The course of the negotiation can either lead to an increase, shrinking, or stagnation of these values. We predicted that pie-slicers would tend to evaluate others as less-skilled in the realm of the process of increasing the value of the negotiation subject through trade or reframing (“to expand the pie”); claiming value means the attempt to get as much as possible of this value (“to divide the pie”). This is how most of us approach negotiation: as a zero-sum game where we’re dividing a fixed pie. Thomas Henschel (Academy of Mediation in Berlin) explains 'The Harvard Approach' and how to get a Yes in every negotiation. Lax and Sebenius, 1986), prefers the terms distributive and integrative to describe aspects of negotiation, depending on their aim. Rather than splitting a pie, we are actually increasing the size of the pie. One Issue and Two Positions: In the used-car transaction, the only issue is price, and there are two positions: the buyer wants to pay as little as possible, and. . In practice, however, this maximisation approach is oftentimes impeded by the so-called small pie bias, i.e. Description. In a fixed-pie negotiation, neither party cares about the other party’s level of satisfaction or whether they are happy with the outcome.  This can lead to very aggressive negotiation, hard bargaining, and manipulative tactics. One view of negotiation involves 3 basic elements: 1. Well, Bea is twice as strong as Abe. Behavior, and 3. Integrative Negotiation Examples: MESOs and Expanding the Pie Integrative negotiations, examples of which include a desire to cooperate to create value with your negotiating counterpart, are fundamentally about building sustainable relationships and MESOs can help reach that goal at the bargaining table . One of the most basic symbols for talking about negotiations in general is called the pie. A newer, more creative approach to negotiation is called the integrative approach An approach to negotiation in which both parties look for ways to integrate their goals under a larger umbrella.. Distributive negotiations are those in which there is a certain, fixed sized pie over which the sides fight. STUDY. Introduction / What is the Pie?What is the Pie? Our first goal is to understand what the pie is. Baker Communications. This can lead to very aggressive negotiation, hard bargaining, and manipulative tactics. Expand and Modify the Resource Pie - Add resources in such a way that both sides can achieve their objectives. Introduction to Negotiation: A Strategic Playbook for Becoming a Principled and Persuasive Negotiator.Week 1. In more complicated problems, people may not agree about what the pie is, or try and keep some pie hidden. A distributive approach distributes value between parties; every bit one receives, the other gives up. This negotiation techniques tutorial introduces the concept of distributive negotiations, or approaching bargaining as a win-lose situation. Erroneous fixed-pie beliefs - Negotiators often assume that all negotiations are distributive in nature. The Negotiation Project is an innovative conflict prevention program that explores how academic theories and research about negotiation apply in Washington state public sector labor relations. For those negotiators who recognize opportunities to grow the pie of value (see also, expanding the pie) through mutually beneficial tradeoffs among issues, the complexity of such integrative negotiations is an asset. In negotiation, your biggest enemy isn’t your counterpart. Advanced topics include negotiating when you have no power, negotiating over email, and the role of gender differences in negotiation. Abe says, I want the whole amount, and Bea responds, no, I want the whole amount. Instead, we want to make a bigger pie. Any terms or concepts from the lectures and readings are up for grabs. Behavior refers to the relationships among these parties, t… Win-Win Negotiation. Tomas Chamorro-Premuzic, professor of business psychology at University of London and Columbia University, suggests that high emotional intelligence is key if a negotiator is going to be successful. By James A. Baker Expanding the pie should be part of the negotiation strategy. A special challenge in overcoming the mythical fixed pie assumption is what researchers call “reactive devaluation.” Of course, the negotiation might not be successful. Distributive – Integrative Bernie Mayer (Mayer, 2000), following others (e.g. There's no room for bluffing. But there are many other opportunities that can be brought to the table in the negotiation to sweeten that deal – and sometimes can even make a deal possible when it otherwise wouldn’t have worked out. Our second hypothesis was concerned with how adept pie-slicers (value claimers) view the world. It is argued that a negotiator's fixed-pie perception, cooperative motivation, problem-solving behavior, and integrative outcomes are influenced by the content of the negotiation—the conflict issue. Distributive negotiation: Also sometimes called “hard bargaining,” distributive negotiation is when both parties take an extreme position and one side’s win is believed to be the other side’s loss (a win-lose solution). Depending on the circumstances, negotiations can be direct or complex, adversarial or collaborative.  