Chapter 1,2,6,7 NEGOTIATION

CHAPTER 6 : MULTPLE PARTIES, COALITIONS AND TEAMS
- Often involve more than 2 parties, and involve a myriad of players, relationships and issues.
- More people involved, more parties you faced.
- Multiparty nego : a group of 3 or more individuals/parties, each representing his or her own /
party interests, attempting to resolve perceived differences of interests.
- A complete understanding of nego between/ within organizations requires analysis at several
levels.
6 LEVELS OF ANALYSIS
1. MULTIPARTY NEGOTIATIONS
- Formed when 3 or more individuals/parties, each representing his or her own party/interests,
attempts to resolve perceived differences of interest.
- Involvement of more than 2 principles at nego table complicates the situation enormously.
- Social interaction become more complex.
- Information processing demands increase exponentially.
- Coalitions form.
- Group make more accurate judgement and more readily aggregate information than individuals.
- CHALLENGES:
- 1. DIVIDING RESOURCES
- concerns about dividing the pie resources
- each party advocates in a self-serving fashion for their own interests and multiple definition of
fairness exist.
- 2. COALITIONS
- a group of 2 or more individuals who join together in using their resources to affect the outcome
of a decision in a mixed-motive situation involving at least 3 parties.
- It involves both cooperation in terms of attracting members and competition in terms of dividing
resources.
- 3. FORMULATING TRADE-OFFS
- i. Circular Logrolling
- require each group member to offer another member a concession on one issue, while receiving
a concession from yet another group on a different issue.
- ii. Reciprocal Trade-Offs
- A trade-off fashioned between 2 parties where each gives up one thing in exchange for making
gains on another issue.
- 4. VOTING AND MAJORITY RULES
- The most common procedure used to aggregate preferences of team members is majority rule.
- Majority rule fails to recognize the strength of individual preference.
- Encourages group members to consider creative alternatives to expand the size of the pie and
satisfy the interests of all group members.

- STRATEGIES:
- 1. KNOW WHO WILL BE AT THE TABLE
- KWWBATT and understand the interests of the constituency they represent.
- When negor share a social network, they already have the basis of trust, they are more likely to
follow through on commitments and power differences are not as magnified.
- 2. MANAGE THE INFO AND SYSTEMATIZE PROPOSAL MAKING
- People experience information overload when dealing with multiple parties and multiple issues.
- Info management device is important so that parties to nego could keep track of the issues,
alternatives and preferences of each parties.
- 3. BRAINSTORM OPTIONS
- Brainwriting / solitary brainstorming : a strategy whereby group members independently write
down ideas for resolving nego and then later, when the group meets, they share those ideas.
- Individuals are better at generating ideas but groups are superior in terms of evaluating ideas.
- 4. DEVELOP AND ASSIGN PROCESS ROLE
- Multiparty nego need a timekeeper, a process manager and a recorder of info.
- These roles can be rotated so as not to give any particular member advantage or disadvantage.
- 5. STAY AT THE TABLE
- It is unwise for the group members to leave the table when all the parties need to reach
agreement.
- When groups leave the table, coalitions are more likely to form, which can detrimental for the
group.

2. COALITIONS
- CHALLENGES:
- A. OPTIMAL COALITION SIZE
- Coalitions should contain the min no of people necessary to achieve a desired goal.
- C difficult to maintain because people are tempted by other members to join other coalitions and
because agreements are not enforceable.
- B. TRUST AND TEMPTATION IN COALITIONS
- Sometimes, members of coalitions remain intact even when it is not rational to do so.
- Sometimes, members of coalitions prefer status quo bias, even a new coalition structure that
offers greater gain is possible.
- Coalitional integrity : members stick with their current coalition
- C.DIVIDING THE PIE
- The distribution of resources among members of coalitions is complex because normative method
of fair allocation does not exist.
- Junior nego often settle for equal division
- Experience negor never do so because they willing to and able to exploit differences in their
relative to bargaining power.
- STRATEGIES:
- 1. MAKE YOUR CONTACTS EARLY
- People tend to feel obligated to others with whom they have made explicit or implicit agreements.
- It is important to make contact with key parties early in the process of multiparty nego before
they become committed to others.
- 2. SEEK VERBAL COMMITMENTS
- Most people feel obligated to follow through with promises they make to others, even when
verbal commitments are not legally binding.
- 3. USE UNBIASED APPEARING RATIONALE TO DIVIDE THE PIE
- When members of the coalitions feel the allocation of resources are unfair, the coalition will be
less stable, and they will likely to renege.
- But if the members feel the distribution of the pie is fair, they are more likely to resist persuasion
from others to leave the coalitions.

3. PRINCIPAL-AGENTS RELATIONSHIPS
- An agent has a stake in the outcome ( eg: commission)
- However, agency also comes with costs.
- Because they are usually compensated for their services, agent diminish the resources to be
divided among principals.
- ADVANTAGES OF AGENTS
- 1. Expertise : agent usually have more expertise in the nego process (eg: real state agent)
- 2. Substantive Knowledge : Agent may have more information than the principal about certain
areas. Ex: a tax attorney has a wealth of info about tax law and exemptions.
- 3. Networks & special influence : often, people work through agents because they do not know
what potential principals might be interested in their product or service.
- 4. Emotional detachment : agent can provide emotional detachment and tactical flexibility
- 5. Ratification : precisely because an agent does not have authority to make or accept offers
(unless directed to do so by the principal)
- 6. Face saving : agent can provide a face-saving buffer for principals.
- DISADVANTAGES OF AGENTS
- 1. SHRINKING ZOPA
- Using an agent means more parties are claiming at fixed bargaining surplus.
- A small bargaining zone increases the likelihood of an impasse.
- 2. INCOMPATIBLE INCENTIVE STRUCTURE
- Agents require commission
- The principal and agent must make sure the nego incentives are aligned.
- Otherwise, the nego process would progress slow or principle wouldn’t get the optimum outcome.
- An agent who “securely” attached to their principals negotiate more effectively, loyal and are less
pro-self than are agents who are not securely attached.
- 3. LOSS OF CONTROL
- Give authority
- Once principal give the authority to an agent to nego oh his/her behalf, he/she are giving up
control over the process of nego and ultimately, the outcome.
- Indeed, agents are more active in a nego than principals.
- 4. AGREEMENT AT ANY COST
- Involve emotion, bias
- Because agents have an incentive to reach agreement, they may fall prey to the getting to yes
bias in which agreement becomes more important than the contents of the deal.
- STRATEGIES:
- 1. SHOP AROUND
- Take time looking for effectively agent, look for their reputations and achievement that they
achieved.
- Do not assume the 1st
agent you meet is uniquely qualified to represent you.
- Ask them how he/she will successfully represent your interests, what is expected of you
- Ask about nature of your relationship and what obligations if any, you have to one another.

