Negotiations
By: Andrés Banús & Rita Benmakhlouf
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The founder was Albert Z Carr, wrote a book called
“Business as a Game”.
People who adhere to this school admit that
deception is essential to effective play in both
arenas.
Both player, exhibit a robust and realistic distrust
of the other fellow.
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Someone opens, and then people take turns
proposing terms to each other. You can play
or pass in each round.
The goal is to get the other side to agree to
terms that are close as possible to your last
proposal.
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The fact that bargaining is a game, the
idealists and the pragmatists do not agree
about this idea.
Every player is supposed to know the rules.
This is impossible since the rules change in
different industries and regions of the world.
The laws differ even within a single
jurisdiction, so often a lawyer is needed to
decide what to do.
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Bargaining is an aspect of social life, NOT a special
activity.
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Home Ethics apply to Work.
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Deception is NOT ruled out!
(though may be uncomfortable and frowned upon)
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Preference to Honesty.
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Filled with Romanticism.
(Draws it’s power from Philosophy & Religion)
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Negotiation is NOT a game!
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Tie Business with Social Life.
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In common with the Poker School, they view
deception as a necessary part of the
negotiation process.
They prefer not to use misleading statements
or lie if there is practical alternative.
People adhere to this school more for
prudential than idealistic reasons.
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Pragmatist sometimes draw fine distinction
between lies about hard core facts of a
transaction.
Pragmatists have different technique such as ,
to avoid answering questions, false
justification.
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Assume you are negotiating to sell a
commercial building and the other party asks
whether you have another offer.
(You DO NOT)
What would the three schools recommend?
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Bluff! (LIE)
Lie about alternatives.
Taking into consideration:
1. Could I easily be found out?
2. Can the bluf help me leverage?
Maybe lie about…
something else
Truth Power!
Use facts!
Not prone to mislead!
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Sophisticated!
Deceptive
Blocking Techniques
5 Techniques
1.
2.
3.
4.
5.
Out of Bounds!
Ans. Dif. Q.
Dodge Q.
Ans. Own Q.
Change subject
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BLOCK!
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Preserve leverage (without being deceptive)
Poker Players tend to like more leverage.
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Preserve relationships and reputation.
Pragmatics discourage this if if lie may come
back to haunt you.
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