BARGAINING I
The intent of the Session Long Project is for you to apply the theoretical and general aspects covered in each of the modules. You will do this by preparing a series of five mini workshops for educational leaders.
In the Module 1 SLP assignment, you identified the organization for whom you will be preparing the workshops, and described one or two examples of conflict issues in this organization. (Module 1 SLP is attached)
Prepare a 12-15 slide PowerPoint presentation or a 2-3 page paper, whichever is easier for you (double spaced) in which you:
1. Prepare your participants to begin a new negotiation.
2. Refer to the organization that you selected in Module 1, when you give the participants practical examples.
Practical examples may include clarification of the needs and expectations of the participants (give them examples with reference to the issue that they will negotiate); or you may discuss emotions and possible anxieties about the issue (give examples of why your participants may feel emotional about the issue at stake.)
Remember, before you begin your Module 2 SLP assignment, read the article Are you afraid of commitment? adapted from “Overcoming Stage Fright: How to Prepare for a Negotiation,” by Michael Wheeler (Professor, Harvard Business School):
Retrieved May, 2011 from http://www.pon.harvard.edu/daily/negotiation-skills-daily/are-you-afraid-of-commitment/?cid=5
SLP Assignment Expectations
Before submitting your work each module for my review, be sure to edit and refine your work in accordance with the following expectations:
1. Does your work address each of the above items in a thorough and detailed manner?
2. Do you cite supporting references for all key points made throughout your presentation?
3. Does your work demonstrate an in-depth understanding of applied concepts?
4. Does your presentation and writing demonstrate scholarly level skills, including:
o Introduction explicitly stating the topic and purpose of the presentation.
o Well-developed comments detailing the specified concepts and principles.
o Concluding remarks.
o Final reference list page, listing all references supporting citations throughout the presentation.

Background Reading:
Skyrm, B. (2007). Evolution and the social contract. The Tanner Lectures on human values. Retrieved January 2014 from http://tannerlectures.utah.edu/lecture-library.php
Wheeler, M. (2010). Are you afraid of commitment? Adapted from Overcoming Stage Fright: How to Prepare for a Negotiation. Boston, MA: Harvard Business School Publishing. Retrieved May, 2011 from http://www.pon.harvard.edu/daily/negotiation-skills-daily/are-you-afraid-of-commitment/?cid=5
Reference Text (Modules 1-5)
In this course you will be introduced to a number of negotiation principles and concepts. The following book, although slightly dated, represents a seminal work in the field of Negotiation, and serves as a useful reference guide and starting point if you need to clarify concepts (in each of the modules).
Saner, R. 2004. Expert Negotiator. Martinus Nijhoff Publishers, Leiden.
Module 2 Overview
Part I – Distributive Bargaining
When we wish to buy milk at the local supermarket, we have a fixed price depicted on the shelf, and then it is up to us to decide whether to purchase the item at this price.
But when we do not have an a priori price tag affixed to the item, we face a different situation.
Examples:
• We are about to be interviewed for a new job, the compensation to be determined.
• We have decided to buy or sell a certain item, the price to be determined.
• The Union representatives are to meet Management on a pay raise demand, the percent to be determined.
What do these examples all have in common? We have TWO sides, each with it’s own solution to the topic at hand, and an attempt to move towards ONE agreed solution.
Remaining with the buy / sell example, we will see that each side will have prepared in advance, two different offers or prices:
• Entering Price (EP) – The first and beginning price offered or requested.
• Leaving Price (LP) – The final price offered or requested. If this price is cannot or will not be met, we will “leave the table”.
It is obvious, that the seller would wish to maximize his income from the sale, and thus would begin the bargaining, by placing a high entering price tag to the item.
The potential buyer, on the other hand, would wish to minimize his expense, and so would offer a low entering price.
The continuum between the buyer’s and seller’s respective EPs, would become the full negotiating range. As it is not likely that the buyer would pay MORE than the seller is asking for, and the seller would not accept LESS than what the buyer is willing to pay.
Will the buyer and seller reach an agreed solution? This depends, not on their EPs, but on the relative position of their LPs.
We have three options:
1. LPs do not meet. There is an un-bridged gap between them.
2. LPs meet.
3. LPs overlap, creating a new range, wherein they can bargain, and distribute this range between them.
It all seems quite simple, but there is a “catch”:
What are the factors that influence our decision in deciding our EP?
• Should we be the first to disclose and present our EP to the other side (make the first offer)?
• How do we know where we are on the continuum, when we do not know the other side’s LP?
These are not simple questions, and the answers are not definitive. What may be appropriate for situation A, may not be appropriate for situation B. dealing with Mr. X is not as dealing with Mr. Y.
