critically explore what you mean by Pareto Efficient Frontier in terms of
creating and claiming value in integrative negotiation process?

 The goal of creating value is to push the potential negotiation solutions towards the pareto
efficient frontier

 When this is done to the fullest extent possible, the line is called the Pareto efficient frontier,
and

 It contains a point where ‘there is no agreement that would make any party better off without
decreasing the outcome to any party’

4. Examine what makes Integrative Negotiation different and how?

 There are elements common to ALL negotiations

 However, for a negotiator to be categorized as integrative, negotiators must also:

 (a) focus on commonalities;

 (b) attempt to address needs and interests, not positions

5. A successful interest-based negotiator models some characteristics/traits. Identify and

critically examine the five characteristics/traits; which one do you consider most critical and why?

1) Honesty and Integrity – interest-based negotiation requires a certain level of trust between the
parties. Actions that demonstrate interests in all parties’ concerns will help establish a trusting
environment.

(2) Abundance & Mentality - Those with an abundance mentality do not perceive a concession of
monies, prestige, control, and so on as something that makes their slice of the pie small, but merely as a
way to enlarge the pie.

 A scarcity or zero-sum mentality says, ‘anything I give to you takes away from me’

 A negotiator with abundance mentality knows that making concession helps build stronger long-
term relationship

3. Maturity: In his book, Seven Habits of Highly Effective Leaders, Stephen Covey, refers to
maturity as having the courage to stand up for your issues and values while being able to recognize that
others’ issues and values are just as valid

4. Systems Orientations: system thinkers will look at ways in which the entire system can be
optimized, rather then focusing on sub optimizing components of the system

5. Superior Listening Skills: Ninety nine percent of communication is not in one’s words but in the
whole context of communication, including mode of expression, body language and many other cues.

Effective listening also requires that one avoid listening only from his or her frame of reference.
6. Distinguish between Non-engagement strategy and Active Engagement strategies.

1. Non-engagement Strategy: Avoidance

Avoidance may serve a number of strategic negotiation purposes. In fact, there are many
reasons negotiators might choose not to negotiate (similar to reasons for conflict avoidance). What are
the circumstances in adopting this strategy?

2. Active Engagement Strategies: Accommodation, Competition, and Collaboration

7. Identify and distinguish between the three (3) different negotiation strategies under the Active
Engagement strategies?

 Competition and collaboration has been discussed time and again; distributive or win-lose
bargaining, and collaborative as integrative or win-win negotiation

 Accommodation is as much a win-lose strategy as competition, although it has a decidedly

different image

8. Based on the three (3) strategies indentified above, which particular strategy would you
recommend to your Manager HR in situations were he/she needs to negotiate with trade union on log
of claim negotiations?

 Collaborative

10. Which particular strategy would you recommend to your sales team in a situation where
negotiation is over the sale of a motor vehicle through hire purchase agreements?

Competitive

11. Even well-intentioned negotiators can make the following three mistakes.

Identify and critically examine these common mistakes; what proactive measures would you
recommend and why?

 Even well-intentioned negotiators can make the following three mistakes:

(1) Failing to negotiate when they should;

(2) Negotiating when they should not; and

(3) Negotiating when they should but choosing an inappropriate strategy.

Topic 7

1. Critically examine what third party intervention is; what is its significance in the context of
negotiation?

Third-party intermediaries are people, organizations, or even nations (in an international

perspective) who enter a conflict to try to help the parties de-escalate or resolve it (Burgess, 2004).

 Formal intermediaries are people who are professional conflict resolvers and who are hired
specifically to do that job.

 They maybe professional mediators, arbitrators, facilitators, or judges, who work privately or
with a government agency.

 Informal intermediaries are people who find themselves in an intermediary role, but it is not
something they usually do as a profession

2. Compare and contrast between the different types of third party intervention; which type
is most significant and why?
 Third parties might act as consultants, helping one side or both sides analyze the conflict and
plan an effective response.
 Alternatively, they might act as facilitators, arranging meetings, setting agendas, and guiding
productive discussions
 Facilitators will also usually record what was said, and may write up a short report summarizing
the discussions and any agreements that were reached
 A more active and powerful third party role is that of mediator
 Mediators not only facilitate discussions, but they usually impose a structure and process on the
discussions that is designed to move the parties toward mutual understanding and win-win
agreements
 While some mediators take a stronger role in option identification and selection than others,
mediators do not have the power to impose a solution
 At most, they can suggest a solution, which the disputants may or may
 The most powerful third party role is that of an arbitrator
 An arbitrator listens to presentations made by both sides, examines written materials and other
evidence relating to a case, and then makes a determination of who is right and who is wrong,
or how a conflict should be settled
 Usually, the arbitrator’s decision is binding but can be appealed - Fiji’s context (ERP)
 Thus, the arbitrator is the most powerful type of intermediary
 3. Critically analyze some of the benefits of third party intervention; which benefit is most
critical in a conflict situation and why?
 1. Creating a breathing space or cooling-off period
 2. Re-establish or enhancing relationship
 3. Re-focusing on the substantive issue
 4. Remedying or repairing strained relationship
 Increasing satisfaction with the conflict resolution process
 Salvaging sunk cost
 Establishing or recommitting to the limits and deadline

