Transcript Slides - Prof. Emily Block

Roadblocks in Negotiation
Today’s Agenda
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Midterm info
Preparation in negotiation
Effective communication
Biases in negotiation
Negotiate El Tek
Exam
• Takes place in class
• Partners assigned at
random
– Will receive role on paper
and partner email address
• 30 minutes to prepare
– No use of computer
allowed during this time
• 30 minutes to negotiate
(over messenger)
• 20 minutes to report
results
– Cut and paste messenger
text into google form
– Answer questions
START
HERE
Eltek Debreif
ElTek
• 2 Parts of a single organization
• No special provisions for coordination
between divisions
• Left up to two managers
– Benefit for the individuals
– Benefit for the organization
Option Number
Months
Ac or Eltec Competitors
Transfer Payment Net Profit Audio Net Profit Magnetics
3
6
No AC competitors for 6 months (other divisions ok)
30
55
10
3
12
Eltec Competitors
45
75
75
3
6
El Tec
50
75
80
3
6
AC
12
37
128
4
6
Both
26
33
90
5
12
Ac
57
45
63
5
12
AC competitors
20.5
0.5
99
5
12
AC
27
57
93
5
12
internal and external
14
54
96
5
12
AC
30
48
90
5
12
AC
14
54
96
5
12
AC
30
60
90
5
12
Audio
2
.
118
5
12
Eltec competitors
57
87
.
5
12
AC
45
75
75
6
12AC/6 ELT
AC
36
61
6
12AC/6 ELT
Ac and eltex resectively
14
45
76
7
12
Both
30
62
90
8
20
Ac
10.7
45.7
.
8
20
AC competitors
30
65
.
8
20
Eltec competitors
30
35
77
Why so many different results?
• Different interpretations
• Different tactics
• How did you figure out what your partners’
preferences were?
Options
• What is best for one division may not be best
for the company as a whole
• Reasonable for both parties:
– 3, 5, 8, 11
– 11 not appealing for both parties
Did you know you
got the optimal
solution? How?
Others? What
stopped you from 3?
What is a Win Here?
• Mutual win?
• Individual win?
• Not having to go “upstairs”
Preparation in Negotiation
Preparation in negotiation
• Largely determines success or failure
• Can be a source of power
• Don’t allow others to prepare for you
– Know what you want out of the negotiation,
don’t rely upon others’ wants
Preparing beyond the outcome
• Consider the situation you are in
– Are there competitive elements of the situation?
– How will issues be addressed?
– What responses will help me achieve my goals?
• Consider the relationship (in integrative
negotiations)
– Is there trust and cooperation in the relationship?
– What is the other party’s reputation?
– What will we discuss in this particular
negotiation?
Effective communication
• You can communicate the same thing in
many different ways
– Strategies of influence can aid you in persuading the
other side…and yourself
Effective communication
• You can communicate the same thing in
many different ways
– Strategies of influence can aid you in persuading the
other side…and yourself
• Communication can also act as a
roadblock
– By not having a clear understanding of what you
want, your communication may be misleading
– Lack of face-to-face communication can increase
conflict
Email
Which shape is Larger?
Which shape is Larger?
Which Side of the Strip is Darker?
Biases in negotiation
• Mental shortcuts that are developed over
time
• Used without conscious awareness
• Particularly problematic in negotiation
– Escalate conflict
– Prohibit integrative strategies
• We are susceptible to many biases in
negotiation
– Competitiveness, representativeness, illusion
of transparency
Cognitive Biases in Negotiations
- Conflict bias:
- anticipate conflict based on experience
- Tendency toward distributive negotiations
- Representativeness:
- Perceived similarity to other situations
- Use memory to guide behavior
- Routines obfuscate opportunity
- Illusion of transparency
- assume that individuals understand
- leaves out important details that make our message unclear
- Remember: communicating, remember that communication
includes listening, not just talking.
Cognitive Biases in Negotiations
Story of Matt Harrington
- At 18 he was picked as #7 and offered $4 million
with half a million signing bonus by Colorado.
He turned it down- and felt like it showed a lack
of respect for his talent.
- Next year drafted as #58 by the Padres for $1.25
million with $300000 signing bonus. He turned
it down.
- Next year, he was drafted as #374 and offered
less than $100,000. He turned it down
- The next year he was drafted by the Reds as
#711, but the offer fell through
- In 2004, he was drafted by the Yankees as pick
1089 but no offer ever worked out
- Now he for a minor league team (Long Beach
Breakers) for $1500 a month
Cognitive Biases in Negotiations
• Above average effect:
– We want to like ourselves
– Amplify our relative ability
– Many negotiations require telling people that they are not worth as
much as they believe they are
• Escalation of commitment
– Even though action doesn’t make sense…we keep going
– Save face
• Confirmation bias:
– Seek out information that confirms our expectation
– Ignores information that could be used for a more balanced
perspective
Can I Overcome these Biases?
• Recognize the biases you are susceptible to
• Perspective taking
– An understanding of where the other side is
coming from
– Focusing on interests rather than positions in the
conflict
• Perspective taking is about understanding,
not sympathy
• Offers a way to bridge what you want and
what the other party wants though a focus on
interests