N.I.S. BALDANULLAH - 4520210094

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NEGOTIATING
N.I.S. BALDANULLAH - 4520210094
Interpersonal
Skill

2. Learning objectives
To understand how parties with different preferred
outcomes seek agree-
ment, and to develop an awareness of how
negotiating skills can affect the
outcome of the process.

3. Welcome!!

4. Negotiating
Negotiation is a process of joint decision making in
which people with different preferred outcomes interact in order to resolve their
differences. It can be an explicit process when, for example, we bargain
with a supplier over the price of a component, argue for an increased budget
with our boss or seek to establish a new rate for a job with a group of work-
ers.

5. A simplified model of negotiation:
targets and limits
When people begin to negotiate they normally have some idea about the
level of benefit they hope to secure. This is their target outcome. They also
have some idea about the level of benefit below which they will not go. This
is their limit. A settlement can only be achieved when the limits each party
brings to the negotiation coincide or overlap.
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The buyer, seeking to purchase a
component from a supplier, refuses to
pay more than £1.50 per unit. This is the
buyer’s limit. It may be set at
this level because the buyer cannot
afford to pay more or because the
buyer is aware of an alternative supply at
£1.50.
The supplier refuses to sell at anything
less than £2.50. The seller’s limit
may be set at this level because it is
possible to achieve a better price else-
where or because a lower price would
result in the seller making a loss.

6. A simplified model of negotiation:
targets and limits
In the situation represented by Figure 10.2, a settlement is possible because
the buyer is prepared to pay up to £3 a unit and the supplier, if pushed, will
sell for as little as £1.50. The overlapping limits (indicated by the black por-
tion of the bar) offer the possibility of a settlement that would be acceptable
to both parties.
If, however, the seller adopts an
accommodating strategy and is
concerned to ensure that the buyer
secures some benefit, the seller (despite
being the more skilled negotiator) may
be motivated to settle nearer his own
limit of £1.50. (It would not be unusual
for parents, negotiating the sale of
a family car to one of their children, to
adopt an accommodating rather than
a competitive strategy.)
Planning can make a vital contribution to
the outcome of a negotiation.
Skilled negotiators, whatever their
motivational orientation, attempt to dis-
cover their opponents’ limit. To push an
opponent beyond this limit will lead
to a breakdown in the negotiation.

7. The hierarchical nature of negotiating skills: behaviours,
tactics and strategies
The primary components of negotiating skills are behaviours such as infor-
mation sending, information seeking, argumentation, compliance seeking,
bidding and yielding. These behaviours can be structured and sequenced into
sets that are often referred to as negotiating tactics. The wide range of avail-
able tactics can be categorised in a variety of ways. In this chapter they are
grouped under four headings: contending, non-contending, flexible and com-
plex. Strategies are the highest level in the hierarchy and reflect the
negotiator’s overall approach or style.
The primary components of negotiating skills are behaviours such as infor-
mation sending, information seeking, argumentation, compliance seeking,
bidding and yielding.

8. Motivational orientation and choice of negotiating
strategy
The motivation and strategy tradition, which pro-
vides the conceptual framework for this chapter, focuses on how the
negotiators’ motivational orientation influences their preferred strategy,
which in turn influences the outcome of the negotiation.
Early theories in the motivation and strategy tradition were based on a
single dimension of motivational orientation (cooperation–competition),
but Thomas’ (1979) two-dimensional model of conflict behaviour provided
the basis for a dual-concern model of motivational orientation and strate-
gic choice. The two independent dimensions in Thomas’ model are
cooperation (which reflects a negotiator’s concern for the other party’s ben-
efit) and assertiveness (which reflects the negotiator’s concern for own
benefit).
The cognitive tradition argues that
it is the negotiators’ approach to information processing that determines the
outcome of a negotiation.

9. Motivational orientation and choice of negotiating
strategy
The motivation and strategy tradition, which pro-
vides the conceptual framework for this chapter, focuses on how the
negotiators’ motivational orientation influences their preferred strategy,
which in turn influences the outcome of the negotiation.
Early theories in the motivation and strategy tradition were based on a
single dimension of motivational orientation (cooperation–competition),
but Thomas’ (1979) two-dimensional model of conflict behaviour provided
the basis for a dual-concern model of motivational orientation and strate-
gic choice. The two independent dimensions in Thomas’ model are
cooperation (which reflects a negotiator’s concern for the other party’s ben-
efit) and assertiveness (which reflects the negotiator’s concern for own
benefit).
The cognitive tradition argues that
it is the negotiators’ approach to information processing that determines the
outcome of a negotiation.

10. Modifying strategies as the negotiation proceeds
Negotiators often modify their strategy as the negotiation progresses. One of
the parties may begin by adopting a collaborative approach but, in response
to the other’s fierce competitive stand, may have to modify their strategy to
match their opponent’s contending tactics. Alternatively, competing parties
may recognise that their opponents have equal power. They may come to
realise that the only way to reach an acceptable settlement may be via com-
promise or by working together to find a win-win collaborative solution.

11. Negotiating behaviours
Behaviours are the primary components of negotiating skills. Table 10.2
lists some of the main types of negotiating behaviour (such as information
sending, information seeking, bidding and yielding) and indicates how the
negotiators’ intention influences how these behaviours are expressed.
Contending behaviours are those
behaviours that are often woven
together to produce tactics that support a
competitive negotiating
strategy.
Non-contending behaviours are those
which tend to typify the problem-
solving tactics that support a
collaborative negotiating strategy.
However, they can also form part of
tactics that are associated with
compromising and accommodating
strategies, such as splitting the dif-
ference or conceding.

12. Tactics
Tactics are sets of behaviours that are structured and sequenced in ways that
help negotiators achieve their desired ends. Choice of tactic is heavily influ-
enced by choice of strategy. For example, if negotiators adopt a competitive
strategy they are likely to adopt contending tactics designed to convince the
other party that the only way to reach an agreement is for them to concede.
This first category includes negotiating
tactics that are designed to help a
negotiator push the other party into
accepting the negotiator’s demands. As
noted above, they tend to emphasise
behaviours that persuade the other
party to concede.
This is a set of contending tactics that
can beused to persuade the other party
to concede by increasing the perceived
cost or risk of continuing to negotiate. It
often involves deception, less
than full disclosure of information,
frequent reliance on non-verbal
behaviour, threats and so on.

13. Summary
The aim of this chapter is to help you develop a better understanding of the
process of negotiation and to help you identify the skills you need if you are
to become a more successful negotiator.
The factors that influence the strategies that negotiators adopt have been
examined, and a range of different negotiating tactics have been reviewed.
Attention has also been focused on some of the specific negotiating behav-
iours that underpin these tactics and strategies. The chapter concludes with
a discussion of how you can improve your ability to negotiate more suc-
cessfully.

14. Thank you