CHAPTER 1.ppt

CHAPTER 1 INTRODUCTION LEARNING OBJECTIVES A. Improve your ability to negotiate successfully B. General strategy for successful negotiation C. Enlightened model of negotiation (fraternal twin model) ? Mind Heart Rational vs. Intuitional The Nature of Negotiation Interdependence Negotiation Sandtraps The Nature of Negotiation Negotiation is something that everyone does, almost daily. Negotiations occur for one of two reasons: (1) To create something new that neither party could attain on his or her own (2) To resolve a problem or dispute between the parties The Nature of Negotiation Characteristics Common to All Negotiation Situations 1. There are two or more parties 2. There is a conflict of interest between them 3. Parties negotiate because they think they can get a better deal than by taking what the other side will give them. 4. Parties prefer to search for agreement rather than: Fight openly Capitulate Permanently break off contact Take their dispute to a third party The Nature of Negotiation 5.Parties expect give and take. They expect both sides will modify or give in somewhat on their opening statements, requests, or demands 6. Successful negotiation involves: - The resolving of tangibles (e.g., the price or the terms of agreement) - The resolution of intangibles (the underlying psychological motivations)  Interdependence In negotiation, both parties need each other This mutual dependency is called interdependence Interdependent goals are an important aspect of negotiation: Win-lose: I win, you lose Win-win: Opportunities for both parties to gain One potential consequence of interdependent relationships is value creation The other potential consequence of interdependent relationships is conflict Value Creation Synergy: the notion the the whole is greater than the sum of its parts. Negotiators should be aware that potential differences can be used to reach agre