Chapter3: Strategy and Tactics of Integrative Negotiation Introduction

Chapter3: Strategy and Tactics of Integrative Negotiation Introduction


Negotiators can make the following three mistakes:
1. Failing to negotiate when they should
2. Negotiating when they should not
3. Negotiating when they should but choosing an inappropriate strategy

In many negotiations there does not need to be winners and losers all parties can gain. Rather then assume that negotiations are win-lose situations, negotiators can look for win-win solutions. Integrative negotiation-variously known as cooperative,
collaborative, win-win, mutual gains, or problem solving-is the focus of this chapter.

A successful interest-based negotiator models the following traits:

@ Honesty and integrity: Interest-based negotiating requires a certain level of trust between the parties. Actions that demonstrate interest in all players’ concerns will help setablish a trusting environment.

@ Abundance mentality: Those with an abundance mentality do not perceive a concession of monies,prestige, control, and so on, as something that makes their slice of the pie smaller, but merely as a way to enlarge the pie. A scarcity or zero-sum mentality says, “Anything I give to you takes away rom me.” A negotiator with an abundance mentality knows that making concessions helps build stronger long-term relationships.

@ Maturity. In his book Seven Habits of Highly Effective Leaders, Stephen Covey refers to maturity as having the courage to stand up for your issues and values while being able to recognize that others’ issues and values are just as valid.

@ Systems orientation. Systems thinkers will look at ways in which the entier system can be optimized, rather that focusing on suboptimizing components of the system.

@ Superior listening skill. Ninety percent of communication is not in one’s words but in the whole context of the communication, including mode of expression, body language, and many other cues. Effective listening also requires that one avoid listening only from his or her frame of reference.

An overview of the integrative negotiation process:

1. Creating a free flow of information
2. Attempting to understand the other negotiator’s real need and objectives
3. Emphasizing the commonalities between the parties and minimizing the differences
4. Searching for solutions that meet the needs and objectives of both sides

Negotiators need to consider five aspects (when identifying and defining the problem)
1. Define the problem in a way that is mutually acceptable to both sides
2. State the problem with an eye toward practicality and comprehensiveness
3. State the problem as a goal and identify the obstacles to attaining this goal
4. Separate the problem definition from the search for solutions

Key steps in the integrative negotiation process:
1. Identify and define the problem
2. Understanding the problem and bring interests and needs to the surface
3. Generate alternative solutions to the problem
4. Evaluate those alternatives and select among them

The first three steps of the integrative negotiation process are important for creating value. The fourth step of the integrative negotiation process, the evaluation and selection of alternatives, involves claiming value.

Negotiators need to consider five aspects (when identifying and defining the problem)
1. Define the problem in a way that is mutually acceptable to both sides
2. State the problem with an eye toward practicality and comprehensiveness
3. State the problem as a goal and identify the obstacles to attaining this goal
4. Depersonalize the problem
5. Separate the problem definition from the search for solutions

Understand the problem fully-identify interests and needs:
That a key to achieving an integrative agreement is the ability of the parties to understand and satisfy each other’s interests. Interests are the underlying concerns, needs, desires, or fears that motivate a negotiator to take a particular position.

Types of Interests:
Substantive interests
Process interests
Relationship interests

Some Observations on Interests:

1. There is almost always more than one type of interest underlying a negotiation.
2. Parties can have different types of interests at stake.
3. Interests often stem from deeply rooted human needs or values.
4. Interests can change.
5. Surfacing interests.
6. Surfacing interests is not always best to one’s best advantage.
7. Focusing on interests can be harmful.

Reveal Win-Win Options:
Expanding the Pie
Logrolling
Nonspecific Compensation
Cost Cutting
Bridging

@@THE PURPOSE OF INTEGRATIVE NEGOTIATION IS NOT TO QUESTION OR CHALLENGE THE OTHER’S VIEWPOINT@@

Clear and Accurate Communication:

High-quality integrative negotiation is clear and accurate communication.
First, negotiations must be willing to share information about themselves.
Second, the other negotiators must understand the communication. Mutual understanding is the responsibility of both sides.

