Plan and

Strategize

Negotiations MBA Q6 2023 Prof Pradeep Mehra

 • Assess the situation
• Potential benefits and costs associated with
negotiations: whether or not to negotiate
• Prepare
• Integrative negotiation approach is to:
Steps in
• Engage with other side including relationship
negotiations building and information gathering from
other side
• Problem solving and developing alternatives
• Get the desired outcome

Negotiations MBA Q6 2023 Prof Pradeep Mehra

Strategy
• Is the negotiated outcome substantive and important?
• Is relationship important?
• If outcome is important and relationship is important: You collaborate
• If outcome is important but relationship is not important: You
compete
• If outcome is not important but relationship is important: You
accommodate
• If outcome is not important and relationship is not important: You
avoid negotiation.

Negotiations MBA Q6 2023 Prof Pradeep Mehra

Planning guide
1. What are the issues in the upcoming negotiations. What is the bargaining mix
2. What are my interests
3. Who constitutes the other side and what they want. Are there people or
interests, though not on the table, but can influence the negotiation
4. What are other side’s interests
5. What is my BATNA and RV
6. What I think is other side’s BATNA and RV
7. Define targets, wishes, goals and what will constitute a good outcome
8. Do they have adequate authority

Negotiations MBA Q6 2023 Prof Pradeep Mehra

Planning Guide
9. How should I start the negotiations
10. what standards of fairness I can use
11. What information I require from other side
12. What should be my strategy
13. What protocol should be followed
14. What is the power enjoyed by various sides
15. What is trust and relationship among various sides and will the relationship continue beyond
this negotiation
16. Am I missing on anything
17. What is required to make outcome of the deal successful operationally, after the deal is made

Negotiations MBA Q6 2023 Prof Pradeep Mehra

Protocol
• What is the agenda?
• Where will the negotiation occur? What arrangements are required?
• What is the time period?
• How will we keep track of what is agreed to?
• What rules (said or unsaid) will we follow

Negotiations MBA Q6 2023 Prof Pradeep Mehra

 Individual Matters

Negotiations MBA Q6 2023 Prof Pradeep Mehra

 Questionnaire

Negotiations MBA Q6 2023 Prof Pradeep Mehra

 • Please select one statement is more accurate
for you
• If both appear accurate, even then select one
which is more accurate for you
• No cuttings or changing, do not rewind and
change
Questionnaire • Do not select statements that you “should or
ought to” agree. Select statement that are more
accurate for you
• There is no right or wrong. It is self analysis tool
• Do not worry about consistency even if some
statements appear repetition or similar

Negotiations MBA Q6 2023 Prof Pradeep Mehra

You as Negotiator

Negotiations MBA Q6 2023 Prof Pradeep Mehra

You as Negotiator

Negotiations MBA Q6 2023 Prof Pradeep Mehra

Self assessment

• How you see yourself

• How you want others to see you
• Saint or Demon?
• What profile you want to see in other side’s negotiator and why?

• Let us make four quadrants and look at implications on negotiations

Negotiations MBA Q6 2023 Prof Pradeep Mehra

Self assessment

• Can you negotiate in such a way that elicits behavior from the other side
that you want to see? If yes, how?

Negotiations MBA Q6 2023 Prof Pradeep Mehra

Learning

• What is in your heart or mind is not known to others

• Your bargaining style is your words and deeds as interpreted by others.
• Your style cannot be isolated from what others see as your style
• How acts will be construed also depends upon context and cultural
backdrop of negotiators and negotiating situations
• Your emotional personality comes on the bargaining table

Negotiations MBA Q6 2023 Prof Pradeep Mehra

Personality – Conflict management Style

• Thomas Kilmann’s research – two factors – degree of assertiveness (bias to maintain own
preference) and degree of cooperativeness (for mutual gains)
• Competing Style – High on assertiveness, low on cooperativeness
• Accommodating Style – Low on assertiveness, high on cooperativeness
• Avoiding Style – Low on both assertiveness and cooperation
• Collaborating Style – High on both factors
• Compromising Style – Moderate on both factors

People who take conflicts personally are more likely to follow avoiding or accommodating style

