Lewicki, Essentials of Negotiation, 4

Lewicki, Essentials of Negotiation, 4 th Canadian Edition

Copyright © 2020 McGraw-Hill Limited

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Chapter 1 The Nature of Negotiation

People negotiate all the time. Friends negotiate to decide where to have dinner.Children negotiate to decide which television program to watch. Businesses negotiate to purchase materials and to sell their products. Lawyers negotiate to settle legal claims before or during court litigation. The police negotiate with terrorists to free hostages.Nations negotiate to open their borders to free trade. Negotiation is not a process reserved only for the skilled diplomat, top salesperson, or ardent advocate for an organized lobby; it is something that everyone does, almost daily. Although the stakes are not usually as dramatic as bankruptcy proceedings or violent protests, everyone negotiates; sometimes people negotiate for major things like a new job, other times for relatively minor things, such as who will wash the dishes.

Negotiations occur for several reasons: (1) to agree on how to share or divide a limited resource, such as land, or property, or time; (2) to create something new that neither party could do on his or her own, or (3) to resolve a problem or dispute between the parties.Sometimes people fail to negotiate because they do not recognize that they are in a negotiation situation. By choosing options other than negotiation, they may fail to achieve their goals, get what they need, or manage their problems as smoothly as they might like to. People may also recognize the need for negotiation but do poorly because they misunderstand the process and do not have good negotiating skills. After reading this book, we hope you will be thoroughly prepared to recognize negotiation situations, understand how negotiation works, know how to plan, implement, and complete successful negotiations, and, most importantly, be able to maximize your results.

Learning Objectives

The main purpose of this chapter is to provide an overview of negotiation and introduce the chapters that follow. After reading the chapter you should be able to:

LO1. Define negotiation and explain the key elements of a negotiation process and the distinct types of negotiation.LO2. Describe how people use negotiation to manage situations of interdependence.LO3. Explain how negotiation fits within the broader perspective of processes for managing conflict.LO4. Describe the organization of this book and the contents of its chapters.

• Becoming a Better Negotiator

A. Sources of authors’ insight into negotiation:

• Experience as negotiators.
• Media – which report on actual negotiations every day.

(Essentials of Negotiation, 4th Canadian Edition, 4e Lewicki, Saunders, Barry, Tasa) (Instructor Manual with Case Notes) (For the Complete File, Download link at the end of this File) 1 / 3

Instructor’s Manual

Lewicki, Essentials of Negotiation, 4 th Canadian Edition

Copyright © 2020 McGraw-Hill Limited

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• Social science research.

• Negotiator Skill Development
• Practice
• Reflection
• Analysis

• Good negotiators are made, not born.

• Give-and-take approach
• Give-and-take is extremely important, but negotiation is a complex social

process. Many of the most important factors that shape the negotiation occur before the negotiation or shape the context around the negotiation.

II. Characteristics of a Negotiation Situation (LO1)

A. Characteristics common to all negotiation situations:

• There are two or more parties, individuals, groups or organizations.

• There is a conflict of needs and desires between two or more parties, and the

parties must search for a way to resolve the conflict.

• The parties negotiate by choice. Parties negotiate because they think they can

get a better deal by negotiating than by simply accepting what the other side will voluntarily give them or let them have.

• When negotiating, a give-and-take is expected. To reach an agreement, both

sides will modify their opening position to find a resolution, which usually involves a compromise.

• The parties prefer to negotiate and search for agreement rather than to fight

openly, have one side dominate and the other capitulate, permanently break off contact, or take their dispute to a higher authority to resolve it.

• Successful negotiation involves the management of tangibles and also the

resolution of intangibles.

a. Tangible factors: the price or the terms of agreement.

b. Intangible factors: The underlying psychological motivations that may

directly or indirectly influence the parties during a negotiation. They have an enormous influence on negotiation processes and outcomes, so it is crucial for negotiators to understand how they affect decision making and tangible outcomes. Examples of intangible factors include: 2 / 3

Instructor’s Manual

Lewicki, Essentials of Negotiation, 4 th Canadian Edition

Copyright © 2020 McGraw-Hill Limited

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(1) The need to win or beat the other party or avoid losing to the other party.(2) The need to look good, competent, or tough to those you’re representing.(3) The need to defend an important principle or precedent in a negotiation; and (4) The need to appear “fair” or “honourable” or to protect one’s reputation.

III. Managing Interdependence (LO2)

• Working interdependently allows parties to achieve a possible outcome that is

better than they could achieve by working on their own.

• Most relationships between parties may be characterized in one of three ways:

independent, dependent, or interdependent.

• When the parties depend on each other to achieve their own preferred

outcome they are interdependent; they are characterized by interlocking goals.

• Independent parties are able to meet their own needs without the help and

assistance of others.

• Dependent parties must rely on others for what they need; the dependent party

must accept and accommodate the provider’s whims and idiosyncrasies.

• Types of Interdependence Affect Outcomes

• The interdependence of people’s goals, and the structure of the situation in

which they are going to negotiate, strongly shapes negotiation processes and outcomes.

a. Zero-sum or distributive situations: Competitive situation where there is

only one winner. To the degree that one person achieves his/her goal, the other’s goal attainment is blocked.

b. Non-zero-sum or integrative situations: Goals are linked to achieve a

mutual gain. There is a positive correlation between the goal attainments of both parties.

• Alternatives Shape Interdependence

1. BATNA: Best Alternative to a Negotiated Agreement

• Whether you should or should not agree on something in a negotiation

depends upon the attractiveness of your best available alternatives.

• The value of a person’s BATNA is always relative to the possible

settlements available in the current negotiation.

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