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9780131407381

The Mind and Heart of the Negotiator

by
  • ISBN13:

    9780131407381

  • ISBN10:

    0131407384

  • Edition: 3rd
  • Format: Paperback
  • Copyright: 2009-01-01
  • Publisher: Prentice Hall
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List Price: $108.00

Summary

Based on the latest research findings, this book provides an integrated, big-picture view of what to do and what to avoid at the bargaining table, It combines a strong applied flavor with straightforward and lively writing, presents a unified, comprehensive overview of the insights, strategies, and practices inherent in successful negotiations, and addresses the most common myths and pitfalls that plague negotiators. Over 100 case study examples of negotiations from the business world are used to analyze and demonstrate points. These cases offer readers current and realistic examples of negotiating in managerial and executive contexts, and a look at the real-world. The book shows complex, commonly-occurring negotiating situationssuch as negotiating with agents, mediation and arbitration, negotiating via e-mail and conference call, negotiating with competitor companies, and negotiating cross-culturally. For attorneys, arbitrators, and other negotiatiors, and many other professions with . It weaves together a wide range of disciplines in its study of negotiation, including economics, psychology, sociology, and organizational behavior.

Table of Contents

Preface xix
PART I: ESSENTIALS OF NEGOTIATION
1(90)
Negotiation: The Mind and the Heart
1(12)
Negotiation: Definition and Scope
2(1)
Negotiation as a Core Management Competency
3(2)
Dynamic Nature of Business
3(1)
Interdependence
3(1)
Competition
4(1)
Information Age
5(1)
Globalization
5(1)
Most People Are Ineffective Negotiators
5(1)
Negotiation Sandtraps
6(1)
Why People Are Ineffective Negotiators
6(2)
Faulty Feedback
6(1)
Satisficing
7(1)
Self-Reinforcing Incompetence
8(1)
Debunking Negotiation Myths
8(2)
Myth 1: Negotiations Are Fixed-Sum
9(1)
Myth 2: You Need to Be Either Tough or Soft
9(1)
Myth 3: Good Negotiators Are Born
9(1)
Myth 4: Experience Is a Great Teacher
9(1)
Myth 5: Good Negotiators Take Risks
10(1)
Myth 6: Good Negotiators Rely on Intuition
10(1)
Learning Objectives
10(1)
The Mind and Heart
11(2)
Preparation: What to Do Before Negotiation
13(27)
Self-Assessment
14(14)
What Do I Want?
14(1)
What Is My Alternative to Reaching Agreement in This Situation?
15(2)
Determine Your Reservation Point
17(2)
Be Aware of Focal Points
19(1)
Beware of Sunk Costs
19(1)
Do Not Confuse Your Target Point with Your Reservation Point
20(1)
Identify the Issues in the Negotiation
20(1)
Identify the Alternatives for Each Issue
20(1)
Identify Equivalent Packages of Offers
21(1)
Assess Your Risk Propensity
21(4)
Endowment Effects
25(1)
Am I Going to Regret This?
25(1)
Violations of the Sure Thing Principle
26(1)
Do I Have an Appropriate Level of Confidence?
27(1)
Sizing Up the Other Party
28(1)
Who Are the Other Parties?
28(1)
Are the Parties Monolithic?
28(1)
Issue Mix
28(1)
Others' Interests and Position
28(1)
Other Negotiators' BATNAs
29(1)
Situation Assessment
29(9)
Is the Negotiation One Shot, Long Term, or Repetitive?
29(1)
Do the Negotiations Involve Scarce Resources, Ideologies, or Both?
30(1)
Is the Negotiation One of Necessity or Opportunity?
30(1)
Is the Negotiation an Exchange or Dispute Situation?
31(1)
Are Linkage Effects Present?
31(1)
Is Agreement Required?
