Institute of Management Technology

Hyderabad
Course Handout (AY 2014 15)

Course Title: Business Negotiation

Course Code: MGMT 622

Faculty: Dr. Romina Mathew

Contact No 040-30461689
Email id rmathew@imthyderabad.edu.in
A negotiator should observe everything. You must be part Sherlock Holmes, part Sigmund Freud.
Victor Kiam
Course Overview
Negotiating effectively is an essential competency for any business executive. This course introduces
students to the theory and practice of business negotiation. Designed with the objective of improving
students skills in all phases of negotiation, the course covers the essentials of negotiation theory, skills
and processes of negotiation relevant to different contexts like organizational, commercial, legal and
industrial relations and the dynamics of international negotiations in a cross cultural setting.
Expected Learning Outcomes
S.
No.

Learning goals
The course aims to
impart
Functional
Proficiency &
Integration Ability

Analytical and
Critical Thinking
Ability

Learning Outcomes

Learning Assessment
method
At the end of the course the students should be able
The outcomes would
to
be assessed through
Gain
an
understanding
of
negotiation Quiz
fundamentals including planning, strategy, tactics Comprehensive
Examination
and process of negotiation.
Written
assignments
Class
Participation
Negotiation
exercises
Critically analyze business situations and take
Quiz
decisions
Comprehensive
Examination
Written
assignments
Negotiation

Leadership and
Interpersonal Skills

Identify, value, and strengthen ones existing

competencies of negotiation
Work in teams to solve conflicts/reach agreement

Communication
Skills

Ethical perspective

Appreciate the role of communication, influence

and persuasion in negotiation
Articulate orally in a crisp and concise manner

Produce written assignments meeting academic

standards

Understand hard ball tactics and how to deal with

them, the disadvantages of using such methods
Appreciate the importance of trust and integrity in
business negotiations

exercises
Class
Participation
Self- Assessment
tools (would not
be part of
grading)
Observer Review
& feedback
(would not be
part of grading)
Negotiation
exercises
Class
Participation
Negotiation
exercises
Written
Assignments
Quiz/Exams

On completion of this course, the participants should

- Be able to recognize that almost every meeting or interpersonal encounter involves negotiation
- Be able to Identify, value, and strengthen ones existing competencies of negotiation.
- Be equipped with the knowledge, skills and confidence to conduct successful negotiations
- Be able to develop productive relationships and create win/win outcomes and deal with conflict
situations.
Readings
Text Book: Global Business Negotiations by Claude Cellich and Subhash Jain, Cengage
Supplementary reading material for cases and class discussion would be provided in class.
Additional References
- Negotiation Roy J. Lewicki, David M. Saunders, Bruce Barry, Tata McGraw Hill
- Fisher, Roger, W. William Ury, and Bruce Patton. Getting to Yes. 2nd ed. New York, NY: Penguin,
1991. ISBN: 0140157352.
- William Ury, Getting Past no, Random House
- HBR on Negotiation and Conflict Resolution, HBS Press
- BD Singh, Managing Conflict & Negotiation, Excel Books

Journals on Negotiation (Available on EBSCO) like International Negotiation, Group Decision &
Negotiation

Pedagogy
As a skill based course, the pedagogy would focus on a practice oriented, experiential methodology.
While there would be certain discussion oriented sessions for the concepts, with business cases to give
them real life perspective, there would be major emphasis on simulated negotiations and role plays in a
variety of contexts including one-on-one, multi-party, cross-cultural, third-party and team negotiations.
The instructor would act as a facilitator to ensure that the content is understood and applied effectively.
Assessment Criteria
No.

Parameter

Negotiation Exercises
1st round
2nd round

Written Assignments
1
2

3
4

Quiz
Class participation
1st round
2nd round
Comprehensive Examination
Total

Weightage

15
10

Date

Learning Goals
Assessed
1 8 week
9 15 week

1,2,3,4

1,2,4
5
5

8-Dec
27 Jan

15

29 Dec

10
10
30
100

1 8 week
9 15 week
As per academic calendar

1,2,5
1,2,4

1,2,5

1) Negotiation Exercises
The course would entail number of negotiation exercises on an ongoing basis. For each simulation
students would be assigned a stakeholder role. You would be required to
-

submit a pre-negotiation preparation document

participate actively in the negotiation
submit a post negotiation survey response

The grading would be done on the following parameters

Understanding of negotiation fundamentals (covering all key points like BATNAs, stakeholders,
interests etc.)
Decision taking
Role Playing (Active participation using principles learned)
Team playing ability to work with others (team/opponent party)
Communication Written and oral

2) Written Group Assignments

All the groups are required to submit a written analysis of two cases which would be provided
periodically. The grading would be done on the following parameters
- Comprehensiveness
- Critical Insights
- Conceptual Clarity
- Suggestions/Agreement
3) Class Participation
Active participation in class discussions is encouraged. Students are expected to come prepared for the
class discussion. This includes thorough reading of the case/article as well as background reading of the
relevant topic. Class participation would be evaluated throughout the semester. The evaluation would
be based on the following parameters
-

Preparedness and Understanding of key issues

Analytical abilities (Logical and justifiable approach in the discussion, Ability to relate to
various theories & concepts)
Communication (ability to articulate issues in crisp and concise manner)
Engagement (ability to carry the discussion forward by integrating past comments and not
being distracted or engaging in conversations while other students speak)

4) Quiz & End Term Examination

The quiz and final examination will assess students understanding, application and critical analysis of
the theory and practice of the course.

