MANAGEMENT (11)

Negotiation

Ctlina RADU, MBA, PhD.

Bucharest University of Economic Studies

Negotiation Proposed Quotes

GROUP 917: Negotiation is not a policy. It's a

technique. It's something you use when it's to

your advantage, and something that you don't use
when it's not to your advantage.
advantage. - John Bolton
GROUP 920: I
In
In business as in life, you don
don'tt get

what you deserve, you get what you negotiate.

negotiate.
Chester Karras
GROUPS 918, 919, 921 and 922:

Negotiation Styles

Quick
Deliberate
Middle - compromise

Quick Style versus

Deliberate Style
Quick style
Q
y
Negotiate in a hurry
Useful for a non
non--repetitive negotiation Get
the best deal without regard to the other sides
win
Deliberate Style
Useful for long term relationship; involves
cooperation and relationship building to reach
agreement
Needs much preparation

Outcomes

Realistic
Both sides satisfied, win
win--win situation
Usually results from deliberate style
Acceptable
Likely to result from quick style
Something is better than nothing
Worst
When people are too stubborn to be flexible
Usually results from quick style

Example - Game

4 teams, two options, four different

combinations
Prisoners dilemma - game theory - why two
Prisoners
purelyy "rational" individuals might
p
g not
cooperate, even if it appears that it is in
their best interests to do so

Principles of Negotiation

There are no clear rules;

Establish an agenda;
Everything is negotiable;
Always ask for a better deal;
B creative;
Be
ti
Learn to say NO.

Values of a Motivated
Negotiator

Enthusiasm
Confidence
Engaged
Recognition
Accomplishment
Praising, rewards
Integrity
Ethics
Trustworthiness

Social Skills
Enjoy people
Interest in others
Teamwork
Better as a team
Self
Self--control
Creativity
Always looking for
ways to complete
the deal

Negotiation Model

Investigation
Presentation
Bargaining
g
Agreement

Investigation

What do you want?

What does the other side need?
Decide on style
What are the consequences of each choice?

Presentation

Prepare other sides case

Present the reasons for your side better
Planning sheet
Issues involved
Realistic, possible and worst scenarios

Bargaining

When in doubt, ask questions!

Open questions
Reflective questions (i.e. What do you
want to achieve by
by ?)
Tactics

Agreement

Arrangements should be neutral and

comfortable
Pay attention to what the other party says
Screen out all visual distractions
Ask openopen-ended questions
Listen to responses
Proactive versus reactive behaviour

Reservation Point and

Bargaining Range (1)
Reservation The point at which the Best Alternative
Point to a Negotiated Agreement (the BATNA)

becomes preferable to starting or

continuing a negotiation. In a sale - or in
any negotiation - this is the point
beyond which a party will not go.

Bargaining
B
i i
Th distance
The
di
between
b
the
h reservation
i
Range points of the parties. This range can be

positive or negative. If it is negative

there will be no settlement unless one or
both the parties changes reservation
points.

Reservation Point and

Bargaining Range (2)

Expanding the Pie

The process of adding elements to a

negotiation which help one or both sides to
gain more - a result from making negotiations
more integrative (even if they appear to be
distributive).
It is about elements that are valued differently
by each party and often they have the
characteristic that one side will gain a little,
give up nothing or suffer only a small loss in
return for a great gain to the other.

Proposed Dicussions

Cultural differences in negotiation

Women versus men do theyy negotiate
g
differently?

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Negotiation Proposed Quotes

GROUP 917: Negotiation is not a policy. It's a

technique. It's something you use when it's to
your advantage, and something that you don't use
when it's not to your advantage.
advantage. - John Bolton
GROUP 920: I
In
In business as in life, you don
don'tt get

what you deserve, you get what you negotiate.

negotiate.
Chester Karras
GROUPS 918, 919, 921 and 922:

THANK YOU.
and
and

?
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