Alternative Methods of Making Decisions
It is appropriate when you cannot endure the offer but you can endure the consequences.
The Selling Approach: Sales people persuade people to make decisions in their favor by selling benefits. Inability to persuade, however, leads to conflict.
Requires trust between parties and recognition that the problem is mutual.
But candor could be used against you.
Decide by tossing a coin.
Mutual dependence of each decision maker on the other, and involves voluntary exchange of something you want for something they want.
When decision-makers cannot agree, third party involvement can be contemplated. The arbitrator should be acceptable to both parties and the decision must be accepted.
Involves the application of pressure by informing the other party of the consequences of saying ‘no’, either with a friendly face or by blatant intimidation. Leads to retaliation.
Buys time for emotions to settle, but may also be seen as a blocking move to refuse any agreement. Common practice of countless organizations.
This is the appropriate choice when the person instructed is obliged and certain to carry out the instruction.
Managers do not normally expect subordinates to question their instructions when their instructions are within the terms of their relationship.
This is what we do when we accept an instruction, because it is a fair instruction or to argue would be fruitless or need too much time. Giving in is not as weak an option as it sometimes seems. Every time you buy an item at the seller’s asking price (take it or leaving), you are giving in.
What is negotiation?
Negotiation as a decision-making technique is appropriate when:
People voluntarily want to exchange things that they have for things that they want, creating wealth in the process.
Each party needs the consent of the other party and thereby effectively has veto-power. Because parties cannot simply take what they want, each party must accommodate the other party as well.
Negotiation has developed as the process through which the activity of trading and exchanging tangible or intangible things between people is conducted.
A purple (assertive) negotiator understands the needs and wants of the other part whilst protecting their own needs and wants, In part 3 we will look at how to prepare for a negotiation to ensure that both parties are happy with what they negotiate.