- •Preface
- •Contents
- •Abbreviations
- •List of Figures
- •1.1 Introductory Remarks
- •1.2 Instructions for the Use and Structure of the Book
- •1.2.2 Possible Ways to Approach This Book
- •2.2 The Start of Negotiations
- •2.3 The Core Phase of the Negotiations
- •2.4 The Agreement
- •2.5 The Implementation of the Agreement
- •2.6 The Ex-Post-Phase
- •4.1 How Germans Negotiate
- •4.1.1 Preliminary Notes
- •4.1.2 Negotiation Training
- •4.1.3 Mentalities
- •4.1.4 Orientation on Legal Rules: Safe Harbour Principle
- •4.1.5 Basic Characteristics and Approaches
- •4.1.6 Negotiation Preparation
- •4.1.7 Mock Negotiations
- •4.1.9 Small Talk
- •4.2 How Chinese Negotiate
- •4.2.1 Preliminary Notes
- •4.2.2 Negotiation Training
- •4.2.3 Mentality
- •4.2.4 Orientation Towards Legal Requirements
- •4.2.5 Trust Building and Contract Negotiations
- •4.2.6 Basic Characteristics and Approaches
- •4.2.7 Negotiation Preparation
- •4.2.9 Acquaintance Phase/Small Talk
- •4.2.10 Tactics in Contract Negotiations
- •4.3 How US-Americans Negotiate
- •4.3.1 Preliminary Note
- •4.3.2 Negotiation Training
- •4.3.3 Mentalities
- •4.3.4 Orientation Towards Legal Requirements
- •4.3.5 Basic Characteristics and Approaches
- •4.3.6 Negotiation Preparation
- •4.3.8 Small Talk
- •Topic Lists
- •Auxiliary Means
- •Actual Auxiliary Means
- •Legal Means
- •Behavioural Economics and Psychological Effects
- •Effects
- •Tactics, Techniques and Their Underlying Effects
- •Communication Techniques
- •Answering Techniques
- •Argumentation Techniques
- •Further Communication Techniques
- •Listening
- •Questioning Techniques
- •Competitive Negotiating
- •Deceptions
- •Cooperative Negotiating
- •Cooperative Negotiating
- •Mutual Trust
- •Economic Concepts and Terms
- •Emotions
- •Gaining Information
- •Improving Negotiation Skills
- •Negotiation Types
- •Negotiators (People/Parties)
- •Qualities
- •Role
- •Negotiation Strategies
- •Time
- •Bibliography
- •Further Literary Resources
- •Online Sources
- •Index
Abbreviations
5 Ps \ |
Prior preparation prevents poor performance |
ACBD\ |
Always consult before deciding |
AcP\ |
Archiv für die civilistische Praxis (German legal journal) |
Art.\ |
Article |
B2B\ |
Business to business |
B2C\ |
Business to consumer |
BAFO\ |
Best and final offer |
BATNA\ |
Best alternative to a negotiated agreement |
CBCA\ |
Criteria-based content analysis |
CIETAC\ |
China International Economic and Trade Arbitration Commission |
CMS\ |
Compliance management systems |
cf.\ |
Confer |
Chap. \ |
Chapter |
DAD approach\ |
Decide, announce, defend approach |
DDD approach\ |
Dialogue, decide, deliver approach |
DITF\ |
Door-in-the-face |
DoD\ |
Detection of deception |
EANT\ |
Ethically ambiguous negotiation tactics |
Ed.\ |
Edition/editor |
Eds.\ |
Editors |
e.g.\ |
Exempli gratia |
EI\ |
Emotional intelligence |
esp.\ |
Especially |
et seq.\ |
Et sequentes |
EU\ |
European Union |
FC approach\ |
Full consensus approach |
Fig.\ |
Figure |
FITD\ |
Foot-in-the-door-technique |
FOA\ |
Final offer arbitration |
FOG\ |
Facts, opinions, guesses |
FTF \ |
Face-to-face |
ix
x |
Abbreviations |
GTFT\ |
Generous tit for tat |
IACM\ |
International Association for Conflict Management |
i.e.\ |
Id est |
IO\ |
Interpersonal orientation |
LOI\ |
Letter of intent |
M&A\ |
Mergers and acquisitions |
MBTI\ |
Myers-Briggs-type indicator |
MESO\ |
Multiple equivalent simultaneous offers |
MGA\ |
Mutual gains approach |
MoU\ |
Memorandum of understanding |
NDA\ |
Non-disclosure agreement |
NOPA \ |
No possible agreement |
No.\ |
Number |
p. \ |
Page |
PON\ |
Program on Negotiation |
pp. \ |
Pages |
PRC\ |
People’s Republic of China |
RFP\ |
Request for proposal |
Sect.\ |
Section |
SMART\ |
Specific, measurable, assignable, realistic, time-related |
SMARTER\ |
Specific, measurable, assignable, realistic, time-related, evalu- |
|
ated, reviewed |
SME\ |
Small and medium enterprises |
SOPHOP\ |
Soft on people, hard on points |
SVA\ |
Statement validity assessment |
SWOT\ |
Strength, weakness, opportunities and threats |
TFEU\ |
Treaty on the functioning of the European Union |
TFT\ |
Tit for tat |
TINA\ |
There is no alternative |
TV\ |
Television |
UCC\ |
Uniform Commercial Code |
UCLA\ |
University of California, Los Angeles |
UK\ |
United Kingdom |
U.S.\ |
United States |
USA\ |
United States of America |
Vol.\ |
Volume |
WATNA\ |
Worst alternative to a negotiated agreement |
WWW\ |
What worked well |
WWYDD\ |
What would you do differently |
ZOPA\ |
Zone of possible agreement |
List of Figures
Fig. 3.1\ |
Anchoring effect \ |
32 |
Fig. 3.2\ |
The relation between first offer, aspiration level, BATNA |
|
|
and resistance point\ |
35 |
Fig. 3.3\ |
BATNA and other alternatives\ |
42 |
Fig. 3.4\ |
Illustration of the relation between BATNA and ZOPA \ |
43 |
Fig. 3.5\ |
Diminishing rates of concessions and midpoint-rule\ |
82 |
Fig. 3.6\ |
Interests of the negotiation parties\ |
106 |
Fig. 3.7\ |
Midpoint-rule\ |
119 |
Fig. 3.8\ |
Illustration of the fixed, shrinking and expanding pie\ |
126 |
Fig. 3.9\ |
Negotiation value calculation \ |
127 |
Fig. 3.10\ |
The Pareto optimum\ |
133 |
Fig. 3.11\ |
The principal-agent-situation and the resulting problems thereof\ |
141 |
Fig. 3.12\ |
Illustration of the relation between BATNA and ZOPA \ |
171 |
xi
Chapter 1