Session Plan
Session

Tentative
Dates

Topic

Activity/Exercise

Readings/
Assignments

Module 1 - Negotiation Essentials

1-2

11/11
17/11

Introduction to Negotiation
Game: Bongala
-Definition, Prevalence, Importance
-Characteristics of Negotiation
-Negotiating for conflict resolution,
negotiating deals

3-4

18/11
24/11

Process of Negotiation
Case: Frasier
Pre- Negotiation Planning
Limits, BATNA, Target/Reservation Negotiation
points, bargaining zone, ZOPA, ZONA, Exercise
Interests & Positions, Value Claiming &
Value Creation

5-6

1/12

2/12

JFK: The Negotiator

Negotiation?
Auction? A deal
makers guide
(HBR Article: Guhan
Subramanian)
Negotiation
analysis:
An
Introduction
,
Michael Wheeler

First offer
Initiating Business Negotiation
Opening move, First offer, Concessions,
Framing Exercise
negotiating variables
Case: Luna Pen

7-9

8/12
9/12
15/12

Strategies & Tactics of Negotiation

Strategies of Negotiation
Integrative vs. Distributive negotiation
(Competitive
vs.
collaborative,
Positional vs. Principled bargaining)

Centralia
Construction
Company/
Bio
pharma-Seltek
(Distributive)

Riverside & DEC

(integrative)

Tactics of Negotiation

Alphatec
Logrolling/Bridging

10

11-13

16/12

22/12

Closing Business Negotiations

Undertaking Renegotiations

Negotiation Exercises

Negotiation
Exercise (tactics)
Useful language to HBR Article: Closing
clinch the deal
the Deal - Michael
Wheeler
Negotiation
exercise
Negotiation
Deal making 2.0 - A

23/12
29/12

Two party
Multiple parties
Complex negotiations
Integrative & Distributive

exercises
-Remicade/Simponi
-V-cola
-The Commodity

guide to complex
negotiations

Module 2 - Negotiation Skills

14 15

30/12
5/1

16

6/1

Tools for Negotiating

Personal
Assessment Tools
Communication Skills
Questioning Techniques
Individual Differences Gender,
Personality
Power, Influence & persuasion
Styles of Negotiation

Personal
Assessment Tools

Negotiating with difficult people

Difficult negotiator
exercise

Managing Difficult negotiations

- Handling deadblocks/impasses
- Third party approaches (ADRs)
17 18

12/1
13/1

Exercise :
International
Role of Culture in Cross Border Alliances
Negotiations
Exercise

Negotiating Across Cultures

The HBR Article: The

cola Hidden Challenge of
Cross
border
Negotiations

James Sebenius

Module 3 Negotiation Theory

19 20

19/1
20/1

Decision Perspectives

Game
Behavioral Decision Theory
Psychology of decisions, Perception,
cognition & emotions

Decision Analysis

21

27/1

Game theory

22

2/2

Negotiation Analysis
Joint Decision making
Negotiators Dilemma

Reading: Decision
Analysis for practical
negotiation
application, Betram
Spector, Theory &
Decision, 1993

Negotiation Games
Negotiation
Analysis: Between
Decisions and
Games1

James K. Sebenius
Module 4 Negotiations in Corporates

Sessions would be handled by

practitioners from different functional
domains
Internal Negotiations
Exercise : Starlite
Negotiations at workplace superiors, Corp
colleagues, subordinates

23

3/2

24-27

9/2
10/2
16/2
17/2

Commercial Negotiations
Procurement
negotiations
(Vendor/Suppliers)
Sales Negotiations (Customer)
Financial Institutions
Exercise: Retailmax
Negotiating with Trade Unions
HR
Negotiations

Salary
negotiations, contract negotiations
Legal Negotiations

Practitioner
sessions (31/1

28-29

23/2
23/2

Trade Negotiations
Negotiating alliances, JVs, M&As

Practitioner
sessions

30

24/2

Negotiation as a Corporate Capability

Recruiting, assessing and building
effective teams of negotiators

Case:
Fiats
Strategic Alliance
with Tata (A & B)

HBS
Article
Introduction What
does a world class
negotiating
organization
look
like
HBR Article: Turning
Negotiation into a
corporate capability
(Danny Ertel)