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Unit 9: Distributive Bargaining




          value”), or in a non-judgemental manner that states the issue as a question and invites the parties  Notes
          to search for a solution (“How can we objectively estimate a fair price?”). This latter method of
          framing is less antagonistic and moves discussions toward a process of creative problem solving
          if both parties are open to using it Herb Cohen suggests that issues should be presented in terms
          of three critical elements:
          1.   Information: What do you  know about  the priorities,  limits,  and strategy  of the other
               side?

          2.   Time: Is either side operating under a deadline? Is there pressure from an outside party to
               settle quickly?
          3.   Power: Who has the ability to exercise control over the situation? Power can  originate
               from different sources: (a) competition—if three parties make offers on the same house,
               who has the power? the seller, of course; (b) expertise—a third party supports your position
               and thus gives it validity; (c) persuasive capacity—experienced negotiators clearly present
               the issues, provide strong evidence to support their positions, and offer proposals that
               meet the needs of both sides. The framing of an issue can greatly affect the outcome of the
               bargaining. Even a one-word change can significantly alter how both sides view the
               issues. For example, in negotiations to merge two organizations,  the managers  were
               reviewing the personnel files of each key person. In each case only one person would be
               retained. In the case of one high-ranking position, a manager stated, “Now in thinking
               about Taylor, he is too valuable not to keep him, and in the HR director’s job.” The second
               manager who wanted his own person, Lane, in that position needed to quickly reframe
               the issue of Taylor and repeated the statement with a one-word insertion: “In thinking
               about Taylor, he thinks he is too valuable not to keep him, and in the HR director’s job!”
               The issue of Taylor’s worth in the new organization was totally changed from fact to only
               his lofty opinion of himself, and Lane ended up in the position.
          Negotiation scholar David Venter suggests  four types of frames to consider in a negotiation
          situation:  reframing the issue, focus framing, contrast framing, and  negative framing (see
          Table 9.2).

                                    Table  9.2: Four  Types of  Frames

























          Reframing Offers To be perfectly clear, the value of two offers can be identical but the manner in
          which they are framed or worded can substantially affect how they are received and thus possibly




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