- 2. KNOW YOUR BATNA BEFORE MEETING WITH YOUR AGENT
- Have clear BATNA, set range of outcome.
- Do homework before meeting with your agent
- Prepare questions to ask your agent that allow you to test the accuracy of your BATNA, but do
not reveal your BATNA.
- 3. CAPITALIZE ON THE AGENT’S EXPERTISE
- Good agents have a wealth of expertise.
- Ask them about their key strategies for targeting opportunities for you and closing deals.
- 4. TAP INTO YOUR AGENT’S SOURCE OF INFORMATION
- Agents by virtue of their professional affiliations and networks, have access to a lot of info.
- If your agent is unwilling or unable to obtain info, seek another agents to see whether they could
provide you the same info needed or not.
- 5. USE YOUR AGENT TO HELP SAVE FACE
- Sometimes, negor make a proposal that is regarded as perfect for him/her but insulting the other
party.
- Negor may start on a losing end when this happens.
- In an agent-mediated nego, you can attempt to salvage damaged egos and relationships by
blaming your agent.

4. CONSTITUENT RELATIONSHIP
- A constituent : is on the same side as a principal but exerts as an independent influence on the
outcome through the principal.
- 3 types of constituencies:
- 1. Superior who have authority over principals
- 2. Subordinates who are under the authority of principals
- 3. The constituency itself, the party whom the principals represents – that is, for whom the
principal is responsible and to whom he principal is accountable.
- CHALLENGES:
- 1. BEHIND THE TABLE BARRIERS
- Refers how negor must sell deals to their own internal constituencies as well as the other party.
- Barriers are also known as “level 2” barriers, which refer to the formal / informal domestic
ratification of traditional diplomatic agreements.
- 2. ACCOUNTABILITY
- 1st
– primary table – nego among organization
- 2ndary – discuss with external parties
- Negor seated at the bargaining table comprise the primary relationship in nego.
- The relationship parties share with their constituents is the 2nd
table.
- Constituents do not have to be physically present at the nego table for their presence to be strong
felt.
- 3. CONFLICTS OF INTEREST
- It is important to understand the relationships nego share across the bargaining table end the
hidden table of constituent relationships.
- In an investigation between pro-self vs pro-social representative, pro-social were more willing to
sacrifice self-interest to benefit the constituency.
- STRATEGIES:
- 1. COMMUNICATE WITH YOUR CONSTITUENTS
- Rep need to understand their constituents’ interests, not just their positions.
- They are less likely to take extreme action when constituents feel heard.
- Rep act too early (before able to stated their constituent real needs) so as to demonstrate their
competence.
- 2. DO NOT EXPECT HOMOGENEITY OF CONSTITUENT VIEWS
- Constituencies are often composed of individuals and subgroups with different needs and
interests.
- 3. EDUCATE YOUR CONSTITUENTS ON YOUR ROLE AND YOUR LIMITATIONS
- They like other people, suffer from egocentric bias and want you to educate the other side with
your position.
- Important to clearly define the role to your constituents earlier in the process.
- Set realistic expectations.
- Share with your constituents all possible outcomes, not just favorable ones.
- 4. HELP YOUR CONSTITUENTS DO HORIZON THINKING
- HT : a type of thinking that involves making projections about future outcomes

- People have difficult time thinking about future events, tend to under or overestimate the
duration of future emotional states and fail to account for +ve / -ve circumstances.
- Help them to develop a sound BATNA and realistic aspirations by engaging in HT.
5. TEAM NEGOTIATIONS
- Team effect = the tendency for parties represented by a bargaining team to reach more
integrative settlements.
- Team efficacy effect = the collective perception held by individuals and/or members of a team
that their efforts, decisions, and products are superior, more valued, and more worthwhile than
an individual’s efforts, decisions, and products.
- Team halo effect = teams tend not to be blamed for their failures, as much as individuals do,
holding constant the nature of the failure.
- CHALLENGES:
- 1. SELECTING YOUR TEAMMATES
- A. Negotiation Expertise
- Can streamline preparation, ensure the team avoids the 4 major traps of nego, avoids destructive
conflict strategies, and instigates a creative problem-solving process.
- B. Technical Expertise
- It helps to have someone with technical expertise in the domain interest.
- Ex: when buying a house, it is valuable to have someone skilled in architecture, plumbing,
electricity etc.
- C. Interpersonal Skills
- The ability to establish rapport, communicate effectively and redirect a power or right based
argument to one focusing on interests.
- 2. HOW MANY ON THE TEAM?
- The smaller the better, easy to manage, more skillful member better for a bigger project.
- 2 or 3 heads can be better than one, but at some point conformity pressures increase with group
size, peaking at about 5 and then levelling off.
- As teams grow in size, coordination problem increases.
- 3. COMMUNICATION ON THE TEAM
- Communication is important.
- Communication or info pooling is facilitated if members are acquaintances or share a relationship.
- 4. TEAM COHESION
- Refers to the strength of +ve relations in a group, the sum of pressures acting to keep individuals
in a group, and the result of all forces acting on members to remain in a group.
- Cohesive groups perform better than less cohesive groups.
- 5. INFORMATION PROCESSING
- Teams can be more efficient by dividing info among members, however, it can be risky because
info may be lost to the entire group if a team loses one of its members.
- Every team member is responsible for a particular piece of info.
-

