3. Negotiation
ď It is a decision making process among interdependent parties who
do not share identical preferences. It is through negotiation that the
parties will decide what each will give & take in their relationship/s.
ď âIt is a face-to-face decision making process between parties
concerning a specific issues.â
4. Features of Negotiation
⢠There are a minimum of two parties present.
⢠Both parties have predetermined goals.
⢠Some of the predetermined goals are not shared by both the parties.
⢠There is an expectation of outcome.
⢠Both parties believe that the outcome of negotiation may be satisfactory.
⢠Both the parties are willing to modify their positions.
⢠The partiesâ incompatible positions might make modification of position
difficult.
⢠The parties understand the purpose of negotiation.
5. Objectives of Negotiation:
⢠Understand what negotiations are all about. Select a strategy to
negotiate effectively. Learn the range of negotiation approaches &
their results based on your interaction/s. Plan for negotiation
session. Use communication techniques to avert potential conflicts.
Practice your general negotiation technique.
⢠Remember two elements are essential:1.Reasonableness2.Flexibility
⢠The basic components: Preparation Objectivity Strategy
Technique.
⢠Identification of issues â Factors to consider: The Facts The
Problem The Result The Reason
6. Types of Negotiation:
⢠On the basis of stability aspect of negotiated settlement, the
negotiation processes have been divided into two
categories:1.Integrative Approach (Win-Win Strategy)2.Distributive
approach (Win-Loose Strategy/ Zero-Sum Strategy)
⢠Principles to Integrative Approach:1. Separate people from problem2.
Focus on interest, not positions.3. Invent options for mutual gains.4.
Insist on using objective criteria.
7. The five elements of Negotiation
⢠1.The parties & their interests.
⢠2.Interdependency
⢠3.Common Goals
⢠4.Flexibility
⢠5.Decision â making ability/authority
8. Introduction
⢠Face-to-face negotiations are an omnipresent activity in international commerce
⢠Once global marketing strategies have been formulated, then the focus of
managers turns to implementation of the plans
⢠Plans are always implemented through face-to-face negotiations with business
partners and customers from foreign countries
⢠Some of these negotiations can become quite complex, involving several
governments, companies, and cultures
⢠Business negotiations between business partners from the same country can be
difficult
9. ⢠Cultural differences in negotiation styles can cause
problems in international at the levels of:
(1) Language
(2) Nonverbal behaviors
(3) Values
(4) Thinking and decision-making processes
The Pervasive Impact of Culture
on Negotiation Behavior
Companies and countries do not negotiateâpeople do
10.
11. Implications for Managers and Negotiators
1. selection of the appropriate negotiation team
2. management of preliminaries, including training,
preparations, and manipulation of negotiation settings
3. management of the process of negotiations, that is,
what happens at the negotiation table
4. appropriate follow-up procedures and practices
⢠Four steps lead to more efficient and effective international business negotiations, which include:
12. Negotiation Teams
1. Maturity
2. Emotional stability
3. Breadth of knowledge
4. Optimism
5. Flexibility
6. Empathy
7. Stamina
8. Willingness to use team assistance
9. Listening
10. Influence at headquarters
⢠Criteria for selecting successful negotiators include:
13.
14. Negotiation Preliminaries
1. Language skills
2. Social and diplomatic skills
3. Knowledge specific to the diplomatic profession
4. Including diplomatic history and international relations
5. Law
6. Economic
7. Politics
8. International organizations
9. Foreign policies
⢠Many companies in the United States provide employees with negotiations training on:
15. Planning For International Negotiations
1. Assessment of the situation and
the people
2. Facts to confirm during the
negotiation
3. Agenda
4. Best alternative to a negotiated
agreement
5. Concession strategies
6. Team assignments
⢠The following checklist ensures proper preparation and planning for international negotiations:
16. Negotiation Setting
1. Location
2. Physical arrangements
3. Number of parties
4. Number of participants
5. Audiences (news media, competitors, fellow vendors,
etc.)
6. Communications channels
7. Time limits
⢠There are at least seven aspects of the negotiation setting that should be manipulated ahead of time if
possible:
17.
18.
19. At the Negotiation Table
⢠Nontask sounding
⢠Task-related exchange of information
⢠Persuasion
⢠Concessions and agreement
⢠Differences in the expectations held by parties from different cultures are one of the major difficulties in any
international business negotiation
⢠Everywhere around the world we have found that business negotiations proceed through four stages:
20.