32(1)
Is It Legal to Negotiate?
32(1)
Is Ratification Required?
33(1)
Are Time Constraints or Other Time-Related Costs Involved?
33(2)
Are Contracts Official or Unofficial?
35(1)
Where Do the Negotiations Take Place?
35(1)
Are Negotiations Public or Private?
36(1)
Is Third-Party Intervention a Possibility?
37(1)
What Conventions Guide the Process of Negotiation (Such as Who Makes the First Offer)?
37(1)
Do Negotiations Involve More Than One Offer?
37(1)
Do Negotiators Communicate Explicitly or Tacitly?
38(1)
Is a Power Differential a Factor Between Parties?
38(1)
Is Precedent Important?
38(1)
Conclusion
38(2)
Distributive Negotiation: Slicing the Pie
40(29)
The Bargaining Zone and the Negotiation Dance
41(3)
Bargaining Surplus
43(1)
Negotiator's Surplus
43(1)
Pie-Slicing Strategies
44(8)
Strategy 1: Assess Your BATNA and Improve It
45(1)
Strategy 2: Determine Your Reservation Point, But Do Not Reveal It
46(1)
Strategy 3: Research the Other Party's BATNA and Estimate Their Reservation Point
47(1)
Strategy 4: Set High Aspirations (Be Realistic, But Optimistic)
47(2)
Strategy 5: Make the First Offer (If You Are Prepared)
49(1)
Strategy 6: Immediately Reanchor if the Other Party Opens First
50(1)
Strategy 7: Plan Your Concessions
50(1)
Strategy 8: Use an Objective-Appearing Rationale to Support Your Offers
51(1)
Strategy 9: Appeal to Norms of Fairness
52(1)
Strategy 10: Do Not Fall for the ``Even Split'' Ploy
52(1)
The Most Commonly Asked Questions
52(3)
Should I Reveal My Reservation Point?
52(1)
Should I Lie About My Reservation Point?
53(1)
Should I Try to Manipulate the Other Party's Reservation Point?
54(1)
Should I Make a ``Final Offer'' or Commit to a Position?
54(1)
Saving Face
54(1)
The Power of Fairness
55(12)
Multiple Methods of Fair Division
56(1)
Situation-Specific Rules of Fairness
56(1)
Social Comparison
57(2)
The Equity Principle
59(1)
Restoring Equity
60(2)
Procedural Justice
62(1)
Fairness in Relationships
62(1)
Egocentrism
63(4)
Wise Pie Slicing
67(1)
Consistency
67(1)
Simplicity
67(1)
Effectiveness
68(1)
Justifiability
68(1)
Consensus
68(1)
Generalizability
68(1)
Satisfaction
68(1)
Conclusion
68(1)
Win-Win Negotiation: Expanding the Pie
69(22)
What Is Win-Win Negotiation Anyway?
70(1)
Telltale Signs of Win-Win Potential
71(1)
Does the Negotiation Contain More Than One Issue?
71(1)
Can Other Issues Be Brought In?
71(1)
Can Side Deals Be Made?
71(1)
Do Parties Have Different Preferences Across Negotiation Issues?
72(1)
A Pyramid Model
72(2)
Most Common Pie-Expanding Errors
74(1)
False Conflict
74(1)
Fixed-Pie Perception
74(1)
Strategies That Do Not Really Work
75(1)
Commitment to Reaching a Win-Win Deal
75(1)
Compromise
75(1)
Focusing on a Long-Term Relationship
76(1)
Adopting a Cooperative Orientation
76(1)
Taking Extra Time to Negotiate
76(1)
Strategies That Work
76(11)
Build Trust and Share Information
77(1)
Ask Diagnostic Questions
77(3)
Provide Information
80(1)
Unbundle the Issues
80(1)
Make Package Deals, Not Single-Issue Offers
81(1)
Make Multiple Offers Simultaneously
81(2)
Structure Contingency Contracts by Capitalizing on Differences
83(3)
Presettlement Settlements (PreSS)
86(1)
Search for Postsettlement Settlements
87(1)
A Strategic Framework for Reaching Integrative Agreements
87(2)
Resource Assessment
87(1)
Assessment of Differences
88(1)
Offers and Trade-Offs
88(1)
Acceptance/Rejection Decision
88(1)
Prolonging Negotiation and Renegotiation
89(1)
Do Not Forget About Claiming
89(1)
Conclusion
89(2)
