Page 85 - DMGT519_Conflict Management and Negotiation Skills

Unit 4: Negotiation

Timing of Concession Notes

By timing of concessions, we mean whether concessions are immediate, gradual, or delayed
(Kwon & Weingart, 2004). In an analysis of buyer-seller negotiations, sellers who made immediate
concessions received the most negative reaction from the buyer – who showed least satisfaction
and evaluated the object of sale most negatively. In contrast, when the seller made gradual
concessions, the buyer’s reaction was most positive – high satisfaction.
Strategy 8: Use an objective-Appearing Rationale to Support your Offers
The way in which an offer is presented dramatically affects the course of negotiations. Ideally,
present a rationale that appears to be objective and invites the opponent to buy into your
rationale. If your proposals are labeled as “fair,” “even splits,” or “compromises,” they carry
more impact. The importance of having a rationale cannot be overestimated. Oftentimes, people
simply want to hear that you have a rationale and don’t even bother to assess the details of it.
Strategy 9: Appeal to Norms of Fairness

Fairness is a “hot button” in negotiation because most negotiators view themselves as fair, or
wanting to be fair. The ideal pie-slicing strategy is to determine which norms of fairness would
be appropriate for the situation and then use these norms to argue for your own target point.
Strategy 10: Do Not Fall for the “Even Split” Ploy
A common focal point in negotiation is the “even split” between whatever two offers are
currently on the negotiation table. In many negotiation situations, such as in car and house
buying, negotiators’ offers do not overlap. Inevitably, one person has the bright idea of “splitting
the difference.” The concept of the “even split” has an appealing, almost altruistic flavour to it.
To many of us, it seems unreasonable to refuse, to compromise or meet the other person halfway.
So what is the problem with even splits? The problem is that they are based on arbitrarily
arrived-at values.

4.14 The most Commonly bothering Questions

1. Should I reveal my Reservation Point?
Revealing your reservation point is generally not a good strategy unless your reservation
point is especially good and you suspect that the bargaining zone is narrow. If you reveal
your reservation price, be prepared for the other party to offer you your reservation price,
but not more.
2. Should I lie about my Reservation Point?
Lying is not a good idea for three important reasons:

First, lying is unethical.
Second, lying does not make sense strategically.
Finally, lying hurts your reputation.
3. Should I try to manipulate the other party’s reservation point?
Probably not. Assuming that other parties are reasonably intelligent, motivated, and
informed (like you), they are not likely to fall prey to this readily transparent negotiation
ploy. Such attempts may actually backfire, entrenching other parties more steadfastly in
their positions.
Furthermore, you want to avoid other negotiators’ attempts to turn the tables on you with
similar influence tactics. You probably would not fall for it, so why should they?

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