IILM College of Management Studies

Module Manual: Negotiation

Academic Year: PGDM 2013-15

Course Credits: 02

Course Marks: 20

Course Code:
1. Introduction to the module and module objectives

Most of us spend a good deal of our professional lives engaged in negotiations of one form or
another. Negotiation consists of discussions between two or more parties around specific
issues for the purpose of reaching a mutually satisfactory agreement.

Everyone is a negotiator. It is an everyday occurrence. Life is an endless series of interactions

that require negotiation. We are confronted daily with countless situations in which we are
called upon to negotiate, to reach an agreement, or to resolve a conflict or difference of
opinion (e.g., negotiate for the best deal for a vacation, negotiating with event managers, ).
The issue is not whether we negotiate, but rather how effective we are. Negotiation is a skill
that can be improved with practice.

The primary goal of this course is to improve your negotiation skills. There is a distinction
between your skill as a negotiator (practice) and your skill at negotiation (strategy). One can
excel at devising a negotiation strategy even if one is not always the best person to
implement that strategy. The primary purpose of this course is to help you better understand
and develop a strategic approach toward negotiations. Through the use of lectures, case
simulations, role plays , discussion, videos and pod-casts, this course provides students with a
strategic framework for negotiating while also enhancing their ability to maximize joint gains
and neutralize hard bargaining tactics.

2. Module Objectives

a. Understand the types and strategies of negotiations.

b. Learn the phases of negotiations & gain the skills necessary for successful negotiations.

c. To identify and understand the role of the facilitator/mediator in negotiations.

3. Introduction to the Tutors

3.1 Area chair

Name : Ms. Shalini Kakkar

Phone : 9958231495

Email ID : shalini.kakkar@iilmcms.ac.in

Webs3.2 Module Leader: Dr. Aman Agrawal

2.3 Tutors

Tutors Website Link

Dr. K N Chube http://www.iilmgsm.ac.in/faculty/ob-hr-management.html

Dr. Aman Agrawal http://www.iilmgsm.ac.in/faculty/ob-hr-management.html

4. Module Pre- Requisites:

Pre requisites for the Module on Negotiation are:

a. Good listening skills.

b. Good interactive skills.

c. Ability to analyze situations from different perspectives.

d. Students are required to go through the different iTunes podcast and videos suggested
as a per-requisite for the course. The following videos and pod-casts need to be visited
before the commencement of the course.
5. MODULE OVERVIEW

SESSION NO TOPICS

Session 1 Introduction to Negotiation

Session 2 Strategies of Negotiation

Session 3 Principled Negotiation

Session 4 Role Play (Employer and Employee demonstrating the difference

between Integrative and Distributive Bargaining)

Session 5 Pre Negotiation Planning

Session 6 Case Study: Frasier (A) by Guhan Subramanian, Michelle Kalka

Session 7 Beyond Win-Win ,(Perception, Cognition and Emotion)

Session 8 Case Bill Nichol Negotiates with Wal-Mart: Hard Bargains over Soft
Goods

Session 9 Disputes and Power

Session 10 A Negotiation Role Play: An Experiential Exercise on Developing

the negotiating Skills ( Buyer and Seller)

Session 11 Ethics in Negotiation

Session 12 Case study: Google and government of China

Session 13 Coalitions and Groups

Session 14 Cross Culture Negotiation: Hidden challenge of cross Border

negotiation by James Sebenius (Code 0203F)

Session 15 Evaluation (Role Plays)

Session 16 Recapitulation of the Course

6. Module Readings:
You are encouraged to access the library for Main Text book, Reference book, read newspaper
and magazine articles related to the course. Also go through the readings prescribed in the
manual

6.1 References
 Getting to Yes, Fisher, R., W. Ury, and B. Patton, Penguin Books
 Negotiation by Lewicki, Saunders and Barey
 Global Business Negotiations, Cellich and Jain
 International Management: Culture Strategy and Behavior, Hodgetts, Luthans and Doh

6.2 Articles and Briefs

Harvard Business Press
 Negotiation Analysis: An Introduction by Michael A. Wheeler (Code 801156 )
 Negotiation Checklist by Hallam Movious and Lawrence Susskind (Code 3263 DC)
 Types of negotiations, Many Path to a Deal (Code 5641 BC)
 Investigate Negotiation by Deepak Malhotra and Max Bazerman (Code R0709D)

 The Hidden Challenge of Cross- Border Negotiation by James Sebenius (Code 0203F)

 Putting more on the table: How making Multiple Offers Can Increase the Final Value of
the Deal, Victoria Husted Medvec, Adam D. Galinsky,(Code N0504B)

6.3 Role plays

Simulations and role plays will form a key learning component for the module. It is imperative
that you prepare and revise the key concepts discussed in class for practice through role-plays
and simulation exercises. The role- plays will be designed around varied negotiation settings
and environment that cover different sectors.
Session 1: Introduction to Negotiation

Session Objective:

The session aims to explore the basic principles of negotiation. The fundamental elements of
negotiation process like managing interdependence, engaging in mutual adjustment and
managing conflict that are necessary for an efficient negotiation process would be the focal
discussion point for the session.

