Page 88 - DMGT519_Conflict Management and Negotiation Skills

Conflict Management and Negotiation Skills

Notes Assume the close

Salespeople use an ‘assume – the – close technique’ frequently. After having a general discussion
about the needs and positions of the buyer, often the seller will take out a large order form and
start to complete it. The seller usually begins by asking for the buyer’s name and address before
moving on to more serious points (e.g., price, model). When using this technique, negotiators
do not ask the other party if he or she would like to make a purchase. Rather, they act as if the
decision to purchase something has already been made so they might as well start to get the
paperwork out of the way.
Split the Difference

Splitting the difference is perhaps the most popular closing tactic. The negotiator using this
tactic will typically give a brief summary of the negotiation (We both have spent a lot of time,
made many concessions, etc.) and then suggest that, because things are so close, “why don’t we
just split the difference?” While this can be an effective closing tactic, it does presume that the
parties started with fair opening offers. A negotiator who uses an exaggerated opening offer and
suggests a split-the-difference close is using a hardball tactic.

Exploding Offers

An exploding offer contains an extremely tight deadline in order to pressure the other party to
agree quickly. For example, a person who has interviewed for a job may be offered a very
attractive salary and benefits package, but also be told that the offer will expire in 24 hours. The
purpose of the exploding offer is to convince the other party to accept the settlement and to stop
considering alternatives. This is particularly effective in situations where the party receiving
the exploding offer is still in the process of developing alternatives that may or may not turn out
to be viable (such as the job candidate who is still interviewing with other firms). People can feel
quite uncomfortable about receiving exploding offer, however, because they feel as if they are
under unfair pressure. Exploding offer appears to work best for organizations that have the
resources to make an exceptionally attractive offer early in a negotiation in order to prevent the
other party from continuing to search for a potentially superior offer.

Sweeteners

Another closing tactics is to save a special concession for the close. The other negotiator told,
“I’ll give you X if you agree to the deal.” For instance, when selling a condo, the owner could
agree to include the previously excluded curtains, appliances, or light fixtures to close the deal.
To use this tactic effectively, however, negotiators need to include the sweetener in their
negotiation plans or they may concede too much during the close.
A negotiation, it can tip the balance of his or her behaviour away from cooperation towards
competition, resulting in impasses and lose-lose outcomes.

Wise – Pie-slicing

The distribution of resources (pie-slicing) is an unavoidable and inevitable aspect of negotiation.
What qualities should we live by when slicing the pie?

Consistency

One of the hallmarks of a good pie-slicing heuristic is consistency or invariance across setting,
time and respect to the enforcer of the procedure.

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