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Behavior
HECParis
1 Negotiations
MathisSchulte
schulte@hec.fr
Spring2014(JanuaryIntake)
GAININGINFLUENCE
through
1. Negotiation&ConflictResolution
2. Motivation&Persuasion
3. Relationships&SocialNetworks
4. Power&Politics
Organizational
Behavior
HECParis
Schulte&Yong,2012
INTRODUCTION:Whatis?
Negotiation: DEFINITIONS
Aninteractivecommunicationprocessthatmaytake
placewheneverwewantsomethingfromsomeone
elseoranotherpersonwantssomethingfromus.
Organizational
Behavior
HECParis
Schulte&Yong,2012
NEGOTIATON101: BargainingZone
Aspiration
point
Reservation
pointRPS
Seller
PositiveBargainingZone(RPS<RPB)
Buyer
Aspiration
point
Reservation
pointRPB
Organizational
Behavior
HECParis
NEGOTIATON101: BargainingZone
Reservation
pointRPS
Seller
Aspiration
point
NegativeBargainingZone(RPS>RPB)
Aspiration
point
Buyer
Reservation
pointRPB
Organizational
Behavior
HECParis
NEGOTIATON101: Surplus
Aspiration
point
Reservation
pointRPS
Seller
SellersSurplus:
X RPS
BuyersSurplus:
RPB X
Buyer
Aspiration
point
Reservation
pointRPB
AgreementX
Organizational
Behavior
HECParis
Exercise: THEEGGS
PREPARATION
Readmaterials(10min)
Thinkaboutreservationandaspirationprices
Thinkaboutyourstrategy&meansofinfluence
FOURPARTYNEGOTIATION(60min)
Findtheotherpartiesofyourgroup
(thegroupnumberisontopofyoursheet)
Organizethemeeting(s)asyoulikeand
whereyoulike
POSTNEGOTIATION
Shakehandsifyoureachanagreement
Seller:Writedownthedeal,findme
SELLER
Eggs/$$$
WARNERROBBINS
Eggs/$$$
GALAXO
Eggs/$$$
HOFFMANLAROUSSE
Eggs/$$$
Evgenii
100/80
Andrew
60/24
Takeaki
100/40
Absar
40/16
Mustafa
100/83
Giovanni
60/30
Vijay
100/30
Dominic
40/23
Felipe
100/62
Vijay
Kapil
100/62
Sitanshu
Pedro
100/63,2
Giovanna
Marc
60/37,2
Siddesh
40/26
Kyoko
100/70
Juan Jose
60/20
David
100/30
Emily
40/20
Richard
100/75
Julie &Antonia
60/22,5
Simone
100/37,5
Diego
40/15
Ibim
40/26
Tim
Etienne
Thierry
40/26
Nina
100/62
Noam
Gladis
100/62
Rida
Armando
82,5/62
Fred
50/36
Karim
32,5/26
Keerthi
Desmond
100/62
Ujjval
Mohamed
100/62
Nitant
Avik
100/80
Arun
Anna
100/58
Rachit
40/22
Andrew
100/62
Marcus
Bernhard
100/62
Sanjeev
THE
SELLER
GOAL
Sellall 100,000
eggs(each
disposedegg
costs$.01)
RESERVATION .65Centsper
egg($65,000
PRICE
total)
EGGS
Buyer1
WARNER
ROBBINS
Buyer2
GALAXO
Buyer3
HOFFMAN
LAROUSSE
Buy50,000
60,000 eggs
Buy80,000
100,000eggs
Buy30,000
40,000eggs
.60Centsper
egg
(irrespective of
quantity!)
Budget:
$36,000
.62Centsper
egg
(irrespectiveof
quantity!)
Budget:
$62,000
.65Centsper
egg
(irrespectiveof
quantity!)
Budget:
$26,000
Nodeal
Lossof$66,000
Waitanotheryearandentercontractmarket
INTERESTS
Comeatleast
Producedrug
evenondealto againstinfant
notupsetboss mortality
Produce
fertilitydrug
Producedog
food
THE
EGGS:Three Scenarios
1)BUYER2BUYSALLEGGS
Maximalprofitforseller:$62,000
Twobuyersgohomeemptyhanded
2)BUYERS1AND3BUYALLEGGS
Maximalprofitforseller:$62,000
Buyer2goeshomeemptyhanded
3)BUYER1,2,AND3BUYALLEGGS
Maximalprofitforseller:$124,000
Allbuyersgetwhattheyneed
Organizational
Behavior
HECParis
TWOAPPROCHESTONEGOTIATIONS &CONFLICTS
DistributiveApproach
FixedPie
Win/Lose
Competitive
Beingfirmonpositions
Influencethrough
tacticmaneuvering
PARTY1
Interests
Position
PARTY2
Position
IntegrativeApproach
ExpandedPie
Win/Win
Collaborative
Beingfirmoninterests
Influencethrough
collaborationandjoint
problemsolving
Interests
Organizational
Behavior
HECParis
WHATHELPSTOFINDINTEGRATIVESOLUTIONS
$62,000
$124,000
Buildtrustandpositiverelationships
Focusoncommonalitiesandcommongoals
Lookforpostsettlementagreements
Askmorewhy questionsthanhowmuchquestions
Giveawaysome information
Butneverdiscloseyourreservationprice! Organizational
Behavior
HECParis
TAKEAWAY:Influencethrough
negotiationandconflictresolution
Thebestwaytoinfluencepeopleistogivethem
whattheywant.
Givepeoplewhattheywantwhileyougetwhatyou
want.
Dothatbyfindingintegrativesolutionsthat
accommodateall partiesinterests.
Theonlywaytofindintegrativesolutionsisby
movingthefocusawayfromyouandbyestablishing
acollaborativeclimate.
Butdontbestupid!
Organizational
Behavior
HECParis
CourseRequirements:ExercisesNDA
NDA
Exercises
ThefirstruleofFightClubis youdonottalk
aboutFightClub.ThesecondruleofFightClub
is youDONOTtalkaboutFightClub
TylerDurden
Thefirstruleofthe
OBExercises