Negotiating power generally comes from one of three sources, according to Adam D. Galinsky and New York University’s Joe C. Magee. Here are three sources of negotiation power that negotiators can use in negotiations.
A type of negotiation in which the parties compete over the distribution of a fixed pool of value. Here, any gain by one party represents a loss to the other. Also known as a zero-sum negotiation or win-lose negotiation. (Richard Luecke, Harvard Business Essentials: Negotiation [Harvard Business Press, 2003], 2-3). See Also: Crisis Negotiations and Negotiation Skills Insights from the NYPD, How to Negotiate When You’re Literally Falling Apart, Expanding the Pie: Integrative Bargaining versus Distributive Bargaining.
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The following items are tagged distributive negotiation.
Imagine that you’re the CEO of a sports clothing manufacturer based in Chicago. You recently traveled to Amsterdam, the Netherlands, to meet with a distributor who has a rich and diverse network in the European sports market.
During the business trip, you both express enthusiasm about the possibility of a joint venture and agree to give the potential alliance more thought.
Back home, you learn that one of your competitors has discussed similar plans with the same distributor.
Few negotiators can imagine negotiation scenarios more stressful than the kinds of crisis negotiations the New York City Police Department’s Hostage Negotiation Team undertake.
The Program on Negotiation received an article from Jeff Thompson and Hugh McGowan, Ph.D., outlining the techniques and strategies that the New York City Police Department Hostage Negotiations Team employ while dealing with high-stakes, high-pressure crisis negotiation situations.
Jeff Thompson, a NYPD Detective, is a research scholar at Columbia University School of Law and a Ph.D. candidate at the Griffith University Law School in Queensland, Australia. Hugh McGowan is a former commanding officer of the NYPD’s Hostage Negotiation Team, having led the HNT for 13 years. The NYPD Hostage Negotiations team handles more crisis negotiations in one month than most departments do in a year and, in 2012 alone, the department handled 400 such negotiations, one of which was well over 50 hours long and included a team of 17 crisis negotiators.
Don’t settle for uninspired compromises.
Find ways to modify and expand resources to achieve more value.
Typically, when parties are negotiating over a resource they both desire – whether fees, budgets, salaries, schedules, or staff – the process results in an uninspired compromise somewhere between their positions. Is it possible to avoid a compromise when negotiating tough distributive issues.
When considering a potential mediator, ask the following questions of those who have worked with him in the past.
In negotiation, different types of reputations serve different purposes. When you’re haggling over just one issue, such as the price of a used car or a computer installation, one party’s win is typically the other’s party’s loss. In such distributive negotiations, where each party is trying to claim the biggest piece of a fixed pie, having a reputation as a tough bargainer can be an effective means of undermining a competitor’s confidence and power.
Negotiations for a new collective bargaining agreement (CBA) between the National Hockey League Player’s Association (NHLPA) and the NHL’s team owners took a tumultuous turn in mid-August, a month before the current agreement’s looming expiration date of September 15.