- STRATEGIES:
- 1. GOAL & STRATEGY ALIGNMENT
- It is important that team members have shared goals and interests.
- The higher the level of team identification, the lower the level of task and relationship conflict in
teams.
- 2. PREPARE TOGETHER
- Everyone takes part / opportunity
- Team preparation is important as it creates a transactive / exchanging memory system in which
group members understand the info others have and how and when to access it.
- 3. PLAN SCHEDULED BREAKS
- Make sure that you scheduled breaks into your nego to allow team members to meet privately.
- Avoid spending too much time in private meeting as this could lead to not having enough time at
the bargaining table.
- 4. ASSESS ACOUNTABILITY
- Team members are accountable to others outside of the team.
6. INTERGROUP NEGOTIATION
- CHALLENGES:
- 1. SHARED VS INDIVIDUAL IDENTITY
- People identify with many different groups.
- Nego among individuals representing different social groups are less mutually beneficial than
nego among individuals who perceive themselves as belonging to a larger social organization.
- 2. IN-GROUP BIAS
- Bias and discrimination can prevent effective nego.
- In-group bias : refers to +ve evaluations of one’s own group relative to an out-group.
- Out-group bias / downward social comparison : a situations in which people compare themselves
to someone (or a group) who is less fortunate, able, accomplished, or lower in status.
- 3. EXTREMISM
- Groups in conflict do not have an accurate understanding of the views of the other party and
exaggerate the position of the other side in a way that promotes the perception of conflicts.
- Each side views the other as holding more extreme and opposing views than is actually the case.
- STRATEGIES:
- 1. SEPARATE CONFLICT OF INTEREST FROM SYMBOLIC CONFLICT
- Many conflicts between group lies from the fundamental differences in values.
- It is important to understand which issues are symbolic vs economic.
- 2. SEARCH FOR COMMON IDENTITY
- Conflicts and competition decrease dramatically when groups in conflict share a common identity.
- Cooperation may increase when groups focus on the collective (organizational identity) rather
than their group identities.
- 3. AVOID THE OUT-GROUP HOMOGENITY BIAS
- Within-group errors are more prevalent than between-group errors because people categories
members of out-group not as individuals but simply as a group.

- It is important to treat members of out-group as individuals.
- 4. CONTACT
- Mere contact strategy : a negotiating strategy based on the principle that greater contact among
members of diverse groups increases cooperation among group members.
- Unfortunately, contact does not always lead to better intergroup relations.
- 5 conditions:
- 1. Social and institution support
- 2. Acquaintance potential
- 3. Equal status
- 4. Shared goals
- 5. Cross-group friendships
- 5. THE GRIT STRATEGY
- Graduated and reciprocal initiative in tension reduction model = GRIT
- To increase communication and reciprocity between groups while reducing mistrust and greater
choices of possible outcomes.
- Originally developed as a program for international disarmament nego.
- Can be used to de-escalate intergroup problems on a smaller, domestic scale.
- Invite reciprocity from the other party. Expect the other party to react to these steps with mistrust
and skepticism.
- Match any reciprocal concessions made by the other party.
- Diversify the nature of your concessions.

CHAPTER 7 : CROSS-CULTURAL NEGOTIATION
CQ = is essential for effective CCN.
Culture = a set of characteristics that consists of values and norms that differentiate the social groups.
Culture encompasses economic, social, political and religious institutions.
a. Stereotypes
- A faulty that belief that everyone from a given culture is exactly alike.
b. Prototypes
- Recognize that substantial variation is likely even within a culture.
Culture as an iceberg
Culture values and negotiations Norms
3 dimensions of culture:
1. Individualism vs collectivism = refers to the basic human motive concerning preservation of the
self-versus collective.
2. Egalitarianism vs hierarchy = refers to the means by which people influence others, either
laterally or hierarchically.
3. Direct vs indirect communications = refers to the manner in which people exchange information
and messages.
INDIVIDUALISM VS COLLECTIVISM
- The pursuit happiness and regard for personal welfare are important.
- Give priority to personal goals, even when these goals conflict with those of their family, work
group or country.
- I happiness and expression are valued more than collective and group needs.
- Enjoy having influence and control over their world and others.
- Accomplishments are rewarded by economic and social institutions
- The implication of individualism is the use of distributive tactics.
-
- Rooted in social groups and I are viewed as members of groups.
- Give priority to in-group goals.
- Work groups and organizations are the fundamental parts of collectivists cultures.
- Concerned about how their actions affect members of their in-group, share resources, feel
interdependent and feel involved in the lives of in-group members.
- Emphasize the importance of adjustment.
- Focus more on maintaining the harmony in interpersonal relationships.

1. Social networks
- People from different cultures differ in terms of their density of friendships, socioemotional.
- Interpersonal trust is important element in building a social network, it could take years
- Ex: China = Guanxi. Networks of deep trust built over the years.
- I : Do things on their own
- I : trust and reciprocate with people or partner within the network
- C : build with one that have relationship (trust + relationship = business)
- C : trust and reciprocate with people within the relationship
2. Cooperation
- C : engage more in cooperative behavior in mixed-motive interactions
- C : place greater emphasis on the needs and goals
- C : more willing to sacrifices personal interest
- C : share info with someone that they trust.
- I : share info but with the same network, not strangers
3. In-Group Favoritism
- Refers to the strong tendency to favour the members of one’s own group more than those in
other groups, even when one has no logical basis for doing so.
- C : display more in-group favoritism
- C : group boundaries makes more competitive
4. Social Loafing vs Social Striving
- SL = the tendency for people to work less hard and contribute less effort and resources in a group
than when working alone.
- I : work less, contribute less
- I : more prevalent for self-serving biases (egocentrism) due to the desire to stand out and do
better than others.
- SS = a form of motivation in which people are concerned for the welfare of the groups – increased
people motivation and performance.
- C : less likely to hold biased, rather focuses more on how to blend in.
- C : work harder, sacrifice more
5. Emotion and Inner Experience (Asian and Western)
- A : emotionally inexpressive (facial expression, body language)
- A : strong signaling value of anger
- A : more cooperative, tough and more threatening
- A : smaller concession
- W : emotionally expressive
- W : expressing anger elicits larger concessions
6. Dispositionalism vs Situationalism
- D/I : the tendency to ascribe the cause of a person’s behavior to his or her character or underlying
personality