Introduction and Instructions for Use
1.1 Introductory Remarks
Contract negotiations are of great practical importance. Findings on the functioning of contract negotiations and their implementation by way of tactics and strategies can help to reach an agreement, achieve better negotiation results or make a well- informed decision against an agreement.
This work is dedicated to business contract negotiations, i.e. B2B (business to business) negotiations. Hence, the below explained findings, tactics, strategies, overall concepts as well as framework conditions can apply to negotiations between companies as well to negotiations held within the company. This does however not preclude that the same or at least similar tactics and strategies are used in the context of family negotiations, diplomatic negotiations or in negotiations between businesses and consumers (B2C) or employees. Yet, in this work these tactics and strategies are only examined from the view of business negotiations.
This composition mainly focuses on the illustration of negotiation tactics and strategies. Here, tactics refer to the specific individual steps in the course of negotiations, whereas a strategy is continuously followed throughout the entire negotiation process. Overall negotiation concepts are developed so comprehensively that they claim validity for all existing types of negotiations. The only comprehensive negotiation concept currently in existence is the Harvard negotiation approach which will also be discussed intensively throughout this work. In order to provide a better common understanding, the following sections also illustrate basic terms used in negotiations as well as tactics and techniques which are fundamental to fully grasp the basic idea of negotiations. Further, the sections will also deal with the underlying effects and the mechanisms upon which these tactics are essentially based. Moreover, this composition includes the description of technical devices which are applied during negotiations.
© Springer Nature Switzerland AG 2019 |
1 |
S. Jung, P. Krebs, The Essentials of Contract Negotiation, https://doi.org/10.1007/978-3-030-12866-1_1
2 |
1 Introduction and Instructions for Use |
In summary, this book distinguishes the following basic categories:
–– basic terms
–– mechanisms/effects
–– tactical means
–– techniques
–– strategies
–– overall negotiation concepts
–– fundamental problems within negotiations
The explanations provided refer to these basic categories. The terms discussed in the course of this book are arranged in an alphabetical order. Since the authors consider an alphabetical listing of explanations to be much more comprehensive, they deliberately decided against presenting them in a continuous text. At the same time, an alphabetical listing also offers the opportunity to link the described terms by way of a system of references (see details below under Sect. 1.2). Furthermore, the index enables the reader to select specific aspects. In this context, also the topic lists in the appendix allow the reader to deal with specific questions (instructions are described further on).
Negotiation research links several science fields, most importantly the one’s dealing with psychological, legal as well as economic aspects. The same applies to findings from the field of communications science. The objective of this work is to afford a general insight into the current status of the science dealing with negotiations. Thus, this book primarily gathers the most important findings from various disciplines. Beyond that, this work also claims to make these findings more practicable, overall enabling the reader to transform these findings into the actual negotiation process or helping the reader to successfully cope with certain tactics employed by their negotiating partners. The authors of this book attempt to critically examine the illustrated tactics and techniques and also evaluate their practical applicability within company-related negotiations. On occasion, the authors also introduce entirely new suggestions (e.g. the legitimacy limits of fraudulent behaviour).
Reading this book does not require any prior knowledge—but only an actual interest in the discussed matter, which is why it can act as a general introduction into the field of contract negotiations. It can, however, be of equal interest to experienced negotiators, due to the fact that it helps explaining the underlying mechanisms of action. Based on these findings, negotiators can improve their own tactics and strategies. In this context, the given literature references allow interested readers to commence further research on individual aspects. A number of references can already be found in the descriptions within the alphabetical overview of key terms. In addition, a detailed list of the literature used can be found in the list of references which is provided for in the appendix.
Most aspects of negotiations cannot be acquired by bare reading, but rather require practice and, to a certain degree, also negotiation talent. However, it is essential to understand how both—yourself and others—negotiate, what strategies, tactics and techniques can be applied, to what extent and why they seem to be functioning, and which specific factors influence the eventual success of a tactic.