Negotiation Strategies and Leadership: Key Concepts and Tactics

Ugli oranges negotiation

Two sides learned they needed different parts of the orange, creating a win-win deal.

Lesson from Ugli exercise

Focus on interests, share info, and look for win-win solutions.

Distributive negotiation

Fixed pie, win-lose, claiming value.

Integrative negotiation

Expandable pie, win-win, creating value.

Positions

What someone says they want.

Interests

Why someone wants it.

Expand the pie

Add issues/options so both sides gain more value.

Distributive tactic

Make an ambitious first offer to anchor.

Compromise

Both sides give up something and meet in the middle.

Weakness of compromise

Splits difference without solving underlying needs.

Integrative tactic

Share priorities and make multi-issue packages.

Zero

sum - One person's gain equals another's loss.

Are negotiators born or made?

Negotiation skills can be learned.

Biggest negotiation advantage

Preparation.

BATNA

Best Alternative To a Negotiated Agreement; walk-away option.

High BATNA?

Yes—gives more power and confidence.

BATNA example (home sale)

Keep home, rent it, or accept another buyer's offer.

Standards/criteria in negotiation

Make proposals look fair and objective.

Equivalent packages

Different proposals with same total value to you.

Reservation point

Bottom line; walk-away number.

Target point

Best realistic desired outcome.

Objective criteria examples

Market rates, benchmarks, precedents, expert data.

Power

Ability to influence others or control resources.

Prestige

Influence based on respect and admiration.

Dominance

Influence based on fear or pressure.

Status

Level of respect given by others.

Power vs. status

Power = control of outcomes; status = respect.

Coercive power

Ability to punish.

Reward power

Ability to give benefits or rewards.

Referent power

Influence from being liked or admired.

Legitimate power

Authority from formal position.

Expert power

Influence based on knowledge or skills.

Legitimate power example

A boss assigning tasks.

Referent power example

Charismatic coworker others admire.

High

status signals - Confidence, eye contact, speaking more.

Low

status signals - Hesitation, slouching, apologizing often.

Status is zero

sum - More status for one means less for others.

Effects of high power/status

More risk-taking, initiative, and confidence.

Reactive change

Change after problems appear.

Proactive change

Change initiated to prevent problems or seize opportunities.

Benefits of proactive change

Stay ahead, prevent crises, shape future.

Difficulties of proactive change

Harder to justify, more uncertainty, more resistance.

Success rate of major change efforts

Many fail or fall short of goals.

Leadership vs. power

Leadership guides toward goals; power is capacity to influence.

Assigned leadership

Leadership from formal title or role.

Emergent leadership

Leadership from others naturally following you.

Trait theory

Leaders have certain inborn traits.

Problem with trait theory

Ignores situation and learnable skills.

Process theory

Leadership is a relationship and can be developed.

Democratic leadership

Leader involves team input and participation.

Autocratic leadership

Leader makes decisions alone.

Laissez

faire leadership - Hands-off, little guidance.

Transformational leadership

Inspires with vision, motivation, and meaning.

Can followers take initiative?

Yes—effective followers act proactively.

Do followers think for themselves?

Yes—good followers use critical thinking.

Activity level

How engaged or passive a follower is.

Critical thinking (followership)

Independent, questioning, analytical thinking.

Effective followers

High activity and high critical thinking.

Alienated followers

High critical thinking, low activity.

Conformist followers

High activity, low critical thinking.

Passive followers

Low activity, low critical thinking.

Pragmatic followers

Moderate on both; adapt to situation.

Subordinate power source

Expert or informational power.

Bosses rely on subordinates for

Work quality, information, support.

Subordinates rely on bosses for

Resources, evaluations, opportunities.

Push tactic

Assertive demands or pressure.

Pull tactic

Listening, asking questions, appealing to shared goals.

Exchange tactic works when

Both sides value what the other offers.

Currency of reciprocity

Time, access, favors, information, support.

Building a partnership

Keep promises, understand goals, communicate openly.

Email better than face

to-face when - Routine info, documentation, non-urgent matters.

Face

to-face better than email when - Sensitive, emotional, or complex issues.

Meeting

setting etiquette - Clear purpose, time options, place/link, polite tone.

Effective email rule

Keep it short with a clear point.

Effect of expressing gratitude

Boosts motivation and strengthens relationships.

Does "thank you" increase helping?

Yes—people help more in future.