Negotiation

Negotiation Management 448 Module II, 2006, M/W 11:20-12:50 and 2:00-3:30, Room 218 Professor Tim Vogus Management Hall 319 343-8094 (Fax: 343-7177) Timothy.Vogus@Owen.Vanderbilt.Edu OBJECTIVES Negotiation is a skill needed in the business world, no matter what your functional area or industry. Negotiations occur when companies are merged or separated, sales are made, employment contracts are signed, or project-team decisions are made. Negotiations are pervasive – they occur during formal ―negotiations‖ but also every day when issues are resolved and relationships are formed. This course is designed to provide all Owen students with the skills needed to approach negotiations with confidence. This includes a framework for analysis, knowledge about one’s own tendencies in negotiation, and a chance to experiment with negotiating techniques in various contexts. THE ROLE OF SIMULATIONS This course is heavily experiential. Many times during the course you will play a role in a simulated negotiation. Role plays allow you to experience some of the pressures and dynamics of negotiation, they allow you to test for yourself several bargaining styles, and they provide data for class discussions about how differently the same negotiation can develop. Given the central role of simulations in this course, it is critical that they be taken seriously. To encourage this, the results from your the negotiations will contribute to your grade; the better you do for yourself, the better your grade. At the same time, you will be evaluated by your peers as to your reputation in negotiations. In more operational terms, it is essential that you actually do the negotiations. The logistics for this course are already difficult. If you fail to complete a negotiation or are not present in class for the debrief, it complicates matters for me and takes away from a classmate his or her chance to learn from the course. For that reason, you can miss -- at most -- only one exercise or debrief, and then only for a serious personal matter or an on-site visit to a company for a job. To do so, you must notify me at least 2 days in advance. More absences than this will result in a penalty of a half-grade for each miss. IF YOU DO NOT FEEL YOU CAN MEET THIS REQUIREMENT, PLEASE CHOOSE ANOTHER COURSE. 1 RULES GOVERNING SIMULATIONS It is also important that you follow strictly the following rules: • Prepare your role before the time when the negotiation is scheduled. • Read only the material assigned for your role. Do not read information that your negotiation partner has, and do not read information that may exist from prior offerings of this course (e.g., course materials, conversations with peers who have previously taken the course, etc.) as well as any on-line materials. • Do not discuss results outside of class. Others in your section may still be negotiating. If they learn about your outcome, it will bias their results. Be careful – it is easy for people to overhear conversations in the hallways. • Be on time for class. Since many simulations will be run and debriefed on the same day, it is important not to waste time. • Note when results are due! Many of the negotiations occur outside of class. For those negotiations, I need the results BEFORE class. The exact times vary (see below for exact times). You may either e-mail me the results or drop them in my mailbox. • Make sure that all questions are answered on the forms (or in e-mail) and that the results written by both parties match. • In order to ensure that information does not flow to students who take the course after you: 1) take care not to lose role instructions, and 2) do not discuss the specifics of simulations with students who are not taking the class with you. SIMULATION PROCEDURES You will be assigned a role and partner(s) for each negotiation simulation. These role assignments are random. You will receive information about your negotiating role, along with the relevant confidential and general information, in time to prepare for your negotiation. When you get your role assignment, please make sure you have received the correct role information. Roles will be distributed either in class or to your mail boxes between classes. 