Negotiation Styles Strategies and Tactics

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NEGOTIATION STYLES,

STRATEGIES AND TACTICS


Prof. Dazydelian L Banda
MODULE CONTENTS

• 1.0 NEGOTIATION STYLES

• 2.0 NEGOTIATON STRATEGIES

• 3.0 NEGOTIATION TACTICS

Prof. Dazydelian L Banda 2


1.0 NEGOTIATION STYLES

• Negotiators can adopt a HARD or SOFT


style in negotiations.

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HARD NEGOTIATORS

• HARD Negotiators are HIGHLY


COMPETITIVE

• Take negotiations as a CONTEST OF WILLS

• Fight to WIN and AT ALL COSTS

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SOFT NEGOTIATORS
• SOFT Negotiators AVOID PERSONAL
CONFLICT
• Ready to MAKE CONCESSIONS
• Willing to reach AMICABLE and
MUTUALLY BENEFICIAL SOLUTIONS
• May end up disappointed and bitter when
faced with a Hard Negotiator.

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NEGOTIATION STYLES AND SKILLS

NEGOTIATION STYLE NEGOTIATION SKILLS


Style of Behaviour used in • Effective
negotiations: Communications
• Accommodating • Assertiveness
• Confrontational • The Questioning
• Conciliatory Technique
• Collaborative

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2.0 NEGOTIATION STRATEGY

• An approach used by parties to achieve a


specific objective

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3.0 NEGOTIATION TACTICS

• The detailed methods used by parties to


gain an advantage over the other parties.
• Tactics tend to be deceptive and
manipulative

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3.0 NEGOTIATION
STRATEGIES

Two major types:

COMPETITIVE / DISTRIBUTIVE

or

COLLABORATIVE / INTEGRATIVE
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3.1 COMPETITIVE STRATEGIES
• Using this strategy, Negotiators want to
win.
• Tend to be eager, enthusiastic and
impatient.
• Do not feel bad about conflict
• Seek to control the agenda and frame the
issues
• Stick to an ambitious position and fight
back if they feel intimidated or bullied.
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3.1 COMPETING STRATEGIES:

ADVANTAGES DISADVANTAGES
 By provoking the other side,
the risk escalation or
• Not afraid to advance reaching a stalemate
their point of view  Have difficulty in
developing collaborative
relationships because they
• Fight hard to get the tend to be poor listeners
biggest share of the cake  Pay a huge price in terms of
relationships
 Tend to be hard on
themselves when outcome
of negotiation is poor

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3.2 COLLABORATIVE STRATEGIES

Using this strategy, Negotiators place a lot


of value on good relationships
• Show concern for the other party
• Compassionate
• Understanding
• Quickly resolve any conflicts which arise
• Effective listeners

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3.2 COLLABORATIVE STRATEGIES

ADVANTAGES DISADVANTAGES
Prone to exploitation
• Create better through giving
relationships concessions due to threats
by hard bargaining /
competitive negotiators
• Seen as Trustworthy
Pay insufficient attention
to the substance of the
• Create a stress- free dispute as they are
environment concerned with not
disturbing a relationship

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4.0 TACTICS
There are numerous tactics used by negotiators. Here are 20
of the most common tactics used:
• Nibbling • Big Pot
• Good cop / Bad cop • The well is dry
• Name dropping • Blanketing
• Mandated Authority • Salami
• Competition • Deadlines
• Limits • Keeping the pressure
• Psychological warfare on
• Default • Trump the Other
• Party’s Ace
Threat
• • Communication Limits
Moral Appeal
• Control the Agenda
• Cherry picking
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4.1 NIBBLING
WHAT IT IS HOW TO RESPOND
• Also called testing • Be thorough and
boundaries explicit when
• Raising new issues specifying exactly
just when parties are what is included in the
about to conclude a deal.
deal. • When the deal looks
• E.g. we forgot …. too good, be very
suspicious. Scrutinise
it very thoroughly
• Record every
concession you have
given and remind the
Other Party about
them.
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4.2 GOOD COP/ BAD COP
WHAT IT IS HOW TO RESPOND
• One negotiator • Call the behaviour “I
demands concessions, know this tactic from
another is being police stations… let
reasonable. us just get back to the
• Idea is to lull the real business shall
other party into we?’
thinking the good cop • Concentrate only on
is on their side the bad cop and
ignore the good cop

