The process refers to how the parties negotiate. What has changed? 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. It's what's at stake. Bea counters that she should get six while Abe gets three. Game Theory, Negotiation, Collaboration, Principled Negotiation. In a fixed-pie negotiation, neither party cares about the other party’s level of satisfaction or whether they are happy with the outcome. For example, haggling over the price of a rug in a bazaar is a distributive negotiation. 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. 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). the psychological underestimation … So their motivation for reaching an agreement is to increase their payoffs from one plus two which is three, all the way up to nine. Integrative negotiation tactics seek to provide greater value to the parties collectively than could be achieved individually. In negotiations, whatever people fight for -- be it money, power, the bigger office or even the privilege of not having to take the trash out today -- is the pie. I think we have to look at what Abe and Bea can get on their own, compared to what they can get together. In any negotiation, the following three elements are important and likely to affect the ultimate outcome of the negotiation: Attitudes; Knowledge; Interpersonal Skills ; Attitudes. When the two sides realize they are in a perfectly symmetric position, the six ends up getting split evenly, three and three. Lax and Sebenius, 1986), prefers the terms distributive and integrative to describe aspects of negotiation, depending on their aim. Most negotiations, however, have more than one substantive issue at stake, and each party values the issues differently. 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. In collaborative negotiation, it’s essentially assumed that the pie can be enlarged by finding things of value to both parties, creating a win-win situation, so that everyone leaves the table feeling like they’ve gained something of value. Frame the situation as a joint problem where you both want to succeed and that you can both get more by working together. In your negotiation over the technology consulting contract, this might mean saying, “Let’s talk about how referral incentives might benefit us both.” How do YOU create value in negotiations? This is how most of us approach negotiation: as a zero-sum game where we’re dividing a fixed pie. Simply asking for the whole pie isn't a principle. In that case Abe and Bea will go out and do something on their own. 2. Nevertheless, remembering the key points in the stages of formal negotiation may be very helpful in a variety of informal situations. Why is that? Value = growing the size of the overall pie . In his article, “The Personality … Advanced topics include negotiating when you have no power, negotiating over email, and the role of gender differences in negotiation. Bargaining Zone (ZOPA) range between reservation points, can be positive or negative. But if Abe says nope, that doesn't work for me, I'm walking away, the whole extra six is lost. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Expanding the Pie … The process of adding elements to a negotiation which help one or both sides to gain more - a result from making negotiations more integrative. given negotiation ―pie‖ is more difficult to determine with certainty than it is to determine the proportion of the pie a particular party manages to claim. One view of negotiation involves 3 basic elements: 1. Thus, in a fixed-pie negotiation, we see that there is one main issue, with no complex underlying interests, and there are no tradeoffs.  Each side is only working to maximize their gain at the other’s expense. This type of negotiation is sometimes called a “fixed-pie” negotiation because the outcome is often conceptualized as a pie, of which each party wants the biggest piece.  Because the pie does not change size, the party who gets the biggest piece wins and the other loses - there is no chance of a win-win outcome.  It can also be termed a “distributive” negotiation because the pie is distributed between the parties, or a “zero-sum game” because any gain on one side results in a comparable loss on the other: total gains less total losses will equal zero. And they have something of size 9 to divide up, if they can agree. I've learned so much from the Intro course to use at work. By James A. Baker Expand and Modify the Resource Pie - Add resources in such a way that both sides can achieve their objectives. Similarly if Bea says no, no, no, I'm not going for it, that six is also lost. Thinking of negotiation this way allows you to be dispassionate and to better understand what's really at stake. Instead, we want to make a bigger pie. But this is just divisive negotiation and results in confrontation and bad feelings after the negotiation. Integrative Approach 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. The pie is how much more two parties can achieve by working together than they can get on their own. A distributive negotiation usually involves a single issue - a 'fixed-pie' - in which one person gains at the expense of the other. Negotiation involves conflicting interests, conflicting ideas about intellective problems, or conflicting ideas about evaluative problems. Since they have equal power, I think they should split the six evenly. You can get feedback on your performance and compare what you did to how others approached the same scenario. Expand and Modify the Resource Pie - Add resources in such a way that both sides can achieve their objectives. © 1996-2018. Chapter 3: Distributive Negotiation - Slicing the Pie. One of the most basic symbols for talking about negotiations in general is called the pie. Win-Win Negotiation. Bea gets two of the three, and Abe gets one of the three. By PON Staff — on January 