750-1200 words.- Introduction: Why are you writing this paper? What will this paper be addressing?- Background: What did negotiation mean to you before taking this course?- Body of paper possible topics: 1. When is distributive vs. integrative more appropriate?2. Lessons learned about communication including the importance of information exchange, manageable Vs. unmanageable questions as well as communication breakdown.3. Lessons learned on ethics- Conclusion: So what? Why important? How will you use this knowledge? How would handle precious negotiations differently? How has your view of negotiations changed?
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CHAPTER TWO
Strategy and Tactics of
Distributive Bargaining
McGraw-Hill/Irwin
Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.
2-2
Three Reasons Negotiators Should
Be Familiar with Distributive
Bargaining
1. Independent situations require knowing how
this works in order to do well
2. Need to know how to counter the effects of
the strategies
3. Every situation has the potential to require
skills at the “claiming-value” stage
2-3
The Distributive Bargaining
Situation
• Goals of one party are in fundamental,direct
conflict to another party
• Resources are fixed and limited
• Maximizing one’s own share of resources is
the goal for both parties
2-4
The Distributive Bargaining
Situation
Situation includes:
• Starting points (initial offers)
• Target points
• Resistance points (walkaway)
• Alternative outcomes
2-5
The Distributive Bargaining
Situation
Party A – Seller
Walkaway Point
Initial Offer
Party B – Buyer
Target Point
Target Point
Asking Price
Walkaway Point
2-6
The Role of Alternatives to a
Negotiated Agreement
• Alternatives give the negotiator power to walk
away from the negotiation
– If alternatives are attractive, negotiators can:
• Set their goals higher
• Make fewer concessions
– If there are no attractive alternatives:
• Negotiators have much less bargaining power
2-7
The Distributive Bargaining
Situation
Party A – Seller
Walkaway Point
Target Point
Alternative
Initial Offer
Party B – Buyer
Asking Price
Alternative
Target Point
Walkaway Point
2-8
Fundamental Strategies
• Push for settlement near opponent’s resistance
point
• Get the other party to change their resistance
point
• If settlement range is negative, either:
– Get the other side to change their resistance point
– Modify your own resistance point
• Convince the other party that the settlement is
the best possible
2-9
Keys to the Strategies
The keys to implementing any of the four
strategies are:
• Discovering the other party’s resistance
point
• Influencing the other party’s resistance
point
2-10
Tactical Tasks of Negotiators
• Assess outcome values and the costs of
termination for the other party
• Manage the other party’s impressions
• Modify the other party’s perceptions
• Manipulate the actual costs of delay or
termination
2-11
Assess the Other Party’s Target,
Resistance Point, and Costs of
Terminating Negotiations
• Indirectly
– Determine information opponent used to set:
• Target
• Resistance points
• Directly
– Opponent reveals the information
2-12
Manage the Other Party’s
Impressions
• Screen your behavior:
– Say and do as little as possible
• Direct action to alter impressions
– Present facts that enhance one’s position
2-13
Modify the Other Party’s
Perceptions
• Make outcomes appear less attractive
• Make the cost of obtaining goals appear higher
• Make demands and positions appear more or
less attractive to the other party – whichever
suits your needs
2-14
Manipulate the Actual Costs of
Delay or Termination
• Plan disruptive action
– Raise the costs of delay to the other party
• Form an alliance with outsiders
– Involve (or threaten to involve) other parties
who can influence the outcome in your favor
• Schedule manipulations
– One party is usually more vulnerable to
delaying than the other
2-15
Positions Taken
During Negotiations
• Opening offers
– Where will you start?
• Opening stance
– What is your attitude?
• Competitive? Moderate?
• Initial concessions
– Should any be made? If so, how large?
2-16
Positions Taken
During Negotiations
• The role of concessions
– Without them, there is either capitulation or
deadlock
• Patterns of concession making
– The pattern contains valuable information
• Final offers (making a commitment)
– “This is all I can do”
2-17
Commitments:
Tactical Considerations
• Establishing a commitment
– Three properties:
• Finality
• Specificity
• Consequences
• Preventing the other party from committing
prematurely
– Their commitment reduces your flexibility
2-18
Ways to Create a Commitment




