Topic 3: Chapter 5 DEVELOPING A NEGOTIATING STYLE

Presented By:

- Abdulhameed Alhajj (Tough & Soft Negotiator)- Ahmed Nagi (Motivational Orientation)- Walid Radwan (Negotiation Approaches)- Wael Haddad (Emotional Styles )

WHAT MAKES UP A TOUGH AND SOFT NEGOTIATOR

TOUGH NEGOTIATOR

• Unflinching

• Makes high demands

• Concedes little

• Rejects Offers within bargaining zone

• Holds out until the end

• Walks away from potentially profitable interactions

SOFT NEGOTIATOR

• Offers too many concessions

• Reveals reservation point

• Concerned the other party feels good

• Gives away too much of the bargaining pie

• Agrees too readily

• Seldom reaps much of the bargaining surplus

The 2 approaches are not particularly effective in simultaneously expanding and slicing the pie and both are likely to lead to outcomes negotiators regret

Tough and soft approach

MOTIVATIONAL ORIENTATION

People have different orientation towards the process of negotiation

1. Individualists ( Seeking own gain)2. Cooperative (Maximize joint interests)3. Competitive (Maximize differences)

What are the most important orientations towards the process of negotiation?

1) Avoid concentrating too much on your bottom line (Spend extra time preparing goals and aspirations)

2) Develop your BATNA (Knows your options to negotiate)

3) Get an agent and delegate the negotiation task (appoint someone can act more assertively than your self will not be considered as failure)

4) Bargain on behalf of someone or something else, not yourself (don’t be selfish)

5) Create an audience (tell some one about your negotiation)

6) Say “you will have to do better than that because…,” not “yes”(cooperative people almost say yes )

7) Insist on commitments, not just agreements (promises from the other party with consequences it they are not followed)

What about the most helpful strategies for cooperative negotiator

1) Think about pie-expansion, not just pie-slicing (slice of pie can be increased by creating a bigger pie)

2) Ask more questions than you think you should (understanding the other party's objective and needs)

3) Rely on standards (good response if arguments are based on fairness and objectivity)

4) Hire a relationship manager (consult someone how to mange the people side of negotiation , not failure

5) Be scrupulously reliable (word of honor)

6) Do not haggle when you can negotiate (think about the big picture, you may lose some issues in return big gains)

7) Always acknowledge the other party and protect that person’s self-esteem (the word most like to hear is their own name)

What about the seven tools that assist competitive negotiator

Interests Rights Power

Q: What are the 3 approaches negotiators use in negotiation?

Q: What are the principles negotiators should keep in mind when choosing their approach?

1- Principle of Reciprocity

2- Interests are more effective for Pie expansion.

3- How to refocus your opponent on interest and move him from rights/power?

A- Personal Strategies

1- Do not reciprocate2- Provide Opportunities3- Do not get personal4- Use Behavioral reinforcement5- Send a mixed message6- Process Intervention7- Lets talk & then fight8- Strategic cooling off periods9- Paraphrasing10- Label the process

B- Structural Strategies

1- Put Focus on Interests.2- Multistep negotiation procedure3- Wise Counselor4- Mandatory Negotiation5- Skills & Training 6- Mediation

4- High Cost associated with power & rights.

5- Know when to use power & rights.

Difference between emotion and mood Emotions and moods can either be a

consequence or a determinant of negotiation behavior and outcome

Emotions & Emotional knowledge

MoodGood mood

Bad mood

Emotions

Positive

Love

Joy

Negative

Anger

Sadness

Fear

Emotions can either be genuine or strategic Emotional styles expressed can be either:

◦ Positive emotion, ◦ Negative emotion, or ◦ Mask face

Emotional styles expressed can be used to either:◦ Express truly felt emotion,◦ Hide felt emotions, or◦ Feign unfelt emotion

What are the differences between Emotional styles

Negative Positive Rational

Use irrational emotions to intimidate or control other party

Create positive emotion in other partyCreate rapport

Conceal or repress emotion

Focus

ThreatsOften tough bargaining

Compromise for the sake of the relationship

Citing norms of fair distribution

Distributive strategies

Negative emotion may inhibit integrative bargaining

Positive emotion stimulates creative thinking

Systematic analysis of interests

Integrative strategies

Pressure to carry out threats or lose credibility

Greater feelings of commitment to relationship partner

Not likely to say or do anything regrettable, but also may come across as “distant”

Implications for future negotiations and relationship

Expressing positive emotion might have positive consequences in negotiations. While, good moods promote creative thinking, which in turn, leads to innovative problem solving.

On the contrary, really angry negotiators who feel little compassion for the counterparty are less effective in terms of expanding the pie.

While, negotiators who are strategically angry are more likely to gain concession from their opponents.

Emotional Intelligence (EQ) It the ability of negotiators to understand

emotions in themselves and others and to use emotional knowledge to affect positive outcomes.

Emotional intelligence can lead to good negotiated outcomes if it has:◦ Accuracy◦ Self-efficacy (either distributive or integrative)

Emotional intelligence (eq) It the ability of negotiators to understand

emotions in themselves and others and to use emotional knowledge to affect positive outcomes.

Emotional intelligence can lead to good negotiated outcomes if it has:◦ Accuracy◦ Self-efficacy (either distributive or integrative)

THANKS FOR LISTENING

The management of company X wanted to acquire the property of Mrs Grace Benton an elderly lady who is 75 years old. The company executive approached her asking to purchase her property for construction purposes. The lady was offered from €5000 to €12000. However, she declined thus refusing to sell the property. The company executive decided one day to visit the old lady at her home in a bid to try and convince her to sell the property. At the lady’s home he observed several photographs of a cat displayed all over the sitting room. Curiously, he asked what’s with the photograph of the cat. The old lady suddenly started sobbing and expressed “O Martha my lovely companion”. He probed further and was told how the cat died a few years ago and how life has not been the same since then.

 

Business case study

She then invited the company executive to her courtyard and showed him where Martha was laid to rest. The company executive was moved about the whole episode and commiserated with her. He agreed with the old lady to erect an edifice in memory of Martha at the place where she was laid to rest and at the end secured approval from the lady to buy the property. The old lady expressed “I am 75 years old, what do I need money for at this age”, all I want is a memorial for my beloved Martha and all my desires would be fulfilled.” The company executive signed the agreement to purchase the property at a cost little above the original amount.

  Q1 What Kind of negotiator is the company executive? Q2 What motivational orientations did the company executive

exhibit? Q3 What negotiation approach did the company executive use? Q4 What strategies the company executive implemented? Q5 What emotions and emotional knowledge was put in play?

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