The Road to Success: Learning How to Become an Effective Negotiator
Edition: 2
Copyright: 2020
Edition: 2
Copyright: 2020
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Think about what it felt like the first time you sat behind the steering wheel of a car. It was exciting because driving a car allowed you to go different places. Driving was frightening because of your new responsibilities and the possibility of making mistakes that could lead to an accident.
The Road to Success: Learning how to Become an Effective Negotiator aimed at the undergraduate population, compares learning to negotiate to learning to drive. Like driving, negotiation is a teachable skill that involves self-assessment, situation assessment, and lots of practice.
Like a driver’s education course, the reader will review some of the basic principles of negotiations – the “rules of the road” – on their road trip to negotiation success and have the opportunity to practice the art of negotiating through negotiation exercises, case studies, and discussion questions found in the online component of The Road to Success: Learning how to Become an Effective Negotiator.
The Road to Success: Learning how to Become an Effective Negotiator navigates the terrain of distributive bargaining, (negotiating a lease, buying a car), integrative negotiations (multiple issue negotiations that focus on joint gain), preparation strategy, trust, ethics and cultural issues. It is flush with examples, cases and exercises that will educate and challenge the novice negotiator.
Chapter 1 Recognizing You Are on the Road: What is Negotiation?
Chapter Objectives
Key Terms
Why Do Many People “Hate to Negotiate”?
Recognizing Negotiation Situations
A Definition of “Negotiation”
What Makes Someone a Good Negotiator?
Chapter Summary
Questions/Exercises
Endnotes
Chapter 2 What Type of Driver Are You?: Negotiation Styles, Motivations and Assumptions
Chapter Objectives
Key Terms
Conflict Handling Styles
What Type of Negotiator Are You?
Social Motivational Orientation
Relationships: What about the Other?
The Role of Assumptions in Negotiation
Chapter Summary
Questions/Exercises
Endnotes
Chapter 3 Driving the Short Trip Across Town: Principles of Distributive Bargaining
Chapter Objectives
Key Terms
Characteristics of Distributive Bargaining
Contentious and Hardball Tactics
Highball/Lowball
Intimidation
Bogey
Nibble
Chicken
Good Cop/Bad Cop
Reference Points in Negotiation
Aspiration Level
BATNA
Reservation Price
Bargaining Zones
Settlement Zone or Zone of Potential Agreement
Information Gathering
Who Should Make the First Offer?
Overcoming Fears of Negotiating
Norms and Their Relationship to Concessions
Fairness Norms
Chapter Summary
Questions/Exercises
Endnotes
Chapter 4 The Adventure of Cross-Country Driving: Principles of Integrative Negotiations
Chapter Objectives
Key Terms
What Is Integrative Negotiation?
How Does Integrative Negotiation Differ from Distributive Bargaining?
Single versus Multiple Issues
Positions versus Interests
Is the Negotiation a One-Time Interaction, or Will There Be Multiple Encounters?
What “Tools” Are Required in the Negotiation Toolkit to Be a Successful Integrative Negotiator?
First, Know Yourself, Your Interests, and Your Priorities
Second, Know the Other; Take That Person’s Perspective
Third, Gather Information: Ask and Answer Questions
Fourth, Develop Reciprocity—Share Information about Interests and Priorities
Fifth, Think about the Negotiation Holistically Rather than Piecemeal
Finally, Be Patient and Trust the Process
Quantifying the Issues and Possible Outcomes: Reaching the Pareto Frontier
Chapter Summary
Questions/Exercises
Endnotes
Chapter 5 Planning Your Road Trip: Planning and Preparation for Successful Negotiations
Chapter Objectives
Key Terms
The Stages of a Successful Negotiation
The Importance of Preparation for Negotiation Success
Preparing to Negotiate: Creating Your Road Map
What Is It You Want or Need?
What Do You Want to Accomplish in This Particular Negotiation?
What Will Happen If You Cannot Reach an Agreement with the Other Negotiator?
What Type of Relationship Do You Have or Do You Want to Have with the Other Negotiator?
What Do You Think the Other Negotiator Wants or Needs?
What Will You Do to Explain or “Sell” Your First Offer to the Other Negotiator?
What Strategy Best Fits This Negotiation?