- S/C : the ….. to factors and forces outside of a person’s control.
7. Preferences for dispute resolution
- 4 types of dispute resolution procedures characterize how different cultures resolve disputes
- 1. Bargaining = 2 disputants retain control over the discussion process and settlement outcome.
- 2. Mediation = Disputants retain control over the final decision, but a 3rd
party guides the process.
- 3. Adversarial Adjudication = a judge makes a binding settlement decision, but disputants retain
control of the process.
- 4. Inquisitorial Adjudication = disputant yield to 3rd
party control over both the process and final
decision.
- I : disposition, formal dispute
- C : situational, informal dispute
EGALITARIANISM VS HIERARCHY
- Belief equal power distribution
- Everyone expect to be treated equally
- Do not mean that everyone is of equal status, but rather that status differences are easily change.
- Empower members to resolve conflict themselves.
- One’s BATNA and info are the key resources of power (rank and status are irrelevant)
-
- Great defence is paid to status, status implies social power and is not easily change.
- Social inferiors are expected to defer to social superiors who, in turn for privilege, are obliged to
look out for the needs of social inferiors.
- Not to challenge high-status members, thus conflict is less frequent compared than in egalitarian
cultures.
IMPLICATIONS:
1. Choose your Representative
- Determine who will do the nego.
- It is not unusual for person of different status to find themselves at the bargaining table.
- Send the same level position.
2. Understand the network of relationship
- Nego often require several levels of approval, all the way top where negor seldom have the
authority to approve a final deal.
- Longer time is expected when nego with a person from hierarchical cultures.
3. Face concerns
- Associated with remaining calm, apologizing and giving in whereas saving one’s face is related
with defending +vely.
- W : people whose face is threatened = act more assertively while E : act more passively.
4. The conduct of negotiation
- W : each party is expected to voice its own interests, and a back-and-forth exchange will occurs.

- E : status relationship is explicit and important. Party to a nego would accept decisions because it
would hurt the relationship to argue and the trust reason.
DIRECT VS INDIRECT
- Messages are transmitted explicitly and directly
- Communications are action-oriented and solution-minded
- The meaning is contained in the message; info is provided explicitly
- Info is context free – the message has the same meaning regardless of the context.
- Nego often ask direct questions about interests and alternatives.
-
- People avoid direct confrontation when conflict occurs.
- The meaning of communication is inferred.
- The context of the message stimulates pre-existing knowledge that is then used to gain
understanding.
- Transmit messages indirectly and implicitly, and communication is elusive (difficult to describe)
- People prefer sharing info indirectly, telling stories to influence their opponents, and gleaning info
from proposals.
IMPLICATIONS:
1. Information Necessary to reach integrative agreements
- Indirect = people when nego use indirect integrative strategies (making multiple offers at the
same time)
- Often enter into a dance of contemporary, indirect info exchanges
- The relationship comes first then only they provides a context for making deals.
- Direct = people when nego use direct integrative strategies (asking for priority info).
- Process of deal making comes first.
2. Dispute resolution preferences
- Direct = often satisfy with their outcomes following interest-based approach – prefer on
discussing parties’ interests and synthesizing multiple issues
- More likely to choose a direct approach
- Indirect = more likely to involve higher management in conflict resolution and choose a
relationally connected 3rd
party.
KEY CHALLENGES OF INTERCULTURAL NEGO
1. Expanding the pie
- Nego across cultures often resulted to smaller pie expansion than intracultural nego.
- Same goes to the join gains – intercultural nego often result in significantly lower as opposed to
intracultural negotiation.

2. Dividing the pie
- Aspirations influence opening offers and are strongly predictive of the ultimate slice of the pie
negor receive.
- Self-interested negor often score greater profit as opposes to collectivist negor.
3. Sacred values and taboo trade-offs
- Sacred values = the beliefs, customs and assumptions that form the basis of a group or culture’s
belief system.
- Values and beliefs people regard to be so fundamental that they are not discussible or debatable.
4. Ethnocentrism
- It is a belief that one’s culture sees itself as good and the other culture as bad.
- Conflict between cultures not necessarily arises from competition over scarce resources, it stems
from fundamental differences in cultural values.
5. Affiliation bias
- Occurs when people evaluate a person’s actions on the basis of his/her affiliations rather than on
the merits of the behavioral itself.
- People perceptions of an actions differ dramatically as a function of the perceived
agent/affiliation agent.
6. Faulty perceptions of conciliation and coercion
7. Biased punctuation of conflict
8. Naïve realism
ADVICE FOR CCN
1. Cultural Perspective Taking
- Refers to the active consideration of the other party’s culturally normative nego bahaviors prior
to nego.
- Negor who engaged in cultural perspective taking claimed more value than those who engaged
in alternative-focused perspective taking.
2. Avoid attribution errors
- Refers to the tendency to ascribe someone’s behavior or the occurrence of an event to the wrong
cause.
- The behavior of others is more often a reflection of particular features of the situation, rather
than enduring personality traits.
3. Find out how to show respect on the culture
- Intercultural nego may fail not due to negor own cultural assumptions and styles, but rather
because they try to adjust to their counterpart’s cultural assumptions about nego.
- Called as schematic overcompensation

4. Find out how time is perceived in the other culture
- Perceptions of time differ dramatically across culture.
- Negor should expect and plan the nego accordingly.
5. Know your options for change
- Cultural differences may conflict with your values and norms.
- Cultural awareness is one thing; deciding how much one wants to adopt is another.
ACCULTURATION FRAMEWORK
1. INTEGRATION = each group maintains its own culture and also maintains contact with other
culture.
2. ASSIMILATION = occurs when a group or person does not maintain is culture but does maintain
contact with other culture.
3. SEPARATION = occurs when a group or individual maintains its culture but does not maintain
contact with other culture.
4. MARGINALIZATION = occurs when neither maintenance of the group’s own culture nor contact
with the other culture is attempted. It is the most unfavorable condition.

