McGraw-Hill/Irwin©2004TheMcGraw-HillCompanies,Inc.,AllRightsReserved.CHAPTER12ManagingNegotiationMismatchesMcGraw-Hill/Irwin©2004TheMcGraw-HillCompanies,Inc.,AllRightsReserved.Introduction:Inthischapter,webeginbydiscussionhowtomanagethesocialcontractandshadownegotiation.Next,weturntoadiscussionofhowtorespondtotheotherparty’sharddistributiontactics,whichisfollowedbyadiscussionoftheoptionsavailabletonegotiatorswhoarefacedwithanotherpartywhoismorepowerful.Wethendiscusspossibletacticstousewithgenerallydifficultnegotiators,examinehowtorespondtoultimatums,andconcludethechapterwithadiscussofhowtomanagedifficultconversations.McGraw-Hill/Irwin©2004TheMcGraw-HillCompanies,Inc.,AllRightsReserved.Thetitles:1.ManagingtheShadowNegotiationandSocialContract2.RespondingtotheOtherSide’sHardDistributiveTactics3.RespondingWhentheOtherSideHasMorePower4.TheSpecialProblemsofHandingUltimatums5.RespondingWhentheOtherSideIsBeingDifficultMcGraw-Hill/Irwin©2004TheMcGraw-HillCompanies,Inc.,AllRightsReserved.1ManagingtheShadowNegotiationandSocialContractTheshadownegotiationoccursinparallelwiththesubstantivenegotiationandisconcernedwithhowthenegotiationwillproceed.Whowillhaveinfluenceandpower?Whatisacceptablebehavior?Whoisincludedorexcludedfromthediscussion?Frequentlythesemattersarenotdecidedintheopenbutoccur“intheshadows”.Theresultofthisongoingshadownegotiationisasocialcontractregardinghowthenegotiationwillproceed,whohasinfluenceandpower,andwhattheboundariesofthenegotiationare.McGraw-Hill/Irwin©2004TheMcGraw-HillCompanies,Inc.,AllRightsReserved.KolbandWilliams(2001)suggestthatnegotiatorsignoreshadownegotiationsattheirperilbecausetheunaddressedshadownegotiationcanleadtonegotiationsthatare“blockedorstalled—underminedbyhiddenassumptions,unrealisticexpectations,orpersonalhistories”.Theyidentifythreestrategicleversavailabletohelppeoplenavigatetheshadownegotiation:powermoves,processmoves,andappreciatemovesMcGraw-Hill/Irwin©2004TheMcGraw-HillCompanies,Inc.,AllRightsReserved.•powermovesPowermovearedesignedtobringreluctantbargainersbacktothetable.Therearethreekindsofpowermoves:incentives,pressuretactics,andtheuseofallies.•ProcessmovesProcessmovesaredesignedtoalterthenegotiationprocessitselfthroughadjustmentstotheagenda,sequencing,decisionrules,andthelike.McGraw-Hill/Irwin©2004TheMcGraw-HillCompanies,Inc.,AllRightsReserved.•AppreciatemovesAppreciatemovesaredesignedtobreakcyclesofcontentiousnessthatmayhaveledtodeterioratingcommunication,acrimony,orevensilence.McGraw-Hill/Irwin©2004TheMcGraw-HillCompanies,Inc.,AllRightsReserved.2RespondingtotheOtherSide’sHardDistributiveTacticsByhardtacticswemeanthedistributivetacticsthattheotherpartyusesinanegotiationtoputpressureonnegotiatorstodosomethingthatisnotintheirbestinterest.Asapartymanaginganegotiationmismatch,youcanrespondtothesetacticsinthefollowingways:Callthemonit,Ignorethem,Respondinkind,Offertochangetomoreproductivemethods.McGraw-Hill/Irwin©2004TheMcGraw-HillCompanies,Inc.,AllRightsReserved.3RespondingWhentheOtherSideHasMorePowerWhendealingwithapartywithmorepower,negotiatorshaveatleastfouralternative.Theycan:(1)Protectthemselves(2)Cultivatetheirbestalternativetoanegotiatedagreement(BATNA)(3)Formulatea“tripwirealertsystem”(4)CorrectthepowerimbalanceMcGraw-Hill/Irwin©2004TheMcGraw-HillCompanies,Inc.,AllRightsReserved.4TheSpecialProblemsofHandingUltimatumsAnultimatumsisanattempt“toinducecomplianceorforceconcessionsfromapresumablyrecalcitrantopponent”.Ultimatumstypicallyhavethreecomponents:(1)ademand(2)anattempttocreateasenseofurgency(3)athreatofpunishmentifcompliancedosenotoccurRobinson(1995)hasdevelopedonepossibleresponsetoultimatums,whichhecallsthe“farpointgambit”.Thesuccessoftheresponsehangsontheabilitytosay“yes,but…”toanultimatum.McGraw-Hill/Irwin©2004TheMcGraw-HillCompanies,Inc.,AllRightsReserved.Robinsonadvisethatthefarpointgambitonlybeusedwhenallthreeofthefollowingconditionsexist:(1)Whentheinitiatorisperceivedasbehavingunethicallyandignoresappealstoreason.(2)Whentherespondentistrulyinterestedinthebasicbutneedsmoretimetoconsiderit.(3)Whenthereareissuecentraltothedealthatgenuinelyneedclarification.McGraw-Hill/Irwin©2004TheMcGraw-HillCompanies,Inc.,AllRightsReserved.5RespondingWhentheOtherSideIsBeingDifficultWhentheothersidepresentsapatternofcleardifficultbehavior,twopossibilitiesexist:intheonehand,itispossiblethatthenegotiatordoesnotknowanyotherwaytonegotiate,butmightberesponsivetosuggestionsforchanginghisorherbehavior.Ontheotherhand,itmaybethattheotherpartyhasadifficultpersonalityandherbehaviorisconsistentwithinandoutsidethenegotiationcontext.Ury(1991),suggestabroadbasedapproachthatmaybeusedwithanyotherpartywhoisbeingdifficult.McGraw-Hill/Irwin©2004TheMcGraw-HillCompanies,Inc.,AllRightsReserved.Ury’sBreakthroughApproach:step1:Don’treact—Gotothebalconystep2:Disarmthem—Steptotheirsidestep3:Changethegame—Don’treject,Reframestep4:Makeiteasytosayyes—Buildthemagoldenbridgestep5:Makeithardtosayno—Bringthemtotheirsense,nottheirknees.McGraw-Hill/Irwin©2004TheMcGraw-HillCompanies,Inc.,AllRightsReserved.Re