2 COURSE GRADING AND REQUIREMENTS Simulations and in-class activities (40%) Negotiation Outcomes (15%) Negotiation Results: Your results will be compared to those of other students in the class to assess your bargaining performance. In some cases (where outcomes are qualitative) I will have to make assessments about the relative ―utility‖ achieved by each negotiator; in other cases the simulations produce quantitative outcomes or scores. In either case, the comparison will be made with other students in your role, not your negotiating opponent. Negotiation Analysis/Feedback Statements: At the end of three negotiation simulations you will write a brief (keep it to <500 words) analysis of what took place. These statements should include: (1) a synopsis of the key factors that you think explain what happened in this simulation and why, and (2) an assessment of the style, tactics, and performance of your negotiation opponent(s). You provide a copy to your negotiation opponent(s) and a copy to me. These are turned in by email. A handout on Blackboard explains the format in detail. Please follow instructions! Reputation Index (10%) By the end of the course you will have encountered a number of people across the bargaining table, and heard about many other negotiations. Based on these experiences, you will be asked to evaluate the reputation of your classmates as negotiators and givers of feedback. This measure is a proxy for the long-term effects that reputation has on negotiations, and recognizes those individuals who contribute to the value of this course through their peer feedback. Class Participation (15%) The purpose of this element of grading is to encourage full and thoughtful participation in the course. I expect students to be prepared for case discussions and contribute to negotiation debriefs with their experiences at the bargaining table as well as any relevant experiences from your professional lives. In addition to using my own judgment about class participation, I will ask students in the class to evaluate each other’s class participation at the end of the course. 3 Written Deliverables (60%) Individual Paper, Real World Negotiation (15%) Before the fifth week of class, you are to go into the ―real world‖ and negotiate for something. It may be instructive to negotiation for which you would not normally negotiate. Write up your experience, focusing on how you prepared for the negotiation (including a ―basic analysis‖), what happened, and why it turned out that way. Critique your performance – what could you have done differently to produce a better outcome? Page limit: 3 pages, double-spaced. See Blackboard for details and examples. Due: Wednesday, November 15th. Case Comparison Paper (15%) Work in pairs (groups of two) to write a paper comparing three cases. Page limit: 4 pages, double-spaced. See Blackboard for details. Due: Wednesday, November 29th. Final Paper (30%) You have two choices for your final paper 1) You can work in groups of 2-3 students (you form your own groups) to produce a written (no more than 10 double-spaced pages) analysis of an actual negotiation. Prior to writing a final group paper, you must submit the names of your group members and a 1-2 page project proposal on November 8th. 2) You can write a self-assessment of yourself as a negotiator. This is an individual paper which should be 4-5 pages doubled-spaced See Blackboard for additional details and possible topics. Due: Monday December 11th at 5 P.M. CRITERIA FOR EVALUATING WRITTEN WORK Papers due in this class should contain arguments that are precise, organized, logical, and appropriately supported. High grades are reserved for well-written papers that demonstrate a clear, in-depth, and sophisticated understanding of key processes and concepts. Here is a loose guide to what grades mean (pluses and minuses are used to shade evaluations upward or downward). A = Superior analysis, organization, conceptual fluency, and expression B = Good conceptual understanding and application C = Limited fluency with concepts and/or application, or weak expression D = Inadequate, but capable of improvement, given effort; sloppy presentation F = Weak, incomplete, or perfunctory 4 COURSE MATERIALS • A ClassPak that includes readings, cases, and some simulation materials. • Getting to Yes (2nd Edition), by Fisher, Ury and Patton • Links to readings on Blackboard . “LAB FEE” There is an additional $25.55 fee for this course to cover the cost of the ClassPak and experiential negotiation materials purchased from the Harvard Program