Organizational Behavior (Stephen Robbins)

Developing a Strategy
Before you start negotiating, you need to do your homework. What is the nature of the
conflict? What is the history leading up to this negotiation? Who is involved and what
are their perceptions of the conflict? What do you want from the negotiation? What
are yourgoals? It often helps to put your goals in writing and develop a range of out-
comes—from “most hopeful” to “minimally acceptable”—to keep your attention focused.
You also want to prepare an assessment of what you think the other party to your
negotiation’s goals are. What are they likely to ask for? How entrenched are they likely to
be in their position? What intangible or hidden interests may be important to them?
What might they be willing to settle for? When you can anticipate your opponent’s posi-
tion, you are better equipped to counter his or her arguments with the facts and figures
that support your position.
In determining goals, parties are well advised to consider their “target and resist-
ance” points, as well as their best alternative to a negotiated agreement (BATNA).^62 The
buyer and the seller represent two negotiators. Each has a target pointthat defines what
he or she would like to achieve. Each also has a resistance point,which marks the lowest
outcome that is acceptable—the point below which each would break off negotiations
rather than accept a less favourable settlement. The area between these two points makes
up each negotiator’s aspiration range. As long as there is some overlap between the
buyer’s and seller’s aspiration ranges, there exists a bargaining zonewhere each side’s
aspirations can be met. Referring to Exhibit 6-9 on page 208, if the buyer’s resistance point
is $450, and the seller’s resistance point is $500, then the two may not be able to reach
agreement because there is no overlap in their aspiration ranges. Recent research suggests
that having an attractive BATNA is particularly powerful to a negotiator when the bar-
gaining zone is small.^63 The lengthy and bitter negotiations between the National
Hockey League Players’ Association and the National Hockey League owners under-
scored that there was no overlap in the bargaining zone on where the salary cap should
be set, as the following OB in the Workplaceshows.

Chapter 6 Communication, Conflict, and Negotiation 207

Developing a

strategy

Defining

ground rules

Clarification and

justification

Bargaining and

problem solving

Closure and

implementation

EXHIBIT 6-8 The Negotiation Process

Source:This model is based on R. J. Lewicki, “Bargaining and Negotiation,” Exchange: The Organizational Behavior Teaching Journal6, no. 2

(1981), pp. 39–40.

BATNA The best alternative ao a

negotiated agreement; the outcome

an individual faces if negotiations fail.

bargaining zone The zone

between each party’s resistance

point, assuming there is overlap in

this range.

Eric C. Gould’s Negotiation Site

http://www.batna.com

Buyerís aspiration range

Bargaining Seller’s aspiration range

zone

Buyer’s

target

point

Seller’s

resistance

point

Buyer’s

resistance

point

Seller’s

target

point

$400 $475 $525 $600

EXHIBIT 6-9 Staking Out the Bargaining Zone