-CHAPTER SUMMARY-

Successful integrative negotiation requires several processes:
1. The parties must understand each other’s true needs and objectives.
2. They must create a free flow of information and an open exchange of ideas.
3. Focus on their similarities, emphasizing their commonalities rather than their differences
4. They must engage in a search for solutions that meet the goals of both sides

To discussed various factors that facilitate successful integrative negotiation:
1. The process will be greatly facilitated by some form of common goal or objective
2. They must have faith in their problem-solving ability
3. The parties must be willing to believe that the other’s needs are valid
4. Share a motivation and commitment to work together, to make their relationship a productive one
5. Trust each other and to work hard to establish and maintain that trust
6. There must be clear and accurate communication about what each one wants and an effort to understand the other’s needs
7. Understanding of the dynamics of integrative negotiations

-END-

Hsiao Chen Hsieh/ Jaen

Ting Feng Hsu/ Ben

Chapter 1: The Nature of Negotiation

When Negotiations Occur

1. To agree on how to share or divide a limited resource
2. To create something that neither party could do on his or her own
3. To resolve a problem or dispute between the parties

How to approach

1. a. Bargaining: win-lose situation
b. Negotiation: win-win situation

2. While give-and-take process is important, negotiation is a very complex social process;
many of the most important factors that shape a negotiation result do not occur during the
negotiation; they occur before the parties start to negotiate, or shape the context around the
negotiation

3. Three sources draw our insights into negotiation
- Our experience
- Media (TV, Radio, Newspaper)
- The wealth of social science research

Characters of a negotiation situation

1. There are 2 or more parties (2 or more individuals, groups, and organization)
2. There is a conflict of needs and desires between 2 or more parties
3. The parties negotiation by choice
4. When we negotiate, we expect a “give-and-take” process that is fundamental to the
definition of negotiation itself. It could be move toward the "middle" of the position, called
a compromise
5. The parties prefer to negotiate and search for agreement rather than to fight openly, have
one side dominate and the other capitulate, permanently break off contact, or take their
dispute to a higher authority to resolve it. It occurs when the parties prefer to invent their
own solution for resolving the conflict, when there is no fixed or established set of rules or
procedures for how to resolve the conflict, or when they choose to bypass those rules

6. Successful negotiation involves the management of tangibles and also the resolution of
intangible

- Intangibles (it often rooted in personal values and emotions)
a. the needs to “win,” beat the other party, or avoid losing to the other party
b. the need to look “good,” “competent,” or “tough” to the people you represent
c. the need to defend an important principle or precedent in a negotiation
d. the need to appear “fair”, or “honorable” or to protect one’s reputation

Interdependence

The parties need each other in order to achieve their preferred objectives or outcomes. They must coordinate with each other to achieve their own objectives, or they choose to work together because the possible outcome is better than they can achieve by working on their own.

* The relationships between parties:
1. Independent
2. Dependent
3. Interdependent

* Types of interdependent affect outcome
1. Competitive situation: zero-sum or distributive situation
- When the goals of two or more people are interconnected so that only one can achieve the goal
2. Mutual-gains situation: non-zero-sum or integrative situation
- When parties’ goals are linked so that one person’s goal achievement helps others to achieve their goals.

* Alternatives shape interdependence
- Parties choose to work together because the possible outcome is better than what may occur if they do not work together

Mutual Adjustment
- It introduces the ways parties begin to set goals and objectives for themselves in a negotiation and adjust to goals stated by other party in order to emerge with an agreement that is satisfactory to both

* Mutual adjustment and concession making
* Two dilemmas in mutual adjustment
1. the dilemmas of honesty: concerns how much of the truth to tell the other party
2. the dilemmas of trust: concerns how much should negotiators believe what the other party tells them