In general, it should be accepted that the opening offer, is rarely the closing offer. And that EP>LP for the seller, and EP
Further more, as the bargaining gets closer to the LPs, the movement slows down, and each side will become less flexible in his behavior.
We are not always, completely in the dark. In some cases, we have knowledge of the range, within which an agreed price could be found. For example: when we are negotiating the sales commission of a salesman, we know the total sales amount, and only need to decide on how to distribute this amount between the salesman and the company.
In the bargaining of many items: a 2002 model X car; a 3-bedroom house in city Y; or the hourly wages for a qualified technician in the Z industry, we have well advertised current market values. So, the negotiation range tends to focus around these figures.
Many times, when the two sides present their LPs, or they are disclosed, and to avoid unnecessary “horse trading and haggling”, you may see them agree to: “Splitting-the-Difference”. Thus, reducing tension, and lengthy debates.
As EPs and LPs are not always known, we are operating in a gray area, where uncertainty prevails. If we wish to sell, and set too high an EP, we may “frighten off” potential buyers, or if we wish to buy and present an offer way below the seller’s worst expectations, he will surly walk away. To make matters worse, we are never sure of the other side’s usage of: words, signals and behavior, as an indication that “what he says, is what he means” and vice-versa.
Part II – Preparations for Negotiation
It is never “too much” to emphasize the importance of preparation for any activity we undertake. But it is twice as important and necessary, when we approach the bargaining and negotiating table.
We have our needs and expectations on one hand, and we have to accept that the other party has their own. It is most likely, that these needs and expectations do not coincide. Therefore, we must approach the table, as best prepared as possible, to extract the maximum from the process.
Gathering and assessing all relevant information, before the actual face-to-face encounter, will save time and efforts. When faced with a process of significant uncertainty, a sound preparation, will allow us to better deal with the many surprising twists and turns we may meet.
Basic information (just the tip of the iceberg) to be gathered, for the previous examples:
• Job interview – what is common compensation in the organization, for similar jobs and similar employee qualifications.
• Sales – conduct a market survey (check internet comparative sites), to find the value of similar items. What factors increase or decrease the price.
• Union – what pay increases were achieved by other unions in the industry? What is the financial strength of the organization?
There is nothing more frustrating, than making a decision, and learning that, you could have bettered the outcome, if you had just made the effort of preliminary preparation and information gathering.
As in many other practical fields, you may find many orderly and structured models, to assist anyone wishing to prepare for a negotiation session. The more the topic of discussion, becomes complex and wider of scope, the more these structured models become an indispensable tool.
Interests and Positions
We aim to achieve our goals and satisfy our needs. Therefore, when preparing for negotiation, we need to set clear and define these goals and objectives.
These interests are not negotiable, but “hover” over the whole negotiation process.
All exchange of: communications, options and solutions, are evaluated solely on their contribution or detriment to my interests.
Based on these interests, I will need to decide what positions I should adopt, as to best serve my interests. It is on and over these positions that I will negotiate.
Interests are constant. Positions are flexible.
Example: Due to the growth of my business, I have decided to purchase a new delivery truck. My budget constraint is X thousand dollars.
My interests are:
• Buy truck.
• Do not exceed budget.
My positions will be:
• Price (anything below X thousand dollars);
• Make and model;
• Payment options;
• Warranty options. etc.
The basis of bargaining is that both sides are dependent on the other. Both sides wish to exchange “something of value” between them, and need to reach an agreement as to the “value of the something”.
When we prepare for bargaining, we need to create for ourselves a list of all the assets we bring to the exchange table. These assets will become our “trading cards”.
We never give away any asset we hold, without getting something back in return. It is always traded for something else of worth.
Example: when the union leaders approach management, they have listed their “trading cards”: production quotas; working hours; higher level of production quality.
Management can trade: amount of pay raise; schedule of payments; other incentives.
Therefore once we have recorded our list of “trading cards”, we will need to affix a value tag to each one. Once this is done, we will need to define our position, for every “trading card”.
Note: The higher value we attach to each “card”, the less flexibility we will have when negotiating our set position.
We should always remember: what is of importance to us may be of less importance to the other side. And what may be deemed of little worth to us, may be highly regarded by them. This difference in the valuation of the “trading cards” by each side, facilitates cross trading.
The more “trading cards” are brought to the negotiation table, the more options for inter trade can develop.
We have gathered the basic information, defined our interests and positions, and have prepared a list of our prioritized “trading cards”. But once we approach the table, and hear what the other side has to say, what worth and what weight they attach to each topic of discussion, we will need to update and adjust our own initial evaluation.

