Day 3.

1 OBHR 493

Bullard House Negotiations

 Ethical problems and grey area

 Negative bargaining zone based on the requirements of mainly the seller
 Based off true story Villard House

Negotiating with agents

 Advantages
o Special knowledge or expertise
 Eg. Lawyers and real estate agents
o Unbiased and detached
 Divorce lawyer
o Maintains confidentiality
 Disadvantages
o Interests not aligned with clients
o Care about whats on paper rather than a long term relationship
o Costs money
o Loss of control over the process

Ethics

 A certain degree of unethical behaviour is appropriate or even encouraged in order for a

negotiation to be successful

End results ethics

 Rightness of an action
 End result in a positive

Duty ethic

 Rightness of an action is determined bu ones obligation to adhere to consistent principles, laws,

and social standards that define what is right and wrong

Social contract ethics

 Rightness of action is based on customs and norms of a community

Personalistic ethics

 The rightness of action is based on ones own conscience and moral standards
Deception by Omission/Comission

 Omission
o Failing to disclose info
 Commission
o Actually lying about issues
 Far more people are willing to lie by omission

Why use deception

 Changes power
o Increases negotiators power
o More likely to use deception if the other person is uninformed or unknowledgeable
 Perception of counterpart
o Negotiators are more likely to see ethically ambiguous tactics as appropriate if they
anticipate others motivation will be comeptitive

Consequences of unethical behaviour

 Based on effectiveness
 Reactions to others
 Reactions to self
Day 3.2 Power and Persuasion

Power

 How people acquire power

o Informational
o Position
o Relationship
o Contextual

Information

 Most common source of power

Position

 Rooted in the title

 Legitimate power
 Levels in an organization
 Resource power
o Control of resources associated with position
o Whoever has the gold makes the rules

Network/relationship

 Referent power
o Power based on an appeal to others based on common experience, likeability, network
 Centrality
o Access to info in a communication network

Context

 Power based on situations or environment

 BATNAs change power
 Society
o Public opinion, ethics, morals
 Agents, external audiences

Dealing with others who have more power

 Never do an all or nothing deal

 Make the other party smaller
 Make yourself bigger
 Build momentum through doing deals in sequence
o Get an early deal – build the relationship
 Use power of competition to leverage power
 Constrain yourself
Persuasion

 Actual stretegies that you deploy to being desired behaviour

 People differ widely in ability to influence
 Everyone can improve persuasive skills

Two routes of persuasion

 Central route
 Peripheral route
o More subtle cues and context

Central route issues

 Content
o Need to make offer attractive to other party
o Using framing
 Structure
o One-sided vs two-sided message
o Message components
 Smaller bite size pieces to digest
 Helps logrolling
 Delivery
o Use vivid language
o Repetition
o Incite fears

Aspects of peripheral influence

 Message order
o Primacy effect – remembering the first item of lists
o Recency effect – remembering the last item of the list
 Distractions
o Distractions make people less able to engage in issue relevant thinking
o Less able to make counter arguments
 Source credibility
o Cant fact check everything

Conflict Resolution

 Devils advocate
o Managing conflict to produce higher quality and alternatives
Conflict resolution styles

 Forcing
 Avoidance (Unassertive/uncooperative)
 Accommodating
 Collaborating
 Compromise