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4.3 NAME DROPPING
WHAT IT IS HOW TO RESPOND
 Also called negotiation  Recognise what is happening
association and do not be swayed by it

 Other party mentions that they  If you think the other party is
have done business with a lying, ask them what they did
celebrity, VIP or a high profile with the VIP, celebrity or high
company profile company. If company,
ask the name and position of
 Displaying photo of them the person they did business
with. If you catch them being
shaking hands with important vague or changing the topic,
and famous leaders like you know it was all lies meant
Obama, Mandela to hoodwink you.

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4.4 MANDATED AUTHORITY
WHAT IT IS HOW TO RESPOND
• Informing you they • Do not start any
can only negotiate on negotiations with them
some issues on the but create a
agenda and leaving relationship with the
others for their bosses/ lower level authority.
higher authority • Do not accept the list of
• Informing you that issues you can
final approval can only negotiate on at face
be granted by some value- lest the list starts
higher authority to get longer!

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4.5 COMPETITION
WHAT IT IS
HOW TO RESPOND
 You are told your
competitor has offered the  Do not take their word for
same deal for a much lower granted. Ask who they
price spoke to and make a
detailed comparison of the
 You are told of your “competitor’s’ products/
competitors products- offer as a basis for
sometimes the catalogue identifying differences with
maybe on their desk to yours.
“prove” their word!  Scrutinise “competitor’s”
 “All the suppliers we deal products in terms of quality,
with give this as part of the service delivery, quantity,
standard package…” payment modalities.
 Due diligence prior to the
negotiations

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4.6 LIMITS
WHAT IT IS HOW TO RESPOND
• In terms of money, • Sell the benefits of the
time, capacity, staff product/ service so as
• “ Your products. to convince the other
Services are fantastic party that your
BUT we just can not products gives value
afford that kind of for money
money..”

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4.7 THE WELL IS DRY
• WHAT IT IS • HOW TO RESPOND
• You are constrained • Inform the other
ethically and can not party that ethics is a
go further relative matter
• You do not believe • Continue the pressure
that the proposal by • Use divide and rule
the other party is • Be patient
ethically acceptable to
you. • Listen effectively

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4.8 DEFAULT
WHAT IT IS HOW TO RESPOND
 You are given extra goods  Be firm when you get such
with a contract or simply a notes and let the other party
note saying they assume the know that you are aware of
terms and conditions their intention behind the
attached are to your liking. extra goods.
 This places the onus on you  Return the extra goods and
to carefully read the ask them to correct the
contract and return the extra contract.
goods, failing which set a
precedent for tacit
agreement which can be
used against you in future.

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4. 9 PSYCHOLOGICAL WARFARE

• WHAT IT IS • HOW TO RESPOND


• Takes many forms • Recognise these tactics
such as escalating for what they are and
demands, refusal to refuse to budge.
negotiate, • Remain calm at all
misrepresentation,
times and do not lose
personal attacks,
your cool- as this is
questioning the
what the other party
integrity of individual
wants to achieve by
members of your team
using these tactics. If
you allow yourself to
lose your cool, it will
distract the logic in
your arguments.
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4.10 THREAT
WHAT IT IS HOW TO RESPOND
You should focus on
‘ Take it or leave it” finding out the interest
behind the demand and
collaborate to come up
with options
‘You will just have to do
Call the bluff if you suspect
better than that”
it is and say ”If we accept
your demands , are you to
prepared to sign the
contract just now?”
By how much better? And
if we do ,would you accept
we sign the contract now?
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4.11 MORAL APPEAL
WHAT IT IS HOW TO
• ‘Our proposal is fair, RESPOND
right” • “Can you please help
• So if you disagree, us to understand a
you can be branded little bit why you
as “unfair” or think your proposal is
“wrong’ fair. Right?”
• Trade concessions. “If
we do X , then we
need you to do Y”

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4.12 CHERRY PICKING
WHAT IT IS HOW TO RESPOND
Buyer shops around Find out who exactly
and collects many bids offered them the deal,
before approaching and are they offering an
you. identical product or
‘This is what your service to yours
competitors are Prior Market research
offering. I need you to Mutual concessions “If I
at least match or better give you at this price, I
it”- playing you off want you to increase
against your your order”
competitors

