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NEGOTIATION Readings, Exercises and Cases

s ix th ed i t ion

sixth edition





eadings, E xercises and C


Negotiation is a fundamental skill, not only for successful management, but also for successful living. Negotiation: Readings, Exercises and Cases 6e takes an experiential approach to this skill and explores the major concepts and theories of the psychology of bargaining and negotiation, resulting in a text that refl ects the very best and most recent work on negotiation and the related topics of power, infl uence, and confl ict management.

Examples of new readings, exercises, and cases include: Balancing Act: How to Manage Negotiation Tensions Negotiation Ethics Four Strategies for Making Concessions Become a Master Negotiator Culture and Negotiation Investigative Negotiation Seven Strategies for Negotiating Success Ridgecrest School Dispute Bargaining Strategy in Major League Baseball

The authors have carefully organized Negotiation: Readings, Exercises and Cases 6e to coordinate closely with their newly revised text, Negotiation 6e, as well as with the shorter version of the text, Essentials of Negotiation 5e. All three texts in this series can work together to create a comprehensive learning system.

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Readings, Exercises and Cases

Sixth Edition

Roy J. Lewicki The Ohio State University

David M. Saunders Queen’s University

Bruce Barry Vanderbilt University

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Published by McGraw-Hill, a business unit of The McGraw-Hill Companies, Inc., 1221 Avenue of the Americas, New York, NY 10020. Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved. Previous editions © 2007, 2003, and 1999. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written consent of The McGraw-Hill Companies, Inc., including, but not limited to, in any network or other electronic storage or transmission, or broadcast for distance learning.

Some ancillaries, including electronic and print components, may not be available to customers outside the United States.

This book is printed on acid-free paper.

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ISBN 978-0-07-353031-4 MHID 0-07-353031-X

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Library of Congress Cataloging-in-Publication Data

Negotiation: readings, exercises, and cases / [edited by] Roy J. Lewicki, David M. Saunders, Bruce Barry.—6th ed.

p. cm. ISBN-13: 978-0-07-353031-4 (alk. paper) ISBN-10: 0-07-243255-1 1. Negotiation in business. 2. Negotiation. 3. Negotiation—Case studies. I. Lewicki, Roy J.

II. Saunders, David M. III. Barry, Bruce, 1958– HD58.6.N45 2009 658.4�052—dc22 2009039281

The Internet addresses listed in the text were accurate at the time of publication. The inclusion of a Web site does not indicate an endorsement by the authors or McGraw-Hill, and McGraw-Hill does not guarantee the accuracy of the information presented at these sites.

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We dedicate this book to all negotiation, mediation, and dispute resolution professionals who try to make the world a more peaceful and prosperous place.

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About the Authors

is the Abramowitz Professor of Business Ethics, and Professor of Management and Hu- man Resources at the Max. M. Fisher College of Business, The Ohio State University. He has authored or edited 32 books, as well as numerous research articles. Professor Lewicki has served as the President of the International Association of Conflict Man- agement, was the founding editor of the Academy of Management Learning and Educa- tion, and received the Academy of Management’s Distinguished Educator Award for his contributions to the field of teaching in negotiation and dispute resolution.

is dean of Queen’s School of Business. Since joining Queen’s in 2003, he has led the in- ternationalization of the school, launched two unique MBA programs and a suite of pre- experience Masters programs, and strengthened Queen’s international network with the addition of top business school partners in Europe, Asia, and South America.

Outside of Queen’s, David is the co-author of several articles on negotiation, con- flict resolution, employee voice, and organizational justice. He sits on the board of the China Europe International Business School (CEIBS) and the European Foundation for Management Development, an international business school association.

is Professor of Management and Sociology at Vanderbilt University. His research on ne- gotiation, influence, power, and justice has appeared in numerous scholarly journals and volumes. Professor Barry is a past President of the International Association for Conflict Management (2002–2003), and a past chair of the Academy of Management Conflict Management Division.

Roy J. Lewicki

David M. Saunders

Bruce Barry

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People negotiate every day. During an average day, they may negotiate with

• the boss, regarding an unexpected work assignment;

• subordinates, regarding unexpected overtime;

• a supplier, about a problem with raw materials inventory management;

• a banker, over the terms of a business loan;

• a government official, regarding the compliance with environmental regulations;

• a real estate agent, over the lease on a new warehouse;

• his/her spouse, over who will walk the dog;

• his/her child, over who will walk the dog (still an issue after losing the previous negotiation);

• and the dog, once out, as to whether any “business” gets done.

In short, negotiation is a common, everyday activity that most people use to influence others and to achieve personal objectives. In fact, negotiation is not only common, but also essential to living an effective and satisfying life. We all need things—resources, information, cooperation, and support from others. Others have those needs as well, sometimes compatible with ours, sometimes not. Negotiation is a process by which we attempt to influence others to help us achieve our needs while at the same time taking their needs into account. It is a fundamental skill, not only for successful management but also for successful living.

In 1985, Roy Lewicki and Joseph Litterer published the first edition of this book. As they were preparing that volume, it was clear that the basic processes of negotiation had received only selective attention in both the academic and practitioner literature. Scholars of negotiation had generally restricted examination of these processes to basic theory development and laboratory research in social psychology, to a few books writ- ten for managers, and to an examination of negotiation in complex settings such as diplomacy and labor–management relations. Efforts to draw from the broader study of techniques for influence and persuasion, to integrate this work into a broader under- standing of negotiation, or to apply this work to a broad spectrum of conflict and nego- tiation settings were only beginning to occur.

In the past twenty-five years, this world has changed significantly. There are several new practitioner organizations, such as the Society for Professionals in Dispute Resolution and the Association for Conflict Resolution, and academic professional associations such as the Conflict Management Division of the Academy of Management and the Interna- tional Association for Conflict Management that have devoted themselves exclusively to facilitating research and teaching in the fields of negotiation and conflict management. There are several new journals (Negotiation Journal, Negotiation and Conflict Manage- ment Research, International Journal of Conflict Management, International Negotiation) that focus exclusively on research in these fields. Finally, through the generosity of the Hewlett Foundation, there are a number of university centers that have devoted themselves to enhancing the quality of teaching, research, and service in the negotiation and conflict


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