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1、CHAPTER 2Strategy and Tactics of Distributive Bargaining,CHAPTER 2,The Titles,The Distributive Bargaining Situation. Tactical Tasks.Positions Taken during Negotiation .Commitment .Closing the Deal. Hardball Tactics.Distributive Bargaining Skills Applicable to Integrative Negotiation .Chapter Summary
2、.,The Titles The Distributiv,1. The Distributive Bargaining Situation,Figure 2.1 The buyers view of the house negotiation,$130,000,$135,000,$140,000,$145,000,$150,000,Larrys targetpoint,Megans targetpoint,Larrys resistancepoint,1. The Distributive Bargai,Figure 2.2 The buyers view of the house negot
3、iation (Extended),$130,000,$150,000,$145,000,$140,000,$135,000,$133,000,Megans resistancepoint(inferred),Larrys initialpoint(public),Larrys targetpoint(private),Megans targetpoint(inferred),Megans askingpoint(public),Larrys resistancepoint(inferred),Figure 2.2 The buyers vi,Figure 2.3 The buyers vie
4、w of the house negotiation (Extended with alternatives),1.1 The Role of Alternatives to a Negotiated Agreement,Megans resistancepoint(inferred),Larrys initialoffer(public),Larrys targetpoint(private),Megans alternativebuyer(private),Megans targetpoint(inferred),Megans alternativehouse(private),Megan
5、s askingpoint(public),Larrys resistancepoint(inferred),$130,000,$133,000,$135,000,$134,000,$140,000,$142,000,$145,000,$150,000,Figure 2.3 The buyers vi,1.2 Settlement Point,The objective of both parties is to reach an agreement as close to the other partys resistant point as possible.Both parties mu
6、st believe that the settlement is the best they can get. Another factor will affect the satisfaction with the agreement is whether the parties will see each other again.,1.2 Settlement PointThe objec,1.3 Bargaining Mix,The package of issues for negotiation is bargaining mix. Each item in the mix has
7、 its own starting, target, and resistance point.Negotiators need to understand what is important to them and to the other party, and they need to take these priorities into account during the planning process.,1.3 Bargaining MixThe package,1.4 Fundamental Strategies,In the condo example, the buy has
8、 four fundamental strategies available: (1) To push for a settlement close to the sellers resistance point. (2) To convince the seller to change her resistance point. (3) If a negative settlement range exists, to convince the seller to reduce her resistance point. (4) To convince the seller to belie
9、ve that this settlement is the best that is possible.,1.4 Fundamental StrategiesIn,1.5 Discovering the Other Partys Resistance Point,The more you can learn about the other partys target, resistance point, motives, feelings of confidence, and so on, the more able you will be to strike a favorable agr
10、eement.To influence the other partys perception, however, they must establish some points effectively and convincingly.,1.5 Discovering the Other Par,1.6 Influencing the Other Partys Resistance Point,Factors are important in attempting to influence the other partys resistance point: (1) the value th
11、e other attaches to a particular outcome; (2) the cost the other attaches to delay or difficulty in negotiations; (3) the cost the other attaches to having the negotiation aborted.A significant factor in shaping the other persons understanding of what is possible is the others understanding of your
12、own situation.,1.6 Influencing the Other Par,To explain how these factors can affect the process , we will make four major propositions:,1. The higher the other partys estimate of your cost of delay or impasse, the stronger the other partys resistance point will be.2. The higher the other partys est
13、imate of his or her own cost of delay or impasse, the weaker the other partys resistance point will be.3. The less the other values an issue, the lower their resistance point will be.4. The more the other believes that you value an issue, the lower their resistance point may be.,To explain how these
14、 facto,2. Tactical Tasks,There are four important tactical tasks for a negotiator in a distributive bargaining situation to consider: (1) assess the other partys target, resistance point, and cost of terminating negotiation. (2) manage the other partys impressions of a negotiators target, resistance
15、 point, and cost of terminating negotiation. (3) modify the other partys perceptions of his own target, resistance point, and cost of terminating negotiation. (4) manipulate the other partys actual cost of delaying or terminating negotiation.,2. Tactical TasksThere are f,2.1 Assess the other partys
16、target, resistance point, and cost of terminating negotiations,The negotiator can pursue two general routes to achieve this task: Obtain information indirectly about the background factors behind an issue (indirect assessment). Obtain information directly from the other party about their target and
17、resistance point (direct assessment) .,2.1 Assess the other partys t,2.2 Manage the Other Partys Impressions,An important tactical task for negotiators is to control the information sent to the other party about your target and resistance points, while simultaneously guiding him or her to form a pre
