Negotiation is a dialogue between two or more parties to reach a mutually acceptable agreement. It happens in everyday life — salary discussions, project deadlines, purchasing decisions, even where to eat dinner.
Distributive vs Integrative Negotiation
Distributive (Win-Lose) — Fixed pie; one party's gain is another's loss. Common in price negotiations.
Integrative (Win-Win) — Expand the pie; both parties can gain by finding creative solutions that satisfy both interests.
Key Negotiation Concepts
BATNA — Best Alternative To a Negotiated Agreement. Your backup plan if negotiation fails. Knowing your BATNA gives you leverage.
Reservation Price — Your bottom line (walk-away point)
ZOPA — Zone Of Possible Agreement (overlap between both parties' acceptable ranges)
Anchoring — The first offer sets the reference point for negotiation
Negotiation Process
Prepare — Know your goals, BATNA, and the other party's likely interests
Discuss — Share perspectives, ask questions, build rapport
Consistency — People like to be consistent with past commitments
Liking — People are persuaded by those they like
Social Proof — People follow what others do
Ethics in Negotiation
Ethical negotiation builds long-term trust. Avoid lying, misrepresentation, or exploiting power imbalances. Transparent, principled negotiation (as taught by Harvard's "Getting to Yes") focuses on interests rather than positions and uses objective criteria.
Practice Task: Prepare for a hypothetical salary negotiation. Define your BATNA, reservation price, target, and anchoring offer. Identify at least 3 interests the employer might have (beyond salary). Practice the negotiation with a partner, focusing on integrative (win-win) solutions. Afterward, identify which of Cialdini's principles you used.