4th, 2021 / Negotiation Skills. Description. The tension between creating and claiming value is a central challenge for almost any negotiation. Distributive negotiations assume there is a fixed pie, and the winner and loser are determined by establishing extreme positions, haggling, bluffing and brinksmanship. Our second hypothesis was concerned with how adept pie-slicers (value claimers) view the world. When the two sides realize they are in a perfectly symmetric position, the six ends up getting split evenly, three and three. Getting a Yes – but how?Dr. At the end of the day, Bea needs Abe just as much as Abe needs Bea. Effective pie-expanding strategies. Tradeoffs allow you and your negotiating partner to achieve more than you would if you merely compromised on each issue. Dividing the pie: The distributive approach This is how most of us approach negotiation: as a zero-sum game where we’re dividing a fixed pie. Imagine that you’re buying a used car from its original owner. flower child negotiator. In almost any negotiation on almost anything other than a true commodity, you can find a way to enlarge the pie—create true, measurable business value and then … Our second hypothesis was concerned with how adept pie-slicers (value claimers) view the world. Negotiation Pie. 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. If “talent is just personality in the right place,” then what are the right and wrong kinds of personality traits for negotiation? To illustrate what I mean, let's start with a situation where there are two parties, Abe and Bea. If the parties or their companies will be dealing with each other again in the future, a mutually satisfying outcome is beneficial.  You don’t rake a partner over the coals unless you want to lose their business! There may be times when you will only be interested in getting a bigger slice of pie - if you don’t have a relationship with the other party, it’s a one-time deal, and there is only one issue at stake.  In most business negotiations, however, you will have an ongoing relationship, a more complex situation, and you will need to work for a win-win.  Make sure you know which type of negotiation you are getting into before you start! What’s at stake? This course will help you be a better negotiator. Disciplines > Negotiation > Negotiation tactics > Expanding the Pie. 2. compromise- this pertains to slicing pie, equal concession negotiations 3. focus on long-term relationship - just means win-win should be easier 4. adopting cooperative orientation - prone to relational accommodation 5. taking extra time. The total of advantages and disadvantages to be distributed in a negotiation is illustrated with the term negotiation pie. By using 'we' language rather than 'you' and 'I' . No Relationship: There is not likely to be an ongoing relationship between the buyer and the used car salesman.  The negotiation is competitive and adversarial. Abe needs Bea just as much as Bea needs Abe to get that extra 6. All the cards are face-up on the table. The course of the negotiation can either lead to an increase, shrinking, or stagnation of these values. A special challenge in overcoming the mythical fixed pie assumption is what researchers call “reactive devaluation.” Growing the Pie Behavior, and 3. According to ChangingMinds, it describes changing the frame of the negotiation from a zero-sum, win-lose game to a win-win scenario where both sides can benefit more by working together on mutual benefits. You will leave the course better able to predict, interpret, and shape the behavior of those you face in competitive situations. You can think of the pie as a Boston cream pie, a lemon meringue, a cherry pie. Negotiation Concept/Theories 1. Comment. Terms in this set (...) Multiple Simultaneous Offers. STUDY. Reactive devaluation . Back to: NEGOTIATIONS. . What is the “pie”, in negotiation? This can lead to very aggressive negotiation, hard bargaining, and manipulative tactics. There's nothing hidden. If the negotiation parties are able to expand the total pie a win-win situation is possible assuming that both parties profit from the expansion of the pie. Naturally, that’s what they each both want, but that's not really an argument. 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. publication. Use 'we' language rather than 'you' and 'I'. Indeed, the more complicated the problem, the more important it is to have a principle. Everybody knows everything. Build powerful negotiation skills and become a better dealmaker and leader. Now, this example is simple, in the sense that there's no uncertainty. 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 . Strategic Negotiation: A Breakthrough Four-Step Process for Effective Business Negotiation,2003, (isbn 0793183049, ean 0793183049), by Dietmeyer B., Bazerman M., Kaplan R. Flylib.com THE MYTH OF THE FIXED PIE Their criteria for what's fair may be biased in their favor. Erroneous fixed-pie beliefs - Negotiators often assume that all negotiations are distributive in nature. A distributive negotiation usually involves a single issue - a 'fixed-pie' - in which one person gains at the expense of the other. Buying a used car is the classic example of a fixed-pie negotiation, which gives us some hints about what really distinguishes this type of negotiation. Any terms or concepts from the lectures and readings are up for grabs. The negotiation is competitive and adversarial. Description | Example | Discussion | See also . Substance. appropriate business related publication. 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 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. In negotiation, your biggest enemy isn’t your counterpart. Focusing on a fixed pie is a common mistake in negotiation, because this view limits the creative solutions possible. 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