CHAPTER 1 : THE ESSENTIALS OF NEGOTIATION
Negotiation is an interpersonal decision-making process necessary whenever we cannot achieve our
objectives single-handedly.
1. Nego with other party / person that not only involve you.
2. Both party need to agree a decision (successful nego) agreements
3. Cannot achieve single objective by your own.
SCOPE OF NEGOTIATION
- One to one individual / business meeting
- Multiparty – different company / different or same regulations
- Multicompany – big project / development, involve many parties: finance, QS, construction to
successful develop the project within the budget.
- Multinational relationship – nego with WTO that involves different countries or nationality.
KEY REASON FOR THE IMPORTANCE NEGOTIATION SKILLS / NEGOTIATION IS A CORE MANAGEMENT
COMPETENCY
1. Dynamic nature of business
- The dynamic, changing nature of business means that people must renegotiate their existence in
organizations throughout their careers.
- Decentralized business structure and the absence of hierarchical decision making provide
opportunities for managers.
- Whenever opportunity / possibility exist, managers will try to integrate their interests with others
and recognize the competition both within and between organization.
- Nego comes into play when:
- People / managers participate in meetings
- Get new assignment
- Lead a team
- Participate in reorganization process
- Set priorities for their work unit (KPI)
2. Interdependence
- People in organization are interdependence both literally and hierarchically.
- The interdependence that exists across business units and functional areas implies that people /
managers need to know how to integrate their interests and works.
- The increasing degree of specialization and expertise posses by people also indicates that people
are more dependent on others.
3. Economic forces
- The business world is full of dynamic
- Expose businesses to uncertainties and risk
- Widely known for its significant effect on business
- The economic pressures and forces require managers to know how to operate in uncertain and
ambiguous environment.
- Focus on minimize losses is more important than focus on profit.
- Ex: currency exchanges / stability of supply, demand / interest rate / recession / inflation

4. Information technology
- There is no issue in time frame zone.
- IT provides opportunities and challenges for nego.
- Communicate through IT 24/7 with people around the world.
- Thus, managers are expected to be able to communicate ASAP
- The faster the respond, the higher the level of loyal and trust.
- Ex : internet, emails, video conferencing and skype
5. Globalization
- Borderless world, freely access to one and another country.
- Bring the world into a melting pot = can blend together
- Managers need to have skills that can communicate with different people / background to make
efficient / effective nego.
NEGOTIATION TRAPS
1. Leaving money on table
- Also known as lose – lose nego
- Occurs when nego fails to recognize and capitalize on their win-win potential
- Do not get optimum advantage from the negotiation.
2. Settling for too little
- Also known as THE WINNER’S CURSE
- Occurs when negor make too-large concessions, resulting in a too small share of the bargaining
pie.
3. Walking away from the table
- Occurs when negor reject terms offered by other party that are demonstrably better than any
other option available to them.
4. Settling for terms that are worse than your best alternative
- Agreement bias = occurs when negor feel obligated to reach agreement even when the
settlement terms are not as good as their other alternatives.
WHY PEOPLE ARE INEFFECTIVE NEGOTIATORS
1. Egocentrism
- The tendency for people to view their experiences in a way that is pleasing / statisfying / fulfilling
/ flattering for them.
- People who often self-reflecting upon their own values, were more likely to exhibit decision-
making biases
2. Confirmation bias
- The tendency of people to see what they want to see when appraising their own performance
- Leads people to selectively seek information that confirms what they believe is true.
3. Satisficing
- Optimizing = it is important to optimize one’s strategies by setting high aspirations and attempting
to achieve as much as possible.
- Satisficing = settle for something less than one’s could otherwise have
4. Self-reinforcing incompetence
- Most people are blissfully unaware of their incompetence

- Later creates a cycle in which the lack of nego skills hinder them in terms of the ability to produce
a right responses at table.
- A failure of an individual to respond to the changes
NEGOTIATION MYTHS
1. Nego fixed sum
- Whatever good for one person, must be bad for the other person.
- Truth = negotiations are variable sum in nature
- If parties work together, they can create more joint value
- Cannot 100% trust other party
- Walton & McKersi = A mixed -motive enterprise = cooperate + cooperation
2. Need to be tough / soft
- Most negotiators believe must chose tough / reasonable
- Effective negotiators:
- Must follow an enlightened view on during nego.
- Work efficiently
3. Good negotiators are born
- Most excellent negor are self made
- Naturally gifted negor are rare.
- In most cases, the stories / experiences are selective = it is always possible for some negor to have
lucky day or a fortunate experience.
- Experience is helpful but not sufficient.
4. Life experience is a great teacher
- Partly true that experience can improve one’s nego skills
- 3 possibilities if depends on solely experience:
- 1. The absence of feedback in experience nearly impossible to improve performance.
- 2. People memories tend to be selective, in which they are more likely to remember the good /
successful experience and forget the failure one.
- 3. Experiences improves our confidence but not necessarily our accuracy.
5. Good negotiators take risks
- Taking a risk = this is the final offer / take it or leave it.
- Tough negor are rarely effective
- Never take risks in nego
- Came out plan, strategy.
- Effective negotiators:
- 1. Evaluate risks
- 2. Determine the appropriate time to make final offer
- 3. Make excellent nego in an uncertain situations.

