Negotiation as a business skill - James Thomas

Negotiation as a business skill

James Thomas

NegotiationDefinition

A discussion or process of treaty with another (or others) aimed at reaching an agreement

Oxford English Dictionary

Why negotiate if the terms are acceptable?

Psychology

Process

Negotiation

How do you want the other party to feel after the negotiation?

What is fairness?

Make as much money as you can

Player A proposes the split of £100. Minimum offer to other party must be at least £1

Player B accepts or rejects offer by responding ACCEPT or REJECT

Possible outcomesACCEPT - both players keep their respective sums.REJECT - neither party makes any money

Note: only one bid is allowed. There shall be no re-negotiation.

Humans have inbuilt sense of fairness Thirsty people would turn their nose up at a glass of water if they thought the amount they were being offered was too little, a study has shown.

Dr Nick Wright of the Wellcome Trust Centre for Neuroimaging at University College London said: 'These findings show that humans, unlike even our closest relatives chimpanzees, reject an unfair offer of a primary reward like food or water ' Photo: Alamy

5 common mistakes of negotiators

• Talking too much• Soft language• Justifying • Trying to win• Splitting the difference

The balance of power

The Bargaining Zone

£10

BUYER

SELLER

Buyer’s walkaway £40

Seller’s walkaway £30

Bargaining Zone

Opening Position £10

Opening Position £60

Open ambitiously

Bargaining PreferencesCo

ntro

l

Co-operation

Competitor Collaborator

Compromiser

Avoider Accommodator

Ref: Thomas-Kilmann conflict styles

Gender differences (Ref: Eckerl; De Oliveira; Grossman), Negotiation Journal, Harvard Law School, 2008)

• Females more egalitarian than men and tended to ask for less• Females were more likely to reach agreement• Stereotypes appeared to exist in this particular exercise• Helps or hinders negotiation outcomes depending on the

outcomes

Contact details

james@serenpartnership.co.ukW: 01252 763 252M: 07929 160813www.serenpartnership.co.uk