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McGraw-Hill - Briefcase Books - Negotiating Skills for Managers, SAMOKSZTAŁCENIE, Mcgraw-Hill [Briefcase Books]

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Competitive Versus
Collaborative
Decision Making
Negotiating is not a competitive sport.
item, make a business deal, decide where to go for din-
ner—they need to use some sort of mechanism for reaching an
agreement. Unless they agree instantly on every element of the
choices to be made, they need to use a mutually acceptable
process for decision making. Negotiation is one name for a vari-
ety of joint decision-making processes, although people also
use such terms as making a deal, trading, bargaining, dickering,
or (in the case of price negotiation) haggling.
A successful negotiation has taken place when the parties
end up mutually committed to fulfilling the agreement they have
reached. Fairness is a crucial element to make a negotiation
process succeed. Some people negotiate as if their most signifi-
cant objective is to take advantage of other parties; this is self-
1
What Is Negotiation?
W
hen people want to do something together—buy or sell an
2
Negotiation Skills for Managers
Waging Peace
In the old days, when wealthy landowners had a dispute they
would hire mercenaries—knights—to wage war to deter-
mine who was right.The winner of the battle was acclaimed the winner
of the dispute.Then somebody invented lawyers. For the past thousand
years or so, we’ve been waging law to decide who wins.Today, as peo-
ple rely increasingly on negotiation to resolve disputes or reach agree-
ments, they are waging peace to reach the resolution that is most
acceptable to all parties.
defeating. If any party feels unfairly treated, he or she may walk
away from the negotiation with a negative feeling and a disincli-
nation to live up to the agreement.
One way to think of negotiation is to compare knitting and
weaving. When you knit something, you generally use a single
strand of yarn. And although knitted fabrics may contain a vari-
ety of colors and textures, you can easily stretch them out of
shape. In weaving, the fabric is created by using at least two
strands coming from different directions. Woven fabrics tend to
have greater tensile strength and durability than knitted fabrics.
Negotiation is more like weaving—the process takes contribu-
tions from various parties. While weaving and knitting may
involve a single person’s
skills, negotiation calls for
contributions from two or
more parties. By drawing
upon the knowledge,
skills, and other input of
the multiple parties, a
good negotiation process
weaves together a durable
agreement whose strength
derives from the fact that
the parties reached agree-
ment by working together.
Negotiation
The process
of two or more parties
working together to arrive
at a mutually acceptable resolution of
one or more issues, such as a com-
mercial transaction, a contract, or a
deal of any sort.
Negotiation is a give-and-take bar-
gaining process that, when conducted
well, leaves all parties feeling good
about the result and committed to
achieving it.
Competitive Versus Collaborative Decision Making
3
What Negotiation Is Not
When your boss gives you an order and your only choice is to
do what he or she says, that is not negotiation. If an outsider is
brought in to make a decision between parties using arbitration,
the parties are legally bound to follow the arbitrator’s decision.
That is not negotiation. When parties are not working together
to reach an agreement, negotiation does not take place.
It’s important to keep in mind that negotiation is
not
a com-
petitive sport. This doesn’t mean, however, that we’re never in a
contest with other parties. But we are not competing with the
aim of making sure we crush the opposition. Rather, we are
aiming to do the best we can for ourselves. Using this philoso-
phy, we are less interested in the sporting aim of competing and
more interested in looking out for ourselves. In negotiation, you
want to do well for yourself, but not because you want to beat
someone else. Effective negotiation is held in its proper context
as a mechanism for pursuing interests.
Your dealings with customers—or suppliers, neighbors, or rel-
atives—should not be viewed as competitions. We negotiate with
people to reach an agreement that meets as many of the parties’
interests as possible. Our fundamental obligation is to pursue our
own interests, assuming that the other parties are doing their
best to get their interests met. We need to remember, however,
that if the negotiating parties aren’t satisfied with the process as
well as with the result, odds are that the promises constituting
the agreement won’t be fulfilled. Negotiation based on individual
interests requires that we open our minds and our strategizing to
other parties’ interests as well as our own. The definition of
negotiation can now be expanded to describe how parties trade
things of value in a civilized manner.
Types of Negotiation
People usually view negotiation as either confrontational or
cooperative. People who view negotiation as a confrontation see
the process as a zero-sum game in which a limited number of
4
Negotiation Skills for Managers
bargaining chips are to be won—and they want to be the win-
ners. The confrontational winner-take-all approach reflects a
misunderstanding of what negotiation is all about and is short-
sighted. Once a confrontational negotiator wins, the other party
is not likely to want to deal with that person again.
Cooperative-approach negotiators see a wide range of inter-
ests to be addressed and served. They understand that negotia-
tion is not a zero-sum game but a way to create value for all the
parties involved. The cooperative negotiator understands the
importance of all stakeholders winning something—this is how
you build long-term mutually beneficial relationships.
The cooperative approach is known as
interest-based negoti-
ation
. Interest-based negotiation is particularly effective in a
marketplace characterized by diversity. We often need to reach
agreement with people who are different from us—culturally,
ethnically, or economically. If we cannot get beyond the differ-
ences, they can create
obstacles to agreement.
To do this, we need to
focus on the interests of
the parties instead of on
the parties’ differences.
Those interests can form
the building blocks upon
which agreement is based.
My Way or the Highway
Some people approach negotiation with an attitude that can
be characterized as “My way or the highway.” This occurs in a
situation where one person believes that he or she holds all the
cards in a negotiation. If you want something from that person,
you may have to give him something he really values.
Think of your experiences in renting cars. Automobile rental
companies have thought of all the answers; they ask you to
sign and initial the front of the contract in several places. The
actual contract is on the back of the paper you sign, generally
Interest-based negotia-
tion
An approach to nego-
tiation where the parties
focus on their individual interests and
the interests of the other parties to
find a common ground for building a
mutually acceptable agreement.
Competitive Versus Collaborative Decision Making
5
I’m Good, You’re Good
When you brush your teeth in the morning, do you see a
“good” or “bad” person in the mirror? Unless there’s some-
thing extraordinary about you, you probably see a good person. It is
important to remember that the other parties with whom you will be
negotiating likely see “good” people in their mirrors as well. If all par-
ties undertaking negotiation see themselves as good people, it makes
sense for them to treat one another with that understanding. If you
approach a deal-making process as an opportunity to crush the oppo-
sition, you are choosing to beat up on someone who views himself as
a good person.
printed in very small letters in extremely light ink. If you want a
rental car, you can’t negotiate the contract. The rental company
has adopted a position from which they will not budge. There is
no clearer example of the “my way or the highway” approach.
Hazards of Adopting a Position
In negotiations between parties who each have some power to
influence the results (the
usual type of negotiation),
the crucial thing to remem-
ber is that taking a position
limits your capacity to bar-
gain. A
position
is a party’s
answer to the question
“What do you want?” If you
adopt a position from which
you will not budge, you run
the risk of losing face if you
have to back down from
the approach you are using.
Investigating Your Interests
The more effective route to achieving an acceptable conclusion
to a negotiation is to look at the interests of the parties. Your
interest
is the answer to the question, “Why do you want (a par-
Position
This is the final
answer to the question
“What do you want?” It can
be okay to
start
with a position in a
negotiation, but unless you under-
stand the interests behind your posi-
tion and are open to alternative
approaches, you are likely to find
yourself stuck in a corner you cannot
escape without losing face.
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