Page 194 - DMGT519_Conflict Management and Negotiation Skills

Conflict Management and Negotiation Skills

Notes Using an “Aspiration Base” focus

When negotiators ponder aggressive first offers, they should make such offers within the context
of the following;
1. The strength of their BATNA,

2. Their aspiration base (the target at which their hopes and desires would be fulfilled) and,
3. Their real base (the bottom line beyond which their BATNA kicks in).
Although a clearly defined real base is an exceedingly important component of any negotiation,
it is important that negotiators concentrate on their aspiration base when developing a first
offer. Research findings reveal that negotiators who concentrate on their aspiration base when
considering first offers are inclined to make more aggressive first offers. They generally achieve
more beneficial outcomes than negotiators who focus on their real base.
Another means to ensure that first offers are not so aggressive as to result in the other party
walking away from the negotiation is by focusing on the other party’s BATNA, and real base,
and on market trends. John Oesch and Glenn Whyte have discovered that the best first offers are
usually those that fall outside the contracting zone, but are not sufficiently far beyond the real
base of the other party to cause an extreme reaction.

When negotiators become too fixated on their aspiration base, they are blinded to advantageous
outcomes that exceed their BATNAs. Their challenge is to focus on their aspiration base and
make an aggressive first offer, but to remain open to making concessions. This prevents the
possibility of rejecting beneficial agreements which ensures a mutually beneficial agreement.

A defense against first offers

When a negotiator doesn’t have the opportunity to present the first offer, their protection
against anchoring rests in making an forceful counteroffer firmly centered around the other
party’s BATNA, real base and aspiration base. The ideal means to propose such an offer is in a
manner that creates a positive climate and blunts the other party’s first offer. The key to protection
lies in a negotiator knowing their aspiration base and the other party’s limitations.
Should the other party propose a first offer that is near to the aspiration base of its counterpart,
the immediate inclination is to agree to that offer and wrap up the negotiation. Research,
however, suggests that immediate acceptance of a first offer is apt to leave the other party filled
with remorse and discontent about not having made a more extreme first offer. It is also not
uncommon for doubts to arise about the quality of the product or service purchased. A disgruntled
party is less likely to live up to the terms of an agreement and may start to immediately begin
plotting how to amend the agreement, extort concessions or gain revenge. Even highly acceptable
first offers should be met with a request for concessions. If nothing extra is imminent the other
party would at least have the gratification that it has achieved a significant victory where both
parties have benefited.

9.4 Bracketing

Once the opening offers are made the real haggling process, often called bracketing, occurs.
Bracketing is the logical bargaining process of moving toward a middle point between the
opening offers.

In 1982, the Americans were negotiating the payoff of a huge international loan with the
government of Mexico. They were about to default on an $82 billion loan. Their chief negotiator
was Jesus Herzog, their finance minister. Treasury Secretary Donald Regan and Federal Reserve

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