Reading 1.2 Selecting a Strategy-Chart online (on blackboard as negotiation chart) with descriptions of:relationship importance compared to importance of outcomehttps://campus.fsu.edu/bbcswebdav/pid-5551393-dt-content-rid-31776188_2/courses/MAN4441-01.sp13/MAN4441-01.sp13_ImportedContent_20121212030049/Negotiation%20Chart.pdfThat link should workReading 1.1 Three Approaches to Solving DisputesScenario: An employees boots were stolen at work. Does the employer pay for the loss? Or would that set the precedent that the employer will always pay for things that are stolen? The employee gets a fellow employee to go on strike with him3 Ways to Solve the Problem1) Reconcile InterestWhat do they want out of this?2) Figure out who is right3) Who has the most power?Who is less dependent/who has more powerReconciling Interest: LEAST expensive/MOST satisfactionWhen determining who is right we use : THIRD PARTY (arbitration)OPTIONSLump-it: Drop your claimWithdraw: Quit the CompanyCost Of DisputingTransaction cost: ex) Cost to buy boots or pay for the strike [minimize transaction costs]Satisfaction with the outcome: treated fairly throughout the processEffect on the Relationship: Disgruntled employeeReoccurrence: Sometimes we cannot reconcile because it sets a forever standard/precedent~Rights and Power~Reading 2.3 When your thoughts work against you (about Matt Harrington the baseball player)Scenario: Matt Harrington was drafted pretty early on in the MLB draft and was offered 4 million dollars. He and his agent agreed he should not take the offer because he wanted 4.9 million and felt he was better than that. He turned it down and played independent league baseball for the year. The next year in the draft, he was offered 1.25 million over 4 years. Him and his agent agreed once again to turn it down and wait another year because they felt he was better then that. The following year he was only offered around $300,000.Mistakes Chris Harrington Made1) Viewing Negotiation as a fixed pieSOLUTION: share information2) Anchoring on the first offerSOLUTION: reject anchors: don’t lock yourself in, have realistic expectations3) Escalating Commitment (strong psychological need to justify your actions)SOLUTION: Don’t dwell on the past4) Feeling too ConfidentSOLUTION: Consider the opposite; seek out info that might prove you wrongFocusing too narrowly on the issuesSOLUTION: ask questions and make multiple offersReading 1.7 Negotiation Techniques4 P’s of Negotiation1) Preparation2) Practice3) Patience4) Persistence3 Phases of Negotiation1) Information PhaseGood negotiators try to get the other party to speakThe order of presentation is important**Blocking technique: answer a question with another questionDetermining what the other party wants is very beneficial2) Competitive PhaseYou want to claim value in this phasePrinciple Offers and ConcessionsWhen you put something out for what you want you better justify why it is reasonableMake a case and back it up with factsArgument: articulate your side and make your caseThreats and promisesMust back up threats OR you lose all the power**Affirmative promises are much better than negative threats**TACTICSSilence in Patience- Say what you have to say and then be quiet. It makes situations awkward and opponent is more likely to give inLimited Authority: getting a commitment from you before you get approvalAnger: maintain emotions at all timesUproar: trying to gain an advantage by threatening dire consequencesDire Consequences: what’s the likelihood their threat would occur?If it occurs, how bad will it be?Buldwearism: take it or leave it tacticBraer Rabbit: you care more about how poorly your opponent has done more than how well you have done*Mutten Jeff: Good cop/ bad cop*Belly-up: claim to lack in negotiating skills and you ask for mercy from your opponents3) Cooperative PhaseOnce the agreement is reached is there anything else that can be done to enhance the outcomeReading 1.8 The Secrets of the Power of NegotiatingThe art of winning but letting the other person feel like they have wonAsk for more than you can getThe less you know about your opponent, the higher the initial offer should beMaximum plausible positionMost or least you can ask for or offer while still credible without insulting someoneNever say yes to the first offerA lot of the time your opponent will have 2 negative thoughts1) I could have done better2) Is something wrong?No haggle pricingEXAMPLE: Real estate company: Magazine buyer was offered a deal for $2000. This was actually a great deal. However the buyer was able to get the seller to go down to $800 just by haggling and getting him to go down to the best priceFlinch: Expression when price is thrown outAvoid confrontation: NO lawyers involved if possibleFeel-felt-found FORMULA:“I know how you feel”; “This is how I felt”; “This is what I found”.Play reluctant buyer or sellerVice Technique:“You’re going to have to do better.”“Well how much better?”Don’t worry about price, people WANT to pay more: People want to know they are paying for the very bestDON’T split the difference: let them throw out the first offerGain agreement and consensusArt of ConcessionAvoid a pattern- don’t become predictableDon’t make the final offer a big oneMake time your ally (POWERFUL)MOST DANGEROUS MOMENT:Buyer’s remorseWhen nibbling occurs: “What else would you like”MOST POWERFUL NEGOTIATION TECHNIQUE: BEING ABLE TO WALK AWAYGuest Speaker 2/18/13Bob CrabtreeUndergrad at University of VirginiaFSU Law School 1979Insurance Defense workCivil Trial on the defense side“Who get’s sued” is the businessConstruction defect typeProduct Liability workTRIALS20 years ago he would be doing 2-3 civil jury trials, PRESENTLY the number has gone way downMost cases settle out in mediationMost cases: 6 people juriesMurder trials: 12 person juriesNHL went to mediationNew Orleans Saints sent to mediationMEDIATION: a neutral person chosen as a mediator to try and bring the parties to a settlementYOU CANNOT LOSE WITH MEDIATIONOver 90% of cases are settled with mediationTrial and litigation are expensiveJury trials are very uncertain (giant lottery)Same case, different jury’s can have very different outcomesLawsuits drag on years and yearsMany advantages to settling cases and using mediationKEY FACTOR FOR NEGOTIATION: PreparationWho are your opponents?What motivates them?KNOWLEDGE is powerKnow your own goalsArbitrationRespect your