CHAPTER 1
Why Should Negotiation Be a
Core Management Competency?
• Dynamic nature of business
• Interdependence
• Competition
• Information age
• Globalization
Instructor’s Manual with Overheads to accompany © 2005 by Prentice Hall, Inc.
The Mind and Heart of the Negotiator 3/e (Thompson) A Pearson Education Company
Upper Saddle River, N.J. 07458

WHEN IS NEGOTIATION
NEEDED?
• Two or more parties must make a decision
about their interdependent goals &
objectives
• The parties are committed to peaceful
means for resolving their dispute.
• There is no clear or established method or
procedure for making this decision
» (Lewicki, et al.)
Instructor’s Manual with Overheads to accompany © 2005 by Prentice Hall, Inc.
The Mind and Heart of the Negotiator 3/e (Thompson) A Pearson Education Company
Upper Saddle River, N.J. 07458

CHAPTER 1
The Sandtraps of Negotiation
• Leaving money on the table (“lose-lose” negotiation)
• Settling for too little (the “winner’s curse”)
• Walking away from the table
• Settling for terms worse than your alternative (the
“agreement bias”)
Instructor’s Manual with Overheads to accompany © 2005 by Prentice Hall, Inc.
The Mind and Heart of the Negotiator 3/e (Thompson) A Pearson Education Company
Upper Saddle River, N.J. 07458

WHY ARE PEOPLE
INEFFECTIVE NEGOTIATORS?
• Faulty feedback
– Confirmation bias
– Egocentrism
• Satisficing
• Self-reinforced Incompetence
Instructor’s Manual with Overheads to accompany © 2005 by Prentice Hall, Inc.
The Mind and Heart of the Negotiator 3/e (Thompson) A Pearson Education Company
Upper Saddle River, N.J. 07458

CHAPTER 1
Debunking Negotiation Myths
 Myth 1: Negotiations are fixed-sum
 Myth 2: You need to be either tough or soft
 Myth 3: Good negotiators are born
 Myth 4: Experience is a great teacher
 Myth 5: Good negotiators take risks
 Myth 6: Good negotiators rely on intuition
Instructor’s Manual with Overheads to accompany © 2005 by Prentice Hall, Inc.
The Mind and Heart of the Negotiator 3/e (Thompson) A Pearson Education Company
Upper Saddle River, N.J. 07458

CHAPTER 1
The Mind and Heart of the Negotiator:
Learning Objectives
• Improve your ability to negotiate successfully
• General strategy for successful negotiation
• Enlightened model of negotiation (fraternal twin model)
Instructor’s Manual with Overheads to accompany © 2005 by Prentice Hall, Inc.
The Mind and Heart of the Negotiator 3/e (Thompson) A Pearson Education Company
Upper Saddle River, N.J. 07458

STUDING NEGOTIATION
• Within organizations, at one time the study
was limited to collective bargaining & to
purchasing.
• By the late 1970s and early 1980s, there
was an explosion of research.
Instructor’s Manual with Overheads to accompany © 2005 by Prentice Hall, Inc.
The Mind and Heart of the Negotiator 3/e (Thompson) A Pearson Education Company
Upper Saddle River, N.J. 07458

Methods
• Williams: cooperative & competitive
• Menkel-Meadow: problem-solving &
adversarial
• Lax & Sebenius: value-creating & value-
claiming
• Fisher: hard bargainer, soft bargainer,
principled bargainer
• Gifford: competitive, cooperative,
integrative
Instructor’s Manual with Overheads to accompany © 2005 by Prentice Hall, Inc.
The Mind and Heart of the Negotiator 3/e (Thompson) A Pearson Education Company
Upper Saddle River, N.J. 07458

Getting to Yes
The Seven Elements of Negotiation
• INTERESTS What do people really want?
• OPTIONS What are possible agreements or
bits of an agreement?
• ALTERNATIVES What will I do if we do
not agree?
• LEGITIMACY What criteria will I use to
persuade each of us that we are not being
ripped off?
Instructor’s Manual with Overheads to accompany © 2005 by Prentice Hall, Inc.
The Mind and Heart of the Negotiator 3/e (Thompson) A Pearson Education Company
Upper Saddle River, N.J. 07458

The Seven Elements of Negotiation
(cont’d)
• COMMUNICATION Am I ready to listen
and talk effectively?
• RELATIONSHIP Am I ready to deal with
the relationship?
• COMMITMENT What commitments
should I seek or make?
Instructor’s Manual with Overheads to accompany © 2005 by Prentice Hall, Inc.
The Mind and Heart of the Negotiator 3/e (Thompson) A Pearson Education Company
Upper Saddle River, N.J. 07458