on Negotiation and other sources. You must provide Janet Sisco (in 300A) with a check for $25.55, payable to Vanderbilt University. You will receive the ClassPak immediately. The additional materials you are paying for will be handed out at the point in the course when they are used. THE HONOR CODE Students are bound by the Honor Code and following specific guidelines for all work completed in this course. I draw your attention to some specific guidelines related to Mgt. 448: • Individual work is to be completed without the assistance of others. While group interaction is encouraged when studying, any work submitted under your name alone must be your own work. • Assignments identified as group work are to be completed by only members of the group. I also expect all members of the group will have meaningfully contributed. • Any use of analyses or any other material in any format from other sections of this course or a similar course taught at any time in the past, at Vanderbilt, other universities, or the Internet, is a violation of the Honor Code. Specifically, the value of experiential activities in Mgt. 448 is diminished by prior knowledge or divulged information. Accordingly, the following are breaches of the honor code: - Obtaining confidential role information for a role other than that to which you are assigned in a negotiation simulation. - Providing confidential role information to a classmate not assigned to that role. - Discussing the content of in-class discussions or sharing information about experiential exercises in Mgt. 448 with students in other course sections before the material has been covered in all sections or with other 5 OGSM students who may take the course in the future is a violation of the Honor Code. - Obtaining information about exercises used in Mgt. 448 from OGSM students, former students, or others who have taken part in these exercises in the past. • Plagiarism, which includes the unauthorized use of previous years’ materials (e.g., examinations, case analyses, homework assignments, etc.), is a violation of the Honor Code. • Written deliverables must use appropriate citations to signify when arguments or analyses rely on the ideas or insights of others, including any of the readings in the class pack. Please ask me (and not other students) if you have any questions regarding how the Honor Code applies to this course. CLASS SCHEDULE AND ASSIGNMENTS Almost every day there is a negotiation simulation or case to ―prepare.‖ This item will be the focus of class time. It is important that you read this material carefully. For most negotiation simulations, it will not take much time to read background information and role instructions. Do not forget, however, to spend some additional time planning your approach to the negotiation. Cases will typically require more time to prepare. Readings available on Blackboard are marked with a (B). On Blackboard, look under ―Course Documents.‖ Readings for each day are in a folder for that day. Week 1 Oct. 16 Competition and Cooperation (class 1) In class: Read: Receive: Conduct exercise ―A Hagler’s Christmas‖ (B) ―The Price Is Right‖ (B) Roles Instructions for Mapletech/Yazawa Individual Surveys Oct. 18 Distributive Bargaining I (class 2) Prepare: In class: Read: Your strategy for Mapletech/Yazawa negotiation Negotiate and debrief Mapletech/Yazawa ―Negotiation Techniques‖ (Craver)(B) ―Secrets of Power Negotiation‖ (Dawson)(B) ―Ten Guides for Effective Negotiating‖ (Byrnes)(B) These short articles are included to give you a sense of the range of tactics people may use. 6 Due: After class: Week 2 Oct. 23 Individual Surveys (to be debriefed in a later class) Send feedback memo #1 by Thursday night at 10pm. See instructions posted on Blackboard. Distributive Bargaining II (class 3) Prepare: In Class: Read: ―Up for Auction: Malta Bargains with Great Britain‖ (long case) Discuss Mapletech/Yazawa and Malta ―Bargaining Power‖ and ―The Threat‖ (Schelling)(B) ―3-D Negotiation: Playing the Whole Game‖ (Lax and Sebenius) (B) Getting to Yes, chapter 6. Role Instructions for Sally Soprano Receive: Case Questions for Malta 1) How would you characterize the main elements of Mintoff’s style? 2) How would Schelling evaluate Mintoff’s approach? How would Sebenius evaluate Mintoff? Fisher, Ury, and Patton? 