1.

Communication methods Obstacles, Feedback

Guidelines, effective Feedback, circumstances to
be avoided

Communication is the process of a sender transmitting a

message to a receiver with mutual understanding. If people
do not agree on the meaning of the message,
communication has not taken place.

Communication methods:

Face to face communication: a lot of business

communicate will take place in a face to face
format, such as meeting and conference, so its
important to refine your skills.
E-mail: has transformed the way that people
communicate in the business world. E-mail
enhances efficiency because it is quick to send
and quick to respond to, and you can even include
attachments that essential to the subject being
discussed in the E-mail conversation.
Teleconferencing: Communicating through a
telephone conferencing system is an effective way
of conducting business when people are not able
to attend a meeting in person.
Video Conferencing: is similar to Teleconferencing,
but allows you to see people through a TV screen
or computer monitor.

Obstacles:

Stereotypes: an oversimplified opinion, image or

attitude that people from a particular group are all the
same.
 Prejudice: preconceived opinion that is not based on
reason or actual experience. To Judge before
knowing.
Feelings: keep your emotions in check especially in
public.
Language: overcome language barriers by using visual
aids.
Culture: show respect for diverse listeners and avoid
slang, idioms, or metaphors.

Feedback-guidelines:

Acknowledge the need for feedback: the first thing we

each must to recognize as communicators is the value
of giving and receiving feedback, both positive and
negative. Is vital to any organization committed to
improving itself, because it is the only way for
managers and executive to know what needs to be
improved.
Give both positive and negative feedback: balance
feedback to avoid morale issues.
Understand the context: before you give feedback,
review the actions and decisions that led up to the
moment, review the events, stressing where, what and
how.
Use common language: use speech with not be
misunderstood or misconstrued.
Dont make assumptions: receiver may not have same
perceptions of issues as you have.
Focus in behavior rather than people: feedback should
be given on actions not on personalities.
Know when to give feedback: timing is critical in order
to make feedback an effective action.
When feedback should be avoided:

When you dont have time to discuss impact of

feedback (hit and run feedback)
You have not investigated the circumstances of
feedback.
The feedback (positive or negative) concerns issues
over which the person has no control.
The person appears to have low self-esteem.
The feedback is based on catching a person doing
something wrong.
The time, place or circumstances are inappropriate.

Providing effective feedback:

Be descriptive (based on what you have observed)

Be objective (stick to facts and focus on what you
know)
Dont use labels (avoid words like immature,
unprofessional)
Dont exaggerate (dont make behaviors worse than
actual)
Dont be judgmental (dont correct behaviors as a
parent)
Encourage people to change (focus on issues the
recipient has the power to change)
Build trust (build long-term relationships and trust)
Help people accept compliments (reinforce positive
feedback and help people to hear it, acknowledge it
and accept it).

2. Negotiation topics - their functions in negotiation

process, Negotiation language Importance
Negotiation defined:

Negotiation involves two or more parties with competing or

conflicting interests or needs, working towards an agreement
on how they will cooperate.

Negotiation is a process of finding a point of balance

between your objectives and that of the other party.

Why is negotiation important:

Negotiation is a form of interpersonal communication.

Communication process, both verbal and nonverbal, are
critical to achieving negotiation goals and to resolving
conflicts.
Negotiators communicate their own interests, positions
and goals, in turn make sense of the interests, positions
and goals of the other party and of the negotiation as a
whole.
Clearly, communication is a critical element of the
negotiation process.

Functions in negotiation process:

Offers and counteroffers: communication is dynamic

with series of back and forth discussions.
Information about Alternatives: freely sharing
information with each other to develop additional
alternatives to an agreement.
Information about Outcomes: negotiators should not
share their perceptions of whether the negotiation
outcomes were positive or negative.
Social Accounts: providing explanations to opponents
about mitigating circumstances driving ones
negotiation needs.
 Communication about process: preliminary discussion
prior to negotiation to discuss ground rules of the
process.

