General description of course content and course goals

The purpose of the present course is to understand the theory and processes of negotiation as practiced in a variety of settings such as industrial marketing relations. A basic premise is that while students need analytical skills in order to develop optimal solutions, a broad array of negotiation skills is needed in order for these solutions to be accepted and implemented. Yet, even though we often negotiate, many students have limited knowledge about the strategies for and psychology of effective negotiations, which is going to be an important factor in their future careers. The course will highlight the components of an effective negotiation and teach students to analyze their own behavior in negotiations.

The course structure is experiential and problem-based, combining lectures, class discussion, assigned readings, media presentations, and the practice of negotiations. Through participation in problem-based negotiation exercises, students will have the opportunity to practice their communication and persuasion skills and to experiment with a variety of negotiating strategies and tactics. Through analysis of case studies, media, and discussion of readings on negotiation concepts and tactics, students will apply the lessons learned to ongoing, real-world negotiations.

Summarizing the most important contents

The students will find answers to the following fundamental questions of negotiation theory and practice:

• How do negotiations influence everyday life and business processes?
• What are key features of negotiations?
• What are different forms of negotiations? What kinds of negotiation can be distinguished?
• Which theoretical approaches to a theory of negotiation can be distinguished?
• How can game theory be applied to negotiation?
• What makes an effective negotiator?
• Which factors should be considered when planning negotiations?
• What steps must be followed to reach a deal?
• Are there specific negotiation tactics?
• What are the typical barriers to an agreement and how to deal with them?
• What are possible cognitive (mental) errors and how to correct them?

Professional Competence

Knowledge

Students can...

• explain the theory and underlying processes of negotiation as practiced in a variety of daily-life and business settings such as in industrial marketing relations.
• explain strategies for and psychology of effective negotiations in daily-life and business situations (e.g. the steps that must be followed to reach a deal, mental errors, and the typical barriers to an agreement).
• give an overview of the basics of game theory, (behavioral) decision theory, and negotiation analysis (e.g. distributive and integrative situations, core strategies and tactics, key concepts, stages, team building and roles, anchoring and first offers, multi-phase negotiations).

Skills

Students are capable of...

• simultaneously considering multiple factors in negotiation situations and taking reasoned actions when preparing and conducting negotiations.
• Analyzing and handling the key challenges of uncertainty, risk, intercultural differences, and time pressure in realistic negotiation situations.
• assessing the typical barriers to an agreement (e.g. lack of trust), dealing with hardball tactics (e.g. good cop, bad cop; lowball, highball; intimidation), and avoiding cognitive traps (e.g. unchecked emotions, overconfidence).
• reflecting on their decision-making in uncertain negotiation situations and derive actions for future decisions.

Personal Competence

Social Competence

Students can...

• provide appropriate feedback and handle feedback on their own performance constructively.
• enter into a dialogue with formerly unknown fellow students, participate in discussions, and present well-grounded arguments.
• constructively interact with their team members and lead team sessions and group work processes
• develop joint solutions in mixed teams and present them to others in real-world negotiation situations

Self-Reliance

Students are able to...

• assess possible consequences of their own negotiation behavior
• define own positions and tasks in the negotiation preparation process.
• justify and make elaborated decisions in authentic negotiation situations.