In the modern business world, it is often desirable to conduct a collaborative, non-adversarial negotiation with a “win-win” outcome in order to build and preserve cordial relationships between business partners.  However, you would not want to try for a “win-win” negotiation when haggling with a used car salesman. Most negotiations, however, have more than one substantive issue at stake, and each party values the issues differently. That’s why I am teaching you about it first. Abe needs Bea just as much as Bea needs Abe to get that extra 6. Each claim for the pie is equally valid, or equally invalid. Negotiation Pie. The mythical fixed pie syndrome is one of those bizarre anomalies that still persistently seep stealthily into the minds of the largest corporations. Now, this example is simple, in the sense that there's no uncertainty. But you wanted $80,000. The cases also provide a setting to discuss a wide-ranging set of topics including preparing for a negotiation, making ultimatums, avoiding regret, expanding the pie, and dealing with someone who has a very different perspective on the world. So now we have all the facts. Comment. I want you to think of negotiation as more like a math problem than a tug of war. For example, haggling over the price of a rug in a bazaar is a distributive negotiation. Our second hypothesis was concerned with how adept pie-slicers (value claimers) view the world. The cases also provide a setting to discuss a wide-ranging set of topics including preparing for a negotiation, making ultimatums, avoiding regret, expanding the pie, and dealing with someone who has a very different perspective on the world. © Baker Communications Inc. Houston, Texas. Bea counters that she should get six while Abe gets three. What has changed? The Bargaining Zone and The Negotiation Dance • Bargaining zone, or zone of possible agreements (ZOPA), represents the region between each party’s reservation point • Positive vs. The pie is how much more two parties can achieve by working together than they can get on their own. But if Abe says nope, that doesn't work for me, I'm walking away, the whole extra six is lost. CHAPTER 04: Win-Win Negotiation: Expanding the Pie. To view this video please enable JavaScript, and consider upgrading to a web browser that, The Principle of the Divided Cloth (a historical context for how to divide the pie). If they decide to work together that's another 6 that they can get and here's the big point. Abe might propose what seems like the simplest and fairest solution of all, just divide the nine in half so that both parties get four and a half. By identifying these interests and recognizing that the fixed pie assumption is a myth in this negotiation, they are able to develop a solution that satisfies both interests. The context of the negotiations, the parties to the negotiations, the tactics used by the parties, and the sequence and stages in which all of these play out. Simply asking for the whole pie isn't a principle. On their own, Abe can get 1, and Bea can get 2. With a fixed pie, at least one party would need to make a concession. While some folks try to bully their way to a larger share, most people make arguments that sound fair to them. Here is a great example: Lets say you want to buy a house. PLAY. Advanced topics include negotiating when you have no power, negotiating over email, and the role of gender differences in negotiation. And they have something of size 9 to divide up, if they can agree. It's what the two can create by working together compared to what they would each do on their own. But this is just divisive negotiation and results in confrontation and bad feelings after the negotiation. You can think of the pie as a Boston cream pie, a lemon meringue, a cherry pie. Consistent with this, research has linked reliance on fixed-pie perceptions to suboptimal negotiation outcomes (L. L. Thompson, 1991; L. L. Thompson & Hastie, 1990). If you wish to do this makeup assignment, you can add and define ten (10) terms from this glossary that you think might be on the final exam. Negotiation Dance. The complete tag with the author's name and contact information Once you see the pie is the savings the two parties create, and that they're both needed to create that savings, then splitting it evenly makes perfect sense. It's what's at stake. It will allow you to see beneath the surface of apparent conflicts to uncover the underlying interests. 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