Negotiations MBA Q6 2023 Prof Pradeep Mehra

Strongly predisposed towards

Competing:
• Enjoy winning process in negotiations

Accommodating:
• relationship oriented
• sensitive to others’ emotional state
• derive satisfaction from solving others’ problems
• are vulnerable to competitively oriented people

Collaborating: Enjoy problem solving process in negotiations

Negotiations MBA Q6 2023 Prof Pradeep Mehra

Strongly predisposed towards

Compromising:
• eager to close gap and finish,
• looking for fair standards in external world that can help them close quickly
• Are seen by others as relationship friendly reasonable person
• They give concessions too quickly and do not ask many questions to the other side or even question their own
assumptions.
• When time is short, they could be virtue
Avoiding:
• Defer and dodge confrontational aspects of negotiations.
• They want clear rules, unambiguous decision making authority and use techniques such as email, intermediaries to
minimize the need of face to face confrontation

Negotiations MBA Q6 2023 Prof Pradeep Mehra

Weakly predisposed towards

• Competing: Except when there are large stakes on the table, their strengths are
useful in trust and relationship building, problem solving
• Accommodating: More concerned being right than being persuasive, others may
see them as stubborn
• Collaborating: methodical, like to stick to agenda, preset goals and clarity. Could
be a problem in complex and constantly changing negotiations
• Compromising: people of principle, seen by others as interested in winning an
argument rather closing a deal
• Avoiding: do not fear interpersonal conflict, assertive, may lack tact

Negotiations MBA Q6 2023 Prof Pradeep Mehra

Bargaining styles

• High Collaborators with very low competing scores could be at disadvantage

against highly competitive counterpart
• Low accommodators get attached to their correct solution
• low compromisers get attached to their preferred principles and fairness
• Is there any optimal score: No
• Each person has a combination of preferences

Negotiations MBA Q6 2023 Prof Pradeep Mehra

Bargaining Styles
• High on competing and avoiding is likely to display “my way or high way”
attitude.
• High on accommodating and compromising are relationship and fairness
oriented people.
• High on competing and collaborating would mean that they are suitable for
variety of negotiations.
• Those who are in middle range on all five attributes are adaptors
• Your bargaining style predisposition does affect the way you other
negotiators or the negotiation process
• Do scores change with time: Yes
Negotiations MBA Q6 2023 Prof Pradeep Mehra
Personality factors: some research findings

• Self efficacy: is judgment about one’s ability to behave effectively in a given situation. People with
higher self efficacy obtained higher salary in simulations. So have faith in your abilities
• Locus of Control: Extent to which people think that they can control. Externals attribute to factors
such as luck. Internals put it to factors such as abilities. Internals have higher resistance point then
externals
• Self monitoring: higher self monitors obtained better results in negotiations
• Machiavellianism: Expedient and opportunistic. Predictor of unethical negotiation bias. Cynical
about other’s motives. Manipulative behavior.
• Face threat sensitivity: (FTS): saving face, losing face. Threat of face will make a negotiator more
competitive in negotiations

Negotiations MBA Q6 2023 Prof Pradeep Mehra

Abilities in negotiation

• Cognitive abilities: Higher cognitive abilities better integrative negotiations

but no link of intelligence with better outcome in distributive negotiations
• Perspective taking ability: those who understand other side have strategic
advantage in negotiations

Negotiations MBA Q6 2023 Prof Pradeep Mehra

Gender differences

• Reading body language signals: generally females do better

• Some survey, though not conclusive, indicate that men negotiate better outcome
while women do better win-win negotiation
• Relational view: Men are driven by task specific goals while women put greater
emphasis on interaction goals (interpersonal aspects of negotiations)…see
negotiations flowing out of relationships – business, personal

Negotiations MBA Q6 2023 Prof Pradeep Mehra

Gender Differences
• There is evidence that women negotiators are often treated worse
then men in negotiations: salary negotiations: research found that
men received higher monetary pay-off
• Research also showed that men and women are less likely to be hired
if they negotiated very aggressively but women were 3.5 times less
likely to be hired for similar behavior
• Women are more likely than men to be penalized for self-promotion.
• Note: As society is changing and there are gender equality laws,
gender differences arising out of social conditioning are reducing. The
above findings may change with passage of time
Negotiations MBA Q6 2023 Prof Pradeep Mehra