University of Wisconsin-Madison School of Business MHR 628 Bargaining, Negotiating and Dispute Settlement for Managers

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1 University of Wisconsin-Madison School of Business MHR 628 Dr. Jean A. Grube 4250B Grainger Hall Office phone: Cell phone: Office hours: Wednesday 10am - 1 pm Course Overview Much of what managers and other professionals do involves bargaining, negotiation and dispute resolution. For instance, managers bargain with superiors, subordinates, colleagues as well as suppliers, customers and allies. Despite the relative ubiquity of negotiation in our everyday life, many of us lack the skills and tactics that could improve outcomes for everyone involved. The goal of this class is to improve students negotiating skills by providing both experiential opportunities and conceptual underpinnings associated with effective and ineffective approaches to bargaining, negotiating and dispute resolution. Required Readings 1 Bargaining for Advantage (Richard Shell) 2 Getting Past No(William Ury) 3 Other readings will be posted to the website or distributed in class on a weekly basis The assigned readings should be read before class, but not earlier to avoid reducing the richness of your experiential learning. Cases and Exercises The developers of most of the cases and exercises used in this course charge royalty fees for these products. You will need to pay these fees to the copy center. The instructor will hand out each week s exercise. Course Requirements and Grades The grade you earn will be determined by your performance on the following: Class Participation (30%) Class participation includes attendance, prepared participation in the negotiation exercise, peer evaluations and class discussion. Professionalism Appropriate use of technology. Many students use laptop computers during negotiations; this is fine. It is NOT acceptable to use laptop computers or cell phones to read your , send or read text messages etc. Use of these technologies for non-class purposes will severely impact your grade! Arrive to class on time. Class begins at 2:25. Class attendance. Because we rely heavily on classroom exercises, class attendance is critical. Missing classes for any reason will harm your participation grade since you can t participate if you are not in class. If you

2 must miss class, you MUST notify me by 3 PM on the day before class. Missing classes without informing me by 3 PM the day before the class makes the exercises difficult to administer and inconveniences your classmates and me. If you are ill or otherwise have a last-minute emergency, notify me as soon as you know that you will not be able to attend. You may contact me by (jgrube@bus.wisc.edu) or by phone ( ; ). Missing class without informing me in advance will severely harm your participation grade. You will be required to use outside class time to make up any negotiation you have missed. If you know you are going to miss several classes this semester, it may be advisable not to take the class. Class preparation. Formal planning documents are required for five of the negotiation exercises. They must be completed and uploaded to the course website before class begins on the date of the negotiation. More information on these assignments will be distributed closer to the due dates. Planning documents are required for the following cases/exercises: (1) Sally Soprano, (2) Moms.com, (3) Icarus, (4) Tipal Dam and (5) Federated Science. Discussion. In many of our negotiation exercises, negotiators achieve scores. Note that your grade will not be based directly on your scores in these exercises. Rather, your participation grade will reflect the thoroughness of your preparation, your engagement in the exercise and the extent to which you make a connection between what you experience during the negotiation and concepts, tactics and strategies discussed in class. Students will also rate the performance of their classmates on several of the negotiation exercises during the term. Performance rating forms will be distributed to guide the rating process. As an added note, when you are negotiating, please do not fabricate material facts that substantially change the case. Examination (30%) There is one comprehensive essay/short answer examination for the course. Personal Negotiation Experience (10%) Each student will conduct one personal negotiation outside the class during the semester and provide a brief (i.e., 3 minutes or less) summary of this negotiation to the class. More information will be provided closer to the assignment. Personal experience journal (30%) Journals are to be submitted according to the time table listed in the syllabus and uploaded to the website. When you upload the file, please use this naming format: your LAST name, FIRST name, and TITLE of negotiation exercise. Guidelines for Personal Journals Journals must be uploaded to the website by 5:00 PM (see syllabus). Journaling is a confidential, written record of your personal learning about negotiation. It might be the 2