Chapter Summary
Questions/Exercises
Endnotes
Chapter 6 Reading the Road Map, Billboard Signs, and Detours: Creating Value in Negotiations
Chapter Objectives
Key Terms
Uncovering the Other Negotiator’s Interests
Asking Questions
The Role of Concessions in Negotiations
Generating Multiple Possible Options
Getting Commitment and Closing the Negotiation
Get It in Writing
The Post-Settlement Settlement
Celebrate the Deal
Chapter Summary
Questions/Exercises
Endnotes
Chapter 7 What If You Are Driving a Scooter and They Are in a Semi-Truck?: Power, Leverage, and Influence in Negotiation
Chapter Objectives
Key Terms
Expert Power: Power Based on Information
Reward Power: The Carrot
Coercive Power: The Stick
Legitimate Power: Power That Comes with the Position
Referent Power: Having the Power of the Crowd behind You
Power versus Leverage
Interests, Rights, and Power
Influence
Reciprocity: Be the First to Give
Scarcity: The Rule of the Rare
Authority: Showing Knowing
Commitment: The Starting Point
Liking: Making Friends to Influence People
Consensus: People Proof, People Power
Chapter Summary
Questions/Exercises
Endnotes
Chapter 8 What If They Don’t Obey the Rules of the Road?: Trust, Ethics, and Reputation in Negotiation
Chapter Objectives
Key Terms
Trust
When Trust Is Present
When Trust Is Absent
When the Trustworthiness of the Other Is Unknown
Assessing Situations
Individual Differences in the Propensity to Trust
Trust Repair
Ethics
Ethical Theories
What Motivates People to Act Unethically?
Greed and the Profit Motive
Competition, the Desire to Win
Justice or Redressing Unjust Behavior
How to Avoid Being “Taken” by Unethical Tactics
Ask Questions
Check Your Assumptions
Don’t Get Caught up in Ingratiation or Flattery
Check Their Reputation
How to Avoid Ethical Traps
What Should Your Personal Ethical Standards Be?
Reputation
Revisiting the Chapter Case
Chapter Summary
Questions/Exercises
Endnotes
Chapter 9 Objects in the Mirror May Be Closer than They Appear: Perceptions, Biases, and Communication in Negotiation
Chapter Objectives
Key Terms
Perceptions
All That Glitters Is Not Gold
The Dark Side of Selective Attention
Framing Effects in Negotiation
Heuristics and Biases That Affect Negotiation Process and Outcomes
Anchoring
Availability Bias
The Endowment Effect
Fixed Pie Perception
Irrational Escalation of Commitment
Overconfidence
Reactive Devaluation (or Reactance)
Representativeness Heuristic (and Bias)
Are We Doomed?
Communication
What Is Communicated in Negotiations?
Non-Verbal Communication
Channels of Communication
Chapter Summary
Questions/Exercises
Endnotes
Chapter 10 Understanding What It Is Like to Drive on the Other Side of the Road: Gender and Cultural Differences in Negotiation
Chapter Objectives
Key Terms
Gender Differences in Negotiation
Why We Would Expect Gender Differences in Negotiation
Research Findings on Gender and Negotiation
Culture and Negotiation
Hofstede’s Cultural Dimensions
Other Cultural Perspectives
Different Approaches to Understanding Culture
Culture as a Learned Behavior
Culture as Shared Core Values
Heterogeneity within Culture
Culture in Context
What If They Are Coming Here to Negotiate?
Ethical and Legal Issues That Arise in International Negotiations
Who Is Subject to the FCPA?
What Behaviors Will Raise Concerns of the FCPA?
Chapter Summary
Questions/Exercises
Endnotes
Chapter 11 Driving Defensively: Negotiating Your Way through Conflict, Emotional Situations, and Difficult Negotiators
Chapter Objectives
Key Terms
Sources of Conflict in Negotiations
The Role of Emotion in Negotiations
Building Rapport with Someone Who Is Emotional
The Use of Apologies
Handling a Difficult Negotiator
Chapter Summary
Questions/Exercises
Endnotes
Chapter 12 Who do You Call when you are Lost, Stuck in Traffic, or when your Car Breaks Down?: Using Third Parties in Negotiation
Chapter Objectives
Key Terms
The Use of Agents in Negotiation
Finding Ways to Bypass Negotiation Roadblocks
Using a Third Party to Help Break Negotiation Impasses—Mediation and Arbitration
Mediation
Arbitration
Chapter Summary
Questions/Exercises
Endnotes
Chapter 13 The End of the Road—Where We’ve Been and Future Journeys
Glossary
Index
- Exercises
Terry Boles, is Professor Emeriti at the Tippie College of Business, University of Iowa. She earned her Ph.D. in social psychology from the University of California at Santa Barbara and completed post-doctoral training at the Kellogg Graduate School of Management. Boles is a trained mediator, and has taught negotiation and conflict management at the undergraduate, MBA, and Executive MBA levels for over 25 years. Boles has also taught negotiation courses in Russia and Hong Kong. She is past president of the International Association of Conflict Management.