Public pronouncement
Linking with an outside base
Increase the prominence of demands
Reinforce the threat or promise
2-19
Commitments:
Tactical Considerations
• Ways to abandon a committed position




Plan a way out
Let it die silently
Restate the commitment in more general terms
Minimize the damage to the relationship if the
other backs off
2-20
Closing the Deal





Provide alternatives (2 or 3 packages)
Assume the close
Split the difference
Exploding offers
Deal sweeteners
2-21
Dealing with Typical
Hardball Tactics
• Four main options:
– Ignore them
– Discuss them
– Respond in kind
– Co-opt the other party (befriend them)
2-22
Typical Hardball Tactics
• Good Cop/Bad Cop
• Lowball/Highball
• Bogey (playing up an issue of little
importance)
• The Nibble (asking for a number of small
concessions to)
2-23
Typical Hardball Tactics




Chicken
Intimidation
Aggressive Behavior
Snow Job (overwhelm the other party
with information)
2-24
Summary
Negotiators need to:
• Set a clear target and resistance points
• Understand and work to improve their BATNA
• Start with good opening offer
• Make appropriate concessions
• Manage the commitment process
CHAPTER THREE
Strategy and Tactics of
Integrative Negotiation
McGraw-Hill/Irwin
Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.
3-2
What Makes Integrative
Negotiation Different?
• Focus on commonalties rather than differences
• Address needs and interests, not positions
• Commit to meeting the needs of all involved
parties
• Exchange information and ideas
• Invent options for mutual gain
• Use objective criteria to set standards
3-3
Overview of the Integrative
Negotiation Process
• Create a free flow of information
• Attempt to understand the other negotiator’s
real needs and objectives
• Emphasize the commonalties between the
parties and minimize the differences
• Search for solutions that meet the goals and
objectives of both sides
3-4
Key Steps in the Integrative
Negotiation Process
• Identify and define the problem
• Understand the problem fully
– identify interests and needs on both sides
• Generate alternative solutions
• Evaluate and select among alternatives
3-5
Claiming and Creating Value
3-6
Identify and Define
the Problem
• Define the problem in a way that is mutually
acceptable to both sides
• State the problem with an eye toward practicality and
comprehensiveness
• State the problem as a goal and identify the obstacles
in attaining this goal
• Depersonalize the problem
• Separate the problem definition from the search for
solutions
3-7
Understand the Problem Fully—
Identify Interests and Needs
• Interests: the underlying concerns, needs,
desires, or fears that motivate a negotiator
– Substantive interests relate to key issues in the
negotiation
– Process interests are related to the way the dispute is
settled
– Relationship interests indicate that one or both
parties value their relationship
– Interests in principle: doing what is fair, right,
acceptable, ethical may be shared by the parties
3-8
Observations on Interests
• There is almost always more than one
• Parties can have different interests at stake
• Often stem from deeply rooted human needs or
values
• Can change
• Numerous ways to surface interests
• Surfacing interests is not always easy or to
one’s best advantage
3-9
Generate Alternative Solutions
• Invent options by redefining the problem set:








Compromise
Logroll
Modify the pie
Expand the pie
Find a bridge solution
Cut the costs for compliance
Non specific compensation
Subordination
• Generate options to the problem as a given:
– Brainstorming
– Surveys
– Electronic brainstorming
3-10
Evaluate and Select Alternatives
• Narrow the range of solution options
• Evaluate solutions on:
– Quality
– Objective standards
– Acceptability
• Agree to evaluation criteria in advance
• Be willing to justify personal preferences
• Be alert to the influence of intangibles in
selecting options
• Use subgroups to evaluate complex options
3-11
Evaluate and Select Alternatives
• Take time to “cool off”
• Explore different ways to logroll
• Exploit differences in expectations and risk/time
preferences
• Keep decisions tentative and conditional until a
final proposal is complete
• Minimize formality, record keeping until final
agreements are closed
3-12
Factors That Facilitate Successful
Integrative Negotiation
• Some common objective or goal
• Faith in one’s own problem-solving ability
• A belief in the validity of one’s own position
and the other’s perspective
• The motivation and commitment to work
together
3-13
Factors That Facilitate Successful
Integrative Negotiation
• Trust
• Clear and accurate communication
• An understanding of the dynamics of
integrative negotiation
CHAPTER EIGHT
Ethics in Negotiation
McGraw-Hill/Irwin
Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.
8-2
What Do We Mean by Ethics and
Why Do They Matter in Negotiation?
Ethics:
• Are broadly applied social standards for what is right
or wrong in a particular situation, or a process for
setting those standards
• Grow out of particular philosophies which
– Define the nature of the world in which we live
– Prescribe rules for living together
8-3
Resolving Moral Problems
8-4
Questions of Ethical Conduct
that Arise in Negotiation
• Using ethically ambiguous tactics: It’s
(mostly) all about the truth
• Identifying ethically ambiguous tactics and
attitudes toward their use
– What ethically ambiguous tactics are there?
– Is it all right to use ethically ambiguous tactics?
8-5
Questions of Ethical Conduct
that Arise in Negotiation
• Deception by omission versus commission
– Omission – failing to disclose information that
would benefit the other
– Commission – actually lying about the commonvalue issue
• The decision to use ethically ambiguous
tactics: A model
8-6
Model of Deception in Negotiation
8-7
Why Use Deceptive Tactics?
Motives and Consequences
• The power motive
– The purpose of using ethically ambiguous
negotiating tactics is to increase the negotiator’s
power in the bargaining environment
• Other motives to behave unethically
– Negotiators are more likely to see ethically
ambiguous tactics as appropriate if they anticipate
that the other’s expected motivation would be
more competitive
8-8
The Consequences of
Unethical Conduct
A negotiator who employs an unethical tactic
will experience positive or negative
consequences. The consequences are based on:
• Effectiveness – whether the tactic is effective
• Reactions of others – how the other person,
constituencies, and audiences evaluate the tactic
• Reactions of self – how the negotiator evaluates the
tactic, feels about using the tactic
8-9
Explanations and Justifications
The primary purpose of explanations and
justifications is:
– To rationalize, explain, or excuse the
behavior
– To verbalize some good, legitimate
reason why this tactic was necessary
8-10
Rationalizations for
Unethical Conduct




The tactic was unavoidable
The tactic was harmless
The tactic will help to avoid negative consequences
The tactic will produce good consequences, or the
tactic is altruistically motivated
• “They had it coming,” or “They deserve it,” or “I’m
just getting my due”
8-11
Rationalizations for
Unethical Conduct
• “They were going to do it anyway, so I will do it
first”
• “He started it”
• The tactic is fair or appropriate to the situation
8-12
How Can Negotiators Deal With the
Other Party’s Use of Deception?







Ask probing questions
Phrase questions in different ways
Force the other party to lie or back off
Test the other party
“Call” the tactic
Ignore the tactic
Discuss what you see and offer to help the other party
change to more honest behaviors
• Respond in kind
CHAPTER SIX
Communication
McGraw-Hill/Irwin
Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.
6-2
Communication in Negotiation
Communication processes, both verbal and
nonverbal, are critical to achieving negotiation
goals and to resolving conflicts.
6-3