3 beginning of a lifelong project to improve your ability to negotiate. Journaling encourages reflection and analysis of what you learned. Journals are to be no more than one page, single-spaced (they may be shorter). There are two exceptions. The first journal will include your specific goals for the course and the last journal will include an assessment of the extent to which you attained those goals and a survey of what you still need to work on. If needed, these journals may run two pages instead of one. Use the journals to explore your sense of competence (or incompetence) and comfort (or discomfort) with the negotiation. Examine what you believed you did well and what you didn t do very well. In addition, examine what the other party did well and what mistakes they made. Be as candid as you can possibly be about yourself and others. Focus on your own actions; the best learning comes from exploring what you can do to improve rather than blaming others for what went wrong. Some of the best journaling often comes after the worse negotiating outcome! For each journal, apply negotiation principles and concepts you ve learned from lectures, readings and class discussion. Use negotiation terminology. Journals are confidential communications between you and me. Occasionally I may share examples from journals with the class, but I will never do so without checking with you first, and you are under no obligation to say yes (or you may also say yes with the proviso that I don t identify you). No student should read another student s journals; I will consider doing so a serious breach of academic integrity and will deal with it accordingly. Journal grades will be determined using the following criteria: 1 C journals will have an entry on each classroom exercise but little more. This is the minimum. 2 B journals will do C level, and also show a serious attempt to grapple with exercises using the course concepts and an occasional treatment of real-world examples. 3 A journals will do B level, and will also regularly discuss personal experiences, real-world examples and apply course concepts effectively. At the margin, grades may also reflect effort, honesty, reflection and a sense that you are making progress toward strengthening your negotiating skills. Negotiations Journal Form: MHR 628 Please follow this format (i.e., use headings and address each component) and limit each journal entry to one typed page. At the top of the journal include: Your name and role you played Counterpart s name 1. OUTCOME What was the outcome? Was this a good outcome for you? Was it a good outcome for the other party? (Only 1 or 2 sentences are needed here.) 2. ANALYSIS How, if at all, does this experience relate to the negotiation tools (use of standards, relationships, interests, leverage, etc.), readings (on style, gender, emotion, teams, coalitions, interest-based negotiations, etc.) or conceptual models (distributive versus integrative bargaining, scarcity effects, audience effects, etc.) you are learning about? 3

4 In addition to the issues discussed above, every journal must include an assessment of the following: a. What strategies and tactics did you use that worked well? (e.g., got the other party to trust you?) What strategies and tactics did the other party use that worked well? b. What mistakes did you make (e.g., strategies and tactics you used that didn t work well or strategies and tactics you failed to use)? What mistakes did the other party make? A common mistake in journaling is to focus too much on describing what happened instead of explaining WHY it happened. 3. INSIGHTS INTO YOUR PERSONAL STYLE/HABITS/INSTINCTS. What personal insights did you take away from this experience that can help you gain more confidence and control as a negotiator next time? (Pay attention to what you are FEELING during the negotiation and include relevant emotions as part of your insight - e.g., anger, fear, anxiety, and competitiveness). What would you do differently next time to avoid these mistakes? (Give specific behavioral or verbal examples! For example, don t just say I d be more competitive. Instead, you could state that you would open the negotiation with a much higher offer and that you not worry about how nice you are being to the other party.) Academic Integrity All work you perform in this class is to be consistent with principles of academic integrity. In many of our negotiation exercises, you will receive confidential instructions describing your role. You may not show these instructions to others at any time because we want to simulate actual negotiating conditions (i.e., negotiators typically have only limited objective evidence with which they can use to convince others of their true interests or situation). In addition to not sharing confidential instructions, you may NOT: meet with others in the class to discuss or prepare for the exercises in advance (unless I have EXPLICITLY stated you may do so). obtain/receive any information from others who have previously completed the exercise (e.g., discuss cases with them, borrow their notes, read their journals, review their planning documents) give information to others (e.g., those in other classes) who have not yet performed the exercise. allow others to read your journaling perform an exercise that you are familiar with (e.g., you performed it in another class). In this case, you are REQUIRED to bring this fact to my attention. Google the exercise or post on the web any papers you write for the class. Failure to observe these requirements will be considered a violation of academic integrity. Ask me if you have questions or concerns about these policies! 4