CHAPTER 2 : WHAT TO DO BEFORE NEGOTIATION
4 WH – who, when, what, where
- The more prepare, the better you are.
- Need to avoid – Faulty Preparation = faulty /-ve perception about negotiations.
- Mostly is a fixed-pie perception (win-lose situation)
3 MINDSETS OF NEGOTIATORS WHO HAVE A FIXED-PIE PERCEPTIONS
1. Soft bargaining – they resign themselves to capitulating to other side
2. Hard bargaining – they prepare themselves for attack rather than listen / accommodate request
3. Compromise – they attempt to reach a midpoint between their opposing demand. Often
regarded to be a win-win nego, when in fact, it is not.
Cooperation + competition = Mixed-motive enterprise (a more accurate model of nego)
FIXED-PIE PERCEPTIONS COULD LEAD TO 3 APPROACHES
1. Battle of wills – both parties are in attack mode (hard bargaining)
2. Mutual compromise – both parties are soft (soft bargaining)
3. Combination – both parties used a combination of attack and capitulation
THE PREPARATION
Lays the groundwork – in search for
experience, knowledge
THE 80-20 RULE
80% - relies on preparation
20% -how execute the strategy /
planning/ environment surrounding
SUCCESSFUL NEGOTIATION

PREPARATION I (SELF-ASSESSMENT) *14 steps
1. What do I want?
- Known as “target” or “aspiration” – what aspire to accept the project.
- 3 major problems in identifying target / aspiration point:
- 1. Underaspiring negotiator
- Set point TOO LOW
- Begin nego by requesting something that is immediately granted
- Winner’s curse = occurs when a negor makes an offer that is immediately accepted by other party
- They not ask for enough and little preparation
- 2. Overaspiring / positioned negotiator
- Set point TOO HIGH
- Refuses to make any concessions
- Problem often related to ego-defensive – lead to competitive communication, -ve perceptions of
the counterparty
- 3. The grass-is-greener negotiator
- Does not know what he/she really want.
- Known as “reactive devaluation”
2. What is my alternative to reaching agreement in this situation?
- Determine BATNA = Best alternative to a negotiated agreement
- More than 1 alternative
- They should be willing to accept any set of terms superior to their BATNA and reject outcomes
that worse than their BATNA.
- Range of low and higher price that can accept
- 3 major problems of BATNA:
- 1. BATNA and reality
- Not something a negotiator wishes for
- Determine by objective reality
- Reluctant to acknowledge their actual BATNAs, they fall prey to wishful thinking and unrealistic
optimism.
- 2. Your BATNA is time sensitive
- BATNA is either improving / deteriorating as a result of market forces and environmental
conditions.
- They should constantly attempt to improve their BATNAs
- Bazerman & Naele’s Falling in love strategy = a negotiator should identify 2 or 3 options of interest.
Readily available options in case the current alternative is eliminated / reject by the counterparty.
- 3. Do not let other party manipulate your BATNA
- Do not share the knowledge to the others, they can manipulate
- Possibility where they try to min the quality of your BATNA by giving -ve info that would affect
your BATNA
3. Beware of sunk cost
- Involve of future / hand on costs
- Should not involve in table of nego.

4. Identify the issues in nego
- A big mistake to only consider a single issues on hands while nego
- Mainly known as FIXED PIE nego.
- Fail to realize main issue.
5. Identify the alternatives for each issue
- Once negor successfully identifies other issues, it is next to identify several alternatives within
each issue.
PREPARATION II (ASSESSMENT OF THE PARTY) *4 steps
1. Who are the other party?
- The person involve in nego.
- Parties are identified when they are physically present at the nego meeting
- But often, most important parties are not present during process (hidden table)
- When more parties involved, the situations becomes a team/multiparty nego, the dynamic
change considerably
2. Are the party monolithic?
- Refers to whether parties on the same side of table are in agreement with one another concerning
their interests in nego
- Often, parties are composed of people who are on the same side but have differing values, beliefs,
preferences.
3. Identify counterparties’ interests and positions?
- Negor should do as much research as possible to determine the counterparties interests in nego
- Different parties in nego may have different issues therefore they may have different weightage
for different issues on the table.
4. Research the counterparties BATNAs
- Negor must be able to differentiate aspiration point with BATNA because it may serve as anchor
during the process.
PREPARATION III (SITUATION ASSESSMENT)
1. Is ratification required?
- Whether a negotiating party must have a contract approved by some other body / group.
- In some circumstances, negor may tell the other side that ratification is required and when it is
not.
2. Where do the nego take place?
- At negor’s place/ home-court could be an advantage
- Due to increase confidence

3. Are negotiators public or private?
- Can take place both in public as well as private, depending on its case and situation
- Sports, political, trade – nego may takes both ways.
- Business or personal case often settled privately.
4. Do nego involve more than one offer?
- May involves in a rounds / services of offers several times before the mutually agreeable deal is
struck.
- Other situation, this type of dealing is considered unacceptable
5. Do nego communicate explicit / implicit?
- Explicit = negor speaks directly / straight to the point in reaching agreement
- Implicit = reverse of explicit where negor may speak through their actions