4. Critically explore some for constraints or limitation in third party intervention?

 The involvement of third party signals a failure of the negotiation parties
 2. Intervention by a third party signal that the parties have failed to grow, to build
relationships, or to become adept in managing their own interdependencies

5. Critically examine situations or circumstances where third party intervention is most

appropriate and why?
 1. When negotiators believe they can no longer manage the situation
 2. When one negotiator requests intervention, the process must be acceptable to
the other party
 3. If only one party recognizes a need for third party intervention, he or she may
have to persuade the other party to agree

Topic 8
1. Identify the four P’s of persuasion; critically examine the significance of each in a negotiation
process?
 The 4 ‘P’s will enhance your ability to persuade others in both your work and personal
life, negotiation
 2. They are: power, positioning, performance, and politeness (4 P’s)
 3. The 4 ‘P’s are based on perception

1. The more power and influence a person perceives that you have, whether real or not,
the more likely it is that the person will be persuaded by you to do things you want
them to do

2. The second ’P’ is positional

 This refers to the way that other people think and talk about you when you are
not there
3. The third ‘P’ is performance

 This refers to your level of competence and expertise in your area of work – negotiator

 4. The fourth ‘P’ is persuasion power is being polite

 People do things for two reasons: (a) because they want to be (b) they have to

 When you treat people with kindness, courtesy, and respect, you make them want to do things
for you

2. Describe Kevin Hogan’s 7 laws of persuasion; discuss the relevance of each in terms of
negotiation and potential outcomes?
 1. Law of Reciprocity – when someone gives you something of perceived
value, you immediately respond with the desire to give something back
 2. Law of Contrast – when 2 items are relatively different from each other,
we will see them as more different if placed together.
 Example: sale of 2 houses, 2 cars, etc.
 Law of Friends – when someone asks you to do something and you perceive
that person as you best friend, you are strongly motivated to fulfill the request
 4. Law of Expectation – when someone whom you believe or respect
expects you to perform a task, you will tend to fulfill his/her expectation
 Example: HR Manager in a LOC negotiation with trade union
representative or seller & buyer expectations over sale of a motor vehicle of
piece of land
 . Law of Association – If we like people connected with a particular
product/services, we tend to have positive association in our mind of that
particular product or services.
 Example – celebrities like Tiger Woods, etc
  6. Law of Consistency – when an individual announces that he/she is
taking a position on any issue or point of view, they will strongly tend to defend
that belief regardless of whether the belief is accurate even in the face of
overwhelming evidence to the contrary.
 Example: Employers/Unions stand/position in a negotiation/bargaining,
seller & buyer positions over sale of goods/merchandise
 . Law of Society – when a person perceives that something they want is
limited in quantity, he/she perceives that the value of what he/she might want
is greater than if it were available in abundance
 Example:
 TV announces in the law of scarcity with redundancy – ‘while supplies
lasts, limit 2 per customer’. (sale of products in supermarkets – sugar, flour)

3. Critically explore the two options in persuasion?

Two Choices
1. Either you can persuade others, or
2. You can be persuaded by others
3. Most people are not aware that every basic human interaction involves a complex
process of persuasion and influence
4. Avoid being unaware, they are usually the ones being persuaded than the ones doing
the persuading

4. The perceptions that people have of your performance capabilities exerts an inordinate
influence on how they think and feel about you. Examine how can you exert influence on the other
party towards the outcome of a negotiation? The perceptions that people have of your performance
capabilities exerts an inordinate influence on how they think and feel about you

They will accept you advice, be open to your influence and agree with your request

4. Your persuasion power will earn you the respect and support of others. Do you agree
or disagree with this assertion and why?

Sometimes, a reputation for being excellent at what you can do can make you an extremely persuasive
individual in all your interactions with people around you

5. Communication context boundaries are fluid. Explore why is communication

considered an effective tool in negotiation?
 Communication Functions: The aims are:
 (a) Coordinate outcomes
 (b) Express strategic intentions and tactical actions
 © Identify patterns of behavior
 (d) Alters perceptions and expectations concerning the bargaining situation,
relationship, process, and outcomes

6. One of the keys to persuasion is motivation. Examine its significance and relevance of
this statement with regards to negotiating over the sale of a car?
 Every human act is motivated by something. Example, doing this course is a
motivator
 3. Your job is to find out what motivates you, what motivates other people.
Example: what motivates you to attend class, go to work, negotiate?
 4. People have two (2) major motivation; (a) the desire for gain, (b) the fear for
loss/failure
7. One of the key aspect of communication in negotiation is called ‘kinesics’? Describe
kinesics and explain its relevance?
 Kinesics (body):
 American negotiators prefer environments that support formal, controlled behavior
(e.g., sitting vs. standing)
 Body movement and gestures
8. What do you understand by law of reciprocity? Under what circumstances/scenario
would you recommend the use of law of reciprocity and why?