PART II: ADVANCED NEGOTIATION SKILLS
91(115)
Developing a Negotiating Style
91(32)
Tough Versus Soft Negotiators
91(1)
Motivation-Approach-Emotion
92(1)
Motivations
93(7)
Assessing Your Motivational Style
93(3)
Strategic Issues Concerning Motivational Style
96(4)
Approach
100(13)
Assessing Your Approach
102(4)
Strategic Issues Concerning Approaches
106(7)
Emotions
113(8)
Assessing Your Emotional Style
114(5)
Strategic Advice for Dealing with Emotions at the Table
119(2)
Conclusion
121(2)
Establishing Trust and Building a Relationship
123(28)
The People Side of Win-Win
123(2)
Trust as the Bedrock of Negotiation
125(14)
Three Types of Trust in Relationships
125(3)
Building Trust: Rational and Deliberate Mechanisms
128(3)
Building Trust: Psychological Strategies
131(5)
What Leads to Mistrust?
136(1)
Repairing Broken Trust
137(2)
Reputation
139(2)
Relationships in Negotiation
141(8)
Negotiating with Friends
142(3)
Negotiating with Businesspeople
145(2)
When in Business with Friends and Family
147(2)
Bottom Line on Relationships
149(1)
Conclusion
149(2)
Power, Persuasion, and Ethics
151(23)
Your BATNA Is Your Most Important Source of Power in Negotiation
152(1)
Tapping into Your Power
153(6)
Information
153(1)
Status
154(2)
Social Networks
156(1)
Physical Appearance
157(1)
The Effects of Power on Those with Less Power
158(1)
The Effects of Power on Those Who Hold Power
158(1)
Persuasion Tactics
159(7)
Two Routes to Persuasion
159(1)
Central Route Persuasion Tactics
160(3)
Peripheral Route Persuasion Tactics
163(3)
Ethical Negotiation
166(7)
Lying
166(2)
Other Questionable Negotiation Strategies
168(1)
Sins of Omission and Commission
169(2)
Costs of Lying
171(1)
Under What Conditions Do People Engage in Deception?
171(1)
Psychological Bias and Unethical Behavior
171(2)
Conclusion
173(1)
Creativity and Problem Solving in Negotiations
174(32)
Creativity in Negotiation
174(1)
Test Your Own Creativity
175(1)
What Is Your Mental Model of Negotiation?
175(4)
Haggling
175(3)
Cost-Benefit Analysis
178(1)
Game Playing
179(1)
Partnership
179(1)
Problem Solving
179(1)
Creative Negotiation Agreements
179(6)
Fractionating Problems into Solvable Parts
180(1)
Finding Differences: Issue Alignment and Realignment
180(1)
Expanding the Pie
180(1)
Bridging
181(1)
Cost Cutting
181(1)
Nonspecific Compensation
181(1)
Structuring Contingencies
182(3)
Threats to Effective Problem Solving and Creativity
185(8)
The Inert Knowledge Problem
185(3)
Availability Heuristic
188(1)
Representativeness
188(1)
Anchoring and Adjustment
189(1)
Unwarranted Causation
190(1)
Belief Perseverance
190(1)
Illusory Correlation
190(1)
Just World
191(1)
Hindsight Bias
191(1)
Functional Fixedness
192(1)
Set Effect
192(1)
Selective Attention
192(1)
Overconfidence
193(1)
The Limits of Short-Term Memory
193(1)
Creative Negotiation Strategies
193(9)
Multiple Roads Lead to Rome (and an Expert Understanding)
194(1)
Feedback
194(1)
Creativity Templates
195(1)
Incubation
196(1)
Rational Problem-Solving Model
197(1)
Fluency, Flexibility, and Originality
197(1)
Brainstorming
198(1)
Convergent Versus Divergent Thinking
198(2)
Deductive Reasoning
200(1)
Inductive Reasoning
200(2)
Flow
202(1)
Conclusion
202(4)
PART III: APPLICATIONS AND SPECIAL SCENARIOS
206(114)
Multiple Parties, Coalitions, and Teams
206(36)
Analyzing Multiparty Negotiations
207(1)
Multiparty Negotiations
208(9)
Key Challenges of Multiparty Negotiations
209(5)
Key Strategies for Multiparty Negotiations
214(3)
Coalitions
217(5)
Key Challenges of Coalitions