Value claiming and value creation
1. Claim value: to do whatever is necessary to claim the reward, gain the lion’s share, or gain the largest piece possible.
2. Create value: to find a way for all parties to meet their objectives, either by identifying more resources or finding unique ways share and coordinate the use of existing resources

* The implications for most actual negotiations are a combination of claiming and creating value processes
1. Negotiators must be able to recognize situations that require more of one approach than the other
2. Negotiators must be versatile in their comfort and use of both major strategic approach
3. Negotiators perceptions of situations tend to be biased toward seeing problems as more distributive/competitive than they really are

* The key differences among negotiators
1. Differences in interests: negotiators seldom value all items in a negotiation equally
2. Differences in judgments about the future: people differ in their evaluation of what something is worth or the future value of an item
3. Differences in risk tolerance: people differ in the amount of risk they are comfortable assuming
4. Differences in time preference: negotiators frequently differ in how time affects them

Conflict

- A shape disagreement or opposition, as of interest, ideas, etc. and includes the perceived divergence of interest, or a belief that the parties’ current aspirations cannot be achieved simultaneously.

* Levels of conflict
1. Intrapersonal or intrapsychic conflict
2. Interpersonal conflict
3. Intragroup conflict
4. Intergroup conflict


* Functions and dysfunctions of conflict
1. conflict is an indication that something is wrong, broken, or dysfunctional
2. conflict create largely destructive consequences

* The elements that contribute to conflict’s destructive image:
1. Competitive, win-lose goals
2. Misperception and bias
3. Emotionality
4. Decreased communication
5. Blurred issues
6. Rigid commitments
7. Magnified differences
8. Escalation of the conflict

* Conflict diagnostic model
- to measure factors that make conflict easy or difficult to manage

* Effective conflict management
1. two-dimensional framework (dual concerns model)
a. concern about their own outcomes(horizontal dimension)
b. concern about the other’s outcomes (vertical dimension)
2. five strategies
a. contending (competing or dominating)
b. yielding (accommodating or obliging)
c. inaction (avoiding)
d. problem solving (collaborating or integrating)
e. compromising

By Debby (YiYu Chen)

Chapter 2: Strategy and Tactics of Distributive Bargaining

In the distributive bargaining situation,

• The goals of one party are usually in fundamental and direct conflict with goals of the other party.
• Resources are fixed and limited.
• Both parties want to maximize their share.
  
  Result in:
• Each party will use a set of strategies to maximize his or her share of the out comes to be obtained.
  
  Three Reasons that every negotiator should be familiar with distributive bargaining.
• First, negotiators face some interdependent situations that are distributive, and to do well in them they need to understand how they work.
• Second, because many people use distributive bargaining strategies and tactics almost exclusively, all negotiators need to understand how to counter their effects.
• Third, every negotiation situation has the potential to require distributive bargaining skills when at the “claiming value” stage.
  
  The Distributive Bargaining Situation
  To better understand how the distributive bargaining process work, we need to understand the following terms:
• Target Point: the point at which the negotiator would like to conclude negotiations - his optimal goal. (Also, call negotiator’s aspiration)
• Resistance Point: the price beyond which negotiator will not go or negotiator’s bottom line. (Also, call reservation price)
• Asking Price: is the initial price set by the seller. (might be counter by “initial offer”)
• Bargaining range, settlement range, or zone of potential agreement: is the spread between resistance points.
  
  The Roles of Alternatives to a Negotiated Agreement
• It is the fourth factor which may enter the negotiation.
• An alternative outcome that can be obtained by completing a deal with someone else.
• Give negotiators the power to walk away from any negotiation when the emerging deal is not very good.
• Negotiations need to ensure that they have a clear understanding of their best alternative to a negotiated agreement, or BATNA.
  
  Settlement Point:
• To reach settlement within a positive bargaining range.
• The objective of both parties is to obtain as much of the bargaining range as possible.
• To reach an agreement as close to the other party’s resistance point as possible.
• For agreement to occur, both parties must believe that the settlement, although perhaps less desirable than they would prefer, is the best that they can get.
  
