As much as you have to figure the person’s personality & your own attitude toward him, you also need to consider the negotiation basics, strategies, & process. You should know them all by heart & you have to be aware of that particular circumstance. It means, you need to comprehend the situation & utilize the right strategies.
Now, after we talk about negotiation, we are going to move forward to the concept of effective negotiation. Effective negotiation will happen when the outcome is winning for all including separating the people from the problem, focusing on mutual interest, inventing options for mutual gain, and using objective criteria. In order to have much more comprehensive perception toward this term, we are about to define some important terms:
1. Mythical Fixed Pie mind-set:
There are two various situations, Win-lose situation & win-win situation. On win-lose, as the name stands, one party will win while the other will not while in win-win situation both parties will gain benefits. The mythical fixed pie mindset is a situation in which one party will paralyze its host into a rigid mindset, blurring the host’s vision into a fixed stare where the other party can see nothing more than what sits on the negotiation table. It is one of the most destructive assumptions we can bring to negotiations since it is based on the fact that the pie of resources is fixed. The mythical fixed pie mindset leads us to interpret most competitive situations as purely win-lose, for those who recognize opportunities to grow the pie of value through mutually beneficial tradeoffs between issues, situations can become win-win. Many agreements fail to materialize because of this limited vision.
2. Distributive Negotiation:
The term “distributive negotiation” can refer to a deal in, which we are negotiating over a single issue, price, and in conflict over how much the person would pay and how much he would get .In other words, a distributive negotiation type or process that normally entails a single issue to be negotiated. In distributive negotiations, parties assume a fixed pie of resources & negotiate about how to cut up the pie (distribute resources) or claim value. As an instance, I can illustrate an example in Iran‘s market. If you want to buy a good in Tehran, say a pair of jeans, as you are walking through the shopping mall, you have to consider the element of bargaining. While you are deciding on the style & color, you have to make up your negotiation plan as well too. The strategy is that as you hear the offer, $40, you should make an offer about $20 & try to stick to it. The seller will suggest $35 while you say $25 .Finally; you can purchase it at $30.
3. Integrative Negotiation
Integrative negotiation concerns how the negotiators expand the pie of resources or create value in negotiations. They typically do so by identifying more than one single issue, so that issues can be traded off. There are many opportunities for integrative negotiations throughout global negotiations if negotiators are motivated enough and the strategy to transform single issues into multiple issues and make trade-offs. As an instance, back home in Iran, my mother needed to make a dress for my cousin’s wedding ceremony two years ago. We visited various shops with the hopes of finding the suitable material. After we spent huge amount of time on window-shopping, we finally found a store that had the proper cloth. We needed 3 meters of that special cloth to make the right size. The shopkeeper refused to sell us all 3 meters left holding the reason that he will not have any sample left. As we were caught up in a predicament, we made an integrative negotiation. He agreed to sell us all 3 meters if we bring him back some leftover from the tailor, which can be used as a sample in his shop. The result was that we had the dress & he had the sample. 4. The impact of framing on Negotiation:
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