Enhance Negotiating Power Sean Courtney PS 301 Paper 2 How do you enhance your negotiating power? Negotiation: Strategies for Mutual Gain, is an attempt to answer that. Negotiation: Strategies for Mutual Gain, is a collection of key ideas and process strategies about negotiating and resolving disputes more effectively. It is about breaking the paradigm of winning and losing and transforming negotiation into a search for improved solutions to problems. This book is for all people of all careers and all purposes whether at work, at home, the store or any place were Negotiations ideas prove useful. In this paper I will outline and summarize the methods and ideas of the three main parts of the book, which are: Frameworks for Effective Negotiation, Applying Mutual Gains to Organizations and Perspectives on Individual Negotiators.
In part 1, chapter 1 outlines the authors Fisher and Ury techniques to negotiating; in chapter 2 it outlines Raiffas highly analytic approach to negotiating and chapter 3 outlines Strauss theories. Part 2 themes are how to apply the authors mentioned ideas of problem solving frameworks to organizations. In part 3, each of the authors discusses how the issues of individual style, perception and gender affect the process of negotiation. All of the authors offer coherent techniques and incisive ideas for readers to integrate into their own negotiation frameworks (Hall 2). I feel anyone and everyone can use these ideas of negotiation in their lives and become a better negotiator.
In chapter one of part one it deals with the issue on how you negotiate and prepare to negotiate. In negotiation the way you negotiate makes all the difference in the world. Negotiation power is the ability to persuade someone to do something (4). There are many sources of negotiation power, one is having good BATNA- Best Alternative To a Negotiation power are people, interests, options and objective criteria. Developing a good working relationship between parties is excellent source of negotiation power. If you treat the other side with respect, use two-way communication with good listening and show you understand each other sides then negotiations are more likely to be easier and more successful.
Good listening can increase your negotiation power by increasing information you have about the other sides interests or about possible options (7). If you listen to the other side they are more likely to listen to you. The better your working relationship the better able each of you is to influence the other. You can use standards of legitimacy both as a sword to persuade others, and as a shield to help you resist pressure to give in arbitrarily (9). So a negotiator can enhance his or her power by finding precedents, principles and other external criteria of fairness and by thinking of ways to present them forcefully and tellingly (9).
If you are able to convince the other side that you are asking for what is fair, nothing more, nothing less, you can make a strong argument. A fundamental way to increase your negotiation power is by improving your walk-way alternative (BATNA). The stronger your BATNA the stronger your argument and the easier it is to persuade the other side. Sometimes it is not only possible to strength you BATNA but to weaken the other sides BATNA in the process. Improving your own BATNA and weakening theirs is a critical way to obtaining your negotiating power. One way to enhance your negotiating power is to make a commit on what you will and will not do. If you make a commit on what you will and will not do it makes it easier on the other side to commit on an agreement but this will give up your freedom to haggle over better terms.
You must be careful about locking into a position because this stalls negotiations but there is far less risk if you understand the other sides interests and have explored the options for joint gains. Finally, clarify what you want them to do, for this insures both parties understand the agreement thoroughly and the likely hood of misunderstanding is decreased. In order to make the most of your negotiating power you should use all your sources of power in harmony with other sources of power. You will be a more effective negotiator if you believe in what you are saying and doing. Chapter Two deals with introducing a third-party intervener to help resolve conflicts in the negotiation process. There are several types of third-party interventions that can help parties reach more efficient agreements.
(14) A facilitator helps with the logistics in the proceedings of meetings. A mediator guides or helps people come to a voluntary agreement. An arbitrator tries to understand the issues on all sides and then imposes an agreement, as a judge (14). The first category of intervention activities is that ordinarily undertaken by a facilitator: convening meetings, leading discussions, preparing neutral minutes and attesting to the good faith of the bargaining procedure (15). A third partier biggest contribution in an intervention is bringing the two sides together to negotiate.
The second category is those activities that set the ambience: maintaining the rules of civilized debate, diffusing personality conflicts, and helping restrain speakers. The third category is the third partys role in the exchange of information (15). In integrative bargaining, the pie can grow through the exchange of information and in distributive bargaining the pie is divided up by a fix rate. A third party while dealing with a distributive bargaining problem can receive confidential information and determine whether an agreement can be made. Because of this knowledge a third party representative can urge the parties to keep working with the agreement and not to give up.
Without a third party, information would be kept totally to the individual party and agreements might never start to form. The third party representative can urge the parties to keep with it if there is hope for an agreement. An intervener can employ several intervention mechanisms to improve integrative bargaining agreements. There are four main mechanisms, which include: postsettlement-settlement, rules of manipulation, neutral analysis and contingent contract. A postsettlement- settlement is when parties try to improve on a previous agreement by having a second negotiation in hopes of finding more joint gains.
In another rules manipulation, the intervener, rather than play the role of a typical mediator or arbitrator, sets up a dynamic mechanism such as a bidding procedure to resolve the conflict that would ordinarily be resolved in a different fashion (17). A third method of intervention mechanisms is neutral analysis. That is the third party is completely neutral and comes in to analyze the situation. A situation were a neutral analysis can be used is when a county is worried about the effects of an industrial plants pollution in the air. Each city has its own interests in the pollution matter and there are many economic and scientific uncertainties involved.
The county or its cities do not have the resources to conduct its own study so they would bring in the state to give a neutral analysis. In a contingent contract, each party agrees to pay a certain sum, with the stipulation that depending on what happens in the future more or less money will be paid (24). This is great for agreements were uncertainty of the future market value is present. These are just some of the techniques used by third party interveners to help parties resolve disagreements with better joint gains for all. Many of these techniques can be done without the third party but often it is the case that the intervener is more knowl …