CHAPTER 3.2 : WIN – WIN NEGOTIATION – EXPANDING THE PIE
The do’s of a win2 negotiation:
1. It involves working to get the best deal possible for yourself while also working to ensure that
your counterpart is satisfied.
2. According to Lawrence Susskind (2014), win2 nego means making offers that are good for them
and great for you.
3. And it means thinking creatively about how you can get more of what you want by helping the
other side get what she wants.
The don’ts of a win2 negotiation:
1. Win2 nego doesn’t require you to split resources right down the middle with a sole focus on being
“fair”.
2. It doesn’t mean automatically making a concession just because the other party made one.
3. And it doesn’t mean that you should try to avoid conflict and tension at all cost.
Win2 nego is NOT:
1. Compromise
- Refers to reaching a middle ground between negotiators’ position.
- Win2 nego does not pertain how the pie is divided but rather how the pie is enlarged by the negor.
2. Even split
- Refers to how bargaining zone is divided among the nego.
- If both parties fail to realise each other need’s, the even split then is not a win2.
3. Satisfaction
- Satisfaction is no guarantee that money and resources have not been wasted
- In fact, many happy negor do not expand the pie
4. Building relationship
- Party who seems to put more interest in building a relationship with the other party often fail to
reach integrative agreements.
4 QUESTIONS TO ASSESS FOR A POTENTIAL IN A NEGOTIATION:
1. Does the nego contain more than one issue?
- Single issue nego is not a win2 nego but rather more to win lose nego because whatever one party
gains, is the other party losses.
- It is possible to identify more than one issue.
- Even though both parties may have identical preferences over the issue, it may be a little and
there is a room for differences as well.
2. Can other issue be brought in?
- Another strategy is to bring additional issue into nego.
- Ex: consider a buying property situation, midway through nego the owner share newspaper
cutting about the future transportation development with a potential buyer.
3. Can side deals be made?
- In many situations, many people are strictly cautioned not to make side deals or side payments.

- However, when side deal allow more issues to be added, this increase the possibility of creative
conflict resolution.
4. Do parties have different preferences across nego issues?
- If parties have different strengths of preference across the nego issues, then a win2 nego is
possible.
Most common pie-expanding errors:
1. False conflict
- Illusory conflict = occurs when people believe that their interests are incompatible with the other
party’s interest when in fact, they are not.
- Lose – lose agreement = the failure to realize / capitalize on compatible interests.
- To avoid lose2 agreement:
- 1. Negor should be aware of the fixed pie perception and not assume that their interests are
opposite to other party.
- 2. Negor should avoid making premature concessions to other party.
- 3. Negor should develop an accurate understanding of the other party’s interests.
2. Fixed pie perception
- The belief that the other party’s interests are directly and completely opposed to one’s own
interests.
- Beginner negor assumes that parties interests are incompatible, impasse are likely, and issues are
settled one by one rather than as packages.
MOST COMMONLY USED WIN2 STRATEGIES
1. Commitment to reaching a win2 deal
- Many negor approach the nego table to reaching win2 deal.
- However, commitment to reaching win2 deal does not guarantee that negor will reach a win2
agreement.
2. Compromise
- Often, negor thinks that win2 nego as the same as equal-concession nego.
- Equal concession / splitting the difference = does not really ensure that win2 nego has been
reached.
3. Focusing on a long term relationship
- Negor believe that focusing on a long term relationship with the counterparty will ensure a win2
deal.
- It is indeed important in nego, but does not guarantee a win2 outcome.
4. Adopting a cooperative orientation
- Negor whom intention to cooperate in a nego often keep them from focusing on the right info at
the right time.
- Ex: they might revealing their BATNA to the other party.
5. Taking extra time to negotiate
- Extra time does not guarantee that nego will reach an integrative agreement
- Extra time does not improve the quality of the negotiated agreements.

10 EFFECTIVE PIE-EXPANDING STRATEGIES
1. Perspective taking
- By looking from others perspective, negor are more likely to avoid impasse and allowing negor to
engage in successful logrolling (making concessions on low preference vs high preference issues)
- Pt also enhances problem solving abilities which enable to discover hidden potential, achieve max
joint-gains and secure peace.
2. Ask questions about interest and priorities
- Reasons why these questions increase the likelihood of win2 nego:
- A. such questions help negor discover where the value is
- B. do not tempt the other party to lie or to misrepresent himself/herself.
- Important to ask the right question at the right time
- Right info = enhance the effectiveness of info exchange between the 2 parties and vice versa.
- Right timing = also known as active pursuit of info would be more beneficial than the passive
receipt of info.
- High epistemic motivation = a personal need for structure are more likely to reach higher joint
outcomes because they ask more questions.
3. Reveal info about your interests and priorities
- Negor are expected to be honest and straightforward, but revealing too much info can put one at
a disadvantage.
- Should know what info to reveal.
- Make sure info shared is understood by the other party and avoid illusion of transparency – occurs
when negor believe they are revealing more than they actually are but the truth, counterparty
does not get it.
4. Unbundle the issue
- Single issue = fixed pie agreement
- Skilled negor should be capable of adding issues, unbundling and creating new issues
5. Logrolling and value added trade offs
- Once the negor has brainstormed their issues and interests, they can potentially trade off issues
in a win2 approach.
- It is where negor make gains or issue they regard as the most important in exchange for making
concessions on lesser-valued issue of the other party.
6. Make package deals, not single-issue offers
7. Make multiple offers of equivalent value simultaneously (MESos)
8. Structure contingency contracts by capitalizing on differences
9. Presettlement settlements (PreSS)
10. Search for postsettlement settlement

STRATEGIC FRAMEWORK FOR REACHING INTEGRATIVE AGGREMENTS / DECISION MAKING
MODEL OF INTEGRATIVE AGGREMENTS
1. Resource assessment
- Involves the identification of the bargaining issues and alternatives
- Basically issues that are of concern to oneself in the nego
- Issue mix = the combination of issues of both parties.
2. Assessment of differences
- Once the issue mix is identified, negor should focus on assessing their differences in valuation,
probability assessment, risk preference, time constraints and capabilities.
- Each party should focus on its most important issues.
3. Offers and trade offs
- Parties should focus on issues that are high value to one party and of low cost for the other party
to provide.
- The trade-off you offering should be more valuable to the other party than what it costs you to
provide.
4. Acceptance / rejection decision
- At some point, negors may identify a set of terms that both find minimally acceptable and exceeds
both parties’ RP.
- Negor should continue to explore possibilities, depending on their time costs and subjective
agreements.
5. Prolonging negotiation and renegotiation
- Occurs when the best agreement on the bargaining table fails to meet both parties’ RP.
- Negor should reassess the resources unbundling the initial set of issues and breaking down into
smaller issues than may be traded off.

