The document discusses key concepts of negotiation, including distributive and integrative methods, and outlines strategies for effective deal-making. It highlights the importance of understanding individual interests, setting reservation prices, and identifying value-creation opportunities in negotiations. Additionally, it introduces four key concepts, steps in the negotiation process, and barriers that negotiators may face.

2. Layout
About the Book
About the Author
Negotiation and Types
Four Key Concepts
Steps of Good Deal
Negotiation Process
Skills of Effective Negotiators
Negotiation Barriers

3. This book is one of the Pocket Mentor
Series by Harvard Business School Press,
offering immediate solution to common
challenges, Managers face in their job
routine. It is packed with handy tools, self
tests and real life examples to help identify
someone’s strength and weaknesses and
hone critical skills.
About the Book

4. Some other books of Pocket Mentor Series include:
1. Leading teams
2. Running meetings
3. Managing Time.
4. Managing Projects
5. Coaching People
6. Leading People

5. Marjorie Corman Aaron is Professor of Practice, and Director of the Center
for Practice, at the University of Cincinnati College of Law, Ohio USA,
teaching courses in negotiation, client counseling, trial practice, mediation,
alternative dispute resolution, and decision analysis.
Other books by the Author
1. A Lawyer's Guide to Decision Trees for Assessing Cases and Advising
Clients (DRI Press, 2019)
2. Advice for Lawyers on Counseling Clients through Bad News and Other
Legal Realities (Oxford University Press, 2012).
Marjorie Corman is also author of several book chapters and articles.
About the Author

6. Negotiation is a process by which
two or more people (or groups)
resolve an issue or arrive at a better
outcome but not through
compromise. Negotiation is a way to
avoid arguing and come to an
agreement with which both parties feel
satisfied.
Negotiation Outcomes

7. Types of Negotiations

8. In a Distributive Negotiation parties compete
over distribution of fixed sum of value. The
key question in distributive negotiation is
“Who will claim the most value”.
A gain by one side is made at the expense
of the other. This is also known a zero sum
negotiation or win – win scenario.
Distributive Negotiation

9. Example: The Sale of a Car
There is no relation between the buyer
and the seller and all matter is the price.
Each side works for the best deal and
any gain by one party represents a loss
to the other.
Distributive Negotiation

10. In this type parties cooperate to achieve max
benefits by integrating their interests into an
agreement. This is also known as win – win
negotiation.
Integrative Negotiation
In a integrative negotiation, there are many items and issues to be negotiated,
and the goal of each side is to ‘create’ as mush value as possible for itself and
the other.
finding opportunities for mutual benefit requires cooperation and disclosure of
information. Each party needs to understand its own key interests and the key
interests of the other side.

11. Characteristics Distributive Integrative
Outcome Win-Lose Win-Win
Motivation Individual gain Joint and individual gain
Interests Opposed Different but not always opposite
Relationship Short-Term Long-Term or Short-Term
Issues involved Single Multiple
Ability to make trade-offs No flexible Flexible
Solution No creative Creative
Distributive vs Integrative Negotiation

12. Stands for Best Alternative To a Negotiated
Agreement. It is defined as the most advantageous
alternative that a negotiating party can take if
negotiations fail and an agreement cannot be made.
1. BATNA
2. The Reservation Price
The reservation price is the lowest amount that a seller will accept for an
agreement and the maximum amount a buyer will pay.
The least favorable price at which a negotiation will be accepted.
Four Key Concepts

13. A zone of possible agreement (ZOPA) is a
bargaining range in an area where two or more
negotiating parties may find common ground.
A ZOPA can only exist when there is some
overlap between each party's expectations
regarding an agreement.
3. ZOPA
4. Value Creation through Trades
Value creation occurs when solutions are found that benefit
both parties, or at least benefit one of them without making
the other worse off
Four Key Concepts

14.  Determine the satisfactory outcomes
 Identify opportunities to create value
 Identify your BATNA and Reservation price
 Improve your BATNA
 Determine who has authority
 Study the other side
 Prepare for flexibility in the process
 Gather objective criteria to establish fairness
 Alter the process in your favor
The following steps are important to make most of the negotiation
Steps of Good Deal

15. Negotiation Process

16. Skills of Effective Negotiators

17.  Die Hard Bargainers
 Lack of Trust
 Cultural and gender differences
 Communication problems
 The power of dialogue
 Spoilers
 Structural impediments
Negotiation Barriers