Carefully read the case "Cooper Industries Corporate Strategy (A)" and discuss with your group the…
Questions people ask about fairness
Questions people ask about fairness and “principled negotiation” Does positional bargaining ever make sense? ” Positional bargaining, distributive or win-lose situation happens when the two sides attempt to win, without much regard for the outcome of the other party. It is an easy way of negotiating, consequently it is normal that people do it with a lot of frequency. Positional bargaining doesn’t require preparation, is commonly understood and in some occasions it is predictable and rooted. What if the other side believes in a different standard or fairness?
Every party of the negotiation process will have a different notion of standard and fairness, once they have a different standard by which to Judge what Is fair. The best way to ensure that there Is a common point In the both sides Is to use external standards, which will Improve on haggling, reducing the conflicts and becoming easier to reach the goal of the negotiation. Should I be fair if I don’t have to be? In my opinion, it depends on the situation. Each negotiation has a different standard and fairness limit.
Sometimes, in the negotiation it is possible that you can get more Han you think would be fair. You can take it, but be careful because it can bring some future costs for you; it depends on the type of the negotiation. What do I do If the people are the problem? As In every day-to-day life you should separate the people from the problem. You are negotiating to get a result that is different from the person you are talking to. In negotiation you should ignore people issues at your own risk, so you should do the same with people problems, if they are main concern of your negotiation.
How should I adjust my negotiating approach to account for differences of resonantly, gender, culture, and so on? Each person Is different from the other, but we have some things in common once all of us are human. The best way to ensure that you are using the correct approach to the negotiation Is to study the other party the best you can. Moreover, you should adapt your general advice to the specific situation; pay attention to the belief and custom differences and avoid stereotyping individuals: interrogate your assumptions: How do I decide thing like, “Where should we meet”, “Who should make the first offer? And “How high should I start? ” It depends on a lot of things. About the place, it depends on who is in the most powerful position, if you are secure or not of your position, if you are too busy to move to the other party’s office. In relation to make the first offer, it depends again on the most powerful position (even that it depends on the specific situation), on the kind of negotiation, on your strategy (attacking or defending). Relatively to “how high should I start? , it depends once more on the most powerful position, on the other art’s view of the business and in your strategy. The best option to answer these questions is to study well your negotiation process and your “enemy’ so you can take advantage of this study and get the best result in the end. Concretely, how do I move from inventing options to making commitments without taking too much risk? Negotiation is not an objective science; there is not the perfect process of transforming inventing options into commitments.
However, you can follow some principles such as think about closure since the first moment; consider shaping a ramekin agreement; move toward commitment progressively; be persistent in following your interests but not rigid in pursuing any particular solution; make an offer; and be generous at the end. Can the way I negotiate really make a difference, if the other side is more powerful? And, “How do I enhance my negotiating power? ” The way you negotiate and the way you prepare to negotiate, that is all the time you spent in studying the negotiation, can make a huge difference, whoever is in the most powerful position.
Of course there are some things that you will never get, once you eve your BATAAN. However, you can have your own resources, which you should get from your study process, than can make the difference. Your negotiation power also can make the difference, because persuading the other party can be sufficient to get a little bit more than what you were facing 5 seconds before. There is more power in developing a good working relationship between both parties, in using a good BATAAN, in understanding interests, in using external standards of legitimacy, in making a carefully crafted commitment and in inventing a elegant option.