Page 299 - DMGT519_Conflict Management and Negotiation Skills

Unit 14: Closing the Deal and Post Negotiation Evaluation

Notes
It’s a valuable lesson to remember that situations with individual nations are going to
vary. What works in one country may very well not work in another country, so never
make assumptions about what the political reaction will be.
Question:

Analyse the case and discuss the case facts.
14.4 How to Claim Value or Retain Value at the Closing Stage of a
Negotiation

There are many other techniques that have been used through the ages to close the deal. What
are your favorite, tried-and-true ways to get to closing?

Negotiation theorists make several overlapping distinctions about approaches to negotiation.
Fisher, Ury, and Patton distinguish between positional bargaining, which is competitive,
and interest-based bargaining or principled negotiation, which is primarily cooperative. But
they also make the distinction between soft, hard, and principled negotiation, the latter of which
is neither soft, nor hard, but based on cooperative principles which look out for oneself as well
as one’s opponent.
Morton Deutsch also makes the distinction between competitive and cooperative approaches.
According to Deutsch, the most important factors that determine whether an individual will
approach a conflict cooperatively or competitively are the nature of the dispute and the goals
each side seeks to achieve. Often the two sides’ goals are linked together, or interdependent. The
parties’ interaction will be shaped by whether this interdependence is positive or negative,
according to Deutsch:
 Goals with positive interdependence are tied together in such a way that the chance of one
side attaining its’ goal is increased by the other side’s attaining its goal. Positively
interdependent goals normally result in cooperative approaches to negotiation, because
any participant can “attain his goal if, and only if, the others with whom he is linked can
attain their goals.”

 On the other hand, negative interdependence means the chance of one side attaining its goal
is decreased by the other’s success. Negatively interdependent goals force competitive
situations, because the only way for one side to achieve its goals and “win” is for the other
side to “lose.”
Although Fisher, Ury, and Patton argue that almost any dispute can be resolved with interest-
based bargaining (i.e., a cooperative approach), other theorists believe the two approaches
should be used together. Lax and Sebenius, for example, argue that negotiations typically
involve ”creating” and “claiming” value. First, the negotiators work cooperatively to create
value (that is, “enlarge the pie,”) but then they must use competitive processes to claim value
(that is, “divide up the pie”).
However, a tension exists between creating and claiming value. This is because the competitive
strategies used to claim value tend to undermine cooperation, while a cooperative approach
makes one vulnerable to competitive bargaining tactics. The tension that exists between
co-operation and competition in negotiation is known as “The Negotiator’s Dilemma:”

 If both sides co-operate, they will both have good outcomes.
 If one co-operates and the other competes, the co-operator will get a terrible outcome and
the competitor will get a great outcome.

 If both compete, they will both have mediocre outcomes.

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