Lon Moeller is Professor Emeriti at the Tippie College of Business, University of Iowa and has held senior administrative positions in higher education. Moeller received his J.D. from the University of Iowa. He worked in private law practice, served as faculty ombudsperson and has conducted negotiation and conflict resolution training for corporate and non-profit clients. Moeller is a labor arbitrator and mediator and has been involved in extensive business negotiations and labor-management collective bargaining sessions over the years. He has co-authored three other books in the areas of entrepreneurship, business management and conflict resolution.
S. Beth Bellman earned her Ph.D. in Interdisciplinary Studies: Decision Neuroscience from the University of Iowa, an MA in Personality and Social Psychology also from the University of Iowa, and her Masters in Education from Harvard University. She was formally introduced to the study of negotiation in a class she took as part of her Masters degree at Harvard Law School with Roger Fisher. She found herself immediately fascinated by the topic as it relied heavily on interpersonal communication and offered the potential for creating value. She was simultaneously studying the Social Psychology of Organizations with Richard Hackman and noticed the prevalence of negotiation in organizational settings and the role of social psychological principles at play in negotiation. Beth’s understanding of personality psychology and social cognition grew as she pursued her doctoral studies. She was most interested in the application and implications of social psychological principles in business environments. Teaching negotiation is one specific way she is able to bring together some of what we know from the field of social psychology with a practical life and business skill. Beth would like to acknowledge the support of her colleagues in the Tippie College of Business including Jay Christensen-Szalanski, Amy Kristof-Brown, and Amy Colbert.
Think about what it felt like the first time you sat behind the steering wheel of a car. It was exciting because driving a car allowed you to go different places. Driving was frightening because of your new responsibilities and the possibility of making mistakes that could lead to an accident.
The Road to Success: Learning how to Become an Effective Negotiator aimed at the undergraduate population, compares learning to negotiate to learning to drive. Like driving, negotiation is a teachable skill that involves self-assessment, situation assessment, and lots of practice.
Like a driver’s education course, the reader will review some of the basic principles of negotiations – the “rules of the road” – on their road trip to negotiation success and have the opportunity to practice the art of negotiating through negotiation exercises, case studies, and discussion questions found in the online component of The Road to Success: Learning how to Become an Effective Negotiator.
The Road to Success: Learning how to Become an Effective Negotiator navigates the terrain of distributive bargaining, (negotiating a lease, buying a car), integrative negotiations (multiple issue negotiations that focus on joint gain), preparation strategy, trust, ethics and cultural issues. It is flush with examples, cases and exercises that will educate and challenge the novice negotiator.
Chapter 1 Recognizing You Are on the Road: What is Negotiation?
Chapter Objectives
Key Terms
Why Do Many People “Hate to Negotiate”?
Recognizing Negotiation Situations
A Definition of “Negotiation”
What Makes Someone a Good Negotiator?
Chapter Summary
Questions/Exercises
Endnotes
Chapter 2 What Type of Driver Are You?: Negotiation Styles, Motivations and Assumptions
Chapter Objectives
Key Terms
Conflict Handling Styles
What Type of Negotiator Are You?
Social Motivational Orientation
Relationships: What about the Other?
The Role of Assumptions in Negotiation
Chapter Summary
Questions/Exercises
Endnotes
Chapter 3 Driving the Short Trip Across Town: Principles of Distributive Bargaining
Chapter Objectives
Key Terms
Characteristics of Distributive Bargaining
Contentious and Hardball Tactics
Highball/Lowball
Intimidation
Bogey
Nibble
Chicken
Good Cop/Bad Cop
Reference Points in Negotiation
Aspiration Level
BATNA
Reservation Price
Bargaining Zones
Settlement Zone or Zone of Potential Agreement
Information Gathering
Who Should Make the First Offer?
