negotiating strategically case

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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(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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(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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THANK YOU

negotiating strategically case

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