Monday, December 16, 2013

Negotiation



Source: H. Raiffa, J. Richardson, and D. Metcalfe (2007); Negotiation analysis: the science and art of collaborative decision making. First Harvard University Press, Cambridge, MA.

  • There is no cook book or a recipe for good negotiation
  • Distributive negotiation: win-lose situation, such as haggling over a price in a bazaar.
  • Integrative negotiation: win-win situation in order to have mutual gain. (eg. Harvard Method)
  • 6 steps in Integrative negotiation
    • Sides need to agree on what is the problem
    • What are the interests behind the positions (Seperate people from the problem)
    • Generate alternative solutions
      • Redefine the problem
        • Expand pie
        • Logroll
        • Offer compensation in other area
        • Minimize costs
        • Bridge
      • Generate solutions
    • Make a list of solutions
    • Prioritize options and reduce the list
    • Select a solution