18、ferred impression of them.Negotiators need to screen information about their positions and to represent them as they would like the other to believe them. Screening Activities.Direct Action to Alter Impressions.,2.2 Manage the Other Partys,Screening Activities,The simplest way to screen a position i
19、s to say and do as little as possible. “Silence is gold.” Another approach, available when group negotiations are conducted through a representative is calculated incompetence.Reduce the number of people who can actively reveal information.Present a great many items for negotiations, only a few of w
20、hich are truly important to the presenter .,Screening ActivitiesThe simple,Direct Action to Alter Impressions,Many actions can be taken to present facts that will that will enhance their position or make it appear stronger to the other party.Negotiators should justify their positions and desired out
21、comes in order to influence the other partys impressions. Displaying emotional reaction to facts, proposals, and possible outcomes is another form of direct action.Taking direct action to alter anothers impression raises several potential hazards.,Direct Action to Alter Impress,2.3 Modify the Other
22、Partys Perceptions,There are several approaches to modifying the other partys perceptions: Interpret for the other party what the outcomes of his or her proposal will be. Another approach to modifying the perceptions is to conceal information.,2.3 Modify the Other Partys,2.4 Manipulate the Actual Co
23、st of Delay or Termination,There are three ways to manipulate the cost of delay in negotiation: (1) Disruptive Action. Increase the cost of not reaching a negotiated agreement. (2) Alliance with Outsiders. Involve the other parties who can somehow influence the outcomes in the process. (3) Schedule
24、Manipulation. The negotiation scheduling process can often put one party at a considerable disadvantage.& The opportunities to increase or alter the timing of negotiation vary widely across negotiation domain.,2.4 Manipulate the Actua,3. Positions Taken during Negotiation,Effective distributive barg
25、ainers need to understand the process of making positions during bargaining, including the importance of opening offer, opening stance, and the role of making concessions throughout the negotiation process.Changes in position are usually accompanied by new information concerning the others intention
26、s, the value of outcomes, and likely zones for settlement.,3. Positions Taken during Neg,3.1 Opening Offers,The fundamental question is whether the opening offer should be exaggerated or modest.There are at least two reasons that an exaggerated opening offer is advantageous.Two disadvantageous of ex
27、aggerated opening offer are: (1) it maybe summarily rejected by the other party; (2) it communicates an attitude of toughness that maybe harmful to long-term relationships.,3.1 Opening OffersThe fundame,3.2 Opening Stance,Will you be competitive or moderate? It is important for negotiators to think
28、carefully about the messages that the wish to signal with their opening stance and subsequent concessions.To communicate effectively, a negotiator should try to send a consistent messages through both opening offer and stance.,3.2 Opening StanceWill you b,3.3 Initial Concessions,First concession con
29、veys a message, frequently a symbolic one to the other party that how you will proceed.Firmness may actually shorten negotiations, there is also the very real possibility, however, it will be reciprocated by the other.There are good reasons for adopting a flexible position.,3.3 Initial ConcessionsFi
30、rst,3.4 Role of Concessions,Concessions are central to negotiation.Negotiators also generally resent a take-it-or-leave-it approach.Parties feel better about a settlement when the negotiation involved a progression of concession.A reciprocal concession cannot be haphazard.To encourage further conces
31、sion from the other party, negotiators sometimes link their concessions to a prior concession made by the other party.,3.4 Role of ConcessionsConces,3.5 Pattern of Concession Making,Figure 2.4 Pattern of Concession Making for Two Negotiators,1,5,3,2,4,5,4,3,2,1,Concession Number,Size of Concessions
32、(in dollars),0,=Georges concessions,=Marios concessions,3.5 Pattern of Concession Maki,3.6 Final Offers,A negotiator might simply let the absence of any further concessions that convey the message in spite of urging the other party.One way negotiators may convey the message that an offer is the one
33、is to make the last concession more substantial.,3.6 Final OffersA negotiator,4. Commitment,A key concept in creating as bargaining position is that of commitment. One definition of commitment is the taking of a bargaining position with some explicit or implicit pledge regarding the future course of
