Fluent Essays

see attachment Unit III 1. Select two of the engagement strategy aspects, and describe when and why it would be appropriate to use these strategies. Your response must be at least 75 words in length 2. Explain two of the four strategies of the dual concerns model. Please include an example of each. Your response must be at least 75 words in length. Because learning changes everything. ® Negotiation Section 01: Negotiation Fundamentals Chapter 04: Negotiation: Strategy and Planning © 2019 McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw-Hill Education. © McGraw-Hill Education Goals The first step in a negotiation strategy is to determine your goals. Substantive, intangible, or procedural goals. There are four direct ways that goals affect negotiation. Wishes are not goals, especially in negotiation. There are limits to what realistic goals can be. Effective goals must be concrete, specific, and measurable. Indirectly, short-term thinking affects our choice of strategy. We may lose sight of the relationship in favor of the outcome. Difficult or complex goals may require a long-range plan for goal attainment. 2 © McGraw-Hill Education Strategy The Plan to Achieve Your Goals After negotiators articulate goals, they move to the second element in the sequence. Selecting and developing a strategy. This is how business strategy experts define strategy. and action sequences into a cohesive whole. Here is the definition for strategy as applied to negotiation. action sequences that will lead to the accomplishment of those goals. 3 © McGraw-Hill Education Strategy versus Tactics A major difference between strategy and tactics is that of scale, perspective, or immediacy. Tactics are short-term, adaptive moves designed to enact strategies. Tactics are subordinate to strategy. A unilateral choice is made without active involvement of the other party. Here, a dual concerns model asks two questions of a How much concern does the negotiator have for achieving the substantive outcomes at stake in this negotiation? How much concern does the negotiator have for the current and future quality of the relationship with the other party? 4 © McGraw-Hill Education Figure 4.2: The Dual Concerns Model Jump to slide containing descriptive text. The Academy of Management Executive. Briarcliff Manor, NY: Academy of Management, 1989. 5 © McGraw-Hill Education Alternative Situational Strategies There are at least four different types of strategies. A strong interest in only substantive outcomes supports a competitive (distributive) strategy. A strong interest in only the relationship goals suggests and accommodation strategy. If both substance and relationship are important, pursue a collaborative (integrative) strategy. If neither outcomes is important, consider avoiding negotiation. Each approach has implications for negotiation planning and preparation. 6 © McGraw-Hill Education The Nonengagement Strategy: Avoidance There are reasons to choose not to negotiate. If you can meet your own needs, avoid negotiating. It may not be worth the time and effort. Attractive alternatives provide a reason to avoid negotiation. A negotiator with strong alternatives has considerable power. It can influence the decision about whether to avoid negotiation, strictly on efficiency grounds. But having a weak alternative may also suggest avoiding negotiation. Negotiators may accept poor outcomes when the alternative is poor. 7 © McGraw-Hill Education Active-Engagement Strategies Accommodation is as much a win-lose strategy as competition. Its imbalance is the other direction I lose, you win. Used to build relationships. Each of the three active-engagement strategies accommodation, competition, and collaboration have drawbacks. needs, and position. manipulate and exploit the collaborator, and take advantage. Accommodative strategies may generate a pattern of giving in to keep the other happy or avoid a fight. 8 © McGraw-Hill Education The Flow of Negotiation: Stages and Phases Research studies the flow of negotiation through stages or phases. One model relevant to integrative negotiation suggests seven key steps to an ideal negotiation process. Preparation. Relationship building. Information gathering. Information using. Bidding. Closing the deal. Implementing the agreement. 9 © McGraw-Hill Education The Planning Process 1. Defining the negotiating goal. 2. Defining the major issues related to achieving that goal. 3. Assembling the issues, ranking their importance, and defining the bargaining mix. 4. Defining the interest. 5. Knowing your alternatives (BATNAs). 6. Knowing your limits, including resistance points. 7. Analyzing and understanding the other resistance points. 8. Setting your own targets and opening bids. 9. Assessing the social context of negotiation. 10. Presenting the issues to the other party: substance and process. 10 © McGraw-Hill Education Defining the Negotiating Goal Remember that goals can be: Substantive or tangible. Psychological or intangible. Procedural or how to get to an agreement. Goals can have both direct and indirect effects on the choice of strategy. Knowing your own goals is the first and most important step in developing a strategy and executing a negotiation. 