Business Leadership - Negotiation

Learning Focus for Today

Business Skills • Leadership Skills • Interpersonal Skills • Intrapersonal Skills

Types of Business Skills

Decision Making & Problem Solving

Argumentation, critical thinking

Negotiation • Planning • Evaluating Performance

Teaching Method

Reading/Lecture Thompson & Leonardelli Rowan

Self Assessment Conflict Style

Role Play Ugli Orange Salary Negotiation

Factors affecting Negotiations Type of Relationship between parties Type of Emotions Perceptions of Parties Ability to Invent Options Best Alternative to Negotiated Agreement BATNA Negotiation

Bargaining Style

Negotiation Ability to Invent Options

What is Inventing Multiple Options • Students orally give examples of negotiation with multiple Options

– Car Sale Negotiation – Salary Negotiation – Union-Management Negotiation

• Expanding the pie or using multiple options leads to win-win solutions

Factors affecting Ability to Invent Options Fixed Pie Perceptions Ability to Invent Options Negotiation Outcome

Pre-mature judgments

Search for a single answer

Fixed pie perception

Ability to invent options

Negotiation Outcome

What is Fixed Pie? • Erroneous belief that negotiators’ interests are directly opposed – gain for party A => loss for party B

• E.g., married couple vacation plan (ski lodge or luxury hotel)

Fixed pie perception

Ability to invent options

Negotiation Outcome

Studies supporting the link:

• When people believe that the gain made by one party is a loss for the other party, they are less likely to expand the pie • E.g., salary / car sales negotiation

Time pressure

Premature judgments

Ability to invent options

Studies supporting the link:

• Premature judgments=commit to a course of action & find it difficult to change that course even if change could yield mutually beneficial outcomes • Time pressure increases premature judgments, prevents use of new information

Search for single...