21. 21
The Negotiating Process
In determining whether the parties are âbargaining in
good faithâ, the NLRB relies on itâs totality-of-conduct
concept rather than looking at individual actions.
22. 22
Bargaining in Good Faith
Among the factors the Board examines as part of this
totality of conduct are:
ďŽ Willingness to meet and confer at reasonable
times, and places.
ďŽ Reasonable authority to negotiate.
ďŽ Rejection of the other sideâs proposals
without extension of counterproposal.
23. 23
Bargaining in Good Faith
ďś Open mind to consider proposals.
ďŽ Recognition of unionâs exclusive right to
bargain - no direct dealing.
ďŽ Dilatory tactics.
ďŽ Surface bargaining.
ďŽ Take it or leave it offers.
ďŽ Requirement to provide relevant information.
ďŽ Poverty pleas.
ďŽ Anti-union animus.
24. 24
Bargaining in Good Faith
Legal Categories of Bargaining Issues
ďś Mandatory
âYou must talk to meâ
ďś Permissive
âPlease talk to meâ
ďś Prohibited
âI canât talk to youâ
25. 25
The âBargaining Proceduresâ
Before bargaining over substance can begin, the parties
must agree on a mutually acceptable bargaining
procedure.
The following can be classified as procedural issues:
26. 26
Bargaining Location
One of three places:
ďś Yours, Theirs, or Somewhere else.
ďś Free from disruption, and fully furnished
with chairs, tables, blackboard, chalk,
paper, water, coffee, and good lighting.
ďś Accessible at all hours, close to food and
refreshments, and adjoining caucus
rooms for both sides.
27. 27
Agenda Sequence
The typical approach for the parties is to negotiate over minor
issues first.
The rational being that it is difficult to resolve minor issues if
they are left for the later stages of negotiations.
28. 28
Authority to Make Firm Commitments
Under the law (NLRA), the negotiators on both sides must have
the authority to make firm commitments on behalf of the
principles.
This notwithstanding, the authority of negotiators varies
considerably, and it is advisable to define the authority of both
sides at the outset, reducing potential misinterpretations later.
29. 29
Working Drafts
In some bargaining situations, the parties exchange draft
agreements.
This presents a procedural question as to whether to negotiate
from the union draft, the employer draft, or the existing
agreement.
30. 30
Procedures During Negotiations
The parties should establish a schedule and duration of
negotiating sessions.
Time out for caucuses should be arranged, and some
understanding needs to be established with regard to
recordkeeping.
Some understanding should also be reached with regard to
confidentiality.
31. 31
Stages of the Negotiating Process
The Opening
Characterized by the first meeting or set of meetings.
Typically the union presents all of its demands.
The next meeting or set of meetings is where management
presents it own initial response to the union and submits its
own demands.
32. 32
Stages of the Negotiating Process
The Opening
It is in the opening that the limits of any potential collective
bargaining outcome are set by the parties.
It is considered a faux pas in the negotiation arena to bring up
completely new issues after this point in the process.
The number of proposals typically submitted by the union at the
bargaining table can vary from a few to a few hundred.
33. 33
Stages of the Negotiating Process
The Settling-In
Characterized by a full discussion of each issue.
Detailed analysis of industry wage trends, local wage trend, and
national price trends as well as any other supportive materials.
During this stage of negotiation, both sides try to resolve issues
on which agreement can be reached easily.
34. 34
Stages of the Negotiating Process
The Consolidation
Characterized by a fuller elaboration of positions by each side.
At this point we begin to see movement on some issues as each
side begins to offer concessions to the other side.
We begin to see tradeoffs of small items, and the being of the
discussion of the economic package (wages and benefits).
35. 35
Stages of the Negotiating Process
The Consolidation
By the conclusion of this stage, most of the less important items
or the more easily settled issues are taken-off the bargaining
table either through agreement or abandonment.
At this point each side has a general feeling about the
oppositionâs true priorities.
36. 36
Stages of the Negotiating Process
The Finalization
There are only a few items left on the table and they are
important to both sides.
Generally, the finalization stage is accompanied by a change
from what we might call more normal bargaining environment
to one of crisis bargaining.
37. 37
Stages of the Negotiating Process
The Finalization
Crisis bargaining is characterized as much as anything by the
behavior of the parties. That is, they recognize that there is a
fast approaching time limit, so they bargain much more
intensely, meeting on a daily basis and for longer periods of
time.
38. 38
Every negotiating team should formulate a total plan
of action,
and
Attempt to satisfy the need of it own constituencies.