Learning Outcomes:

Students would be able identify the importance of negotiation process with emphasis on its
basic principles and outcomes. They would be aware about the key characteristics of a
negotiation situation, where the parties depend on each other to achieve their own preferred
outcome. The video would enable the students to identify the right or wrong approaches
followed within in the negotiation process.

Essential Reading:

Negotiation Checklist by Hallom Movious and Lawrence Susskind (Code 32363 DC)

Negotiation Analysis: An Introduction by Michael A. Wheeler (Code 801156)

Reference Reading:

Negotiation by Lewicki, Saunders and Barey, Chapter 1

Negotiation Handbook by Patrick J. Cleary , Chapter 2

Video: The video highlights the negotiation process between two parties. The learning
derived would be taken forward to the session II for understanding the strategies for effective
negotiation.

http://www.youtube.com/watch?v=7rzq2Bq_EsA&feature=fvst

Website:

http://assets.cambridge.org/97805217/35216/excerpt/9780521735216_excerpt.pdf

http://www.acq.osd.mil/dpap/cpf/docs/contract_pricing_finance_guide/vol5_ch1.pdf

Session 2:-Strategies of Negotiation

The session highlights various strategies like distributive and integrative bargaining which are
required for effective negotiation process. The basic structure of the two strategies and
tactics used in them would be discussed with in the session.

Learning Outcomes:

The students would be able to understand the difference between the strategies and their
application within the different situations. They would know the mixed motive nature of most
negotiating situation while discussion on integrative and distributive and their mixed
relevance followed within in the negotiation process.

Essential reading:

Types of Negotiation: Many Paths to a Deal, 5641 BC

Article: Risky Business: Trust in Negotiations, by Deepak Malhotra, Harvard Programme on
Negotiation, 2004 (free access on web: link: http://www.pon.harvard.edu/wp-
content/uploads/images/posts/N0402Af2.pdf )

Reference Reading:

Negotiation by Lewicki, Saunders and Barey, Chapter 2 and Chapter 3.

Video: The Orange Quarrel

The video highlights the quarrel over the orange. It highlights various strategies undertaken to
resolve the quarrel leading to win-lose, loose-loose and win-win outcome. The strategies
impact and their benefits within the negotiation process would be major focus.

http://www.youtube.com/watch?v=6OPzgWIAGao

Session 3:- Principled Negotiation

Principled Negotiation is an interest-based approach to negotiation that focuses primarily on

conflict management and conflict resolution. Principled negotiation uses an integrative
approach to finding a mutually shared outcome. Session focuses on value claiming and value
creation through principled negotiation process. Claiming and creating value are the
processes by which parties handle negotiation opportunities to share or win a scarce or to
enhance the resource so both sides can gain.

Learning Outcome:

Students would understand the ways of creating value by exploiting common interests, using
tactics, and strategy. It will give clear understanding about the four basic principles of
Negotiation.

Reference Readings:

Negotiation Handbook by Patrick J. Cleary , Chapter 2

Required Readings:

Getting to Yes : Question about Fairness and “Principled negotiation”.

Website

http://www.colorado.edu/conflict/peace/example/fish5487.htm:

http://www.colorado.edu/conflict/peace/example/fish7513.htm

Session4: Role Play

The role play would help reinstate the concepts of integrative and distributive bargaining.
The students will learn how a win-win scenario can be arrived at

Session 5: Pre-negotiation Planning

It is widely recognized that systematic planning and preparation are critical elements of
successful business negotiations. For the negotiator, preparation means understanding one’s
own position and interests, the position and interest of the other party or parties, the issue at
stake and the alternative solutions. It means learning as much as possible about BATNA(Best
alternative to a negotiated agreement).Different phases and key factors involved within the
pre negotiation process would be discussed within the session.

Learning Outcome: Session would make students aware about the prenegotiation planning
along with its various phases and factors. Students would learn about the importance of such
planning and its implication in negotiation process.

Essential Reading:

Investigate Negotiation by Deepak Malhotra and Max Bazerman (Code R0709D)

Negotiation by Harvard Business Essentials.

Reference Reading:

Cellich and Jain, Global Business Negotiations, Chapter 04

Session 6: Frasier Case Discussion

Essential reading:

Frasier (A) and (B) Guhan Subramanian, Michelle Kalka (Code 801447)

Objective: The case gives an overview of a negotiation in the media industry. The case allows
students to apply the basic negotiation concepts of BATNA, ZOPA, reservation price etc in a
two party and single issue scenario.

Session 7: Beyond Win-Win

The discussion would be focused upon how the beyond win-win situation is achieved with the
negotiation sub process. The session examines the role of blind spots, perception, cognition
and emotion of the negotiators that impact negotiations process. The case study discusses the
small mistakes during the negotiation process. How circumstances, understanding, contract
requirement affect the negotiation either for win-win and win and lose situation.

Learning Outcome: The students would be identifying the potential blind spots with the role
of perception, cognition and emotions within the negotiation process. Students would be able
to identify the emotions, expression and their impact within the dispute situations.
Reference Readings:

Negotiation by Lewicki, Saunders and Barey, Chapter 5, Chapter 9.

Required Readings:

iTune Podcast

The podcast outlines the role of expression and emotions within negotiation process. It is a
discussion between experts from different countries that highlights two dominant emotions:
fear and contempt within in a negotiation process.

http://itunes.apple.com/in/podcast/international-dispute-negotiation/id266808144

Session 8: Case Study Bill Nichol Negotiates with Walmart: Hard Bargains over Soft Goods (A)
and (B)

Required reading:

Bill Nichol Negotiates with Walmart: Hard Bargains over Soft Goods (A) by James K.
Sebenius, Ellen Knebel (Code 9-910-043)

Bill Nichol Negotiates with Walmart: Hard Bargains over Soft Goods (B) ) by James K.
Sebenius, Ellen Knebel (Code 9-910-044)

Session 9: Disputes and Power

The session will discuss about the role of power and negotiating techniques in disputes
scenarios. The session examines nature of power with its dynamics in use in negotiation. The
sources of power (position based, relationship based) would be discussed within the session to
make student understand the power perspective within the negotiation process. All
negotiation wants power; they want to know what they can do to put pressure on the other
party to see in their way. We will discuss the case study which shows how a weaker
negotiating partner can successfully use power negotiation to win a good agreement with a
stronger negotiating partner.

Learning Outcomes:
Students would be able to identify rationale behind the power sources, derive the estimation
of power, and would be able to understand the power use effectively in the process of
negotiation. They understand the concept of power in action in negotiation process and also
the process of the tactics and messages an individual undertakes in order to change the
attitudes/behaviors of others.

Students will be able:-

 to identify a resolution mechanism that results in win-win scenarios

 to analyze the role of power in dispute resolution

  to identify negotiation techniques

 to analyze a negotiation process

Reference Reading:

Negotiation by Lewicki, Saunders and Barey, Chapter 07

Required Reading

Negotiation Analysis: Video

A video on Pirates of the Caribbean which highlights the negotiation process, style, power
used by the key characters in the movie to maximize the outcomes.

http://www.youtube.com/watch?v=xjQ5OomkVpg&feature=results_main&playnext=1&list=PL
B5DB80EA9C053B05

Session 10: A Negotiation Role Play: An Experiential Exercise

This role play is focused upon developing the negotiating skills.

Negotiation Skills: Interpersonal skills for Managers: Video

Making a deal in business context or buying something from the store requires negotiating
skills. The video explores the examples of negotiation process in the organisational context.

The importance of persuasive arguments, priorities within the negotiation and the techniques
for the process are outlined.

http://www.youtube.com/watch?v=ZWL3GXTpMeM

Session 11: Ethics in Negotiation

This session will focus on the standards for the behavior in negotiations.

Learning Outcome:

Students will be able to identify the major ethical dimensions raised in negotiations, describe
how people tend to think about these ethical choices and provide a framework for making
informed ethical decisions.

Required Reading:

Negotiation by Lewicki, Saunders and Barey, Chapter 09

Session 12: Case Study: Google and Government of China

Based on the negotiation between Google and the Chinese government to allow access by
Chinese citizens to a high-speed Chinese version of the Google search engine. In order to
reach agreement with the Chinese government, Google had to agree to allow the government to
censor access to some sites turned up by Google's search engine. In agreeing, Google
compromised its open-access policy. There were inquiries into the agreement by the U.S.
Congress and some outcry from U.S. citizens.

Learning Objective:

To learn how to analyze a negotiation from the perspective of each party when one is a
government and the other a private-sector organization; a subpoint here is the difference
between short-term and longer-term interests. To address the difficulties of balancing business
ethics and financial objectives; an important point here is to address what it means to be ethical
in a for-profit business environment. To understand the long-term effects of short-term actions.