CHAPTER 8 : NEGOTIATIONS VIA INFORMATION TECHNOLOGY
PLACE-TIME MODEL OF SOCIAL INTERACTION
4 modes of interaction:
1. Same place, same time (F2F)
2. Same time, different place (Telephone, video conference, skype)
3. Different time, same place (FB, single text editing, Dropbox, Shift work)
4. Different place, different time (text message, E-mail, Voice mail)
Richness = the potential information-carrying capacity of the communication medium.
F2F communication = relatively “rich” whereas formal, written messages such as memos and business
correspondence, are relatively “lean”
- Conveys the richest info because it allows for the simultaneous observation of multiple cues
including body language, facial expression, tone of voice, thereby providing people with greater
awareness of context.
1. Same place, same time (F2F)
- F2F nego is the clear preference of most negor and rightly so.
- Negor are more cooperative when interacting F2F than over telephone.
- Foster the development of interpersonal synchrony and rapport thus lead to more trusting,
cooperative behavior.
- Through F2F, negor reach more integrative (win2) outcomes and more balanced distributions of
surplus (even pie slicing) than writing-only (email) or telephone negotiations.
- People rely mainly on nonverbal signals to help them conduct social interactions as well as to
convey their messages.
- Often involves the behavioral, cognitive as well as emotional process
2. Same time, different place
- Cell phones have take over F2F communication as the most common means of communication
(67% of millennials would rather text someone than call them)
- Key challenges:
- 1. Loss of informal communication
- Inability to chat informally in the hall or inside offices
- Sometimes, negor could solve the most difficult problems/issues over the impromptu or casual
conversations they had in the halfway or watercooler outside a formal meeting room.
- 2. Lost opportunity
- Many nego are nego of opportunity – like entrepreneurial ventures
- Because they are not planned, nego of opportunity usually occur during informal, chance
encounter.
- 3. Separation of feedback
- Greater distance tend to block the corrective feedback loops provided in F2F nego.
- Negor interacting remotely do not get chances to detect and correct problems on a casual basis.
-
-

- 4. Negotiation timing
- When people are physically separated, the issues are more likely to go unsolved, increase the
tendency to escalate cycle of destructive nego behavior.
3. Different time, same place
- Negor interact asynchronously but have access to the same physical document or space.
- Ex: 2 collaborators working on the same electronic document. One colleague finishes and then
gives to the next partner, who further edits and develops it.
- Shift workers who pick up the task left for them by the previous shift.
4. Different place, different time
- Negor communicate asynchronously in different places. Ex, email
- Can be beneficial to some
- Women consistently do better when they negotiate virtually – they were more assertive when
they weren’t haggling F2F.
- Virtual nego eliminate status marker and gender biases and reduced pressure on the woman to
demonstrate socially “gender appropriate” behavior when negotiating.
KEY BIASES NEGOTIATING VIA EMAIL
1. Temporal synchrony bias
- Important aspect in nego = the ability to make proposal and counteroffer
- E-nego disrupt the natural rhythm of F2F nego.
- May face difficulties in interpreting impoverished communication without the opportunity for
clarification.
2. Exit bias
- Refers to the perception that nego is unstable and should be terminated
- Continuation norm = refers to the belief that nego are worth continuing
3. Flaming bias
- Refers to the tendency for nego to adopt an adversarial nego style (similar to demanding, -ve
emotional style) when communication via e-mail
- Rude, impulsive behavior, such as flaming, increases when people interacting via email, in part
because people pay more attention to the content of the message and less attention to the style
of message.
4. Sinister attribute bias
- Refers to the tendency for e-communicators to ascribe devilish / evil intention to the other party.
- Sinister attribution error = the tendency for people to attribute malicious motives to people they
don’t know.

INFORMATION TECHNOLOGY AND ITS EFFECT ON SOCIAL BEHAVIOR
1. TRUST
- People who negotiate through online trust other less before beginning the nego, and trust other
even less after the online interaction.
- Online negor reported to have less desire for future relationship with the other party.
2. Deception
- Deception in computer-mediated nego and decision making is much more higher than expected.
- The tendency of lie when communicating via email is higher
3. Status and power: the weak get strong effect
- Almost without exception, status predicts domination
- Higher status people tend to talk more even if they are not the experts on the subjects.
4. Social networks
- People on the periphery who communicate electronically become better integrated into their
organization.
- Computerized interaction increases the resources of low-network people
5. Risk taking
- Risk seeking = greatly exaggerated in group who usually meet F2F.
- Whereby groups who make decisions via electronic communication are risk-seeking for both gain
losses.
6. Rapport and social norms
7. Paranoia
8. Intergenerational negotiation
STRATEGIES FOR ENHANCING TECHNOLOGY-MEDIATED NEGO
1. Initial F2F experience
- Virtual team worked better on the brainstorming exercise, but F2F team did better on the nego
exercise.
- As virtual team gained experience, they communicated as openly and shared info as effectively
as F2F teams.
2. One-day videoconference / teleconference
- There is an alternative to get everyone online so at least people can attach to the meeting.
- Depending on the size of the team and location of different members, this alternative may be
feasible than F2F meeting.
3. Schmoozing
- Is like a small talk for a nonrelated-task between people. It has psychological effect in establishing
relationship with someone.
- People who schmoozed, increase the liking and rapport resulting to a larger range of possible
outcome than people who do not schmooze.
4. Humor
- Particularly important in e-nego
- The earlier negor use humor during nego, the better, as it will result to less tension, increased
trust and satisfaction, as well as higher joint gains.

Chapter 1,2,6,7 NEGOTIATION

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