Basic Negotiation Concepts and Techniques
39. 39
It has been suggested that Compromise means a giving
up of something,
whereas
Integration implies an attempt to satisfy the needs of
both sides.
Mutual Gains(Integrative)Bargaining
40. 40
The philosophy of integrative bargaining stresses a
participate working relationship between labor and
management and a joint problem-solving approach to
collective bargaining.
Mutual Gains(Integrative)Bargaining
41. 41
Another form of MGB through which objective
sources are sought to settle disagreements on
mutually agreeable terms without the necessity of
one sideâs losing face.
Win-Win(Principled)Bargaining
42. 42
Negotiations are viewed as problem solving sessions.
The emphasis in bargaining is on each partyâs
interests rather than their positions.
Win-Win(Principled)Bargaining
43. 43
There are no ideal bargaining models or processes
that would be appropriate for all bargaining parties.
There is no paradigms that would work well in all
organizations.
Win-Win(Principled)Bargaining
44. 44
In the final analysis, the parties must be eclectic in
deciding which bargaining approach would work best
in their particular circumstances.
Win-Win(Principled)Bargaining
46. 46
NEGOTIATION STRATEGIES
ďWhereas a strategy provides the overall approach used throughout
the negotiation, a tactic is particular action used at a specific time
during the negotiation to serve a more limited role or purpose.
47. 47
NEGOTIATION GOALS
ďNegotiation goals encompass a wide range of both tangible and
intangible desires.
ďCategories of goals which in turn affect the negotiatorâs choice of
strategy and tactics.
49. 49
AGGRESSIVE GOALS
ďSeeks to undermine, deprive, damage or otherwise injure a rival or
opponent.
Example: Taking a customer or supplier away from a competitor in
order to hurt the competitor.
51. 51
COMPETITIVE GOALS
ďOne side seeks to gain more from the negotiation than the other side.
ďIn fact the negotiator hopes to obtain as large a comparative advantage as
possible.
Example:
ďźReceiving the highest possible price.
ďźPaying the lowest possible price.
53. 53
COOPERATIVE GOALS
ďCooperative goals are achieved through an agreement that leads to
mutual gain for all negotiators and their respective sides.
ďThis achievement is also referred to as win-win negotiating.
Example: Forming a joint venture, partnership, or corporation to
engage in business opportunities to achieve a mutual profit.
55. 55
SELF-CENTERED GOALS
ďSelf-centered goals are those that depend solely on what oneâs own
side achieves.
⢠Scenario: two large accounting firms merge. The tremendous size of the new firm raises
a self centered goal to find sufficient prestigious space in a single location. The goal is
reached when the new firm negotiates a lease for 15 floors in a major midtown New York
office building.
57. 57
DEFENSIVE GOALS
ďOne seeks to avoid a particular outcome.
ďExamples:
⢠Avoiding a loss of respect.
⢠Preventing a strike.
⢠Avoiding the loss of a customer or supplier.
59. 59
COMBINATION OF NEGOTIATION GOALS
ďEach negotiation usually has multiple goals.
⢠Case: In a collective bargaining negotiation, a transportation firm seeks to
have its employees make prompt deliveries in order to maintain its
business volume. This is a self-centered goal. A defensive goal is suggested
if the maintenance of volume is intended to avoid a loss of customers. The
goal is also aggressive to the extent that the same activity lures new
customers away from competitors, a result which is likely to weaken the
latter.
60. 60
PROCESS OF STRATEGY DETERMINATION
ďStrategies are chosen for use in a
particular negotiation in order to achieve
your sideâs goals. The nature of those
goals will affect the choice of strategy or
strategies.
ďA variety of factors determine the best
strategy for a negotiating situation.
61. 61
PROCESS OF STRATEGY DETERMINATION
The choice of strategy also may be affected by the answers to a number of
questions, such as:
⢠Does the negotiation involve a transaction or a dispute?
⢠Is there more than one issue involved?
⢠Can new issues be introduced into the negotiation?
⢠Are the partiesâ interests short-term or long-term?
⢠Are the partiesâ relationships long-term, limited to one negotiation or
some where in between?
65. 65
MAIN NEGOTIATION STRATEGIES
THE DUAL CONCERNS MODEL
ď How much concern does the actor have for achieving the
substantive outcomes at stake in this negotiation?
(substantive goals)
ď How much concern does the negotiator have for the current and
future quality of the relationship with the other party?
