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Interests. Substantive Interests. Relationship Interests. Every Negotiator Has Two Kinds of Interests:. Substantive: what each party wants; the purpose of the negotiation Relationship: maintain a good working relationship. - PowerPoint PPT Presentation
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Interests
Substantive Interests
Relationship Interests
Every Negotiator Has Two Kinds of Interests:
Substantive: what each party wants; the purpose of the negotiation
Relationship: maintain agood working relationship
Example: an antiques dealer wants to make a profit (substantive), but he also wants the customer to return (relationship)
Definitions• Interests: the whole of each
party’s needs, fears, desires and concerns.
• Substantive interests: involves matters of major or practical importance to all concerned.
• Relationship interests: involves the state of affairs connecting two or more things or parts as being or belonging or working together.
Why Are Interests Important?There are two main reasons why a negotiator will want to learn
the other party’s underlying interests:
Source: Matthew P. Guasco & Peter R. Robinson, Principles of Negotiation
Why Are Interests Important?
No matter which approach a negotiator uses, knowing the other side’s underlying interests means a negotiator can fashion an offer that attempts to meet the other side’s interests and needs.
Most negotiations take place in the context of an ongoing relationship where it is important to carry on each negotiation in a way that will help rather than hinder future relations and future negotiations.
Where Do Interests Fall Within the Overall Negotiation?
ISSUETangible, Concrete Thing
Being Negotiated
NEGOTIATOR 1 NEGOTIATOR 2
INTERESTS INTERESTS
Source: Matthew P. Guasco & Peter R. Robinson, Principles of Negotiation
SUBSTANTIVE&
RELATIONSHIP
Michael Bluth and Wayne Jarvis Negotiate for Representation
http://www.hulu.com/watch/1197/arrested-development-new-lawyer
Substantive Interest:The Bluth family wants to get their father out of prison.
Relationship Interest:Michael Bluth is trying to develop a “professional” relationship with Wayne Jarvis.
http://www.tbs.com/video/0,,140949||,00.html?eref=sharethisUrl
George and Jerry Set a Bad Example
Substantive Interest: Jerry and George want a contract with NBC for their sitcom
Relationship Interest:George possibly ruining the relationship with NBC by trying to negotiate incorrectly