MAN 4411 Exam 2 Notes 1 Accommodating Back off your concern for the outcome to preserve the relationship Intentionally lose short term to win long term Neither the outcome or relationship is of no great importance so you withdraw from the negotiation Win at all costs No concern for the future relationships 2 Avoiding 3 Competitive 4 Collaborative Win Win 5 Compromise Split the difference 3 Ways to handle All sit in the graph of relationship importance and importance of the outcome Reconcile Interest the simplest easiest and cheapest Who has more power choose to go on strike Legal way court of law arbitrator independent 3rd party who s right 3 Ways 1 Satisfy Interests reconcile interest 2 Establish who is right legal way 3 Determining who has more power Cost of disputing 1 Transaction cost tangible amount that costs us depending on how solve the problem 2 Effect on relationship 3 Satisfaction with the outcome was I treated fair with the process 4 Reoccurrence what happens the next time after you allow or make an exception for an employee Establishes a precedent Lump it drop the claim Withdrawing from the whole process employee quits the company entirely Matt Harrington Story Turned down a 4 9 million dollar contract and now makes 11 50 an hour 1 Problem Viewing the negotiation as a fixed pie Solution Share information 2 Problem Anchoring on the first offer Solution Reject anchors 3 Problem Escalating commitment psychological need to justify prior decisions Solution Don t dwell on the past 4 Problem Feeling too confident Solution consider the opposite 5 Problem Focusing too narrowly on the issues Solution Ask questions and make multiple offers Day 2 Guest Speaker Mediation All civil cases in Florida are summoned to mediation Mediation is the process of trying to get a settlement before going to court Mediation is confidential and anything that happens in mediation cannot be used in court Mediation can have a panel of mediators usually up to 3 How do you get to be a mediator There is a certification process and course you take Usually lawyers but don t have to be Observe mediations and then take a test In Tallahassee top mediators make 300 an hour and up to 500 an hour Lawyers select mediators for their case who will relate well with my client as well as the other side Over 90 of civil cases in Florida settle If end up going to trial you pay 50 of mediation costs Illegal for a mediator to have a contingent fee Gives a financial interest to one side and mediator is supposed to be neutral Mediation is about compromise What s it worth to you to get it over with and avoidance of legal fees and time by going to court In Mediation preparation is key You either prepare to succeed or prepare to fail by not preparing Evaluate Who are my opponents What are they motivated by Why are they suing me What is it worth to get this case over What negotiating strategy will you use Think about who should attend the mediation on your side and also who you don t want there Who s to emotionally attached and close to the problem Be prepared to walk away if the other side just sees the dispute or case completely different then you do Observe the other opponent during opening of mediation to try and see emotions to certain topics Keep a very even keel don t overreact make the best business decision you can A lot of cases are settled after mediation but before trial People tend to think during the long time between mediation and trial and want to just settle and get it over with Don t say take it or leave it if you don t mean it If you lose credibility with your opponent it is very hard to gain it back Don t try and embarrass your opponent Day 3 4 P s of Negotiating Preparation Practice Patience Persistence 3 Phases in a Negotiation weaknesses Tactics 1 Information get information trying to say the least you can Blocking Answer a question with a question 2 Competitive when you try to make your case Enumerate your strengths and identify their Principal offers and concessions factually support your case Threats and promises try to make your case and show the other party what will happen if they don t come to an agreement with you Silence and patience say what you have to say then be quiet Limited authority conditionally make a deal with someone without locking yourself in like car salesman go and check with manager Uproar try to gain an advantage by threatening dire consequences Questions to ask 1 Likelihood they will carry out the threat 2 Consequences if that happens Boulwareism Take it or leave it Brar rabbit care more about your opponent doing poorly then you doing well Mutten gest Good cop bad cop Belly up Claim you have no negotiating skills 3 Cooperative When we actually crop an agreement Power of negotiation win but have the other person feel like they won Ask for more then you expect to get The less you know about your opponent the higher your initial position should be Maximum Plausible Position MPP The most you can ask for and still be credible Never say yes to the first offer People expect you to negotiate Flinch A gesture indicating something is priced high Feel Felt and Found I know how you feel I ve felt that way before but here s what I ve found Play a reluctant buyer or seller Vice technique simply say you ll have to do better Someone says this then say how much better Don t split the difference always let the other person offer to split the difference The art of concession Don t have the same pattern over and over again becomes predictable Make time your ally more time you have to make a deal put you in a power of strength Most dangerous moment right after the deals been made Nibbling occurs people ask for a little more after deal is done The most dangerous weapon The ability to walk away Any time you walk away you find out their bottom line