BARGAINING I
The intent of the Session Long Project is for you to apply the theoretical and general aspects covered in each of the modules. You will do this by preparing a series of five mini workshops for educational leaders.
In the Module 1 SLP assignment, you identified the organization for whom you will be preparing the workshops, and described one or two examples of conflict issues in this organization. (Module 1 SLP is attached)
Prepare a 12-15 slide PowerPoint presentation or a 2-3 page paper, whichever is easier for you (double spaced) in which you:
1. Prepare your participants to begin a new negotiation.
2. Refer to the organization that you selected in Module 1, when you give the participants practical examples.
Practical examples may include clarification of the needs and expectations of the participants (give them examples with reference to the issue that they will negotiate); or you may discuss emotions and possible anxieties about the issue (give examples of why your participants may feel emotional about the issue at stake.)
Remember, before you begin your Module 2 SLP assignment, read the article Are you afraid of commitment? adapted from “Overcoming Stage Fright: How to Prepare for a Negotiation,” by Michael Wheeler (Professor, Harvard Business School):
Retrieved May, 2011 from http://www.pon.harvard.edu/daily/negotiation-skills-daily/are-you-afraid-of-commitment/?cid=5
SLP Assignment Expectations
Before submitting your work each module for my review, be sure to edit and refine your work in accordance with the following expectations:
1. Does your work address each of the above items in a thorough and detailed manner?
2. Do you cite supporting references for all key points made throughout your presentation?
3. Does your work demonstrate an in-depth understanding of applied concepts?
4. Does your presentation and writing demonstrate scholarly level skills, including:
o Introduction explicitly stating the topic and purpose of the presentation.
o Well-developed comments detailing the specified concepts and principles.
o Concluding remarks.
o Final reference list page, listing all references supporting citations throughout the presentation.

Background Reading:
Skyrm, B. (2007). Evolution and the social contract. The Tanner Lectures on human values. Retrieved January 2014 from http://tannerlectures.utah.edu/lecture-library.php
Wheeler, M. (2010). Are you afraid of commitment? Adapted from Overcoming Stage Fright: How to Prepare for a Negotiation. Boston, MA: Harvard Business School Publishing. Retrieved May, 2011 from http://www.pon.harvard.edu/daily/negotiation-skills-daily/are-you-afraid-of-commitment/?cid=5
Reference Text (Modules 1-5)
In this course you will be introduced to a number of negotiation principles and concepts. The following book, although slightly dated, represents a seminal work in the field of Negotiation, and serves as a useful reference guide and starting point if you need to clarify concepts (in each of the modules).
Saner, R. 2004. Expert Negotiator. Martinus Nijhoff Publishers, Leiden.
Module 2 Overview
Part I – Distributive Bargaining
When we wish to buy milk at the local supermarket, we have a fixed price depicted on the shelf, and then it is up to us to decide whether to purchase the item at this price.
But when we do not have an a priori price tag affixed to the item, we face a different situation.
Examples:
• We are about to be interviewed for a new job, the compensation to be determined.
• We have decided to buy or sell a certain item, the price to be determined.
• The Union representatives are to meet Management on a pay raise demand, the percent to be determined.
What do these examples all have in common? We have TWO sides, each with it’s own solution to the topic at hand, and an attempt to move towards ONE agreed solution.
Remaining with the buy / sell example, we will see that each side will have prepared in advance, two different offers or prices:
• Entering Price (EP) – The first and beginning price offered or requested.
• Leaving Price (LP) – The final price offered or requested. If this price is cannot or will not be met, we will “leave the table”.
It is obvious, that the seller would wish to maximize his income from the sale, and thus would begin the bargaining, by placing a high entering price tag to the item.
The potential buyer, on the other hand, would wish to minimize his expense, and so would offer a low entering price.
The continuum between the buyer’s and seller’s respective EPs, would become the full negotiating range. As it is not likely that the buyer would pay MORE than the seller is asking for, and the seller would not accept LESS than what the buyer is willing to pay.
Will the buyer and seller reach an agreed solution? This depends, not on their EPs, but on the relative position of their LPs.
We have three options:
1. LPs do not meet. There is an un-bridged gap between them.
2. LPs meet.
3. LPs overlap, creating a new range, wherein they can bargain, and distribute this range between them.
It all seems quite simple, but there is a “catch”:
What are the factors that influence our decision in deciding our EP?
• Should we be the first to disclose and present our EP to the other side (make the first offer)?
• How do we know where we are on the continuum, when we do not know the other side’s LP?
These are not simple questions, and the answers are not definitive. What may be appropriate for situation A, may not be appropriate for situation B. dealing with Mr. X is not as dealing with Mr. Y.