Overcoming Fears of Negotiating
Norms and Their Relationship to Concessions
Fairness Norms
Chapter Summary
Questions/Exercises
Endnotes
Chapter 4 The Adventure of Cross-Country Driving: Principles of Integrative Negotiations
Chapter Objectives
Key Terms
What Is Integrative Negotiation?
How Does Integrative Negotiation Differ from Distributive Bargaining?
Single versus Multiple Issues
Positions versus Interests
Is the Negotiation a One-Time Interaction, or Will There Be Multiple Encounters?
What “Tools” Are Required in the Negotiation Toolkit to Be a Successful Integrative Negotiator?
First, Know Yourself, Your Interests, and Your Priorities
Second, Know the Other; Take That Person’s Perspective
Third, Gather Information: Ask and Answer Questions
Fourth, Develop Reciprocity—Share Information about Interests and Priorities
Fifth, Think about the Negotiation Holistically Rather than Piecemeal
Finally, Be Patient and Trust the Process
Quantifying the Issues and Possible Outcomes: Reaching the Pareto Frontier
Chapter Summary
Questions/Exercises
Endnotes
Chapter 5 Planning Your Road Trip: Planning and Preparation for Successful Negotiations
Chapter Objectives
Key Terms
The Stages of a Successful Negotiation
The Importance of Preparation for Negotiation Success
Preparing to Negotiate: Creating Your Road Map
What Is It You Want or Need?
What Do You Want to Accomplish in This Particular Negotiation?
What Will Happen If You Cannot Reach an Agreement with the Other Negotiator?
What Type of Relationship Do You Have or Do You Want to Have with the Other Negotiator?
What Do You Think the Other Negotiator Wants or Needs?
What Will You Do to Explain or “Sell” Your First Offer to the Other Negotiator?
What Strategy Best Fits This Negotiation?
Chapter Summary
Questions/Exercises
Endnotes
Chapter 6 Reading the Road Map, Billboard Signs, and Detours: Creating Value in Negotiations
Chapter Objectives
Key Terms
Uncovering the Other Negotiator’s Interests
Asking Questions
The Role of Concessions in Negotiations
Generating Multiple Possible Options
Getting Commitment and Closing the Negotiation
Get It in Writing
The Post-Settlement Settlement
Celebrate the Deal
Chapter Summary
Questions/Exercises
Endnotes
Chapter 7 What If You Are Driving a Scooter and They Are in a Semi-Truck?: Power, Leverage, and Influence in Negotiation
Chapter Objectives
Key Terms
Expert Power: Power Based on Information
Reward Power: The Carrot
Coercive Power: The Stick
Legitimate Power: Power That Comes with the Position
Referent Power: Having the Power of the Crowd behind You
Power versus Leverage
Interests, Rights, and Power
Influence
Reciprocity: Be the First to Give
Scarcity: The Rule of the Rare
Authority: Showing Knowing
Commitment: The Starting Point
Liking: Making Friends to Influence People
Consensus: People Proof, People Power
Chapter Summary
Questions/Exercises
Endnotes
Chapter 8 What If They Don’t Obey the Rules of the Road?: Trust, Ethics, and Reputation in Negotiation
Chapter Objectives
Key Terms
Trust
When Trust Is Present
When Trust Is Absent
When the Trustworthiness of the Other Is Unknown
Assessing Situations
Individual Differences in the Propensity to Trust
Trust Repair
Ethics
Ethical Theories
What Motivates People to Act Unethically?
Greed and the Profit Motive
Competition, the Desire to Win
Justice or Redressing Unjust Behavior
How to Avoid Being “Taken” by Unethical Tactics
Ask Questions
Check Your Assumptions
Don’t Get Caught up in Ingratiation or Flattery
Check Their Reputation
How to Avoid Ethical Traps
What Should Your Personal Ethical Standards Be?