  Bargaining Mix
• The package of issues for the negotiation is the bargaining mix. (Such as, the price, the closing date of the sale, renovation condo, and the price of items that could remain in the condo; drapes and appliances.
• Each item in the mix has its own starting, target, and resistance points.
• Some items are obvious importance to both parties; others are important only to one party.
  
  Fundamental strategies:
  The prime objective in distributive bargaining is to maximize the value of the current deal.
• To push for settlement close to the seller’s (unknown) resistance points, thereby yielding the largest part of the settlement range for the buyer.
• To convince the seller to change her resistance point by influencing the seller’s beliefs about the value of the property (Such as, condo).
• If a negative settlement range exists, to convince the seller to reduce her resistance point to create a positive settlement range or to change his own resistance point to create an overlap.
• To convince the seller to believe that this settlement is the best that is possible – not that it is all she can get, or that she is incapable of getting more, or that the buyer is winning by getting more.
  
  Two tasks are important in all distributive bargaining situations:
• Discovering the Other Party’s resistance points: In formation is the life force of the negotiation. The more you can learn about the other party’s target, resistance point, motives, feeling of confidence, and so on, the more able you will be to strike a favourable agreement.
• Influencing the Other Party’s resistance point: is to locate the other party’s resistance point and relationship of that resistance point to your own.
  
  Four major proposition that these factors can effect the process of distribution bargaining.
• The higher the other party’s estimate of your cost of delay or impasse, the stronger the other party’s resistant point will be.
• The higher the other party’s estimate of his or her own cost of delay or impasses, the weaker the other party’s resistance point will be.
• The less the other party values an issue, the lower their resistance point will be.
• The more the other party believe that you value an issue, the lower their resistance.
  
  Tactical Tasks
  Assess the other party’s target, resistance point, and cost of terminating negotiation.
• Indirect assessment: means determining what information an individual likely to used to set target and resistance points and how he or she interpreted this information.
• Direct Assessment: in the bargaining, the other party does not usually reveal accurate and precise information about his or her target, resistance points, and expectations, Sometimes, however, the other party will provide accurate information. When pushed to the absolute limited and in need of quick settlement, the other party may explain the facts quite clearly.
  
  Manage the Other Party’s impressions: Negotiators need to screen in formation about their positions and to represent them as they would like the other to believe them.
• Screening Activities
• Direct Action to alter Impressions
  
  Modify the Other Party’s perceptions
• To interpret for the other party what the outcomes of his or her proposal will really be.
• To modifying the other’s perceptions is to conceal information.
  
  Manipulate the Actual Costs of Delay or Termination
  There are 3 ways to manipulate the cost of delay in negotiation
• Plan disruptive action
• Form an alliance with outsiders
• Manipulate the scheduling of negotiations
  
  Position Taken during Negotiation
  Effective distribution bargainers need to understand the process of taking positions during bargaining, including the importance of the opening offer and the opening stance, and the role of making concession throughout the negotiation process.
• Opening Offer: What should the opening offer be? Will the offer be seen as too low or too high by the other negotiator and be contemptuously rejected?
• Opening Stance: Concern the stance or attitude to adopt during negotiation.
• Initial Concession: After the first round of offer, the next question is, what movement or concessions are to be made?
• Role of Concessions: If one side is not prepared to make concessions, the other side must capitulate or the negotiation will deadlock.
• Pattern of Concession Making
• Final Offers: The final offer has to be large enough to be dramatic yet not so large that it creates the suspicsion that the negotiator has been holding back nad there is more available on other issues in the bargaining mix.
  
  
  Closing the Deal:
  Choosing the best tactic for given negotiation is as much a matter of art as science.
• Provide Alternatives: negotiators can provide two or three more alternative package for the other party that are more or less equivalent in value.
• Assume the close: 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
• Exploding offers: An exploding offer contains an extreamly tight deadline in order to pressure the other party to agree quickly.
• Sweeteners: “I will give you X if you agree to the deal.”
  