Negotiation language:

Negotiation represent the exchange of information

through language that coordinates and manages
meaning.
Negotiation language operates at two levels:
Logical level (used to convey proposal or offers)
Pragmatic level (semantic, syntax and style)
The message conveyed using both logical and
pragmatic language establishes communication that is
dependent on both what is said (logical) and how it is
said (pragmatic).
Example: Polarized language, the use of language in
which negotiators use positive words when speaking of
their own positions (generous, reasonable, or even-
handed) and negative words when referring to their
opponents position (tight-fisted, unreasonable and
heavy-handed).

Non-verbal communication:

Make eye contact:

Provides an important cue to the opponent that you are
engaged and listening.
Important when trying to persuade or communicate an
important point to the discussion.
Adjust body position:
Holding ones body erect and leaning slightly forward
shows enthusiasm for the discussion.
 Crossing arms, bowing the head, frowning, can signal
strong rejection or disapproval of the message.
Encourage or Discourage Behavior:
Encouragement of interest, attention and agreement
can be shown by a head nod, a hand gesture to
continue, or a smile during the discussion.
Discouragement can be shown by a frown, a scowl,
shake of the head or grabbing ones chest as a gesture
of mock pain during the discussion.

3. Distributive Bargaining, Hardball tactics

Example

Distributive bargaining is the approach to bargaining or

negotiation that is used when the parties are trying to divide
something up--distribute something. It contrasts with
integrative bargaining in which the parties are trying to
make more of something.

Good distributive bargainers identify their realistic

alternative before starting discussions with the other party
so that they can properly gauge how firm to be in the
negotiation.

Also called competitive, win-lose bargaining

Distributive bargaining is about winning
The goals of one party are usually in fundamental and
direct conflict with the goals of other party.
Resources are fixed and limited, and both parties want
to maximize their share of the outcomes
 Distributive bargaining is common, but considered not a
good option when maintaining long-term relationships
is a desired result

Settlement Point:

The fundamental process of distributive bargaining is to

reach a settlement within a positive bargaining range. The
objective of both parties is to obtain as much of the
bargaining range as possible, to reach an agreement as
close to the other partys resistance point as possible.

Both parties in distributive bargaining know that they might

have to settle for less than what they would prefer ( their
target point), but they hope that the agreement will be
better than their own resistance point.

Fundamental Strategies:

The prime objective in distributive bargaining is to maximize

the value of the current deal. In the condo example, the
buyer has four fundamental strategies:

To push for a settlement close the sellers (unknown)

resistance point, thereby yielding the largest part of the
settlement range for the buyer. The buyer may attempt
to influence the sellers view of what settlements are
possible by making extreme offers and small
concession.
To convince the seller to change her resistance point by
influencing the sellers beliefs about the value of the
condo.
If a negative settlement range exists, to convince the
seller to reduce his resistance point or to change his
 own resistance point, to create a positive settlement
range.
To convince the seller to believe that this settlement is
the best that is possible rather than having his think
that it is all he can get, or that he is incapable of
getting more, or that the buyer is winning the
negotiation.

Influencing The Other Partys Resistance Point:

Central to planning the strategy and tactics for distributive

bargaining is locating the other partys resistance point and
the relationship of that resistance point to your own. The
resistance point established by the value expected from a
particular outcome, which in turn is the product of the worth
and costs of an outcome.

Tactical Tasks:

Within the fundamental strategies of distributive bargaining

there are four important tactical tasks:

Assess the other partys target, resistance point, and

cost of terminating negotiations,
Manage the other partys impression of the negotiators
target,
Modify the other partys perception of his or her own
target,
Manipulate the actual costs of delaying or terminating
negotiations.