(relationship goals)
67. 67
1. AVOIDANCE STRATEGY
(The Nonengagement Strategy)
Reasons of why negotiators might
choose not to negotiate:
1. If one is able to meet oneâs needs without negotiating at all, it may
make sense to use an avoidance strategy.
2. It simply may not be worth the time and effort to negotiate.
68. 68
Avoidance Strategy
3. The decision to negotiate is closely related to the desirability of
available alternatives.
Alternatives are the outcomes that can be achieved if negotiations donât
work out
4. Avoidance may be appropriate when the negotiator is responsible for
developing others into becoming better negotiators.
70. 70
2. COMPETITIVE STRATEGY
ďDistributive Bargaining
ďWin-Lose Bargaining (I win, you lose)
Zero-sum game: whatever extent one party wins something, the
other party losses
71. 71
Competitive Strategy
Distributive Bargaining refers to the process of dividing or
distributing scarce resources
ďTwo parties have different but interdependent goals
ďThere is a clear conflict of interests
76. 76
3. COLLABORATIVE STRATEGY
ď Integrative Bargaining
ď Win-Win Bargaining (I win, you win)
Positive-sum situations are those where
each party gains without a corresponding loss
for the other party.
77. 77
Integrative Bargaining
The law of win/win says âLetâs not do it your way
or my way; letâs do it the best wayâ
Greg Anderson
The 22 Non-negotiable
Ways of Wellness
Integrative Bargaining is about searching for common solutions to problems that are
not exclusively of interest to only one of the negotiators.
78. 78
Concepts for
Integrative Bargaining
⢠Separate people from the problem
⢠Focus on interests, not positions
⢠Invent options for mutual gains
⢠Insist on using objective criteria
80. 80
4. ACCOMMODATIVE STRATEGY
ďWin-lose strategy (I lose, you win)
ďThe negotiator wants to let the other win, keep the other happy, or not to
endanger the relationship by pushing hard to
achieve some goal on the
substantive issues
81. 81
Accommodative Strategy
Accommodative Strategy is often used;
ďWhen the primary goal of the exchange is to build or strengthen the
relationship and the negotiator is willing to sacrifice the outcome.
ďIf the negotiator expects the relationship to extend past a single
negotiation episode.
82. 82
⢠âIn a successful negotiation, everyone wins. The objective should be
agreement, not victory."
⢠âThe key to successful negotiation is to shift the situation to a "win-win"
even if it looks like a "win-lose" situation. Almost all negotiations have at
least some elements of win-win. Successful negotiations often depend on
finding the win-win aspects in any situation. Only shift to a win-
lose mode if all else fails.â
Professor E. Wertheim,
College of Business Administration,
Northeastern University
83. 83
NEGOTIATION STRATEGIES
1. No-Concessions
2. No Further Concessions
3. Making Only Deadlock-Breaking Concessions
4. High Realistic Expectations With Systematic Concessions
5. Concede First
6. Problem Solving
7. Goals Other Than To Reach Agreement
8. Moving For Closure
9. Combining Strategies
84. 84
⢠NO-CONCESSIONS
⢠NO FURTHER CONCESSIONS
⢠MAKING ONLY DEADLOCK-BREAKING CONCESSIONS
SĂMEYRA KARATAĹ
85. 85
1. NO-CONCESSIONS
ďA No-Concessions Strategy is tough and dangerous, since concessions
usually are expected.
ďWith a no-concessions strategy, the negotiation becomes a unilateral
process.
86. 86
NO-CONCESSIONS
ďA no-concessions strategy is suitable for aggressive, competitive and
self-centered goals.
ďA no-concessions strategy is not suitable for cooperative and
defensive goals.
87. 87
WHEN TO USE NO-CONCESSIONS
ďś When the balance of power is strongly in your favor.
ďś When you are in a disproportionately weak position.
ďś When the dollar amount is too low or time is too short.
1) Cost Efficiency
2) Available Time
88. 88
WHEN TO USE NO-CONCESSIONS
ďśWhen the same terms must be available to
everyone.
ďśWhen bids or written proposals are sought
ďśWhen another party is waiting in the wings.
89. 89
DRAWBACKS OF THE NO-CONCESSIONS
STRATEGY
ďMight preclude an agreement the
terms of which, although less
favorable, are still acceptable.
ďA strategy shift away from no
concessions might be read as a failed
attempt at bluffing, a position to be
avoided.
90. 90
DRAWBACKS OF THE NO-CONCESSIONS
STRATEGY
ďAvoid inadvertent bluffs by rashly miscalculating the use of this
strategy.
