DR. AMANALLAH KHAN NEGOTIATION - 2013 Negotiation Heriot Watt Edinburgh Business School ‘Nothing is agreed until everything is agreed’ Issue: August 2013 From: Book release NE-A3-engb 1/2008 (1021) By: Dr. Amanallah Ali Khan Based on the notes of Mark John Zaaijer, Marcia, Günter Herfort & Rami. 1|Page DR. AMANALLAH KHAN Module 1 NEGOTIATION - 2013 What is Negotiation? Alternative Methods of Making Decisions 1. Say “No” It is appropriate when you cannot endure the offer but you can endure the consequences. 2. Persuasion The Selling Approach: Sales people persuade people to make decisions in their favor by selling benefits. Inability to persuade, however, leads to conflict. This approach can persuade someone to say ‘yes’. The advice to sell benefits not features. Persuasion is usually the first method we want something. When persuasion works is a fine method, but when it does not work, it often leads to tension and conflict. 3. Problem-Solve Requires trust between parties and recognition that the problem is mutual. But candor could be used against you. 4. Chance Decide by tossing a coin. 5. Negotiate Mutual dependence of each decision maker on the other, and involves voluntary exchange of something you want for something they want. This option includes conditions as mutual dependence of each decision-maker on the other. It usually involves getting something, tangible or intangible, in return for your consent 6. Arbitrate when decision-makers cannot agree, third party involvement can be contemplated. The arbitrator should be acceptable to both parties and the decision must be accepted. 7. Coercion Involves the application of pressure by informing the other party of the consequences of saying ‘no’, either with a friendly face or by blatant intimidation. Leads to retaliation. Various degrees of coercion are common in many conflict situations. Threats lie on a continuum from a gentle reminder that you have an option through to a declared intention to use vio