It is appropriate when you cannot endure the offer but you can endure the consequences.
Persuasion The Selling Approach: Sales people persuade people to make decisions in their favor by selling benefits. Inability to persuade, however, leads to conflict.
Requires trust between parties and recognition that the problem is mutual.
But candorcould be used against you.
Decide by tossing a coin.
Mutual dependence of each decision maker on the other, and involves voluntary exchange of something you want for something they want.
Arbitrate When decision-makers cannot agree, third party involvement can be contemplated. The arbitrator should be acceptable to both parties and the decision must be accepted.
Coercion Involves the application of pressure by informing the other party of the consequences of saying ‘no’, either with a friendly face or by blatant intimidation. Leads to retaliation.
Postpone Buys time for emotions to settle, but may also be seen as a blocking move to refuse any agreement. Common practice of countless organizations.
This is the appropriate choice when the person instructed is obliged and certain to carry out the instruction.
Managers do not normally expect subordinates to question their instructions when their instructions are within the terms of their relationship.
This is what we do when we accept an instruction, because it is a fair instruction or to argue would be fruitless or need too much time. Giving in is not as weak an option as it sometimes seems. Every time you buy an item at the seller's asking price (take it or leaving), you are giving in.
What is negotiation?
Negotiation as a decision-making technique is appropriate when:
People voluntarily want to exchange things that they have for things that they want, creating wealth in the process.
Each party needs the consent of the other party and thereby effectively has veto-power. Because parties cannot simply take what they want, each party must accommodate the other party as well.
Negotiation has developed as the process through which the activity of trading and exchangingtangible or intangible things between people is conducted.
Advising Negotiators (Approaches to negotiation)
Description, prescription and prediction are different, yet overlapping, approaches and, by recognizing which is being used in discussions about negotiation, we can assess the relative credibility of contributions to the pool of advice.
Description Describing events that have relevance to the negotiation is useful. Should not go beyond stating facts, even though it is those facts that may lead to disagreement about what is and what is not.
Prescription Prescribing is what is done when think about what ought to happen. Asking for advice is asking for a prescription. An example of a prescription is to avoid interrupting other people because experience taught us that it blocks fruitful negotiation.
Prediction Predictions are statements about what we think will happen. This is the crucial one in negotiations because it is our predictions that we act upon and they either turn out to be true or they are proven false.