217(4)
Strategies for Maximizing Coalitional Effectiveness
221(1)
Principal-Agent Negotiations
222(5)
Disadvantages of Agents
223(2)
Strategies for Working Effectively with Agents
225(2)
Constituent Relationships
227(3)
Challenges for Constituent Relationships
228(1)
Strategies for Improving Constituent Relationships
229(1)
Team Negotiation
230(5)
Challenges That Face Negotiating Teams
231(2)
Strategies for Improving Team Negotiations
233(2)
Intergroup Negotiation
235(5)
Challenges of Intergroup Negotiations
235(2)
Strategies for Optimizing Intergroup Negotiations
237(3)
Conclusion
240(2)
Cross-Cultural Negotiation
242(31)
Learning About Cultures
243(2)
Defining Culture
244(1)
Culture as an Iceberg
244(1)
Cultural Values and Negotiation Norms
245(14)
Individualism Versus Collectivism
245(9)
Egalitarianism Versus Hierarchy
254(3)
Direct Versus Indirect Communications
257(2)
Key Challenges of Intercultural Negotiation
259(8)
Expanding the Pie
259(1)
Dividing the Pie
260(1)
Sacred Values and Taboo Trade-Offs
260(3)
Biased Punctuation of Conflict
263(1)
Ethnocentrism
263(2)
Affiliation Bias
265(1)
Faulty Perceptions of Conciliation and Coercion
265(1)
Naive Realism
266(1)
Predictors of Success in Intercultural Interactions
267(1)
Advice for Cross-Cultural Negotiations
267(5)
Anticipate Differences in Strategy and Tactics That May Cause Misunderstandings
268(1)
Analyze Cultural Differences to Identify Differences in Values That Expand the Pie
268(1)
Recognize That the Other Party May Not Share Your View of What Constitutes Power
268(1)
Avoid Attribution Errors
269(1)
Find Out How to Show Respect in the Other Culture
269(1)
Know Your Options for Change
270(2)
Conclusion
272(1)
Tacit Negotiations and Social Dilemmas
273(30)
Business as a Social Dilemma
275(1)
Decentralization
275(1)
Strategic Alliances
275(1)
Specialization
276(1)
Competition
276(1)
Common Myths About Interdependent Decision Making
276(1)
Myth 1: ``It's a Game of Wits: I Can Outsmart Them''
276(1)
Myth 2: ``It's a Game of Strength: Show 'em You're Tough''
277(1)
Myth 3: ``It's a Game of Chance: Hope for the Best''
277(1)
The Prisoner's Dilemma
277(8)
Cooperation and Defection as Unilateral Choices
278(1)
Rational Analysis
278(7)
Social Dilemmas
285(13)
The Tragedy of the Commons
287(1)
Types of Social Dilemmas
288(3)
How to Build Cooperation in Social Dilemmas
291(6)
How to Encourage Cooperation in Social Dilemmas When Parties Should Not Collude
297(1)
Escalation of Commitment
298(4)
Avoiding the Escalation of Commitment in Negotiations
300(2)
Conclusion
302(1)
Negotiating via Information Technology
303(17)
Place-Time Model of Social Interaction
304(7)
Face-to-Face Communication
304(3)
Same Time, Different Place
307(1)
Different Time, Same Place
308(1)
Different Place, Different Time
308(3)
Information Technology and Its Effects on Social Behavior
311(5)
Status and Power: The ``Weak Get Strong'' Effect
312(2)
Social Networks
314(1)
Risk Taking
315(1)
Rapport and Social Norms
315(1)
Paranoia
316(1)
Strategies for Enhancing Technology-Mediated Negotiations
316(2)
Initial Face-to-Face Experience
317(1)
One-Day Videoconference/Teleconference
317(1)
Schmoozing
318(1)
Conclusion
318(2)
Appendix 1 Are You a Rational Person? Check Yourself 320(20)
Appendix 2 Nonverbal Communication and Lie Detection 340(8)
Appendix 3 Third-Party Intervention 348(6)
Appendix 4 Negotiating a Job Offer 354(8)
Academic References 362(34)
Popular Press References 396(5)
Subject Index 401(22)
Author Index 423

