Bargaining Strategies! Distributive Bargaining! Integrative Bargaining!!
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1 Bargaining Strategies Distributive Bargaining Integrative Bargaining 21-2
2 Staking Out the Bargaining Zone (Distributive Bargaining) 21-3
3 NEGOTIATION: SKILLS CHECKLIST Determine your objectives. Apply a concrete strategy. Know your options. Begin with a positive overture. Maintain a rational, goal-oriented frame of mind. Empathize with other party s position. Address problems, not personalities. Don t take initial offers too seriously. Insist on objective criteria. 21-4
4 What s a Fair Pay Increase For Lisa? Modeling Exercise Actors: Dale = boss Terry = supervisor Class = observers ½ observe Terry ½ observe Dale Everyone read situation (negotiate Lisa s salary) Actors read your role (Do not read the other role) Class read both roles & Observer s Rating Sheet Role Play Feedback Terry Dale 21-5
5 Used Car Negotiation Group Exercise 2 Choose a partner Decide on who will be seller buyer Read the Situation - Then read your role - Do not read the other role Plan your negotiation - Target point - Resistance point - Settlement range - BATNA Role play Give each other feedback re: Observer s Rating Sheet 21-6
6 NEGOTIATION: OBSERVER S RATING SHEET Considers other party s situation Applies a concrete strategy Knows options Begins with a positive overture Addresses problems, not personalities Maintains rational, goal-oriented frame of mind Doesn t take initial offers seriously Emphasizes win-win solutions Insists on objective criteria 21-7
7 Class DEBRIEF: Used Car Negotiation What did car sell for? 1. Which buyer got it cheapest? - What made you successful? - What did you learn about negotiating? 2. Which seller got highest price? - What made you successful? - What did you learn about negotiating? 3. All: What did you learn about effective negotiating? 21-8
8 Who Gets the Overtime? Group Exercise 1 Two actors: Read situation, read your role, do not read the other person s role Chris- manager of Unit 1 Lee- manager of Unit 2 Class observes, use Observer s Rating Sheet Role play Feedback/debrief 21-9
9 Neighbors Group Exercise 3 Read the situation Roles: Gene Shawn Class observes, use Observer s Rating Sheet Role play Feedback/debrief 21-10
10 AACTIVITES 21-10
11 Activities You are representing your company in an important negotiation. After being in a stalemate for several hours, your counterpart misquotes and misrepresents you on several earlier statements. After you correct the record, your opponent loses his temper and aggressively slanders your character in front of others on your negotiating team. What should you do? Why? 11
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