In general, it should be accepted that the opening offer, is rarely the closing offer. And that EP>LP for the seller, and EP
Further more, as the bargaining gets closer to the LPs, the movement slows down, and each side will become less flexible in his behavior.
We are not always, completely in the dark. In some cases, we have knowledge of the range, within which an agreed price could be found. For example: when we are negotiating the sales commission of a salesman, we know the total sales amount, and only need to decide on how to distribute this amount between the salesman and the company.
In the bargaining of many items: a 2002 model X car; a 3-bedroom house in city Y; or the hourly wages for a qualified technician in the Z industry, we have well advertised current market values. So, the negotiation range tends to focus around these figures.
Many times, when the two sides present their LPs, or they are disclosed, and to avoid unnecessary “horse trading and haggling”, you may see them agree to: “Splitting-the-Difference”. Thus, reducing tension, and lengthy debates.
As EPs and LPs are not always known, we are operating in a gray area, where uncertainty prevails. If we wish to sell, and set too high an EP, we may “frighten off” potential buyers, or if we wish to buy and present an offer way below the seller’s worst expectations, he will surly walk away. To make matters worse, we are never sure of the other side’s usage of: words, signals and behavior, as an indication that “what he says, is what he means” and vice-versa.
Part II – Preparations for Negotiation
It is never “too much” to emphasize the importance of preparation for any activity we undertake. But it is twice as important and necessary, when we approach the bargaining and negotiating table.
We have our needs and expectations on one hand, and we have to accept that the other party has their own. It is most likely, that these needs and expectations do not coincide. Therefore, we must approach the table, as best prepared as possible, to extract the maximum from the process.
Gathering and assessing all relevant information, before the actual face-to-face encounter, will save time and efforts. When faced with a process of significant uncertainty, a sound preparation, will allow us to better deal with the many surprising twists and turns we may meet.
Basic information (just the tip of the iceberg) to be gathered, for the previous examples:
• Job interview – what is common compensation in the organization, for similar jobs and similar employee qualifications.
• Sales – conduct a market survey (check internet comparative sites), to find the value of similar items. What factors increase or decrease the price.
• Union – what pay increases were achieved by other unions in the industry? What is the financial strength of the organization?
There is nothing more frustrating, than making a decision, and learning that, you could have bettered the outcome, if you had just made the effort of preliminary preparation and information gathering.
As in many other practical fields, you may find many orderly and structured models, to assist anyone wishing to prepare for a negotiation session. The more the topic of discussion, becomes complex and wider of scope, the more these structured models become an indispensable tool.
Interests and Positions
We aim to achieve our goals and satisfy our needs. Therefore, when preparing for negotiation, we need to set clear and define these goals and objectives.
These interests are not negotiable, but “hover” over the whole negotiation process.
All exchange of: communications, options and solutions, are evaluated solely on their contribution or detriment to my interests.
Based on these interests, I will need to decide what positions I should adopt, as to best serve my interests. It is on and over these positions that I will negotiate.
Interests are constant. Positions are flexible.
Example: Due to the growth of my business, I have decided to purchase a new delivery truck. My budget constraint is X thousand dollars.
My interests are:
• Buy truck.
• Do not exceed budget.
My positions will be:
• Price (anything below X thousand dollars);
• Make and model;
• Payment options;
• Warranty options. etc.
The basis of bargaining is that both sides are dependent on the other. Both sides wish to exchange “something of value” between them, and need to reach an agreement as to the “value of the something”.
When we prepare for bargaining, we need to create for ourselves a list of all the assets we bring to the exchange table. These assets will become our “trading cards”.
We never give away any asset we hold, without getting something back in return. It is always traded for something else of worth.
Example: when the union leaders approach management, they have listed their “trading cards”: production quotas; working hours; higher level of production quality.
Management can trade: amount of pay raise; schedule of payments; other incentives.
Therefore once we have recorded our list of “trading cards”, we will need to affix a value tag to each one. Once this is done, we will need to define our position, for every “trading card”.
Note: The higher value we attach to each “card”, the less flexibility we will have when negotiating our set position.
We should always remember: what is of importance to us may be of less importance to the other side. And what may be deemed of little worth to us, may be highly regarded by them. This difference in the valuation of the “trading cards” by each side, facilitates cross trading.
The more “trading cards” are brought to the negotiation table, the more options for inter trade can develop.
We have gathered the basic information, defined our interests and positions, and have prepared a list of our prioritized “trading cards”. But once we approach the table, and hear what the other side has to say, what worth and what weight they attach to each topic of discussion, we will need to update and adjust our own initial evaluation.