Business Negotiation and its US Evolution[Lecture Notes Sav]
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Business Negotiation and its US Evolution[Lecture Notes Sav]



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  • Used if no prior definition (Chapter 1 , Introduction to Negotiation, Lewicki Negotiation Lecture)
  • Historically, teaching negotiation was rare.Critics: An Art that cannot be systematically taught Requires a change in one’s behavior, not just providing information Habits are harder to change” The present theoretical models have little empirical research behind them Positional bargaining Principled negotiations
  • 80% Skill, 20% Born in DNA (Art)
  • First Course: Dynamics of Bargaining, 1973 (Amos) Tuck School of Business. PON 169

Business Negotiation and its US Evolution[Lecture Notes Sav] Business Negotiation and its US Evolution[Lecture Notes Sav] Presentation Transcript

  • Business Negotiation and it’s Evolution in the US
    History and Evolution of Negotiation Pedagogy
  • What is Negotiation?
    A process by which two parties communicate with each other in order to reach an outcome in which they agree (Self-Assessment, 2001)
    To seek mutual agreement through dialogue (Harvard Business Essentials, 2003)
    Latin root: Negotiatus, “to carry on business” (~1579, Etymology Dictionary, 2001)
  • Goals/Challenges of Teaching Negotiation
    To Address market needs…
    Increase analytical sophistication / expertise of managers
    Increase effectiveness, presumably in business.
    Critics argue that it can’t be taught…you either have it or you don’t.
  • Can Negotiation be Taught?
    Boston area:
    >150 courses
    Specific disciplines (e.g. labor, government, business, family)
    Doesn’t include EMBA or corporate training courses
    Required courses in MBA programs such as Harvard – Often the most popular course.
    Extrapolate to the US and #’s > 10,000
    Chinese Culture Center, Intl Expo, Beijing, 2008
  • Can Negotiation Be Taught?
    Some people think:
    Negotiation is more an Art that cannot be systematically analyzed or taught.
    Necessitates a change in one’s behavior
    The theoretical models lack empirical testing
    Positional bargaining
    Principled bargaining
  • What has happened?
    Dr. Roy Lewicki, initiated the 1st applied negotiation courses in the US (1973, Dartmouth) - also the main author to our custom text.
    Formative (Developmental) Decade (1975-1985)
    - Dynamics of Bargaining
    Development (Maturity) of the Field (1985-1995)
    - Active participation, skill development
    Third Generation & Challenges (1995-2005)
    Return to Humanist Factors (2005+)
  • I Formative Decade: 1975-1985
    No managerial or applied teaching of negotiation
    Mainly drawn form social psychology: Boom in 1960’s
    Theory of bargaining and conflict behavior
    Classroom aid’s (cases) were primitive
    Game theory (Luce & Raffia, 1957)
    International Relations (Schelling, 1960)
    Labor relations (Douglas, 1962)
    Real estate (Karrass, 1974)
  • I Formative Decade Continued: 1975-1985
    Early 1980’s: Negotiation courses expanded to other schools
    Small group of scholars collaborated (Max Bazerman, Roy Lewicki)
    Momentum of interest increasing:
    Books(GTY, Art & Science of Negotiation) 1982 & 1983
    Professional organizations (Power, Negotiation & Conflict Management Interest Group,1983)
    Research funding (National Institute of Dispute Resolution 1984, Hewlett Foundation,1986)
    Faculty developed role plays, simulations, doctoral programs, cases, workshops.
    Result: From a few courses to 100 in 1985,
    200 by 1989.
  • Early Course Curriculum (1975-1985) :
    Recognizing Experiential Learning & Skill Development
    Concrete experiences (real situations)
    Reflection of experience (journal)
    Derivation of concepts & tactical principles
    Planning for active experiments (readings) and application to new settings (changing situations)
    Sequence:Flow was varied; no standard approach
    typically a balance of theory and application plus “Reflection Papers” to connect theory to practice.
  • Two Branches of Negotiation Theory Emerged (1975-1985)
    Negotiation as a decision-making process
    -Rational game theory, chess game
    -“Logic” driven, lowest cost or highest value
    Interpersonal dynamics between negotiators
    -Social – psychological thrust
    -Interpersonal dynamics, contextual factors
  • Major Course Elements of Both Approaches (1975-1985)
    Intro to Conflict & Negotiation Theory
    Intro to Game Theory & Decision Making
    Strategy & Tactics of Competitive, Distributive Negotiations
    Strategy & Tactics of Cooperative, Integrative, Principled Negotiation
    Time-Series (Stage) Model (Planning) of Negotiation Process
    Assessment of Individual Differences (Cultural, Cognitive & Communication)
    Negotiation Within and Between Groups (Coalitions)
    Advanced issues: Procedures for Deadlocked Negotiations, Difficult Negotiators
  • II Development of the Field (1985-1995)
    Success in Business Schools
    Participation was welcome and enjoyable
    Focus changed from “Abstract Theory & Discussions” to the “Real, actual experiences with one another”
    Included both Skill Development & Theory
    Often cited as models of active listening, participant centered.
    Students remembered the experience much more
    Content, Curriculum & Method’s Remained Stable
    Growth of textbooks, cases & role-play’s
    Teaching pans and delivery matured
    Innovations: Videotape & Computers
    Video: See yourself in action, 100X feedback
    Computer: Negotiator Pro, Step-by-Step planner
    Integration: McGraw Hill Negotiator Pro (Virtual opponent, video)
  • III Third Decade (1996-2005)
    Emphasis turned toInterpersonal Relationships
    Versus one-time, calculated, economic, transaction oriented negotiating
    Reflects changes in the dynamic business environment
    Stress collaboration within & across teams, business units, joint ventures
    Identified Weakness: the practice of distributive bargaining is likely to kill long-term relationships
    Research from rational and calculated game theory, Decision Making towards the Emotional context of personal relationships.
    Identify that time in relationships is complex: trade something today for something else tomorrow.
  • III Third Decade Continued (1996-2005)
    Emphasis on Individual Interpersonal aspects:
    Trust: How it is developed & destroyed?
    Emotion: Often treat as a negative factor, must be better understood.
    Feelings & Attachments effect the negotiators performance & decisions.
    Decision Making = Cognitive Process + Emotion
    Recognize Most Models developed from a Western, Male perspective
    Lack of literature into culture and gender factors that are present throughout the world See further: Goleman (1995) “Emotional Intelligence”
  • Ethics: What did we Learn from the New MBA Generation?
    1980’s: Many negotiation course’s were poorly rated
    MBA Programs taught people how to “Get what they want” E.g. Gordon Geiko, “Wall Street”
    Faculty were criticized for being too soft (easy) on management issues (conflict, power, authority)
    Faculty were previously trained in the applied social sciences (1960’s) valuing a humanistic, cooperative orientation.
    Today(~2000) :Thankfully that period ended & cooperation is now the focus of management
    Though we still see many of the victims.
  • Looking Ahead (2006+): What’s Still Needed:Focus on negotiation as a system of skills…measurable, trainable, practiced in an overall negotiation program.
    Effective Questioning & Listening
    Understanding Big Picture
    Packaging of Issues & Concessions
    Brainstorming Creatively
    Final Agreement Drafting & Communication
    Issue Definition, Understanding & Re-definition
    Identify Interests, Values, Preferences
    Argument Construction
    Organization & Persuasion
    Global Focus
  • Based on: “Teaching Negotiation and Dispute Resolution in Colleges of Business: The State of Practice and Challenges for the Future”. (2000)
    Roy Lewicki, Teaching Negotiation, Ideas and Innovations, Michael Wheeler, editor Harvard PON, 2000.