Page 296 - DMGT519_Conflict Management and Negotiation Skills

Conflict Management and Negotiation Skills

Notes 3. You may settle a negotiation just to find that your opponent wants just one more concession
because:
(a) The negotiation has been unbalanced

(b) “Boilerplate” terms were added
(c) Negotiation is a voluntary process
(d) The other party senses you are overly anxious to close the deal
4. The promise technique to counter a request for one more concession is

(a) Unethical
(b) When your opponent breaks a promise
(c) When you make your opponent promise not to ask for any additional concessions
(d) When you indicate your willingness to agree to it if the other party will give you a
concession.

14.2 Striking by Your Principles versus Being Resilient to the Flow

The pace and flow of negotiations can move from an intense haggle over financial issues to an
intense debate over deeply held principles about what is right or fair or just. These transitions
often create a second paradox for negotiators. On the one hand, effective negotiation requires
thinking and an understanding that an assessment of a situation may need to be adjusted as new
information comes to light; achieving any deal will probably require both parties to make
concessions. On the other hand, core principles are not something to back away from easily in
the service of doing a deal. Effective negotiators are thoughtful about the distinction between
issues of principle, where firmness is essential, and other issues where compromise or
accommodation is the best route to a mutually acceptable outcome. A complex negotiation may
well involve both kinds of issues in the same encounter. And it is not enough for the negotiator
to know in her own mind that an unwavering commitment on issue X is grounded in some deep
personal value or principle; good negotiators know that it is critical to convey that principle to
the other party so that he or she will not misinterpret firmness based on principle as hostility or
intransigence.

14.2.1 Sticking with the Strategy versus Opportunistic Pursuit of New
Options

New information will frequently come to light during a negotiation, and negotiators need to
manage the paradox between sticking with their prepared strategy and pursuing a new
opportunity that arises during the process. This is a challenging paradox for negotiators to
manage because “new opportunities” may in fact be Trojan horses harbouring unpleasant
surprises. On the other hand, circumstances to change and legitimate “one-time,” seize-the-
moment deals do occur. The challenge for negotiators is to distinguish phantom opportunities
from real ones; developing the capacity to recognise the distinction is another hallmark of the
experienced negotiator.

14.3 Closing the Deal

The intention of most negotiations is to close the deal. Whether you are looking to purchase
something or get a pay raise, you want the deal signed and formalized. How do you move a
negotiation to close?

290 LOVELY PROFESSIONAL UNIVERSITY