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4.13 BIG POT
• WHAT IT IS • HOW TO RESPOND
• The other party • Emphasize the need for
both parties to reach a
comes with high mutual agreement hence
demands initially avoid an impasse.
• Play on their fears that
hoping to get the
certain negative
most out of the consequences may happen
negotiations if they insist on their
demands- which situation
they would rather avoid
• Take a recess and come up
with counterproposals

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4.14 BLANKETING
• WHAT IT IS • HOW TO RESPOND
• One party refuses to • Do prior research on
discuss individual all the issues so you
issues and insists on are thoroughly
discussing the whole. prepared.

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4.15 SALAMI
• WHAT IT IS • HOW TO RESPOND
• The other party • Do prior research on
insists on discussing all the issues so you
one issue at a time- are thoroughly
the opposite of prepared.
blanketing • Be on the look out for
surprises

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4.16 DEADLINES
• WHAT IT IS • HOW TO
• Takes many forms: RESPOND
• The other party makes it • Distinguish between
clear they do not have compelling or technical
much time to reach a deal. deadlines- those based on
objective and verifiable
• May come with packed
criteria( e.g. expiration date
suitcases to negotiating of contract) and those that
room on their way to catch seem to be unilateral threats.
a flight by a specific time.
• Always ask for an extension
• May give you specific time
of the deadline
to consider their offer after
which it “expires” • Suggest alternative
deadlines. ‘ I appreciate the
• These and similar ones are
importance of this to you
used to create a sense of but we will need x more
urgency and pressure the days.”
other party to reach a deal.
• Refuse to be hurried by the
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deadline into closing a deal.
4.17 KEEPING THE PRESSURE ON

• WHAT IT IS • HOW TO
• Being persuasive: RESPOND
• As the Leader, you clarify • Be thoroughly prepared
your objectives, outline the
issues to achieve those • Have a complete knowledge
objectives, you identify of the issues under
potential problems that negotiation
might hinder reaching
settlement. • Remain firm in advancing
• Do not allow anyone to your proposal without
undermine your position as closing out the other party’s
you make presentation. positive suggestions.
• Cooperate with the other
party to gain their trust • Recognise these tactics for
• Offer solutions leading to what they are and be alert all
achievement of your the time.
objectives.
• Calmly respond to questions Prof. Dazydelian L Banda 31
4.18 TRUMP THE OTHER PARTY’S ACE

• WHAT IT IS • HOW TO RESPOND


• Offering the Other Party a • Analyse the counter proposal by the
last minute attractive Other Party to see if it is within your
counter- proposal they priorities and objectives.
will accept and drop their • Keep pushing the Other Party to
previous demands. commit themselves to the important
• Examples- “ I will make it things in your proposal which you
a 5 year instead of a 3 year must have.
contract” • Keep Nibbling away
• ‘I will double size of • Use the Yes.. But technique
education allowances if • In early stages of negotiation, you
you drop your demands maintain an open mind without
on xxxx .” making any commitments.

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4.19 COMMUNICATION LIMITS

• HOW TO RESPOND
• WHAT IT IS
• Do not allow the Other Party to
• When negotiating as a have a dominant hand in preparing
team, ensure that each the agenda. Divide this
member knows what they responsibility equally between the
can and will say with parties.
whom and at what point .
• Keep track of issues that are
In addition , to whom they
important to you and ensure these
can not talk tall.
are discussed to your satisfaction.
• Establish clear lines of
• Meet the Leader of the Other Party
communication so
to trash out issues.
members speak through
the Leader • Make friends with members of the
Other Party and subtly obtain
.
intelligence

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4.20 CONTROL THE AGENDA

• WHAT IT IS • HOW TO
• Closely linked to RESPOND
Communication • Adopt an assertive approach
to negotiations.
Limits: • Insist that your team
• Thorough participates in framing the
agenda.
preparation to • Ensure that agenda includes
establish your goals , all issues that support the
objectives, zone of objectives you want to
possible agreement. achieve during negotiations.
• Take extreme care in
• Take the lead in ordering the agenda.
framing the agenda • Do not discuss issues for
very long times without
taking a recess

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