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Excerpts

This book is dedicated to negotiators who want to improve their ability to negotiate--whether that be multimillion-dollar business deals or personal interactions. Many books address the issues of negotiation, so why this one? If I were to cite a single reason why I wrote a book in this saturated field it is this:The science of negotiation can help people dramatically improve their ability to negotiate economically better deals and also psychologically better deals.Simply stated: You can improve your monetary returns and feel better about yourself and the people you deal with. This book contains an integration of theory, scientific research, and practical examples. Moreover, the practical examples--selected from hundreds of real-world negotiations involving people from several companies--illustrate effective as well as ineffective negotiation skills. Here is what you can expect when you read this book: Illustrative case studies and real-life negotiations:I have included several examples and actual cases of negotiating in managerial and executive contexts. Each chapter opens with a case analysis (often from the business world, but government, community, and personal life as well). Furthermore, many of the points in the chapters are supplemented with illustrations and examples drawn from actual negotiations, both contemporary and historical. I do not use these examples to prove a theory; rather, I use them toillustratehow many of the concepts in the book are borne out in real-world situations. Skills-based approach:I provide practical take-away points for the manager and the executive. A good example is Chapter 4 on integrative negotiation. A series of hands-on principles that have been proven to increase the value of negotiated deals are provided. Moreover, several students and clients have written, indicating how they utilized the tools in their actual business negotiations. Those examples are included as well. Self-insight:We included several ways that negotiators can test their own intuition and approach. For example, Chapter 5, Developing a Negotiating Style, allows negotiators to assess their "instinctive" bargaining style and provides suggestions for how to further develop their bargaining repertoire. Moreover, Chapter 10 provides a deep look at cultural differences in negotiation so that the negotiator can better understand his or her own cultural style and that of others. Sophisticated bargaining skills:The second and third sections of the book deal with complex, yet commonly occurring negotiating situations, such as negotiating with agents, mediation and arbitration, negotiating via e-mail and conference call, negotiating with competitor companies, and of course, negotiating cross-culturally. I took the task of revisingThe Mind and Heart of the Negotiatorvery seriously. Every chapter has a new opening section that illustrates a real-world negotiation and no fewer than 135 examples from the business world have been added since the last edition. Also, I cited the ground-breaking results of more than 200 new scientific articles on negotiation. benefit greatly from the advice, comments, and critiques given to me by my students and colleagues, and I hope that their advice keeps coming so that I am able to improve upon the book even further. The research and ideas in this book come from an invaluable set of scholars in the fields of social psychology, organizational behavior, sociology, negotiation, and cognitive psychology. My research, thinking, and writing has been inspired in important ways by the following people: Wendi Adair, Cameron Anderson, Linda Babcock, Max Bazerman,Kristin Behfar, Terry Boles, Jeanne Brett, Susan Brodt, Karen Cates, Hoon-Seok Choi, Gary Fine, Craig Fox, Adam Galinsky, Wendi Gardner, Dedre Gentner, Robert Gibbons, Kevin Gibson, James Gillespie, Rich Gonzalez, Debora

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