5 Exercise: The Gas Station Game Class #1: January 19 Introduction to Negotiations and Course Class #2: January 26 Bargaining and Bargaining Styles Framing Text readings: Bargaining for Advantage: Introduction and Appendix Exercise: Moving Day, The Ultimatum Game Textbook Appendix A: Complete, score and bring to class The Thomas-Kilmann Conflict Mode Questionnaire Upload journal Gas Station before 5:00 PM today (include your class goals) Class #3: February 2 Framing, Distributive Bargaining and Zone of Agreement Goals and expectations Text readings: Bargaining for Advantage: chapter 1 Exercise: The Sugar-Bowl, The Used Car Course website: Can We Negotiate and Still Be Friends? (Kurtzberg & Medvec) Handout: The Power and Impact of the Negotiator s Frame (Neale & Bazerman) Handout: Elmtree (Raiffa) Handout: Analytical Models and Empirical Results (Raiffa) Upload journal Moving Day or Ultimatum before 5:00 PM today Class #4: February 9 Standards, Relationships, Interests, Leverage Text readings: Bargaining for Advantage: chapters 2 & 3 and Appendix B Exercise: Sally Soprano Course website: Should you make the first offer? (Galinsky) Handout: Secrets of Power Negotiating (Dawson) Upload Sally Soprano planning document before class begins today Upload journal Sugar-Bowl before 5:00 PM today Class #5: February 16 Negotiating Multiple Issues Together 5

6 Analysis and Preparation Text readings: Bargaining for Advantage: chapters 4, 5, 6, & 7 Exercise: Moms.com Course website: Six Habits of Merely Effective Negotiators by Sebenius Handout: Negotiation: Strategy and Planning by Roy J. Lewicki, Bruce Barry, and David M. Saunders Upload Moms.com planning document before class begins today Upload journal Sally Soprano before 5:00 PM today Class #6: February 23 Ethics Opening negotiations, Making concessions Text readings: Bargaining for Advantage: chapters 8, 9 & 10 Exercise: House Sale Discussion of Personal Negotiation Requirement Course Website: Power Plays (Galinsky and Magee) Course Website: How to Manage Your Negotiating Team (Brett, Friedman & Behfar) Handout: Power, Persuasion and Ethics (Thompson) Upload journal Moms.com before 5:00 PM today Class #7: March 2 Negotiation Analysis and Preparation Text readings: Bargaining for Advantage: chapter 11 Exercise: Salary Negotiation and Guest Speaker Exercise: Icarus 1 Course website: G. Richard Shell, When is it Legal to Lie in Negotiations? Handout: Rubin and Sander, When Should We Use Agents? Direct Versus Representative Negotiation Upload Icarus planning document before class begins today 6

7 Exercise: Icarus II Other assignments Upload journal Icarus before 5:00 PM today Class #8: March 9 Third Parties in Negotiation: Agents, Arbitration and Mediation Class #9 March 23 Cross-cultural and International Negotiations Class #9 March 23 Cross-cultural and International Negotiations Text readings: Review: Bargaining for Advantage: chapters 7, 8, 9, & 10 Exercise: The Mexico Venture Other assignments Handout: Bush, What Do We Need a Mediator For? Handout: Colosi, The Role of the Mediator Handout: Rubin and Sander, When Should We Use Agents? Direct Versus Representative Negotiation Class #10: March 30th Formal Analysis and Preparation Cross-cultural and international negotiation Exercise: Tipal Dam Upload Tipal Dam planning document before class begins today Upload journal Mexico Venture before 5:00 PM today Class #11: April 6 Multi-party Negotiation I Exercise: Federated Science Handout: Lewicki, Saunders & Barry, International and Cross-cultural Negotiation Upload Federated planning document before class begins today Upload journal Tipal Dam before 5:00 PM today Class #12: April 13 Work on Personal Negotiations 7

8 Upload journal Federated Science before 5:00 PM today 8

9 Exercise: Harborco Class #13: April 20 Multi-party Negotiations I Class #14: April 27 Class #15: May 4 Debrief Multi-party negotiations Course Wrap-up Readings: Bargaining for Advantage, chapter 12 (Conclusion: On Becoming an Effective Negotiator) Handout: Vanover, Getting Things Done Through Coalitions Upload journal attainment of class goals on December 15 th by 5:00 PM Class Awards Final Exam Date and time to be announced 9