Post on 09-Apr-2018
transcript
8/7/2019 Negotiating Strategically case
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ROHAN DESAI (109)
SANDEEP TAMSE (152)ROHAN KOSHY(121)
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How do you approach negotiations
Relationship v/s outcomes
Power and Conflict
Unilateral Strategies
Interactive Strategies
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Illustration
David Peterson, director of services
4 negotiations different approaches
Substantive Fixed pie
Relationship Share the pie
Person Agenda
Clutch Disk Salesman Price/lifespan of Part
Mechanic of the company Discussion on docked paycheck
Tarcos representative Get a short term contract Get a footin towards a long term relationship
Management Representative Talks with union rep concerning loss inshop
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Negotiating Strategy
Substantive over Relationship
Look at your own interests
Maximize tangible outcome
Mechanic , Salesman
Game
Theory
Focus on best outcome for both
Both Substantive andRelationship
Union, TarcoWin-Win
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Trustingly
Collaborative
Openly
Subordinate
FirmlyCompete
ActivelyAvoid
Negotiating
Is t erelations ip
OutcomeVery
Importantto t e
manager
Is t e substantive Outcome VeryImportant to t e manager
YES
YES
NO
NO
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Negotiating Context
Relative Power
Induce Control
Human and Material Dependence
Conflict Supportive
Hostile
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Selecting Interactive Strategy
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Managers Priorities Opposite Partys
PrioritiesSubstantive
Outcome
Relationship
Outcome
Substantive
Outcome
Relationship
Outcome
Strategy Used
Yes Yes Trusting Collaboration
Yes/No No/Yes Principled CollaborationYes Yes No No Focused Subordination
Yes No Open Subordination
No Yes Soft Competition
No No Firm Competition
No No No No Active Avoidance
No No Yes Passive Avoidance
No No Yes Responsive Avoidance
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Variations from Unilateral Strategies
Manager of organization and oppositeparty agree to negotiate on someprinciples which will benefit both parties
Principled v/sTrusting
Collaboration
Identify key needs of opposite
Focus negotiations based on those needs
Focused v/sOpen
Subordination
Avoid highly aggressive and other dirtytactics.
Use competitive strategy that would
maintain the relationship
Soft v/s FirmCompetition
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Should Delegate the negotiation byassigning responsibility to some one else toexplore the possible outcomes.
Ensures opportunity are not ignored and
avoids relationship from becoming hostile.
PassiveAvoidance
Manager Should Regulate the issue, directinteraction in not necessary.
Apply standard operating procedures ordevelop new policies to address the otherpartys concern.
ResponsiveAvoidance
Variations from Unilateral Strategies
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Choice of Interactive
Strategy Used
The manager value relationship but the other partymay not.
Principled collaboration
Soft competition
The manager wants to create a long-term businessrelationship with someone currently interestedin neither substantive nor relationship outcomes.
Focused Subordination
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Choice of Interactive
Strat
egy Used
Both manager and Opposite party do not value
the relationship
Firmly compete Actively avoid negotiation
Both parties value the relationship, but themanager does not value substantive outcomes
Collaborative strategy
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Monitoring and Reevaluating
Strategies
Evaluate other partys tactics
Based on that
Whether the assumptions about other party isaccurate?
If not modify.
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Tactics across Negotiation
phases
Phase 1: Search for an Arena:
Competitive :
Seek to negotiate on managers home ground Ignore or discount other partys demand or requests
Collaborative :
Seek to negotiate on neutral ground
Seek other partys demand and request
Subordinative :Seek to negotiate on other partys ground
Concede to other partys demands and requests
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Tactics across Negotiation phases
(Cont..)
Phase 2: Stating of demands and offers:
Competitive : Insist other party make initial offer and respond with very low
offers.
Exaggerate managers position and discredit other party
Collaborative :
Respond with moderate demands and moderate offers
Alternate initial offers and demands should be ready
Subordinative : Make initial offers and demands
Accept other partys commitments to items
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Tactics across Negotiation phases
(Cont..)
Phase 3: Narrowing of differences:
Competitive :Demand concessions from other party. Back up the
demands with threatsDelete, add or yield only on low manager interest items
Collaborative :
Seek equitable exchange of concessions with other party
Delete, add or yield items if mutual interest converge
Subordinative :Concede to other partys demands
A Delete, add or yield to any other party-relevant items
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Tactics across Negotiation phases
(Cont..)
Phase 4: Finalizing the deal:
Competitive :Seek large concessions from the other party
Use concessions on low manager-interest items Collaborative :
Seek equitable exchange of concessions with other party
Seek mutually beneficial options while conceding to or
accepting concessions on items Subordinative :
Concede to other partys demands by accepting low offersand making low demands with high offers.
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eevaluating Negotiation
Strategies
Petersons Appointment with Mechanic:
Trusting collaboration by Peterson
Competitive tactics by mechanic
Revaluating Strategy by Peterson
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