The 5 Steps of Distributive Bargaining:

 Define your limits: Each party in a distributive bargaining
negotiation needs to know their resistance and target points
relative to the desired outcome
Obtain information: You need to try to obtain information
about the other partys target and resistance points, if you
can. This information can be obtained or assessed either
indirectly or directly.
Make an opening offer: Another step in a distributive
bargaining scenario is making an opening offer. Opening
offers can anchor a negotiation situation and set the tone
for the process.
Make concessions: This step can continue as long as the
negotiating parties wish. At some point, one party needs to
signal the other party with both their actions and
their words that the concessions are almost over and its
about time to close the deal.
Hopefully, close the deal: There are several tactics for
closing a deal. You might use a closing tactic known as
assume-the-close where you act as though the deal is
concluded even if you arent quite finished.
An American tourist goes shopping for a rug while on vacation in Istanbul. This kind of negotiation
is often thought of as a classic distributive bargain: the tourist and the rug merchant have no
previous relationship and will probably never see each other again, and there are no posted prices
in the shop. Haggling produces either a simple agreement on a price, or an "agreement to
disagree" on the price such that the consumer walks away and shops elsewhere. And whatever
additional money the merchant gets, the consumer gives up.

But consider the possibility of other elements e.g., a rug merchant who would like to do more
business by mail and Web site in the tourist's hometown of Detroit, or the tourist's interest in buying
more than one rug over a period of time and the picture potentially changes to an "integrative"
negotiation, in which many more things are at stake than a single price for a single purchase and
there are more opportunities for "joint gains".
Hardball Tactics

Such tactics are designed to pressure negotiator to do things

they would not otherwise do, and their presence usually
disguises the users adherence to a decidedly distributive
bargaining approach.

Commonly found in distributive bargaining

Tactics that utilize pressure or leverage to force
opponents into concessions that may not normally
agree to.
Hardball tactics can also be utilized to bluff or trick
opponents into making concessions
Some negotiators consider hardball tactics offensive or
even unethical
Negotiators using hardball tactics may experience
retaliation from the other party

Dealing with Hardball Tactics

Ignore them: Not responding can be an effective tactic.

Change the topic and move on.
Discuss them: Acknowledge you know what the other
party is doing and offer to negotiate the behavioral
expectations of the negotiation.
Respond in kind: Use the same tactics until your
opponent recognizes you have equal skills. This may
force a change in tactics.
Co-Opt the Other Party: Befriend the other party before
they use hardball tactics. Commonality can reduce
hardball tactics usage.
Typical Hardball Tactics

Good Cop/Bad Cop: Two negotiators working together.

One plays very hard (haggles) the other plays the
conciliatory role and makes the offers. One common
example of good cop/bad cop is when, during a car
purchase, the sales associate tells you she thinks your
offer is reasonable but is required to check it with her
sales manager before saying yes. She heads to a back
office somewhere (perhaps actually speaking to
someone, perhaps not), then returns, shaking her head
sadly. Sorry, she says, he wont let me agree to that
Id be cutting you too good a deal. But I really want to
get you in that car. Can you come up a bit more on your
offer? The sales associate is so clearly on your side that
you feel willing to consider a higher price for the car.
Lowball/Highball: Negotiators open with excessively
high or low offers they know they will never achieve to
force the opponent to lower their expectations. Labor
management wanted 45% increase in wages but its
really only 3 or 4 percent. Risk- the other party can stop
negotiating and think it's a waste of time. The best
thing to do in response is to ask for a more reasonable
opening offer from the other party.
Bogey: Pretending an issue of little importance is a
major issue with the intention of trading the concession
later for a major concession from the other party. For
example, in a workplace setting, a colleague may
pretend that meeting a proposed deadline is going to
 be very difficult (when, unbeknownst to you, theyre
actually almost done with the project). You, in return,
agree to carry a heavier load on another project to take
some of the weight off the colleague.
The Nibble: Consistently asking for more minor
concessions once a deal has seemed to be reached. For
example: Lets say youre buying a car and have spent
an hour or two working out a purchase price with the
car dealer. At about the time youve almost reached an
agreement, you say, You know, if you throw in a 6-CD
changer in place of the CD player, youve got a deal.

More Hardball Tactics

Chicken: Tactic using a large bluff with a threatened

action to force the other party to give in to a concession
demand
Intimidation: Feigning anger, fear or outrage in an
attempt to force the other party to agree by means of
an emotional ploy. Often used against weaker
negotiators
Aggressive Behavior: Similar to intimidation, a
relentless push for further concessions from the onset,
making the opponent justify every line item of the
negotiation
Snow Job: Overwhelming the other party with so much
information or technical language that they have
trouble determining what facts are real and what are
distractions

4. BATNA Importance in the negotiation process

Best Alternative to a Negotiated Agreement ( BANTA ).