11 © McGraw-Hill Education Defining the Major Issue for Achieving the Goal Single-issue negotiations tend to end in distributive negotiations. Multiple-issue negotiations tend to be more integrative. The choice between a claiming-value or creating-value strategy is While the number of issues affects strategy, it does not mean single-issue negotiations cannot be made integrative, or that multiple-issue negotiations will remain distributive. A list of issues is best derived from these sources. An analysis of all possible issues that need to be decided. Previous experience in similar negotiations. Research conducted to gather information. Consultation with experts in that industry. 12 © McGraw-Hill Education Figure 4.4: How Issues Affect the Choice between Distributive and Integrative Strategy Jump to slide containing descriptive text. Sources: Lax, David, and Sebenius, James, Manager as Negotiator. New York, NY: Simon & Schuster, 1986; Watkins, Michael, Breakthrough Business Negotiation: A Toolbox for Managers. New York, NY: John Wiley & Sons, Inc., 2002. 13 © McGraw-Hill Education Issue Importance and the Bargaining Mix Assemble all the issues into a comprehensive list and combine the lists from both sides to determine the bargaining mix. Prioritize the issues in three steps. Determine which issues are most important and less important. Rank-order, group, or assign points in proportion to importance. Intangibles are difficult to prioritize, but try. Determine whether the issues are linked or separate. Separate issues are easily added or subtracted. Concessions on connected issues tie into other issues. Create incentives to motivate the other toward your high-priority issues and disincentives to motivate them away from your low-priority issues. 14 © McGraw-Hill Education Defining the Interests After defining the issues, negotiators proceed to define the underlying interests and needs. Positions are what a negotiator wants. Interests are why they want them. Like goals, interests fall into three groups. Substantive directly related to the focal issues under negotiation. Process-based how the negotiators behave as they negotiate. Relationship-based tied to the current or future relationship. Interests may also be based on the intangibles of negotiation. 15 © McGraw-Hill Education Knowing Your Alternatives BATNAs Good preparation requires you establish two clear points. Your alternatives if this deal cannot be successfully completed. Your limits the least acceptable offer you will sign. BATNAs are other agreements negotiators could achieve and still meet their needs. Alternatives are important in both distributive and integrative processes as they define whether the current outcome is best. The better the alternatives, the more power you have as you can walk away from the current deal and still meet your needs and interests. 16 © McGraw-Hill Education Know Your Limits, Including a Resistance Point A resistance point is the place you should stop negotiations. Any settlement beyond this point is not minimally acceptable. Setting resistance points is a critical part of planning. Clear resistance points help keep people from agreeing to deals that they later realize where not very smart. 17 © McGraw-Hill Education Gathering information about the other party is a critical step. The goal is to understand how the other party is approaching the negotiation and what they are likely to want. If impossible before deliberations, collect information during the opening stages. Try to understand if the other party has the same goals as you. Get a sense of their issues and bargaining mix using business history, financial data, and inventories visit, or ask questions of others. Uncovering their interests and needs may require a meeting. 18 © McGraw-Hill Education Setting Your Targets and Opening Bids When setting targets, keep these principles in mind. Targets should be specific, difficult but achievable, and verifiable. Target setting requires proactive thinking about your own objectives. Consider how to package several issues and objectives. Understand trade-offs and throwaways. An opening bid may be the best possible outcome, an ideal solution, or something even better than achieved last time. Beware over confidence do not set an opening that is so unrealistic the other party gets angry, or walks away before responding. 19 © McGraw-Hill Education Assessing the Social Context of Negotiation When people negotiation in a professional context, there may be more than two parties. Who is on the other side of the field? Who is on the sidelines and can affect the play of the game? Who is in the stands? What is going on in the broader environment in which the negotiation takes place? A number of other context issues can affect negotiation. relationship they desire in the future, deadlines, or even rules. 20 © McGraw-Hill Education Presenting Issues: Substance and Process Presenting and framing the issues. Consider how to present your case to the other negotiator, providing facts and counterarguments to refute their anticipated arguments. Planning the process and structuring the context by which information is presented consider these elements. What agenda should we follow? Where should we negotiate? How should we begin? What is the time period of the negotiation? How will we keep track of what is agreed to? Have we created a mechanism for modifying the deal if necessary? 21 Because learning changes everything.® www.mheducation.com End of Chapter 04. © 2019 McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw-Hill Education.