Module 1 What is Negotiation? Alternative Methods of Making Decisions



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Three Types of Ploys


All ploys belong to one of three main types: dominance, shaping and closing.



  • Dominance (early stages of the negotiation)
    Achieving dominance enables one party to set the tone and the tempo (not to say the temper) of the following sessions.

Characteristically, dominance behavior is about defending extreme positions.



  • Shaping (middle phase of negotiation)
    In debating the parameters of a possible settlement (signaling, proposing, packaging and bargaining), numerous opportunities appear that can shape the deal.

Some of them are about cheating in its crudest form and negotiators who use them are using disreputable methods – true ‘dirty’ tricks.



  • Closing (end of negotiation)
    Certain ploys flourish in the end game, or the close, of the negotiation and are about pressurizing the opponent to settle on the last offer.

To combat the use of ploys you need to neutralize their effects:



  • Understand their purpose

  • Identify it

  • Expose or counter

    • Exposing risks embarrassing the perpetrator

    • Forget expose if you wish maintain the relationship and not interesting in ‘Winning’ an ago contest

    • Exposing what you believe is a ploy could be disastrous if it is not a ploy

Neutralizing a ploy seems by far the better response, with some slight risk that they interpret your neutralizing move as your ploy. To neutralize a ploy normally only requires that you identify it.



Dominance Ploys


  • Visual dominance ploys. The early signs of insolvency. Prop your prices up.

  • Pre-conditions. Could be helpful (NDA’s), but are mostly irrelevant. You do not negotiate not to negotiate. Distinguish between ploys and confidence-building measures.

  • Non-negotiable. It means that it is very important to them and you want something back for it!

  • Rigging the agenda either by rigging the content or by rigging the order of business. It presupposes hidden constraints on what will follow.

Shaping Ploys


  • Final offers. If someone has no absolute power over you, they cannot start a negotiation with a final offer. Why bother to negotiate?

  • Fait accompli by sending a signed contract to the other party.

  • Tough guy/ soft guy. Either two people as a team in roles or a single person with the unsympathetic boss or the distant committee… in the background. Similar to good cop/bad cop.

  • The Bogey. They adore the product, but it does not fit the budget. They are testing you. I also love Rolls-Royces, but only start buying one when I think I can finance it. If not, they must buy something else somewhere else. Also, the red player implies padded prices, which insults your cost accountants: never change the price of your offer just like that!

  • The Krunch. ‘You have got to do better than that!’. If buyers are known to resort to the krunch, they invite sellers to anticipate it by the Red ploy of padding their prices.

  • The Nibble. Nibbling on the deal by shipping just too much, delivering late, adding hidden charges, slightly inferior merchandise. Red play that leads to revenge, but worse, firms spend astronomical amounts patching this kind of nibbling up.

  • Salami ploy. Get firm agreement in stages that add up to what couldn’t be agreed to before.

  • Sell cheap, get famous ploy

  • Add-on ploy. Increase the price after agreement. What good is a house with no roof?

  • Limited authority ploy

  • Higher, or escalating authority

Closing Ploys


  • Quivering Quill. Fountain pen in the hand, and begging for extra concessions. Never give anything away for free!

  • Yes, but… Everything is agreed, but… As soon as they find that the yes, but… ploy does not lead to a quick win but to another negotiation, they will stop it.

  • Now or never. Foreshadowed by the hints of a pending deadline. Deadlines are always questionable. Some are serious, some are dubious. Best to ignore.

  • Take it or leave it. Another ‘all or nothing’ gamble (as the now or never ploy is). If your BATNA is better than taking the deal, you can opt to leave it.

  • Split the difference… means that the other is prepared to move 50%. You must insist that while she may be allowed to move 50%, you are not…

PLOYERS ARE LIKE ‘FASTEST GUN IN THE WEST’, THERE ARE ALWAYS FASTER ONES SOMEHERE WHO ARE READY FOR A SHOWDOWN.


ONLY OFFER TO MOVE CONDITIONALLY

Module 10 Personality and Power in negotiation?

Personality


The role of personality in negotiation and its effect on negotiating style is much debated. Certain personalities are supposed to have ineffective negotiating styles. It would be useless to train someone to become a negotiator if this were true. Conversely, if personality would influence negotiating behavior, would there be time to analyze it sensibly (external perspective)? Gavin Kennedy makes a case for dealing with the behavior of the other negotiator (Purple conditionality), rather than psychoanalyzing him and masking our own ineffective behavioral tendencies (internal perspective).

Personality Style of Negotiators


Rubin & Brown postulated that two variables influence negotiation:

  • Interpersonal orientation (social ability and social awareness)

  • Motivational orientation (competitor or co-operator)

Mix them together:




Collaborators go for results, are team players, problem-solvers ie. they fix.

Competitors result through power, rather than relationship. Fight, trick, Red.

Accommodators are relationship oriented, make concessions, smooth.

Avoiders avoid, hide, pessimists.
All personality types can change their behavior for a negotiation without necessarily having to change their personalities.
Gavin Kennedy offers the hypothesis that all personalities can negotiate or can learn to negotiate and personality typing of the other negotiator does not make you a better one.


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