34、 action.The purpose of commitment is to remove ambiguity about the actors intended course of action.A commitment is often interpreted by the other party as a threat.,4. CommitmentA key concept in,4.1 Tactical Considerations in Using Commitments,Commitments exchange the flexibility for certainty for
35、action, but they create difficulties if one wants to move to a new position. When one makes commitments one should also make contingency plans for a graceful exit should it be needed.,4.1 Tactical Considerations i,4.2 Establishing a Commitment,A commitment statement has three properties: a high degr
36、ee of finality, a high degree of specificity, and a clear statement of consequences.Several ways to create a commitment: public pronouncement linking with an outside base increase the prominence of demands reinforce the threat or promise,4.2 Establishing a Commitment,4.3 Preventing the Other Party f
37、rom Committing Prematurely,One way to prevent the other party from establishing a committed position is to deny his or her the necessary time.Another approach is to ignore or downplay a threat by not acknowledging the other partys commitment, or even by making a joke about it. There are times, howev
38、er, when it is to a negotiators advantageous for the other party become committed.,4.3 Preventing the Other Party,4.4 Finding Ways to Abandon a Committed Position,Four avenues for escaping commitment: Play a way out Let it die silently Restate the commitment Minimize the damageA commitment position
39、is a powerful tool in negotiation, it is also a rigid tool and must therefore be used with care.,4.4 Finding Ways to Abandon a,5. Closing the Deal,Several tactics are available to negotiators for closing a deal: Provide alternatives Assume the close Split the differences Exploding the offers Sweeten
40、ers,5. Closing the DealSeveral ta,6. Hardball Tactics,Such tactics are designed to pressure negotiators to do things they would not otherwise do, and their presence usually disguises the users adherence to a decidedly distributive bargaining approach.Dealing with typical hardball tacticsTypical hard
41、ball tactics,6. Hardball TacticsSuch tacti,6.1 Dealing With Typical Hardball Tactics-1,How best to respond to a tactic depends on your goals and the broader context of the negotiation.Four main options that negotiators have for responding to typical hardball tactics: Ignore them Discuss them Respond
42、 in kind Co-opt the other party,6.1 Dealing With Typical Hard,6.2 Typical Hardball Tactics -1,Good Cop/Bad Cop Weaknesses: relatively transparent; much more difficult to enact than to read. Lowball/Highball Theory: the extreme offer will cause the other party to revaluate his or her own opening offe
43、r and more closer to or beyond resistance point. Risk: the other party will think negotiating is a waste of time and will stop negotiating. The best way to deal with: ask for a more reasonable opening offer from the other party. Good preparation needed.,6.2 Typical Hardball Tactics,6.2 Typical Hardb
44、all Tactics -2,Bogey Negotiators using the bogey tactic pretend that an issue of little or no importance to them is quite important. This tactic is fundamentally deceptive, and it can be a difficult to enact. Bogeys occurs more often by omission than commission. The Nibble Negotiators using the boge
45、y tactic ask for a proportionally small concession on a item that hasnt been discussed previously in order to close the deal. Two ways to combat the nibble.,6.2 Typical Hardball Tactics,6.2 Typical Hardball Tactics -3,Chicken Negotiators using this tactic combine a large bluff with a threatened acti
46、on to force the other party to “chicken out” and give them what they want. Weakness: It turns negotiation into a serious game in which one or both parties find it difficult to distinguish reality from postured negotiation positions. It is very difficult for negotiators to defend against.,6.2 Typical
47、 Hardball Tactics,6.2 Typical Hardball Tactics -4,Intimidation They all attempt to force the other party to agree by means of an emotional poly, usually anger or fear. Another form of intimidation includes increasing the appearance of legitimacy. Guilt can also be used as a form of intimidation. Two
48、 effective strategies for dealing with intimidation: discuss the negotiation process with the other party; use a team to negotiate with the other party.,6.2 Typical Hardball Tactics,6.2 Typical Hardball Tactics -5,Aggressive Behavior Negotiators using this tactic is signaling a hard-nosed intransige
49、nt position and trying to force the other side to make many concessions to reach an agreement. Ways to deal with: halt the negotiations in order to discuss the negotiation process itself.Snow Job It occurs when the negotiator overwhelm the other party with so much information that he has trouble in
50、determining which facts are real. Several available responses to counter this tactic.,6.2 Typical Hardball Tactics,7. Distributive Bargaining Skills Applicable to Integrative Negotiation,Many of the skills are also applicable to the latter stages of integrative negotiation when negotiators need to c