Required Reading:

Google and government of China byChristopher Grogan, Jeanne Brett (Code KEL 242)

Session 13 : Coalitions and Groups

The session addresses the nature of coalitions and explores the process through which they
are formed, led, maintained and dissolved. It examines the need for coalitions in the process
of negotiations with role of power in coalition’s politics.

Learning Outcomes:

Students would be able to determine the need and factors governing coalitions formation and
payoffs associated with them for the negotiator.

Reference Reading:

Negotiation by Lewicki, Saunders and Barey, Chapter 12

Session 14 : The Hidden Challenge of Cross- Border Negotiation by James Sebenius

The session highlights the global business negotiations perspective with emphasis on
negotiation framework in such a situation. Negotiation environment, negotiation setting,
negotiation infrastructure would be discussed within the session.

Learning Outcome:
The session would enable the students to understand the negotiation process and its various
dimensions within the global perspective.

Essential reading:

The Hidden Challenge of Cross- Border Negotiation by James Sebenius (Code 0203F)

Reference Reading:

Cellich and Jain, Global Business Negotiations, Chapter 01

Session 15: International Negotiation Role play

Objective: With the increase in globalization, it is important for students to be able to

negotiate with people across countries. The session would help them get cognizant of what
should be kept in mind while negotiating with people from different countries

Session 16: Recapitulation of the Course

Attendance

Students shall be required to maintain minimum 75% attendance within the course.

Assessment

Assessment Method Marks

1 Case Analysis and Presentation 10 marks

(Write Up and case discussion) (2 cases)

2 Real World Negotiation (Write-up) 5 marks

3 Role Play Analysis (International Negotiation) 5 marks

Assessment Components

1. Case Analysis
Each student will have to submit case analysis and answer the case questions. Case analysis
report not more than 4 pages. This assignment will earn 15 marks.

2. Real World Negotiation: Write-up

The assignment should contain a description of exactly what happened and what the outcome
of the negotiation was. Students are also required to discuss preparation and strategy.
Include: the issues, interests and priorities, BATNA, your reservation point, and other
strategic features of the negotiation (time limits, outside parties, legal constraints, etc.), and
opponent's interests, and estimations of their BATNA and reservation point.

Assignment will be graded based on three criteria:

1) The depth of analysis. Correctly employed key concepts to assess the strategic landscape of
the negotiation? How well have you applied your learning from the course to your analysis of
this case?

2) The assignment's presentation. Is the assignment clearly organized and well written? Have
you stayed within page limits? Do spelling and grammatical irregularities interfere with the
story?

3) The quality of the story. Have you included all the relevant details? Is it interesting? Have
you explored the issues, concerns, and interests that allow an evaluation of your strategy? Is
this something not normally negotiated?

Note for Students: Excellent assignment will also be self-critical; no matter how positive the
outcome in the negotiation, you can consider what you could have done better to get more of
what you value. Don’t waste a lot of space on the fluffy details of the story, but spend time
on the analysis.

3. Role Play Analysis

Students would be required to form a group of 6-8 students. The role play performance of
each group would be assessed on the following parameters:

Briefing of the Role Play

Preparation

Performance

Application of class room concepts to the role play situation.

Peer Ratings

After each performance students would be given the feedback about their performances.

Assessment Map
 Methods of Assessment

Module A1 A2 A3 A4 A5

Negotiation * * *

A1- Individual assignment/case study

A2- Group assignment/ project/business plan

A3- Open book examinations

A4- Closed book examinations

A5- Group Presentations

9.2 Teaching Map

Teaching Map

Module T1 T2 T3 T4 T5 T6

Negotiation * * * *

T1- Lectures

T2- Seminars/Tutorials/Workshop

T3- Live projects/presentations

T4- Case study

T5- Guest Lectures

T6- Industrial Visits

Curriculum Map

Learning Outcomes

Module L1 L2 L3 L4 L5 L6 L7 L8 L9

Negotiation * * * * * * * * *

L1- An understanding of organizations, their external context and their management

L2- An awareness of current issues in business and management which is informed by research
and practice in the field.
L3- An understanding of appropriate techniques sufficient to allow investigation into relevant
business and management issues.

L4- The ability to acquire and analyze data and information.

L5- The ability to apply relevant knowledge to practical situations.

L6- The ability to work and lead effectively in a team based environment.

L7- An improvement in both oral and written communication.

L8- Be cognizant of the impact of their individual and corporate actions on society and
recognize ethical business practices.

L9- Be sensitive to the social, economic and environmental responsibilities of business.