  Hardball tactics:
  Such tactics are designed to pressure negotiators to do things they would not otherwise do, and their presence usually disguise the user’s adherence to a decidedly distributive bargaining approach.
  
  Dealing with Typical hardball Tactics:
• Ignore Them
• Discuss Them
• Respond in Kind
• Co-Opt the other Party
  
  Typical Hardball Tactics: Included
• Good Cop/Bad Cop
• Lowball/High Ball
• Bogey
• The Nibble
• Chicken
• Intimidation
• Aggressive Behaviour
• Snow Job

By: Chotipun Tubtimtong (MEE)

Leadership Communication
Chapter 2: Creating Leadership Documents

＊ Select the most effective communication medium.
＊ Create individual or team document.
＊ Organize document content coherently.
＊ Conform to content and format expectations in correspondence.
＊ Include expected contents in reports.
＊ Format business documents effectively.

In business documents fall into one of two broad types:
(1) correspondence(e-mails ,memos ,and letters)
(2) reports(proposals ,progress reviews ,performance reports ,and chart packs)

Selecting the most effective communication medium
＊ Select the medium best suited for the context and your message.

Creating individual and team documents
Whether we are creating our document alone or in collaboration in a team, having some plan will help us be more productive and streamline.

(1) Individual documentsh
The brain cannot be creator and critic at the same time.
Govern how u approach the process and how complete it.
Step1: Analyzing and planning
Step2: Creating and Developing
Step3: Refining and proofing

(2) Team documents
It uses one of two ways to divide the tasks:

1. One person on the team doses all of the writing with others providing the content t0

the scribe.
2. The team divides the writing among the team members according to the sections for

which they have provided most of the content.
The single-scribe approach
Ensure consistency in style and format.
The members must share in the ownership of the document by reading and contributing to

the drafts.

Also make sure scribe’s contribution is recognized, and that he or she included in all team

meeting.

The multiple-writer approach

In aspect of advantage: the work will usually go much faster than the single-scribe approach.

The team members know the content well and can ensure that it is complete and correct,and

they avoid the delays caused when a team memeber has to rewrite his or her section

because the scribe,who is often not close to the content.Collaborative writing makes team

labour more efficient and make it more equitable.In aspect of disadvantage:Team maybe

confused about the precise scope of individual assignments,resulting in duplication of effort

or neglected tasks.Have trouble dividing the sections equitably,and the resulting sections

mabe uneven and inconsistent, the style and tone will probably differ from section to section.

The document can easily come a cross as fragmented and even incoherent.

• Controlling version
  When creating a team document, since multiple team members will touch the document at various times during the writing process.
  All the members have to get in the habit of inserting their initials in the footer and save document.
  Make sure higher quality and save you times such procedures will help team avoid some of conflict.
  
  Organizing the content coherently
  Specifically creating coherence when writing typical business documents by organizing your content and including the content expected by your audience.
  
  Organization and content
  Organizing device that best matches your purpose and content , such as deductive ,inductive ,or chronological .The logic of the entire document, as well as that of each section, should be obvious to your readers. If you have a hostile or resistant audience and decide it is best to take an indirect approach by explaining and presenting your evidence before stating your main message or recommendation.
  
  Opening with power
  Most of the time you should begin strongly by quickly stating your main message, but let your analysis of your audience guide you.
  Use your analysis of your audience to determine how best to begin ,but try to state your main point as early as possible in your document so that reader knows your reason for writing. Don’t let reader said so what after read anything that you wrote.
  
  Developing with Reason
  The logical structuring should be MECE, which is called as Mutually Exclusive, Collectively Exhaustive, it means your supporting topics do not overlap ,and you have to provide adequate justification for each one. It also suggests a balance for your sections. In solving many of the business problem that u tackle , you will collect more information than you can or should present to your audience.
  
  Closing with grace
  Once you have taken your audience through your discussion, you should end as quickly and directly as you began. You should, however, provide a sense of polite, unrushed closure. Traditional academic writing requires closings that restate or summarize what has already been said.
  
