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Prof Stephen W. Nason All Rights Reserved

MGMT 3140

NEGOTIATION

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Prof Stephen W. Nason

PhD

Adjunct Associate Professor of Management

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SESSION 1

NEGOTIATION INTRODUCTION

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Who Likes Negotiating?

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CLASS NOTES: Effective Negotiation

Negotiation is something thateveryone does, almost every day

Why is Negotiation Important?

Most People are Bad Negotiators

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Most People are BAD Negotiators!

Investigations show that people do not negotiate well

Less than 4 percent of managers reach win-win outcomes when put to the

test (Nadler, Thompson, & Van Boven, 2003)

Even when negotiators are privately in perfect agreement, they fail to

realize it 50 percent of the time (Thompson & Hrebec, 1996)

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Why are people such BAD Negotiators?

Faulty Feedback

After most negotiations people never know what would have happened if

negotiated differently

Never know what others might have achieved in the same situation

Satisficing and Excessive Optimizing

Satisficing- accepting a satisfactory result

Excessive Optimizing by refusing to accept anything but the best result you end

up with nothing

Self-Reinforcing Incompetence

Most negotiate poorly, and with experience, they become even better at

negotiating poorly

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Common Negotiation Errors:

Leaving money on the table (lose-lose negotiation)

Settling for too little (the winners curse)

Walking away from the table

Settling for terms worse than your alternative (the agreement bias)

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Common Negotiation Myths:

Myth 1: Negotiations are fixed-sum

Myth 2: You need to be tough

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

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What is the best way to develop

negotiation skills:

Experience

Listen to the wisdom of your professor

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Neither work wellExperience with

Comparison of outcomes

Comparison of approaches

Experimentation

Discussion

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Course Learning Objectives

Improve your ability to negotiate successfully

Science (Mind)

Heart (Emotions)

Art of Negotiation

General strategy for successful negotiation

Enlightened model of negotiation

9CLASS NOTES: Effective Negotiation

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Negotiation

Fundamentals ContextsProcesses Remedies

Perception

& Biases

Nature of

Negotiation

Distributive

Negotiations

IntegrativeNegotiations

Strategy

& Tactics

Salary

Negotiations

Ultimatums

Difficult

Negotiations

Video Analysis

Coalitions &

Multiple Parties

Disputes

Groups

InternationalNegotiations

Negotiation Outline: Where are We Going?


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Negotiation Fundamentals

Two or more

parties

Interdependence

Mutual

Adjustment

Perception and

Biases

The Negotiation

ProcessCourse outline

Sat. Structure

Structure

Grading

Syllabus

Negotiation Fundamentals Outline:

Where are We Going Today?


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Negotiations: Definition

When two or more parties have different preferences but need to reach a

joint decision they enter into a negotiation


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Negotiation Research from:

Psychology

Economics

Law

Political science

Communications

Sociology

Anthropology

Labor relations


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Some Characteristics of the

Negotiating Process:

Two or more parties

Parties have different or competing interests

Both parties think they can influence the other

Interdependence

Mutual Adjustment

Success involves managing psychological and perceptual as well as obvious

aspects of negotiating


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Interdependence

Both Parties can Benefit from Working Together Somehow

Distributive negotiations (Zero Sum):

Goals are completely conflicting

The more one wins the more the other looses

Integrative (Win-Win):

Both parties can achieve their goals together

Together both parties can create something that neither could create on its

own


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Mutual Adjustment

Your success depends on the actions of the other party in the negotiation

Dilemma of honesty:

How truthful should you be?

Dilemma of trust:

How much do you believe the other party?

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Both Parties Will Need to Adjust Their Behavior in Response to the

Others Actions


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Psychological Aspects of Negotiation

Need to look good

Esteem

Fear

Desire to win

Emotions

Culture

Values

Expectations

Power

Control


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Perception vs. Truth

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Reality is less important than peoplesperception of reality


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Negotiation Syllabus

Must participate in negotiations

If miss negotiations will miss the learning

Do not come to class late!!!!

Come at the right time!

Come prepared

Try your best

Must openly discuss what worked and did not work in class

Must accept slides after class, not before


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MGMT 235: Negotiations

Course Web Page: http://lmes2.ust.hk

Office Hours: By appointment

In general Tues & Thur 4:30 6:00 is a good time

Course Negotiation Materials

Handed out each week

You must pay HK $275

If you do not pay, you do not pass

http://lmes2.ust.hk/http://lmes2.ust.hk/

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Negotiation Grading

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Exam 1 35%

Exam 2 35%

Negotiation Results 5%

Negotiation Quizzes 5%

Participation

Discussion 10%

Attendance 10%100%


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Name:

Student ID:

E-mail:

Major:

Where are you from:

Something interesting about yourself


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Stephen Nasons

Personal Background

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Documents