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Unit 4: Negotiation




          and devise a means of satisfying each party’s most important interests while inducing them to  Notes
          make  concessions on lower-priority issues.  Another example: the war  over Colorado  River
          water pitted cities against farmers, fomented tensions among seven states, and dominated the
          attention of Native American Indian tribes, environmentalists, federal officials, and Mexico

          4.17.2 Strategies that Work

          1.   Build trust and share information: Negotiators who build a trusting relationship  and
               share information greatly increase the probability that a win-win outcome will be reached
               (Bazerman & Neale). It is important to realise that the information that negotiators need
               to share is not information about their BATNAs,  but  rather,  information  about  their
               preferences and priorities across the negotiation issues.

          2.   Ask diagnostic questions: A negotiator could ask the other  party in a negotiation any
               number of questions.
          3.   Provide information: It is  a  fallacy to  believe that  negotiators  should never  provide
               information to their  opponent (Bazerman & Neale,  1992). Negotiations would not go
               anywhere if negotiators did not communicate their interests to the other party. Remember,
               you should  negotiate as you would  with your fraternal twin;  if you do not  provide
               information, neither will the other party. A negotiator should never ask the other party a
               question that he or she is not willing to answer truthfully. The important question, then,
               is not whether to reveal information, but what information to reveal.
          4.   Unbundle the issue: One reason why negotiations fail is because negotiators haggle over
               a single issue, such as price. By definition, if negotiations contain only one issue, they are
               purely distributive. Skilled negotiators are adept at expanding the set of negotiable issues.
               Adding issues, unbundling issues, and creating new issue can transform a single-issue,
               fixed-pie negotiation into an integrative, multi-issue negotiation with win-win potential
               (Lax & Sebenius, 1986). Integrative agreements require at least two issues and, in the case
               of negotiation more the issues (not parties), the more the merrier.
          5.   Make package  deals, not  single issue  offers:  Most  negotiators make  the  mistake  of
               negotiating each issue one by one. This approach is a mistake for several reasons: First and
               foremost, negotiating each issue separately does not allow negotiators to make trade-offs
               between issues. To capitalise on different strengths of preference, negotiators need to
               compare and contrast issues and trade them off. Second, it may mean that impasses is
               more likely, especially if the bargaining zone is narrow and trade-offs are necessary to
               reach a mutually profitable outcome. Finally,  single-issue offers lure negotiators into
               compromise agreements, which as we have seen, are usually not the best approach for
               win-win negotiations.
          6.   Make multiple offers simultaneously: In  some cases, negotiators are disappointed  and
               frustrated to find that their attempts to provide and seek information are not effective. It
               happens most commonly in the face of high distrust and less than amicable relations. Now
               what? Is all hope lost? Can the negotiator do anything to change the situation? Fortunately,
               the answer is yes. The strategy of multiple simultaneous offer can be effective even with
               the most uncooperative parties. (Bazerman & Neale, 1992; Kelley  & Schenitzki,  1972;
               Kelley, 1966).
          7.   Make the offers all at the same time: This last point is the hardest for most people to do
               because they negotiate like playing tennis. They make  one offer  and then  wait for  the
               other party to “return” a single offer; then they make a concession, and so on and so forth.
               In the multiple-offer strategy, a negotiator presents a “dessert tray” of offers to the other




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