A BATNA is the alternative action that will be taken should

your proposed agreement with another party result in an
unsatisfactory agreement or when an agreement fails to
materialize.

If the potential results of a current negotiation only offers a

value that is less than ones BATNA, there is no point in
proceeding with the negotiation, and one should use their
best available alternative option instead.

Prior to the start of negotiations, each party should have

ascertained their own individual BATNA.

Alternative are important because they give negotiators the

power to walk away from any negotiation when the
emerging deal is not very good. The number of realistic
alternatives that negotiators have will vary considerably
from one situation to another. For negotiations in which they
have many alternatives, they can set their goals higher and
make fewer concessions. For negotiations in which they have
no attractive alternative, such as when dealing with a sole
supplier, they have much less bargaining power.

Strong BATNAs can also influence how a negotiations

unfolds. Negotiators with stronger BATNAs are more likely to
make the first offer in a negotiation and appear to negotiate
better outcomes. The positive benefits of a good BATNA
appear particularly strong when we bargaining range is small
because negotiations with smaller bargaining ranges are
more competitive and less likely to yield agreements.

Seven Steps to Developing a BATNA:

List what you will do if fail to reach an agreement

 Convert the most promising options into practical
choices
Select the best option (that becomes your BATNA)
Compare your BATNA to all proposals
If an offer is better than your BATNA, consider
improving or rejecting it
If an offer is worse than your BATNA, consider rejecting
it
If the other party will not improve their offer, consider
exercising your BATNA

Strategic Importance of BATNA

One of the determinants of your power in a negotiation

is the attractiveness of your BATNA as compared to the
proposals made during the discussions
The more attractive your BATNA is, compared with the
proposals you receive, the more power you have in the
negotiation
The less attractive your BATNA is compared with the
proposals, the less power you have in the negotiation
Since there is a direct relationship between negotiating
power and a good BATNA, it is important to improve
your BATNA whenever possible

Positions Taken During Negotiations:

Opening Offers :
Making the first opening offer is advantageous as
long as the negotiator is confident and well-
prepared
An exaggerated opening offer is advantageous
because it gives the negotiator room for
movement and creates an impression in the mind
of the other negotiator that:
 There is a long way to go before a reasonable
agreement is reached
More concessions than originally planned may
need to be made
The original tolerance limit set may need to be
adjusted
Disadvantages of making an exaggerated opening
offer are:
It may be immediately rejected and end the
negotiation prematurely
It can communicate an attitude of toughness and
inflexibility that may damage long-term
relationships

Opening Stance:
Opening stance is the specific attitude a
negotiator will use during the negotiation. Stances
or attitudes include:
Being competitive (fighting to get the best on
every point)
Being moderate (willing to make concessions and
compromises)
Being belligerent (attacking positions, offers, and
character of the other negotiator
Being understanding (solving issues for mutual
satisfaction)
The tendency for opponents is to respond in kind
to the distributive tactics of the other negotiator.

Concessions:
Making concessions are central to negotiation
People enter negotiations expecting concessions
Negotiators are actually less satisfied when
negotiations conclude with the acceptance of the
opening offer, believing they could have done
better through the concession process
 Good negotiators make an opening offer close to
their own target point to leave room for making
concessions
Reciprocity occurs when a major concession of one
party is met with a major concession of equal
value by the other party.

Final Offers:
Eventually, a negotiator wants to convey that
there is no further room for movement or
concessions and the current offer is the final one.
This message can be transmitted by:
Saying This is all I can do or This is as far as I
can go
Refusal to make any further concessions
Making a large final concession
Specifying This is my last and final offer
Personalizing the message: I went to my boss and
got a special deal just for you

5. Integrative Bargaining Characteristics, goals

Characteristics:

Honesty & Integrity: Ability to establish trusting

environment.
Abundance Mentality: Realization that making
concessions builds stronger long-term relationships
Maturity: having courage to recognize mutual issues
and values.
System Orientation: Ability to take a holistic approach,
rather than focusing on individual issues.
 Superior Listening Skills: Recognition that effective
listening requires avoidance of only considering ones
own frame of reference.