  Conforming to Content and Formatting Expectations in Correspondence
• Determine the actual content of your letters, memos, and e-mail based on your purpose, strategy, and audience.
• These types of business communication do carry with them some expectations of what you should include.
• Use a format that follows standard business writing conventions.
• It designed to make your document accessible as well as attractive.

The examples provided here follow these conventions.
*Letters: Most businesspeople today prefer block format letters illustrated in the letter of transmittal with simple “Sincerely” to close the letter.

*Memos: Should include all of the preliminary elements of date, to, from, and subject.

*E-mails: Emails follow a format similar to that of a memo, but they do have some special guidelines that should follow to ensure that they are effective.

Including Expected Content in Reports
(1)The type of report, the company style, as well as the industry standards will often dictate content and organization.

A Formal Full-Length Report
*A formal full-length report should have a table of contents.
*The table of contents reveals the organization of your report.
*It allows your readers to see the overall content and select the sections relevant to their need and interests.

Including Exhibits in Reports
*Exhibit Placement:
It is best to insert the exhibits as close as possible to the text that discussed it.
The exhibit may supplement your message but not be immediately necessary to the understanding of it, in which case you may place it in an appendix at the end of the document.
*Exhibit Labels: Exhibits are always numbered consecutively.

Handling Research Information in Reports
(1)If you have used information that you gained by reading what others have said or written, you must include notes and bibliography, which would come just before appendix.



Proposal and Progress Reports
(1)A Proposal: A proposal maybe written as a formal report with a letter of transmittal, executive summary, and so fourth, or it may be presented as a formal letter.
(2)A progress Report: Allow you to highlight progress on a project or task and also, if appropriate, to showcase your work. They will usually include the following sections:
*Introduction.
*Project description.
*Work completed.
*Work in progress.
*Work remaining.
*Overall appraisal of progress.

Executive Summaries
· An executive summary must accurately, yet concisely, summarize the major message of the original document so that your reader understands the substance of your report without reading further.


Formatting Business document effectively
· It makes them accessible to your audiences and easier for them to read.

Document should conform to the following business wring standard
· Layout: A letter or memo should follow standard conventions. Allow adequate margins, which usually means at least one inch on all sides.
· Spacing and alignment: Business documents should be single-spaced with double-space (the equivalent of a one-line gap) between the paragraphs.
· Font Type and Size: Times New Roman has become the preferred font and is used most frequently in business documents.

Using Heading
*Your goal with heading is to make it easier for the audience to access the information in the document.

Formatting Lists

*Lists are formatted using bullets or numbers. One rule of thumb on the use of bullets is that you have more than five items in your list, you should use numbers instead since it make it easier for the reader to keep track.

by Jeff (chihao chen )

Chapter 1 Leadership communication development

What is LCS?
LCS means leadership communication strategy.
That is Where do you want to go?
How can you get there?
4 steps
1.Establish a clear purpose
2.Determin communication strategy
3.Analyze audiences
4.Organizing written and oral communication efectively


Step 1.Establish a clear purpose
a. Clarify your purpose:clear , concise.
b. Generate ideas:brainstorming,idea mapping,5w,decision tree.
idea mapping is often used as bellowing chart:


Step 2.determine your strategy
use “how to” to ask yourself about
1.Context
2.Purpose
3.Message
4.Medium
5.Spokesperson
6.Timing
7.Audiences
8.feedback


Step 3.analyze your audiences
Audiences are divided into groups
Like technicals, executives…
Use :what will they feel ?what will appeal to them?what do they need to know…
1.

Step 4.organizing written and oral communication effectively
#Your documents or presentation should
Be logical:
1.Deduction
2.Induction
3.Chronological
4.Cause/effect
5.Comparison/contrast
6.Problem/solution
7.Spatial
#Use pyramid principle “why my argument is reasonable” to structure and support my strategy.

by Jemmy Hua
May 26. 2007