Law of Reciprocity – when someone gives you something of perceived value, you
immediately respond with the desire to give something back

Eg..lunch or sales man giving freebie

Topic 9

1. Why is ethics considered an important component in negotiation?

 The concepts within their book sprung forth ideas, such as, negotiations should be
approached with the mindset of doing the right thing for its own sake without regard to
consequences.
 This basis of negotiation introduces not only a moral argument, but also introduces a case
for the utilitarianism movement.
2. Distinguish between ‘legal’ and ‘ethical’ consideration in negotiation
 Case Study: One can be perfectly legal but NOT being ethical.
 Example: Your tenant offered to buy your house for $485,000 but you felt the
house is $500,000 You agreed to have the property appraised and if the price was
less than $5000,000, you would hang on the price. The appraisal came in at
$480,000, $5,000 less than what the tenant offered. You then decided NOT sharing
this information with your tenant, thinking $485,000 is a deal. Ethically, you felt you
need to tell the tenant but decided to sell at that price or keep it
3. You can’t be 95-99% ethical in negotiation. Do you agree or disagree? Discuss
Agree. One can either be ethical or you are NOT
4. What is concept of ‘no surprise’ in negotiation? Discuss
 Lesson learnt:
 There is an element of surprise and making sure that a negotiation does not
have any negative surprises that will reduce the chance of an ethical lapse
 Example:
 Being uncooperative, abusive, and refusal to negotiate out right

5. What is ‘Platinum Rule’ & its significance in negotiation. Discuss

Follow the ‘Platinum Rule’

- Golden rule tells us to treat people the way we would like to be treated

- Further, Dr Tony Alessandra’s ‘The Platinum Rule’ tells us to treat people, the way they want to
be treated

- Example: caring about your counterparts is enough to treat them the way they want to
treated

- It helps build long term relationship based on ethics and trust

6. Critically examine the four (4) standards for evaluating strategies and tactics in business
negotiation; which standard you consider most critical and why?

 1. Choose a course of action on the basis of results I expect to achieve (e.g.; greatest
return on investment)
 2. Choose a course of action on the basis of my duty to uphold appropriate rules and
principles (e.g.; laws)
 3. Choose a course of action on the basis of the norms, values, and strategy of my
organization or community (e.g.; the usual things we do things at this firm)
 4. Choose a course of action on the basis of my personal convictions (e.g.; what my
conscience tells me to do
 Each of this approach reflects a fundamentally different approach to ethical reasoning

6. Critically analyze the four different approaches to ethical reasoning; which approach you
think most significant and why?
 The first may be called end-result ethics, in that regardless of an action is
determined by evaluating the pros and cons of its consequences
 The second is an example of what may be called duty ethics, in that the rightness of
an action is determined by one’s obligation to adhere to consistent principles, and
social standards that define what is right and wrong and where the line is
 The third represents a form of social contract ethics; in that the rightness of an
action is based on customs and norms of a particular community
 Finally, the fourth may be called the personalistic ethics, in that the rightness of an
action is based on one’s own conscience and moral standards
Topic 10

1. Describe what power is and its significance in negotiation/mediation?

Gibson et al. (1991:329) views power as ‘an easy means to accomplish things in the manner that you
want them performed’

 'A has power over B to the extent that he can get B to do something B would not otherwise do.

 Power is the unquestionable right of a person's position.

 French and Raven (1959:150-167) have proposed that there are five interpersonal bases of
power that are important to negotiators:

 Legitimate power

 Reward power

 Coercive power

 Expert power

 Referent power

2. Describe what is social structure in the context of negotiation?

 When Julia Birkhoff explained the way mediators think about power in her
pioneering doctoral thesis, she found two prevailing concepts:
 ‘power as a ‘thing’, something people ‘have’; power as a negotiating position,
deriving from BATNA or best alternative to negotiated agreement’
 Power is the process going on and among people, a multilayered and ever-shifting
set of relationships
 Shaped profoundly by the social structures within which we live, power is
internalized, manifesting as feelings of entitlement and insecurity
 It is enacted in transactions between and among people, and is embodied in
cultural practices and performed in organizational roles
 3. The balance of power may shift during a mediation process, discuss the approach you
would take to address potential inequity between the parties?
 Developing a holistic understanding of power dynamics allows mediators to
understand ways in which ‘imbalances’ remain inherent in any process, however,
carefully arranged
 Mediators are thus better able to determine whether mediation is possible and or
advisable course (sometimes it is not)
 If deciding to mediate, to confront ‘inequity’ directly and effectively

4. Is there a relationship between power and social structure?

 Power operates at the mediation table in a second important way

 The mediator’s power, too, is a fluid and complex process

 Who the mediator is, of what cultural heritage, matters of gender and race, age, language spoken,
transparency and so much, all affect the flow of power in the course of work

 The mediator table is itself social structure, and as such,

 It can reinforce or encourage re-negotiations of power and well-being

 The concept of parity in power is crucial in any relationship

 In a negotiation, parity of power is the perception by one party that the other side can counter
any form of power with a similar or different form of power that would render the further
escalation of power useless

 Parity in power means that there must be a balance in power deployment