Competitive Negotiation vs Non-Competitive Negotiation

The collaborative and competitive negotiation styles are:

• more outcome orientated

• can also be synonymous with integrative and distributive approaches of negotiation

• the only styles of negotiation available

• initially described using the “game theory”

These statements are true of the principled negotiation approach except for…

• Negotiators should aim to separate people from the problem to avoid emotions complicating decision-making.

• Focusing on interests and not positions means negotiators should orientate themselves towards finding out the underlying interests of each party such as their needs, wants and motivations.

• Developing objective criteria will help negotiators find common ground in the negotiation process rather than create adversarial solutions.

• Creating too many options can lead to a deadlock and therefore negotiators should limit their solution options to a select few

Abu has a difficulty in deciding which restaurant to bring Aminah for their anniversary celebration. He is also feeling rather stressed out from increasing work demands after being promoted. Nevertheless, he still wants to celebrate their 10^th anniversary despite Aminah’s reluctance which makes Abu even more frustrated. To help Abu negotiate this problem using the principled approach, Abu can use the following principles except…

• Develop some criteria for the restaurant selection such as considering the cuisine, the ambience and menu size that Aminah might tend to lean towards in order to make his selection more in line with Aminah’s tastes.

• Balance between his and Aminah’s interest. Aminah may not want to eat at a restaurant as she is worried about incurring too many expenses since they just had a new baby, while Abu may be short of time for food preparation as he is unable to take leave for the day. So, Abu might opt for a restaurant that serves great food at a reasonable price so as to allay those anxieties.

• To provide Aminah with only 2 choices so that she may not feel overwhelmed when choosing a suitable restaurant for the event as he knows she is very indecisive.

• To not let the stress at work as well as his frustration with Aminah’s attitude towards his considerations when negotiating the plans for the anniversary celebration with Aminah.

Collaborative negotiation is known as distributive negotiation.

• True

• False

Relationship are valued the most in collaborative negotiation.

• True

• False

Unlike a win/lose negotiation, collaborative negotiation requires so much of time and efforts to      

     achieve the desired outcome.

• True

• False

What are the strategies to help you claim as much of the "pie" as possible

• Improve your BATNA

• Determine the ZOPA

• Be clear with your BATNA and ZOPA only.

• Determine your reservation point in advance and keep it forefront of your mind.

Which of the below description best describe distributive negotiation?

• Distributive negotiation is used when resources are in abundance

• Distributive negotiation happens in controlled and selective environment

• Multiple issues are taken into account in an integrative negotiation

• the parties try to gain maximum value for themselves from the definite resources

What are the preparation needed before entering the negotiation ...

• Reach out to your colleagues or friends who might have worked with your counterpart to learn more about the counterparty personally and exchange information.

• Call people in your organization who have the same role as the person with whom you are negotiating-for example, if you area procurement professional. Negotiating with an account representative from a supplier, call some account representatives in your organization and ask them about their experiences when negotiating with customers.

• Plan an agenda item in the first meeting to clarify the parties negotiation authority

• Assigning any relevant member of the team to represent the negotiation, the members must have good rapport and mutual understanding