ContentsSupplementaryReadingReading1NegotiationforBusinessOwnersReading2Pre-negotiationHomework(1)Reading3Pre-negotiationHomework(2)Reading4NegotiationStylesReading5HowtoNegotiate:TheStrategiesReading6TheNegotiationProcessReading7SevenMajorPitfallstoAvoidWhenNegotiatingReading8EmotionandNonverbalCommunicationinNegotiationReading9TheBehaviorofSkilledNegotiatorsReading10Stress-freeNegotiationsReading11CulturalDifferencesinBusinessNegotiationsReading12ClosingYourBusinessNegotiationsChineseVersionsoftheDialoguesinSection2KeysSupplementaryReadingReading1NegotiationforBusinessOwnersBusinessowners’abilitytonegotiateskillfullyisimportantbecausetypically,whethertheyrealizeitornot,theyspendhourseveryweeknegotiatingwithsubordinates,suppliers,lenders,significantothers,children,parents,in-laws,cardealers,andothers.Decidinghowmuchtopayanewofficemanagerorwheretogotolunchwithaclientinvolvesnegotiation.Theofficemanagermaychoosetoacceptlessmoneyif100percentofhealthbenefitsarepaid,whileaclientmayagreetogoforMexicanfoodifChinesefoodwillbethechoiceonthenextoccasion.Eventhoughallbusinessownersareexperiencednegotiators,theymaynotbeskillednegotiators.Beingaskillfulnegotiatorrequirespatience,attentiveness,flexibility,andawarenessofpersonalnegotiationstyle,issuesanddetailsofthecase,aswellasthegoalsandobjectivesoftheotherparty.Negotiationcanbedescribedasnonviolentcommunicationbetweentwoormorepartieswhomayhaveconflictingandcommoninterestsinanattempttoreachanagreementthatmeetsthegoalsofoneorbothparties.Insimpleterms,negotiationisaprocessforgettingsomethingyouwant.Manypeopleareafraidtonegotiatebecauseofallthestereotypesassociatedwithnegotiation.Althoughbusinessownersspenduptohalftheirtimeatworknegotiating,manystillfeeluncomfortablewiththeprocess.Somefearthattheymaycomeacrosstotheotherpartyasimpolite,pushy,unfair,orevencheap.Onecommonmisconceptionaboutnegotiationisthatgoodnegotiatorsusetacticssimilartothestereotypicaldeceitful,connivingusedcarsalesman.Beingagoodnegotiatordoesnotmeanyouhavetoresorttobeingaslick,smoothtalker.Contrarytopopularbelief,negotiatingshouldnotbecomparedtoagameorawarinwhichbothpartiesentertheprocesswiththegoalofwinningandcrushingtheotherparty’sspirit.Theendresultofwaroragameisthatonepartycomesoutastheclearwinnerandtheotherastheabsoluteloser.Uponcompletionofasuccessfulnegotiation,incontrast,bothpartiesshouldfeelthattheyhavewonsomething.Anotherreasonbusinessownersfeeluncomfortablenegotiatingisbecausetheyfeeltheyhavetomaketrade-offsbetweengettingalongwiththeothersideandgettingwhattheywant.Itisnotuncommonforbusinessownerstofeelthattheyhavetoeithergiveintotheotherside’sdemandsorplayhardballinordertoavoidconflict,damagingtheirfuturerelationship,orbeingtakenadvantageofbytheotherparty.Manypeoplefeelmorerelaxedwhentheyfindoutthattheywillbenegotiatingwithawomanbecausetheyassumethatwomenarenotasaggressiveastheirmalecounterpartsand,therefore,cannotbeaseffectiveasnegotiators.Thisisanothercommonmisconception.Whilewomentendtobemoreconcernedwithpreservingrelationshipsandmenwitharrivingatanagreementasquicklyaspossible,thisisnotalwaysthecase.Somemenarepatientandaremoreinterestedinachievingadealthatmeetstheneedsofallpartieswhilesomewomenprefertoenterthenegotiationwithacompetitivedrivetowin.Whetheryouarenegotiatingwithwomenormen,youshouldalwaysdoyourhomework.Learnasmuchasyoucanaboutthemembersoftheotherteam,developarelationshipwiththemand,ifnecessary,alteryournegotiationstylesothatitresonateswiththeotherteam’spersonality.Negotiationislikeneitheragamenorawar.Itisaboutcooperationandsigninganagreementthatmakesbothpartiesfeelthattheyhavebeensuccessful.Theprimarygoalofeffectivenegotiationshouldbetoachieveadealthatbothpartiescanlivewithandthataccomplishesyourgoalswithoutmakingtheotherpartywalkawayfromthedealorharmingavaluablerelationship.Basically,thewholepointofnegotiatingwithsomeoneistogetsomethingbetterthanwhatyouwouldgetwithoutnegotiating.Reading2Pre-negotiationHomework(1)Tobeasuccessfulnegotiator,itisimperativethatyoudoyourhomework.Itissuggestedthatyouspendabouthalfthetimeyouspendnegotiatingonpreparingforthenegotiation.IdealMeetingLocation.Onceyouhaveestablishedarelationshipwithsomeoneorhavenegotiatedwiththatpartybefore,youmayfeelcomfortablenegotiatingoverthetelephone.Otherwise,conductingthemeetinginpersonwouldbebetterthanoverthephonebecauseitwillgiveyoutheopportunitytoobservetheotherperson’sbodylanguageandmaintaineyecontact.Ifyoudecidetomeetinperson,offertomeetatyourofficeifpossible.Notonlywillyoufeelmorecomfortableinyouroffice,butyoualsowillbeabletogetquickerapprovalfromseniorpeople(ifnecessary);anditgivesyouthehomeadvantage.Themainadvantageofmeetingattheotherside’sofficesisthatyoucanwithholdinformationuntilyoureturntoyouroffice.Ofcourse,ifneitherpartyiswillingtoagreetomeetateitheroffice,youcanalwaysmeetataneutrallocation.EvaluateYourNegotiationStyle.Beforeyoucanimproveyournegotiationstyle,youshouldthinkaboutevaluatingyourcurrentstyleandyourpersonality.Thinkingaboutthelastfewnegotiationsyouparticipatedin,whattacticsdoyouthinkweresuccessful?Inwhatareasdoyouthinkyoucouldimprove?Wouldyousayyouusedhardorsoftbargainingtechniques?Didyoutendtobedirectorindirectinyournegotiationdealings?Whatwouldyousayareyourhotbuttons?Ifyouthinkabouthowyoureactindifferentsituationsandwhatyourturn-onsandturnoffsare,youwillbebetterpreparedtohandleyourselfprofessionallywhilemaintainingyourcomposureduringyournextnegotiation.Andthiscanbeanadvantagewhendealingwithpeoplewhosetempersgetthebestofthem.EstablishYourGoalsandObjectives.Youneedtodetermineyourprimarygoalandobjectives—thatis,whatyouwanttogetoutofthenegotiation.Yourprimarygoalshouldberealisticandaccessible.Let’ssayyourmaingoalistohireanewofficemanager.Itisunrealistictoassumethatyouwillbeabletohireanofficemanagerat$0peryearandnobenefits.Youshouldexpandyourmaingoaltoincludeotherobjectives.Forexample,youwouldliketohireanewofficemanagerandpay$4,000permonthand75percentofhealthanddentalinsurance,offer10daysofvacationand5daysofsicktimeforthefirstyear,andmatchupto3percentofsalaryinthecompany’s401(k)plan.ResearchtheOtherTeam’sMembersandPersonalities.Onceyouhaveestablishedyourgoalsandobjectivesandthoseoftheotherparty,thenextstepinpreparingfornegotiationisgatheringasmuchinformationasyoucanabouttheopposingparty’spersonalities.Ifyoudonothavearelationshipwiththemalready,begintoestablishonebysettingupameetingortwopriortothenegotiation.Perhapsyoucanmeetinformallyoverlunchoneafternoon.Ifyouareunabletomeetwithyourcounterpartspriortothenegotiation,considercallingtheirassistantstofindoutmoreinformationregardinghowtomakethemcomfortableduringthenegotiation.Asktheirassistantswhattheyliketoeatanddrinksothatyoucanhavethingspreparedatthetimeofthenegotiation.Alsothinkabouthowyouwillgettheirattentionatthestartofthenegotiationmeeting.Whatdoyouhaveincommonwiththem?Perhapsyoubothliketohikeandyoucandiscusstrailsyouhavehikedrecently.Whatdotheyliketodoforfun?Iftheyliketoplaytennis,youcanaskaboutthelastgametheyplayedorhowwelltheyplayed.Oryoucouldbringupthelatestprofessionaltennistournamentthatyourecentlysawontelevision.Thisisagreatwaytogettheirattentionbeforeyoubeginnegotiating.Doyouthinktheothersideusesahardorsoftbargainingstrategy?Canyoutrustthem?Howlongdotheyanticipatetheprocesswilltake?Doyouknowanyoneacquaintedwithamemberoftheoppositeteamwhocangiveyousomeinformationaboutthem?Whatmakesthemtick?Aretheyimpatient?Demanding?Howlongdotheyanticipatethisprocesstotake?Themoreyouknowaboutthepeopleontheotherside,themorepreparedyouwillbeforthenegotiation.Andthemorepreparedyouare,themoreconfidentyouwillbebecauseyouwillknowwhattoexpect.MakeaListofAssumptions.Skillednegotiatorsrealizethatpeoplesometimeshavemistakenassumptionsthattheybelievetobefacts.Whennegotiatingwithanotherpartyforthefirsttime,wehavetomakecertainassumptionsastowhatsomeoftheirbodylanguage,expressions,orphrasesmean.Askforclarification!Don’tassumeanything.Makealistofassumptionstobringtothenegotiationandclarifyanypointsthatareunclearoruncertain.GatherFactsandConductResearch.Thenextstepinvolvesgatheringasmuchinformationasyoucanaboutthesubjectofthenegotiation.Let’ssaythatyouownapizzarestaurantandyouarenegotiatingpriceswiththelandlordwhoownsthebuildinginwhichyouoperateyourrestaurant.Topersuadetheothersidethatyouareaskingforsomethingthatisreasonable,youneedtoprovidesupportingdata.Forexample,ifyouwouldliketorenewyourleaseatthesamepriceyoupaidthepreviousyear,youwouldneedtoprovewhyitwouldbeunfairofyourlandlordtoincreaseyourrent.Researchregardingrealestatepricesinsimilarbuildingslocatedinthesurroundingareaofyourrestaurant,restaurantoccupancyratesinyourcity,thenumberofnewrestaurantopeningsinthepastyearinyourcity,andtheaverageincreaseinrentinyourcitywouldbesometopicsworthresearchingpriortothenegotiation.YoucanfindthistypeofinformationontheInternet,byaskingforassistanceatyourlocalcommunitylibrary,byspeakingtoalocalrealestateleasingagent,orbymeetingwithotherbuildingownersinyourarea.Youmayalsowanttofindoutaboutwhatthecurrentissuesareintherealestateindustry.Anotherwaytogetthelatestnewsandinformationregardingtherealestateindustryistoreadtradepublicationsorvisitthewebsitesofrealestatetradeassociationsforcurrentarticles.Reading3Pre-negotiationHomework(2)FocusontheOtherSide’sInterestsratherThanStatedPositions.Itisalmostalwaysinyourbestinteresttofindawin-winsolutionforbothparties,tocompleteanegotiationknowingthatbothsidesaresatisfiedwiththeresults.Iftheotherpartyisdissatisfied,itcanhavenegativeconsequencesforyou.Forexample,ifacustomerfeelshewascheated,youwillloseherasacustomerandperhapsfuturecustomersbecauseofhernegativecomments.Ifanewhirefeelscheatedoutofabettersalary,hemayquithisjobinafewmonthswhenhefindssomethingelsethatpaysmoreafteryoujustinvestedtimeandmoneyintraininghim.Leavingtheothersidefeelingdisgruntled,cheated,ordeceiveddestroysrelationships,whichcouldberiskyforyourbusiness.Thenextstepinpreparingfornegotiationistoimaginethatyouhavetonegotiatefortheothersideanddevelopalistofquestionsyoushouldaskthem.Putyourselfintheirshoesanddotheirhomework.Whatquestionswilltheyaskyourteam?Bepreparedtoanswerthem.Althoughitseemslikethemostimportantquestiontoasktheothersideiswhattheywant,RogerFisherstatesthatthereisanotherevenmorecrucialquestionthatlooksattheunderlyinginterestsoftheotherparty.Whydotheywantwhattheywant?Walkamileintheirshoesanddeterminewhatyouthinkmotivatestheirstatedpositions.Youmayalreadybefamiliarwiththisstory,butimaginethatoneofyourcoworkers,Lisa,findsabagof30orangesonsaleatalocalgrocerystore.Sheneedsonly10ofthemsoshebringstheremaining20orangestotheofficetosharewithanyonewhowantsthem.BothKarenandAnnadecidetheywantthem.Afternegotiatingforafewminutes,theydecidetoeachtakehome10oranges.However,iftheyhadfocusedontheirinterests(onewantsjustthepeelsandtheotherwantsonlythejuice)insteadoftheirstatedpositions(wantingtheoranges),theywouldhavebeenabletosharethe20orangesandachievetheirgoals.Karenwantedtheorangessoshecouldsqueezefreshorangejuiceinherjuicer.Annawantedtheorangessoshecouldgratetheorangepeelsforanorangemuffinrecipe.Sinceneithersideaskedtheopposingsidewhyshewantedtheoranges,bothKarenandAnnahadtomakeatriptothesupermarket.Anna’srecipecalledfortherindsof20orangesandKarenneededenoughjuiceforherfamilyoffiveforbreakfast,whichalsorequiredthejuicefrom20oranges.Iftheyhadfocusedoninterests,theywouldnoteachhavehadtomakeatriptothegrocerystore,andthepeelsofKaren’sorangesandtheorangejuicefromAnna’sorangeswouldnothavebeenwasted.Don’tassumethateveryparty’sinterestsandmotivationsrevolvearoundmoney.Let’sassumethatyouownasmallmarketingresearchfirmandarelookingforanewprojectmanager.Youhavecompletedtheinterviewsandareintheprocessofnegotiatinganofferwithaprospectivecandidate.Whenyouofferhimasalaryof$50,000ayear,hestatesthathethinksyoushouldofferhim$55,000.Whenyouaskhimwhyhethinkshedeserves$5,000morethanyouofferedhim,yourealizethatmoneyisnotwhatismotivatinghim.Hefeelsheshouldgetanextra$5,000inreturnforsettlingforthetitleofprojectmanager.Hehas10yearsofprojectmanagementexperienceandthinksheshouldhavethetitleofprojectdirectorinsteadofprojectmanager.HeisconsideringapplyingtoanexecutiveMBAeveningprogramatthelocaluniversityandfeelsthatthetitleofprojectdirectorwouldbeviewedmorefavorablybytheuniversity.Oncehehassharedhistrueinterestswithyou,youagreetogivehimthetitleofprojectdirectorandagreetopayyournewprojectdirectorasalaryof$50,000ayear.Considerthisexample:Boss:Basedonourconversationsoverthepastfewdays,Iwouldliketoextendanoffertoyoufor$44,000ayearplus10daysofvacationtimeand5sickdays.Employee:Well,I’mgoingtobehonestandsaythatIamabitsurprised.Iwasexpectingtheoffertobeclosertothe$50,000salaryrange.Boss:Whywereyouexpectinganofferofapproximately$50,000?Employee:Well,sinceIhavebeenfreelancingforthepastfewyears,Ihavegrownaccustomedtohavingmoretimetogoonvacations.IworkhardformostoftheyearbutIamalsoabletotakeafewweeksatatimetotravelabroad.IwillbeunabletodomuchtravelingifIhaveonlytwoweeksofvacationtimeayear.SoifIwon’tbeabletotravelasmuch,Ishouldatleastmakemoremoney.Boss:Isee.Howaboutthis?I’llthrowinanextraweekofvacationforthenextthreeyearssoyou’llhave15daysofvacationtime.Inadditiontothose15daysofvacationtime,youwillhave5daysofsicktime.Ifyoudonotgetsickduringtheyear,youcanusethemasvacationdaysduringthelastquarteroftheyear.So,youcouldhaveupto20vacationdaysyourfirstthreeyears!And,ifyouworkwithmeforthreeyears,I’llincreasethatto20vacationdaysplus5sickdays.And,onceaquarter,youcanwork10hourseitherMondaythroughThursdayorTuesdaythroughFridayandtakealongweekendoff.Ithinkthatsoundsfair.Whatdoyouthink?Employee:IthinkI’llaccepttheoffer—$44,000soundsgoodaslongasIhaveenoughvacationtimetotravel.Boss:Great,welcomeaboardthen! Atfirstglanceitmayappearthatbothpartieswantcompletelydifferentthingsandhavenointerestsincommon.However,onceyoustarttothinkaboutwhatmotivatestheotherteamandwhattheirgoalsare,youwillnoticethatsometimesbothteamshavemoresharedintereststhanopposingones.Let’sgobacktotheexampleaboutthesmallmarketingresearchfirmownerandthenewlyhiredprojectdirector.You,asthebusinessowner,andyournewemployeehaveafewinterestsincommon.First,youbothwantthecompanytoperformwell.Youbothrelyonyourcompany’ssalestosupportyourfamilies.Second,youbothwantstability.You,theowner,wantyourcompanytogrowandwouldliketokeepyourvaluableemployees;youdonotwanttolosethemtothecompetition,soyouofferthemcompetitivesalaries,vacationtime,andbenefits.Yournewprojectdirectorisalsolookingforjobsecurity.Hedoesn’twanttohavetoswitchjobsandmovehisfamilyeveryfewyearstogetacompetitivesalaryandbenefits.Third,youarebothinterestedinmaintainingagoodrelationshipwitheachother.Youwantyouremployeetobehappywithhisjobsothathestaysaround,andyourprojectdirectorwantstobeabletouseyouasareferenceorfornetworkingpossibilitiesinthefuture.UseObjectiveStandards.Inordertoconvincetheotherpartythatwhatyouareaskingforisfairandreasonable,trytouseobjectivestandardswheneverpossible.Ifyouareinthenegotiationprocesswithaprospectivecandidate,youwillwanttopayheraslittleaspossibleandshewillwanttoearnasmuchaspossible.Ratherthanfeelingthattheotherpartyistryingtoripyouoffandhagglingbackandforth,theeasiestsolutionistouseanindependentobjectivestandard.Independentobjectivestandardsmayincludemarketvalue,replacementcost,depreciatedbookvalue,competitiveprices,precedentsforsimilarcases,scientificjudgment,professionalstandards,moralorethicalstandards,orgovernmentstandards.Youcanalsospeaktoexpertsinthefieldtolearnwhatisconsideredfairmarketvalueforwhatevergoodsorservicesthenegotiationisabout.Usingobjectivestandardscanreducetheamountoftimeittakestoconcludeanegotiationbecausetheyaremorelikelytobeacceptedbytheotherpartyasafairandreasonableoffer.Iftheotherpartyofferstopayoracceptaspecificamount,alwaysaskhowtheyarrivedatthatspecificnumber.Didtheyuseanobjectivestandard?Ifso,whichone?Ifnot,suggestonebeusedinordertoeliminatebiasandbefair,andtocreateawin-winsituationforbothparties.Iftheyareunabletoprovideyouwithdetailsforhowtheyarrivedatthatamountandrefusetobudge,youshouldseriouslyconsidertoagreetodisagreeandnotnegotiate.If,however,thepriceseemsfairandisbasedonatrustworthyobjectivestandard,bewillingtobeopen-mindedwhenconfrontedwithareasonableoffer.Thinkaboutthefollowingexample:Doctor:IampleasedtotellyouthatImetwitheveryoneyouinterviewedwithandwouldliketoextendyouanofferof$45,000peryearasyoursalary.Employee:Howdidyouarriveatthatamountexactly?Doctor:Well,wethinkitisaveryfairsalary.Accordingtoourhumanresourcesdepartment,theaveragesalarypaidtopediatricnurseswithyourlevelofexperienceinthiscityis$43,789.Notonlydowepayslightlymorethanaverage,butwealsoofferadditionalbenefits.Whilemostdoctorsoffertheirnursestwoweeksofvacation,wewouldgiveyouthree.Youwouldalsobeabletobegincontributingtoyour401(k)planimmediatelyratherthanwaitingforsixmonthsasinmanyotheroffices.Additionally,thevastmajorityofournurseshavebeenwithusformorethan10years.Theaveragetenureatourofficefornursesis14.5years.Andeveryyearforthepastfiveyears,wehavebeenworkingwithamarketresearchfirmtoconductanemployeesatisfactionsurvey.Accordingtolastyear’sresults,92percentofouremployeesareeithersatisfiedorverysatisfiedwiththeirjobs,94percentwiththebenefits,and90percentwiththeirbosses.WereallyvalueouremployeeshereandIthinktheyrecognizethat.Employee:Soundslikeoncenursesarehiredatyouroffice,theydon’twanttoworkanywhereelse.Doctor:Exactly.Wehaveoneofthehighestretentionratesinthecityfornurses.Employee:Well,nowthatyouexplainedhowhappyyouremployeesare,IthinkIwouldliketoworkhereaswell.Doctor:I’mgladtohearit.I’llnotifythehumanresourcesdepartmentandhavethemsendyourpaperworkbytheendoftheday.Youshouldreceiveitbytheendoftheweek.GenerateOptionsThatMeetInterestsofBothParties.Onceyouhavefiguredoutwhattheopposingpartyreallywants,youcanstarttodevelopalistofcreativeoptionsthatmeetstheinterestsofbothparties.Remember,ifyoumeetonlyyourowninterests,youriskalienatingtheotherpartyandthepossibilitythattheywilllosetheirpatienceandwalkaway.Youmaywanttoconsiderasuggestionofholdingabrainstormingsessionwithfivetosevencolleaguesoff-sitewithafacilitatortogenerateacomprehensivelistofideas.Havethefacilitatordisplaytheideasonaneaselorwhiteboardandrecordallideasmentioned,realisticornot.Remindallparticipantsthatallideasshouldprovideawin-winsolutionforbothsides.Theunrealisticideascanbetossedoutwhenthegroupmeetsagainbeforethenegotiationtoselectthebestideasthatwillbediscussedduringthenegotiation.Makesurethatalltheideasselectedmeetthefollowingbasichumanneedsthatmotivatethepositionspeoplechoosesothatyoucanreachmutualagreementmorequickly:?Riskreductionandsecurity—jobsecurity.?Senseofbelonging—fittinginathomeandatworkwithspecificrolesandresponsibilities.?Economicsecurity—beingabletoaffordbasicnecessities(food,shelter,etc.).?Recognitionandapproval—feelingvaluedforaccomplishingchallengingwork.?Controloverone’slife—managing,organizing,andrunningone’slifeinthedesiredway.Considerthisexample:Employee:Thankyouforagreeingtomeetwithmetodiscussmyraisefornextyear.Boss:IwantyoutoknowthatIthinkyouareanassettomycompanyandIappreciateeverythingyoudoaroundhere.Ithinkyourreviewwentwellthisyear,andIhavedecidedtogiveyouan8percentraiseforallyourhardwork.Employee:Iappreciatethe8percentbutIhavetosaythatIwashopingfor15percent.Boss:Pleasetellmewhyyouwerehopingfor15percent.Employee:Well,Ireallylikemyjobbutit’sexpensivetokeepmykidsindaycarefrom3:30to5:30everyday.Iwashopingfora15percentraisesothatIcankeepupwiththerisingcostsofdaycare.Boss:I’lltellyouwhatIcando.Whataboutlettingyouworkflexiblehours?Maybeyoucouldworkfrom6:30A.M.to3:00P.M.eachweekdaywitha30-minutelunch.Thiswayyoucanstillwork40hoursaweekandbehomeintimetotakecareofyourkidswhentheycomehomefromschool.Notonlywouldyougettospendmorequalitytimewithyourkids,butyoualsowouldn’thavetosendthemtodaycare.Employee:Wow,that’sagreatidea.The8percentraisesoundsfine.Thankyou.Thebosswasabletomeethisownneedsofwantingtogivehisemployeearaiseof8percentandthoseofhisemployeebysolvinghisday-carecostincreaseproblems,leavingbothpartiesfeelingthattheyhadwon.DetermineYourBATNA.Inordertonegotiatebetter,youmustdeterminewhatyourBATNAispriortonegotiating.BATNA,firstcoinedbyFisherandUry,standsfor“bestalternativetoanegotiatedagreement.”Ifyouareunabletoreachanagreementwiththeotherparty,whatisyournextbestoption?KnowingyourBATNAhelpsyoutodecideatwhatpointthedealtheothersideisofferingyouisnolongerbeneficialtoyou.Remember,thewholepointofnegotiatingwithsomeoneistogetsomethingbetterthanwhatyouwouldgetwithoutnegotiating.So,youshouldconsidersealingadealonlyifyouareabletocomeoutahead.Forexample,let’ssayyouownasmalladvertisingagencyandarelookingforaseasonedaccountexecutiveforoneofyourlargestaccounts.Youareintheprocessofnegotiatinganofferwiththeleadingcandidate.Generatealistofasmanyalternativesasyoucanthinkoffornothiringthiscandidateandthenpicktheoneoptionthatseemstobethebest.BearinmindthatyouhaveastrongerpositionifyourBATNAistohireafreelancerwhousedtobeanemployeeofyourcompanyuntilapermanentemployeeishired.Thispersonwouldrequirelittleornotrainingsincesheisfamiliarwithhowyourcompanydoesthingsandwouldbeabletoproduceworkimmediately.If,however,youhavenootherprospectsinmind,havetoadvertisethepositiontogenerateresumes,andtheofficialstartdateoftheprojectisnextweek,youhaveaweakerBATNA.OnceyouhavedeterminedyourBATNA,youshouldconsidertheBATNAoftheotherparty,keepinginmindthatthepartywiththestrongerBATNAtendstobethemorepowerfulpartyinthenegotiationprocess.Iftheprospectivecandidateyouareinterestedinhiringhasanotherjob,shehasamorepowerfulBATNAthanifhersecondbestalternativeistoremainunemployedforanindefiniteamountoftimeuntilanothersuitablejobisoffered.IfbothpartieshavestrongBATNAs,thebestsolutionmaybetonotnegotiatewitheachotherandinsteadnegotiatewithotherpartiesornotatall.Reading4NegotiationStylesTherearetwomaintypesofnegotiationstyles,hardandsoft.Hardbargainingisalsoreferredtoaspositional,aggressive,contending,orcompetitivebargaining;andsoftbargainingissynonymouswithrelationalorcooperativebargaining.HardBargainers.Inanutshell,hardbargainerswanttobevictoriousandarewillingtojeopardizerelationshipstoaccomplishtheirgoalofwinning.Whilethisnegotiationstyleeliminatestheneedtomakeconcessions,italsoincreasesthelikelihoodthattheotherpartywillwalkaway,resultinginnoagreement,andthattherelationshipwillbeseveredorseverelydamaged.Hardbargainersconsidersatisfyingtheotherparty’sneedsonlyifithelpstoaccomplishtheirgoalsandobjectives.Theytendtowithholdimportantinformation,purposelyprovideincorrectbottom-linefigures,andembellishfacts.Asaresultoftheirsometimesdecept