What is Communicated
during Negotiation?
Offers, counteroffers, and motives
Information about alternatives
Information about outcomes
Social accounts
– Explanations of mitigating circumstances
– Explanations of exonerating circumstances
– Reframing explanations
• Communication about process
6-4
Communication in Negotiation:
Three Key Questions
• Are negotiators consistent or adaptive?
– Many negotiators prefer sticking with the familiar rather
than venturing into improvisation
• Does it matter what is said early in the process?
– What negotiators do in the first half of the process has a
significant impact on their ability to generate integrative
solutions with high joint gains
• Is more information always better?
– There is evidence that having more information does not
automatically translate into better outcomes
6-5
How People Communicate
in Negotiation
• Use of language operates at two levels:
– Logical level (proposals, offers)
– Pragmatic level (semantics, syntax, style)
• Use of nonverbal communication
– Making eye contact
– Adjusting body position
– Nonverbally encouraging or discouraging what the other
says
6-6
How People Communicate
in Negotiation
• Selection of a communication channel
– Communication is experienced differently when it occurs
through different channels
– People negotiate through a variety of communication media
– by phone, in writing and increasingly through electronic
channels or virtual negotiations
– Social bandwidth distinguishes one communication channel
from another.
• the ability of a channel to carry and convey subtle social and
relational cues from sender to receiver
6-7
How to Improve
Communication in Negotiation
Three main techniques:
1. The use of questions
2. Listening
3. Role reversal
6-8
How to Improve
Communication in Negotiation
• Use of questions: two basic categories
– Manageable questions
• cause attention or prepare the other person’s thinking for
further questions:
– “May I ask you a question?”
• getting information
– “How much will this cost?”
• generating thoughts
– “Do you have any suggestions for improving this?”
6-9
How to Improve
Communication in Negotiation
• Use of questions: two basic categories
– Unmanageable questions
• cause difficulty
– “Where did you get that dumb idea?”
• give information
– “Didn’t you know we couldn’t afford this?”
• bring the discussion to a false conclusion
– “Don’t you think we have talked about this enough?”
6-10
How to Improve
Communication in Negotiation
• Listening: three major forms
1. Passive listening: Receiving the message while providing
no feedback to the sender
2. Acknowledgment: Receivers nod their heads, maintain eye
contact, or interject responses
3. Active listening: Receivers restate or paraphrase the
sender’s message in their own language
6-11
How to Improve
Communication in Negotiation

Role reversal


Negotiators understand the other party’s positions by
actively arguing these positions until the other party is
convinced that he or she is understood
Impact and success of the role-reversal technique

Research suggests that role reversal is a useful tool for improving
communication and the accurate understanding and appreciation
of the other party’s position
6-12
Special Communication Considerations
at the Close of Negotiations
• Avoiding fatal mistakes
– Keeping track of what you expect to happen
– Systematically guarding yourself against self-serving
expectations
– Reviewing the lessons from feedback for similar decisions
in the future
• Achieving closure
– Avoid surrendering important information needlessly
– Refrain from making “dumb remarks”
SIXTH EDITION
Essentials of
NEGOTIATION
R OY J . L E W I C K I
B R U C E B A R RY
DAV I D M . S A U N D E RS
Essentials of
Negotiation
Sixth edition
Roy J. Lewicki
The Ohio State University
Bruce Barry
Vanderbilt University
David M. Saunders
Queen’s University
ESSENTIALS OF NEGOTIATION: SIXTH EDITION
Published by McGraw-Hill Education, 2 Penn Plaza, New York, NY 10121. Copyright © 2016 by
McGraw-Hill Education. All rights reserved. Printed in the United States of America. Previous editions
© 2011, 2007, 2004, and 2001. No part of this publication may be reproduced or distributed in any form
or by any means, or stored in a database or retrieval system, without the prior written consent of McGrawHill Education, including, but not limited to, in any network or other electronic storage or transmission, or
broadcast for distance learning.
Some ancillaries, including electronic and print components, may not be available to customers outside the
United States.
This book is printed on acid-free paper.
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Library of Congress Cataloging-in-Publication Data
Lewicki, Roy J.
Essentials of negotiation / Roy J. Lewicki, The Ohio State University,
Bruce Barry, Vanderbilt University David M. Saunders, Queen’s University. —
Sixth Edition.
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ISBN 978-0-07-786246-6 (alk. paper)
1. Negotiation in business. 2. Negotiation. I. Barry, Bruce, 1958- II.
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Dedication
We dedicate this book to all negotiation, mediation, and dispute
resolution professionals who try to make the world a more peaceful
and prosperous place.
And to John W. Minton (1946–2007): friend, colleague, and co-author.
iii
iv
Contents
About the Authors
Roy J. Lewicki is the Irving Abramowitz Memorial Professor of Business Ethics Emeritus and Professor of Management and Human Resources Emeritus at the Max M. Fisher
College of Business, The Ohio State University. He has authored or edited 36 books, as
well as numerous research articles and book chapters. Professor Lewicki has served as the
president of the International Association for Conflict Management, and he received its
Lifetime Achievement Award in 2013. He …
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