ďIt may also be helpful to accompany the demand with reasons
why your side is notin a position to offer anything else, and to
explain how the demand is fair.
91. 91
COUNTERING TIPS FOR THE NO-CONCESSIONS STRATEGY
1. Appeal to a higher level of authority in an attempt to change the partyâs
position.
2. Ignore it and proceed as if concessions are possible.
3. Present cost saving or win-win measures that justfy a concession.
4. As a seller, offer less (such as fewer services), thereby effectively increasing
the price.
5. As a buyer, demand more, thereby, in effect, reducing the price.
6. Terminate the negotiating session.
92. 92
2. NO FURTHER CONCESSIONS
A No-Further-Concessions Strategy is
possible when the other party can be forced
to make the final concession, or when the
situation has changed.
93. 93
NO FURTHER CONCESSIONS
ďThe no-further-concessions strategy is implemented after some
concessions have been made.
ďThe countermeasures to this strategy are the same as those for its
parent, the no-concessions strategy.
94. 94
3. MAKING ONLY DEADLOCK-BREAKING
CONCESSIONS
ďA strategy of Making Only Deadlock-Breaking Concessions is okay
when the risk of no agreement is acceptable.
ďA deadlock is an impasse or standstill, a state of inaction resulting
from the opposition of equally powerful uncompromising parties.
95. 95
MAKING ONLY DEADLOCK-BREAKING CONCESSIONS
ďThe strategy of making a concession only to break deadlock is the
next toughest strategy after the no-concession strategy.
ďThis strategy generates an atmosphere of tension and difficulty.
Because of this one should be very careful to use this strategy.
96. 96
MAKING ONLY DEADLOCK-BREAKING CONCESSIONS
ďA making only deadlock-breaking concessions strategy is viable for
aggressive, competitive and self-centered goals.
ďA making only deadlock-breaking concessions strategy is
inappropriate for cooperative and defensive goals.
97. 97
⢠HIGH REALISTIC EXPECTATIONS WITH SMALL SYSTEMATIC
CONCESSIONS
⢠CONCEDE FIRST
⢠PROBLEM SOLVING
TĂRKAN COĹKUN
98. 98
4. HIGH REALISTIC EXPECTATIONS WITH SMALL SYSTEMATIC
CONCESSIONS (HRESSC)
ďIt is the strategy of combining high, realistic expectations with small,
systematic concessions
ďIt entails a planned approach both to the objectives of the
negotiation and to the compromises that may be employed to reach
those objectives
âStrategy which achieves the
best resultsâ
99. 99
HRESSC (cont.)
It has three components:
ďThe size of the concessions
ďThe use of apparent concessions which actually involve no cost to
the negotiatorâs side
ďThe advance planning of concessions
100. 100
ďSmall concessions depends on:
- the value of that which is being negotiated while the negotiation
begins
- the value which is put during the negotiation
ďSmall concessions after big concessions
ďAdvance planning helps to maximize oneâs results and minimize the
pressure to merely respond to the other negotiatorâs actions
101. 101
5. CONCEDE FIRST
ďIt is used to reduce tension, create an atmosphere conducive to
reaching an agreement and allow one to demand a reciprocal
concession
ďâWe made an important concession at the outset of this meeting
and you still have not given us anything significant in returnâ
ďDifficult and sometimes impossible to withdraw a concession
102. 102
CONCEDE FIRST (CONT.)
ďIt is suitable to apply this strategy when the position of negotiator is
too weak
ďIt can be used in rare circumstances when any real negotiation may
lead the other party to discover information that will harm the
negotiatorâs client
ďIt is used to achieve competitive, self-centered, or defensive goals,
depending on the specific context of negotiation
103. 103
6. PROBLEM SOLVING
ďIt is a strategy for creating a procedural agreement to solve a
common problem that has been identified
ďIt is the most useful strategy after HRESSC
ďIt is different from other concession-based strategies which center
on giving up or refusing something of value
104. 104
PROBLEM SOLVING (CONT.)
