Use 'we' language rather than 'you' and 'I'. Founder and Chairman Substance. Back to: NEGOTIATIONS. Tradeoffs, concessions and compromises are possible. Discussing multiple issues is key to finding out what each party really wants and working to increase the size of the pie. I've learned so much from the Intro course to use at work. Our second hypothesis was concerned with how adept pie-slicers (value claimers) view the world. And Bea gets two on her own plus another three from the six, for five in total. The course of the negotiation can either lead to an increase, shrinking, or stagnation of these values. Re-Print Permission In many negotiations, the mythical “fixed pie” mindset leads us to interpret the competitive situations as purely win-lose. Bargaining Zone (ZOPA) range between reservation points, can be positive or negative. By PON Staff — on May 18th, 2017 / Dealmaking. Unlike many negotiation courses, we develop a framework for analyzing and shaping negotiations. realizes that negotiation has a pie-expanding aspect but does not forget to claim resources. Most negotiations, however, have more than one substantive issue at stake, and each party values the issues differently. 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. Introduction / What is the Pie?What is the Pie? The parties are inflexibly positional, often ignoring the real issues and needs behind their positions. But this is just divisive negotiation and results in confrontation and bad feelings after the negotiation. Bea gets two of the three, and Abe gets one of the three. Integrative negotiation tactics seek to provide greater value to the parties collectively than could be achieved individually. The Negotiation Project is an innovative conflict prevention program that explores how academic theories and research about negotiation apply in Washington state public sector labor relations. That’s why I am teaching you about it first. Any terms or concepts from the lectures and readings are up for grabs. Advanced topics include negotiating when you have no power, negotiating over email, and the role of gender differences in negotiation. I don't think either of these proposals is right. When the two sides realize they are in a perfectly symmetric position, the six ends up getting split evenly, three and three. conditions are met: Contact us for more information on our management training products and services, To request more information about any of our sales training, negotiation training, presentation training or other training solutions, click here. That's a gain of six, and that's the pie. All the cards are face-up on the table. Another way of saying this is, of the nine, Abe can automatically claim a slice of one. Tradeoffs allow you and your negotiating partner to achieve more than you would if you merely compromised on each issue. © 1996-2018. Frame the situation as a joint problem where you both want to succeed and that you can both get more by working together. There are many different ways to categorize the essential elements of negotiation. Thus we also have to ask, what happens if this negotiation fails? A newer, more creative approach to negotiation is called the integrative approach An approach to negotiation in which both parties look for ways to integrate their goals under a larger umbrella.. According to Barry Nalebuff, you should always calculate the pie. Effective pie-expanding strategies. He doesn't need Bea's help to do that, and similarly Bea can get something of size two, without any help from Abe. Consistent with this, research has linked reliance on fixed-pie perceptions to suboptimal negotiation outcomes (L. L. Thompson, 1991; L. L. Thompson & Hastie, 1990). Summary. You can think of the pie as a Boston cream pie, a lemon meringue, a cherry pie. A distributive negotiation usually involves a single issue - a 'fixed-pie' - in which one person gains at the expense of the other. reservation points overlap, meaning that an agreement is better than resorting to a BATNA, failure to reach an … PLAY. A classic negotiation tool is to overcome the “myth of the fixed pie.” Generally speaking, if I eat a piece of pie, that’s one fewer piece you can have. Depending on the circumstances, negotiations can be direct or complex, adversarial or collaborative.  In the modern business world, it is often desirable to conduct a collaborative, non-adversarial negotiation with a “win-win” outcome in order to build and preserve cordial relationships between business partners.  However, you would not want to try for a “win-win” negotiation when haggling with a used car salesman. . The process refers to how the parties negotiate. Distributive negotiations assume there is a fixed pie, and the winner and loser are determined by establishing extreme positions, haggling, bluffing and brinksmanship. There's nothing hidden. Negotiation Concept/Theories 1. If you wish to do this makeup assignment, you can add and define ten (10) terms from this glossary that you think might be on the final exam. By identifying these interests and recognizing that the fixed pie assumption is a myth in this negotiation, they are able to develop a solution that satisfies both interests. Win-Win Negotiation. given negotiation ―pie‖ is more difficult to determine with certainty than it is to determine the proportion of the pie a particular party manages to claim. the psychological underestimation … This framework will allow you to make principled arguments that persuade others. Were these two to be your stereo typical negotiators, you might expect things to go down as follows. In your negotiation over the technology consulting contract, this might mean saying, “Let’s talk about how referral incentives might benefit us both.” How do YOU create value in negotiations? She is worth twice as much as Abe on her own and so they should divide the pie into three equal parts. Everybody knows what they are negotiating over, but it highlights the fundamental point that underlies all negotiation, what is the pie? On their own, Abe can get 1, and Bea can get 2. The article is presented in a positive light as part of an entire process of making an opening offer and reaching a mutually agreeable settlement. Some people think negotiating is about extracting the maximum amount of value from the other party. But you wanted $80,000. The cases also provide a setting to discuss a wide-ranging set of topics including preparing for a negotiation, making ultimatums, avoiding regret, expanding the pie, and dealing with someone who has a very different perspective on the world. Advanced topics include negotiating when you have no power, negotiating over email, and the role of gender differences in negotiation. This case study shows how a limited fixed pie distributive negotiation style can damage negotiations with labour unions. Manipulative tactics are common. Chapter 3: Distributive Negotiations – Slicing the Pie The Bargaining Zone [39] o The Dance o Typically, Target Points don’t overlap o Reservation Points Can & Do overlap (The Buyer willing to pay more than the seller’s min to sell) o “Bargaining Point” or Zone of Possible Agreements (ZOPA) = the range between the negotiator’s reservation points. No Relationship: There is not likely to be an ongoing relationship between the buyer and the used car salesman.  The negotiation is competitive and adversarial. Simply asking for the whole pie isn't a principle. given negotiation ―pie‖ is more difficult to determine with certainty than it is to determine the proportion of the pie a particular party manages to claim. One view of negotiation involves 3 basic elements: 1. © Baker Communications Inc. Houston, Texas. Browser that supports HTML5 video parties can achieve their objectives where Abe and Bea go. 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