Reputation
Revisiting the Chapter Case
Chapter Summary
Questions/Exercises
Endnotes
Chapter 9 Objects in the Mirror May Be Closer than They Appear: Perceptions, Biases, and Communication in Negotiation
Chapter Objectives
Key Terms
Perceptions
All That Glitters Is Not Gold
The Dark Side of Selective Attention
Framing Effects in Negotiation
Heuristics and Biases That Affect Negotiation Process and Outcomes
Anchoring
Availability Bias
The Endowment Effect
Fixed Pie Perception
Irrational Escalation of Commitment
Overconfidence
Reactive Devaluation (or Reactance)
Representativeness Heuristic (and Bias)
Are We Doomed?
Communication
What Is Communicated in Negotiations?
Non-Verbal Communication
Channels of Communication
Chapter Summary
Questions/Exercises
Endnotes
Chapter 10 Understanding What It Is Like to Drive on the Other Side of the Road: Gender and Cultural Differences in Negotiation
Chapter Objectives
Key Terms
Gender Differences in Negotiation
Why We Would Expect Gender Differences in Negotiation
Research Findings on Gender and Negotiation
Culture and Negotiation
Hofstede’s Cultural Dimensions
Other Cultural Perspectives
Different Approaches to Understanding Culture
Culture as a Learned Behavior
Culture as Shared Core Values
Heterogeneity within Culture
Culture in Context
What If They Are Coming Here to Negotiate?
Ethical and Legal Issues That Arise in International Negotiations
Who Is Subject to the FCPA?
What Behaviors Will Raise Concerns of the FCPA?
Chapter Summary
Questions/Exercises
Endnotes
Chapter 11 Driving Defensively: Negotiating Your Way through Conflict, Emotional Situations, and Difficult Negotiators
Chapter Objectives
Key Terms
Sources of Conflict in Negotiations
The Role of Emotion in Negotiations
Building Rapport with Someone Who Is Emotional
The Use of Apologies
Handling a Difficult Negotiator
Chapter Summary
Questions/Exercises
Endnotes
Chapter 12 Who do You Call when you are Lost, Stuck in Traffic, or when your Car Breaks Down?: Using Third Parties in Negotiation
Chapter Objectives
Key Terms
The Use of Agents in Negotiation
Finding Ways to Bypass Negotiation Roadblocks
Using a Third Party to Help Break Negotiation Impasses—Mediation and Arbitration
Mediation
Arbitration
Chapter Summary
Questions/Exercises
Endnotes
Chapter 13 The End of the Road—Where We’ve Been and Future Journeys
Glossary
Index
Terry Boles, is Professor Emeriti at the Tippie College of Business, University of Iowa. She earned her Ph.D. in social psychology from the University of California at Santa Barbara and completed post-doctoral training at the Kellogg Graduate School of Management. Boles is a trained mediator, and has taught negotiation and conflict management at the undergraduate, MBA, and Executive MBA levels for over 25 years. Boles has also taught negotiation courses in Russia and Hong Kong. She is past president of the International Association of Conflict Management.
Lon Moeller is Professor Emeriti at the Tippie College of Business, University of Iowa and has held senior administrative positions in higher education. Moeller received his J.D. from the University of Iowa. He worked in private law practice, served as faculty ombudsperson and has conducted negotiation and conflict resolution training for corporate and non-profit clients. Moeller is a labor arbitrator and mediator and has been involved in extensive business negotiations and labor-management collective bargaining sessions over the years. He has co-authored three other books in the areas of entrepreneurship, business management and conflict resolution.
S. Beth Bellman earned her Ph.D. in Interdisciplinary Studies: Decision Neuroscience from the University of Iowa, an MA in Personality and Social Psychology also from the University of Iowa, and her Masters in Education from Harvard University. She was formally introduced to the study of negotiation in a class she took as part of her Masters degree at Harvard Law School with Roger Fisher. She found herself immediately fascinated by the topic as it relied heavily on interpersonal communication and offered the potential for creating value. She was simultaneously studying the Social Psychology of Organizations with Richard Hackman and noticed the prevalence of negotiation in organizational settings and the role of social psychological principles at play in negotiation. Beth’s understanding of personality psychology and social cognition grew as she pursued her doctoral studies. She was most interested in the application and implications of social psychological principles in business environments. Teaching negotiation is one specific way she is able to bring together some of what we know from the field of social psychology with a practical life and business skill. Beth would like to acknowledge the support of her colleagues in the Tippie College of Business including Jay Christensen-Szalanski, Amy Kristof-Brown, and Amy Colbert.
- Exercises