ďIt focuses on creating a procedural agreement that the negotiators will
work together to discover and identify problems that are preventing
agreement and to determine whether any common interests can be
used to resolve those problems
ďIt is described in game theory as a âwin-winâ strategy
105. 105
The Four-Step
Problem-Solving Process
1) A procedural agreement to use problem solving
2) Identification of the problem preventing agreement
3) Determination of any common interests and limiting seperate needs
4) Discussion to discover fair, mutually beneficial solutions
106. 106
Laying the Essential Foundations for the Problem-
Solving Strategy
ďThere must be an agreement by the parties and negotiators to work together to
identify the problems preventing agreement, and to formulate a mutually
advantageous solution
ďTo ensure good faith, the parties must have a mutual interest in solving the
particular problems in the same way
ďThe negotiators must identify the same problems and agree on how to define
them
ďParties and negotiators must realize that a win-win solution is possible and that
problems will not be solved by one side yielding to other. Instead the
participants will strive to create a previously unconsidered, mutually beneficial
solution
107. 107
Important Points in Problem-Solving Strategy
ďAchieving a clear distinction between objectives and needs
ďMaintaining attitudes of empathy and cooperativeness
ďThe related roles of creativity and patience in problem solving
108. 108
ďKeeping the focus on mutual interests
Outside forces to avoid:
o Government action
o A jury or a judge deciding the facts at trial so that one side wins totally while the
other side loses totally
o A competitor gaining an advantage
o The expiration of a financing commitment
109. 109
ďBroadening the pie and trading concessions across issues
It may be useful to consider the distribution of resources in terms of:
ďśWhat will be distributed
ďśWhen it will be distributed
ďśBy whom it will be distributed
ďśHow it will be distributed
ďśHow much will be distributed
110. 110
ďBrainstorming
Brainstorming for problem solving is a process which requires that
the participants:
ď§ Speak spontaneously or think out loud (as long it is relevant and
constructive)
ď§ Retrain from evaluating or criticizing the statements of others until after all
initial ideas are elicited
ď§ Be willing to repeat oneâs ideas if others want to hear them again
ď§ Persist in the effort even if there is a prolonged silence
111. 111
⢠GOALS OTHER THAN TO REACH AGREEMENT
⢠MOVING FOR CLOSURE
⢠COMBINING STRATEGIES
F. BETĂL EKREM
112. 112
7. GOALS OTHER THAN TO REACH AGREEMENT
ďReal purpose of a negotiation is to reach an agreement
ďBut in this strategy it is NOT
ďBe careful-An exercise in gamesmanship
ďWith cooperative goals
113. 113
USAGE OF âGOALS OTHER THAN TO REACH
AGREEMENTâ STRATEGY
1. A strategy to delay
For eg: a negotiation team is sure that unionâll strike in all conditions.
But the team believe that theyâll soften and a delayâll harm seasonal
tasks.
114. 114
Usage of âGoals Other Than to Reach Agreementâ
Strategy
2. To gather information
3. Negotiating as a forum for
expressing views
115. 115
Usage of âGoals Other Than to Reach Agreementâ
Strategy
4 . Negotiating to influence a third party
⢠Public
⢠Management of the entity
! Influence of 3rd parties on negotiation is very important
Powerful people or groups, family members, etc
116. 116
8. MOVING FOR CLOSURE
To finalize a particular issue or the overall negotiation
rather than risk losing the available terms.
117. 117
MOVING FOR CLOSURE
A difficult dilemma between
⢠Risk of losing an agreement
⢠The opportunity of doing better
and balancing by evaluating those:
* Value * Potential
* Risk * Odds
118. 118
MOVING FOR CLOSURE
! In negotiations the most important risk is losing an available deal
that your clients may accept
! To avoid this, the ultimate decision should be made by decision
maker
119. 119
TECHNIQUES FOR MOVING THE OTHER SIDE TOWARD
CLOSURE
ďA proposal should be close to other partyâs bottom-line
ďOther party should believe
⢠No further concession is possible
⢠Failing to accept may result in no agreement
⢠Closure is more advantageous
120. 120
TIPS FOR âMOVING FOR CLOSUREâ STRATEGY
ďExpressing understanding that agreement exists
ďConcession-based inducement to close
ďMinimizing the danger of cancellation between closure and execution
ďClosing issues within a larger negotiation
121. 121
9. COMBINING STRATEGIES
ďGenerally usage of a single strategy
isnât efficient
For e.g.: first concession and moving for
closure are efficient in specific parts of
the negotiation
124. 124
E.G. FOR ISSUE-ORIENTED CHANGES
A purchaser has a
ďcompetitive goal of getting lowest price for machinery,and
ďa self-centered goal of good service production
For 1st one, HRESSC and for 2nd one problem solving strategies are
chosen.
125. 125
A TIP FOR STRATEGY CHANGES
What is important is:
If the negotiator doesnât do the change secretly, this change should
be clearly defined not to harm trustworthiness.