Goals:

Common Goal: a goal that all parties share equally and

enjoy similar benefits.
Shared Goal: a goal that both parties work toward but
benefits each party differently.
Joint Goal: a goal that involves parties with different
personal goals agreeing to combine them in a collective
effort.

6. Ethical school of thought principles, Omission

and Commission Difference

Ethics Defined: Ethics are broadly applied social standards

for what is right or wrong in a particular situation, or a
process for setting those standards.

They differ from morals, which are individual and personal

beliefs about what is right and wrong. Ethics grow out of
particular philosophies, which purport to:

Define the nature of the world in which we live and

Prescribe rules for living together.

Ethical School of Thought:

End Result: Do whatever is necessary to get the best

possible outcome (including lie about an alternative
buyer).
 Duty Ethics: Perceive an obligation never to engage in
subterfuge, and reject a tactic that involves an outright
lie.
Social Contract Ethics: The rightness of an action is
determined by the customs and social norms of the
community (Relativism View).
Personal Ethics: The rightness of an action is
determined by ones conscience and sense of right and
wrong (Virtue Ethic view).

Omission and Commission Differences

Omission:

Failing to disclose information that would benefit the

other.
Could Lie by omission, by simply failing to mention the
defective transmission.
Willing to Lie by omission, not revealing the whole
truth.

Commission:

Actually lying about the common-value issue.

Could lie by commission, denying that the transmission
was defective even when asked by the other party.
Willing to Lie by commission, falsely answering a
question when asked.

7. Environmental and Immediate contexts

Differences, elements
Environmental Context: Includes environmental forces
that neither negotiator controls that influence the
negotiation.

Political & Legal Pluralism: Firms conducting

business in different countries are working with
different legal and political system. Differences of
taxes, labor codes, contract law and enforcement.
International Economics: The exchange value of
international currencies naturally fluctuates, and factor
must be considered when negotiating in different
countries. Currency differences, fluctuations and
stability.
Foreign Governments: Countries differ in the extent
to which the government regulates industries and
organizations. In additional, political considerations,
such as the effect of the negotiation on the government
treasury and the general economy of the country, may
influence the negotiations more heavily than what
business in developed countries would consider
legitimate business reasons. Government regulation of
industry & organizations, political impacts.
Instability: Lack of resources, shortages of goods or
services and political instability.
Ideology: Individual rights Vs. group rights, earnings &
sharing profits, public Vs. private investment.
Culture: People from different cultures negotiate
differently.
External Stakeholders: Those who have a stake in
negotiation outcomes such as labor union, business
associations and customers.

Immediate Context: Includes factors over which

negotiators appear to have some control.
 Relative Bargaining Power: Access to market,
distribution system and managing government
relations.
Levels of conflict: The level of conflict and type of
interdependence between the parties to a cross-cultural
negotiation will also influence the negotiation process
and outcome. High conflict based on ethnicity, identity
or geography are more difficult to resolve.
Relationship between negotiators: Relationships
prior to negotiations will impact process and outcome.
Desired Outcome: Include tangible & intangible
factors. Countries use international negotiations to
achieve both domestic & international political goals.
Immediate stakeholders: Include negotiators
themselves & people they represent such as managers,
employees & board directors, each with influence over
the negotiation process.

8. International negotiations influence of culture

on ethics, Tactics and Conflict resolution

Effect of culture on negotiator ethic and tactics:

Differences exist in the tolerance of different
negotiation tactics in different cultures.
Negotiators who trusted the other party were less likely
to use questionable negotiation tactics.
Effect of culture on conflict resolution:
Within collectivistic countries, disagreements are
resolves based on rules, whereas in individualistic
countries, conflicts tend to be resolved through
personal experience and training.