3) How did Mintoff’s actions affect the no-agreement alternatives for Malta and the UK? 4) Are you comfortable with the tactics used by Mintoff? Why? Why not? Oct. 25 Integrative Bargaining I (class 4) Negotiate: Sally Soprano (BEFORE CLASS), results due by Tuesday night at 10 P.M. Send me an e-mail providing me the details of the final deal (whatever you want to include in that deal) and include each party’s name and role. Debrief Sally Soprano. Getting to Yes chapters 1-5 ―Executive Pay Takes the Stage‖ (B) Send feedback memo #2 by Thursday night at 10pm. See instructions posted on Blackboard. In Class: Read: After Class: Week 3 Oct. 30 Bargainer Psychology (class 5) Negotiate: Leckenby (BEFORE CLASS). There is no private role information for this negotiation — you simply take the role of one side or the other based on your role assignment. The case is in the ClassPak. Results are due by 8 P.M. on Sunday. Make sure to send me all the information from your results sheet by e-mail including all moves you and your partner made. ―Negotiating with Problem People‖ (Leretz)(B) Read: 7 Receive: Nov. 1 ―Negotiating without a Net‖ (Misino) (B) ―Hidden Traps in Decision Making‖ (Hammond et al) (B) Roles instructions for Mexico Venture Negotiating Across Cultures (class 6) Negotiate: Mexico Venture (BEFORE CLASS). Results are due at 10 P.M. on Tuesday. Make sure to send me all the information from your results sheet by e-mail. Look through the following website and take one or more of the implicit attitude demos (ten minutes). Results remain confidential. https://implicit.harvard.edu/implicit/demo. This link is also on Blackboard. ―The Chinese Negotiation‖ (Graham and Lam) (B) ―Racism Studies Find Rational Part of Brain Can Override Prejudice‖ (B) Roles instructions for WineMaster.com Prepare: Read: Receive: Week 4 Nov. 6 Integrative Bargaining II (class 7) Negotiate: In Class: Read: Receive: After class: WineMaster.com (BEFORE CLASS). Results due by 8:00 P.M. Sunday night, by e-mail. Debrief WineMaster.com. ―The Negotiation Checklist‖ (Simons and Tripp) (B) ―Will Buying Wine Get Easier?‖ (B) Role Instruction for Discount Send feedback memo #3 by Tuesday night at 10pm. See instructions on Blackboard for details. Nov. 8 Representatives (class 8) Prepare: See segment of the film Final Offer (50 minutes). To understand the context, read the background note posted on Blackboard. Warning: there is some foul language in this film! Showings on Monday in Room 222, Tuesday in Room 218: - Monday Nov. 6: 7:30 & 8:30 P.M. - Tuesday Nov. 7: 1:00 P.M. ―When Should We Use Agents?‖ (B) Several updates on GM and the UAW (B) ―Playing as Rough as Linebackers‖ (B) Group project proposals. Read: Due: 8 Week 5 Nov. 13 Group Negotiations (class 9) Prepare Negotiate Discount Marketplace (BEFORE CLASS). Results due by 8:00 P.M. Sunday night, by e-mail. In class we will discuss the case and video clips. ―Betting on the Future: The Virtues of Contingent Contracts‖(Bazerman)(B) Read: Nov. 15 Negotiating Across Cultures II (class 10) Prepare: Read: Receive: Due: Negotiate Cobalt Systems (BEFORE CLASS). Results due by 10:00 P.M. Tuesday night, by e-mail. ―The Hidden Challenges of Cross-Border Negotiations‖(Sebenius)(B) Harborco role information “Real World Negotiation” paper Week 6 Nov. 27 Multi-Party Negotiation I (class 11) Prepare: Read: In Class: Receive: Your strategy for the Harborco negotiation ―Getting Things Done through Coalitions‖ (B) Negotiate Harborco Role instructions for Exit Interview Nov. 29 Multi-Party Negotiation II (class 12) Debrief Harborco Exit Interview. I will select two people to conduct this negotiation in front of the class. ―When is it Legal to Lie in Negotiations?‖ (Shell)(B) Receive: Job Offer role information Due: Case comparison paper (see instructions on Blackboard) In Class: Prepare: Week 7 Dec. 4 Salary Negotiations (class 13) Prepare: In Class: Read: Roles for Job Offer Negotiate and Debrief Job Offer ―They Want to Hire You. Now, the Bargaining Starts‖ (B) "$$Get Paid More!" (B) "Counteroffer or Counterproductive?" (B) ―Five Questions‖(B) Several other articles on job negotiations (B) 9 Dec. 6 Negotiating in Organizations (class 14) Read: Getting to Yes, chapters 7 and 8 ―Turning Neg. into a Corporate Capability‖ (Ertel)(B) ―Six Habits of Merely Effective Negotiators‖(Sebenius)(B) Watch/debrief Negotiating Corporate Change video In Class: Week 8 Final Papers due by e-mail at 5 P.M. on Monday December 11th 10