Chapter 10 – Negotiation
Introduction
The ability to negotiate is allows for successful business practice, often resulting in mutually beneficial decisions for each party involved. A skilled negotiator has the ability to foresee the desirable outcome and devise a game plan in order to achieve the outcome. Moreover, the negotiator can determine the likelihood of a desired outcome of a negotiation depending on how much benefit is available to the opposing party.
This chapter will discuss these ideas, and more, pertaining to negotiation. Improving my negotiation skills using material in this chapter, and practice with the exercises, will prepare me for the inevitable times when I am faced with a negotiable situation. Pertaining to my aspirations, the times when I will be faced with a negotiating situation might be when I am due a salary raise or a promotion and I have some flexibility in negotiating pay. Also, I plan for the short and mid-term portions of my career to be in a banking sales role, and negotiation is a key component of any sales position.
Introduction
The ability to negotiate is allows for successful business practice, often resulting in mutually beneficial decisions for each party involved. A skilled negotiator has the ability to foresee the desirable outcome and devise a game plan in order to achieve the outcome. Moreover, the negotiator can determine the likelihood of a desired outcome of a negotiation depending on how much benefit is available to the opposing party.
This chapter will discuss these ideas, and more, pertaining to negotiation. Improving my negotiation skills using material in this chapter, and practice with the exercises, will prepare me for the inevitable times when I am faced with a negotiable situation. Pertaining to my aspirations, the times when I will be faced with a negotiating situation might be when I am due a salary raise or a promotion and I have some flexibility in negotiating pay. Also, I plan for the short and mid-term portions of my career to be in a banking sales role, and negotiation is a key component of any sales position.
Here is a useful diagram that summarizes the key steps in negotiation. The four stages, I believe, are a minimum of what goes into successful negotiation. There are more concepts, such as social, mental and cultural interactions. But all negotiations should at least be comprised of these four pieces.
Article 1 – Negotiation (Bazerman)
This paper is broken into two main sections. Part one gives a history of the psychological studies of negotiation. It explains how, over time, negotiation studies have ranged from social psychology, behavioral decision-making, and back to social studies. The range of time of the studies discussed in part one is from the 1960s to the 1990s. Part two discusses five up and coming research areas for negotiation: mental models in negotiation; how concerns of ethics, fairness and values define the rules of negotiation; how the selection of a communication medium effects the way negotiating is done; cross-cultural issues and perception; and how negotiators organize and simplify their understandings of negotiating when more than two parties are involved.
I will focus on part two of this paper and use the information provided to better equip myself with understandings of how mental, social, and cultural aspects effect negotiation.
1) Individually held mental models vs. Shared mental models
- Negotiations begin with more individually held mental models, meaning most thoughts and ideas are not shared between parties, and these thoughts are mostly different.
- As negotiations progress, individually held mental models begin to show themselves and develop into shared mental models, where both parties understand what the other is thinking and move toward a beneficial arrangement.
- The quicker a negotiation can move toward shared mental models the better.
2) Choosing a medium of communication
- “The technology we use to negotiate affects our definition of the negotiation game and the behavior deemed appropriate for interaction.” (Bazerman 2000)
- Face-to-face communication: richest level of social presence, best medium to develop rapport, better rapport generally leads to more favorable outcomes
- Non-face-to-face communication: fewer pressure tactics used, less ability to dominate a negotiation when the other party cannot be seen
3) Negotiating within cultures versus across cultures
- Power distance, communication context, and conception of time all play roles in most cultures across the globe. These dimensions effect negotiations within the same culture.
- Cultural and social faux pas, blunders, etc. are more common when negotiating between different cultures.
- Basic assumptions may not be prevalent from one culture to the next.
Article 2 – Negotiation (Thompson)
Five levels of negotiation behavioral analysis are discussed and examined in Thompson’s article. These levels are: interpersonal, intrapersonal, group, organizational, and virtual. Each of the levels focused on in this paper are backed with research that validate certain outcomes. The article also discusses two types of negotiation: value creation and value claiming.
In Bazerman’s article, negotiation was studied mostly around the basis of negotiations in business. Thompson’s piece assists in understanding how negotiations take place in all areas of life. The focus on intrapersonal and delves into the effect that a person’s physical and physiological features has on a negotiation. The interpersonal level discusses emotions as well as social and psychological aspects of negotiation (similar to Brazerman).
My ability to grasp these concepts and put them to use will benefit my career and personal life. As discussed in my introduction of this chapter, I will undoubtedly negotiate for many things in my professional life. However, in my personal life, too, as I plan to have a family, there will certainly be times when negotiations must take place to keep peace amongst all family members. It will be important for me to know how to effectively negotiate to maintain mental satisfaction.
Exercise – The Car Deal
See attached word document for an exercise on negotiating a car purchase. This exercise was first performed and outlined by the Graziadio Business Review.
References
Bazerman Max H., Curhan Jared R., Moore Don A., Valley Kathleen L. "Negotiation." Annual Review of Psychology. Vol. 51. pg. 279-314. p. February 2000. Internet. Accessed 29 November 2013.
Rainey Michael B. "The Car Deal." Graziadio Business Review. Vol. 6, Issue 4. p. 2003. Internet. Accessed 1 December 2013. <http://gbr.pepperdine.edu/2010/08/the-car-deal/>
Thompson Leigh L., Wang Juinwen, Gunia Brian C. "Negotiation." Annual Review of Psychology. Vol. 61, pg. 491-515. p. January 2010. Internet. Accessed 29 November 2013.
This paper is broken into two main sections. Part one gives a history of the psychological studies of negotiation. It explains how, over time, negotiation studies have ranged from social psychology, behavioral decision-making, and back to social studies. The range of time of the studies discussed in part one is from the 1960s to the 1990s. Part two discusses five up and coming research areas for negotiation: mental models in negotiation; how concerns of ethics, fairness and values define the rules of negotiation; how the selection of a communication medium effects the way negotiating is done; cross-cultural issues and perception; and how negotiators organize and simplify their understandings of negotiating when more than two parties are involved.
I will focus on part two of this paper and use the information provided to better equip myself with understandings of how mental, social, and cultural aspects effect negotiation.
1) Individually held mental models vs. Shared mental models
- Negotiations begin with more individually held mental models, meaning most thoughts and ideas are not shared between parties, and these thoughts are mostly different.
- As negotiations progress, individually held mental models begin to show themselves and develop into shared mental models, where both parties understand what the other is thinking and move toward a beneficial arrangement.
- The quicker a negotiation can move toward shared mental models the better.
2) Choosing a medium of communication
- “The technology we use to negotiate affects our definition of the negotiation game and the behavior deemed appropriate for interaction.” (Bazerman 2000)
- Face-to-face communication: richest level of social presence, best medium to develop rapport, better rapport generally leads to more favorable outcomes
- Non-face-to-face communication: fewer pressure tactics used, less ability to dominate a negotiation when the other party cannot be seen
3) Negotiating within cultures versus across cultures
- Power distance, communication context, and conception of time all play roles in most cultures across the globe. These dimensions effect negotiations within the same culture.
- Cultural and social faux pas, blunders, etc. are more common when negotiating between different cultures.
- Basic assumptions may not be prevalent from one culture to the next.
Article 2 – Negotiation (Thompson)
Five levels of negotiation behavioral analysis are discussed and examined in Thompson’s article. These levels are: interpersonal, intrapersonal, group, organizational, and virtual. Each of the levels focused on in this paper are backed with research that validate certain outcomes. The article also discusses two types of negotiation: value creation and value claiming.
In Bazerman’s article, negotiation was studied mostly around the basis of negotiations in business. Thompson’s piece assists in understanding how negotiations take place in all areas of life. The focus on intrapersonal and delves into the effect that a person’s physical and physiological features has on a negotiation. The interpersonal level discusses emotions as well as social and psychological aspects of negotiation (similar to Brazerman).
My ability to grasp these concepts and put them to use will benefit my career and personal life. As discussed in my introduction of this chapter, I will undoubtedly negotiate for many things in my professional life. However, in my personal life, too, as I plan to have a family, there will certainly be times when negotiations must take place to keep peace amongst all family members. It will be important for me to know how to effectively negotiate to maintain mental satisfaction.
Exercise – The Car Deal
See attached word document for an exercise on negotiating a car purchase. This exercise was first performed and outlined by the Graziadio Business Review.
References
Bazerman Max H., Curhan Jared R., Moore Don A., Valley Kathleen L. "Negotiation." Annual Review of Psychology. Vol. 51. pg. 279-314. p. February 2000. Internet. Accessed 29 November 2013.
Rainey Michael B. "The Car Deal." Graziadio Business Review. Vol. 6, Issue 4. p. 2003. Internet. Accessed 1 December 2013. <http://gbr.pepperdine.edu/2010/08/the-car-deal/>
Thompson Leigh L., Wang Juinwen, Gunia Brian C. "Negotiation." Annual Review of Psychology. Vol. 61, pg. 491-515. p. January 2010. Internet. Accessed 29 November 2013.
negotiation._bazerman.pdf | |
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negoiation._thompson.pdf | |
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chapter_10_exercise_-_the_car_deal_.docx | |
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chapter_10_-_negotiation.pptx | |
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