Discussion Questions

Identifying relevant issues and subject matter for negotiation.

Identify the interests of each party prior to the negotiation.

Strategize to create options and/or alternatives.

What is PADD’s BATNA?

What is the Hotel’s BATNA?
 
 

Transcribed Image Text:

Negotiation is an art and skill that hospitality professionals need to master. Hospitality companies, managers, and employees frequently need to handle conflicts and negotiate effectively with various parties including customers, clients, suppliers, and employees. Using an example of a two-party negotiation between an Association and Hotel, this case study provides an opportunity for hospitality students and professionals to practice negotiation skills. This case study encourages critical thinking about handling conflicts and disagreements with other parties. The goal of this case study is that the audience learn various negotiating techniques and also decide which technique to use under what situation. Case Introduction Negotiation in the Hospitality Industry Few personal and professional skills are as important as negotiations, and yet fewer still are as seemingly challenging. Most individuals feel uneasy about negotiating, yet know it is crucial. Negotiations pervade every aspect of life today. Negotiations with friends, family, car dealers, clients, employees and a whole host of people you come across in your daily activities (Firth, 2014). It is a myth that good negotiators are born. Good negotiators constantly seek opportunities to negotiate and receive feedback on their negotiations. Thus, good negotiators practice their interpersonal and communication skills. More importantly, it is a skill that can be mastered with practice and feedback. Negotiation is an art and skill that hospitality professionals need to master. The success of hospitality businesses is not only based on profitability but also development and maintenance of long term relationships with all stakeholders (Tamayo, 2011). Hospitality companies, managers, and employees frequently need to handle conflicts and negotiate effectively with various parties including customers, clients, suppliers, and employees (Mahmoud, 2015). Negotiation training is beneficial for all employees, not just management. For example, negotiation training can help frontline employees handle customer complaints more effectively. Negotiation training can also help with internal customer relationships (decrease in workplace conflict). Good negotiators are promoted faster (Fiona, 2008) and have stronger workplace relationships skills (Clenney et al., 2010). There is a need for hospitality professionals not only to learn various negotiating techniques but also to decide which technique to use under what situation. Hospitality companies which can perform effective negotiations to handle conflicts and disagreements with other parties (customers, suppliers) can gain a competitive advantage over competitors. Negotiation Strategies Negotiation strategies are interaction patterns used by parties in conflict to achieve resolution (Ganesan, 1993). Negotiation is a process by which joint decision is made by two or more parties (Pruitt, 2013). Generally negotiators tend to pursue the two basic negotiating strategies: integrative and distributive (Beenen and Barbuto, 2014). The objective of integrative bargaining (also known as "symbiosis" or "problem solving" or "win-win negotiation") negotiation strategy is to create value by means of the negotiation (bargaining process). Using an integrative negotiation strategy, parties tend to reach mutual agreements by being collaborative, inventive, and persistent in searching for substantial joint (financial) gains (Beenen and Barbuto, 2014). An integrative negotiation strategy is used to develop and maintain long-term relationships between parties (Fisher and Ury, 2011). Integrative negotiators stress the importance of open communication and information sharing. The objective of the distributive (extreme forms of distributive negotiations are also known as "aggressive bargaining" or "hard distributive bargaining" or "hard-line approach" or "win-lose negotiation") negotiation strategy is to maximize substantive gains in an adversarial contest without caring about the needs of the other party (Anderson, 1992). The extreme forms of distributive bargaining employ strategies that involve ridiculing, attacking, or threatening adversaries and making excessive demands (Perdue and Summers, 1991). Distributive negotiators concede slowly, minimize benefits of others' concessions, exaggerate the value of concessions, conceal information, and argue forcefully to reach favourable settlements (Anderson, 1992; Fisher and Ury, 2011). Negotiation is an art and skill that hospitality professionals need to master. Hospitality companies, managers, and employees frequently need to handle conflicts and negotiate effectively with various parties including customers, clients, suppliers, and employees. Using an example of a two-party negotiation between an Association and Hotel, this case study provides an opportunity for hospitality students and professionals to practice negotiation skills. This case study encourages critical thinking about handling conflicts and disagreements with other parties. The goal of this case study is that the audience learn various negotiating techniques and also decide which technique to use under what situation. Case Introduction Negotiation in the Hospitality Industry Few personal and professional skills are as important as negotiations, and yet fewer still are as seemingly challenging. Most individuals feel uneasy about negotiating, yet know it is crucial. Negotiations pervade every aspect of life today. Negotiations with friends, family, car dealers, clients, employees and a whole host of people you come across in your daily activities (Firth, 2014). It is a myth that good negotiators are born. Good negotiators constantly seek opportunities to negotiate and receive feedback on their negotiations. Thus, good negotiators practice their interpersonal and communication skills. More importantly, it is a skill that can be mastered with practice and feedback. Negotiation is an art and skill that hospitality professionals need to master. The success of hospitality businesses is not only based on profitability but also development and maintenance of long term relationships with all stakeholders (Tamayo, 2011). Hospitality companies, managers, and employees frequently need to handle conflicts and negotiate effectively with various parties including customers, clients, suppliers, and employees (Mahmoud, 2015). Negotiation training is beneficial for all employees, not just management. For example, negotiation training can help frontline employees handle customer complaints more effectively. Negotiation training can also help with internal customer relationships (decrease in workplace conflict). Good negotiators are promoted faster (Fiona, 2008) and have stronger workplace relationships skills (Clenney et al., 2010). There is a need for hospitality professionals not only to learn various negotiating techniques but also to decide which technique to use under what situation. Hospitality companies which can perform effective negotiations to handle conflicts and disagreements with other parties (customers, suppliers) can gain a competitive advantage over competitors. Negotiation Strategies Negotiation strategies are interaction patterns used by parties in conflict to achieve resolution (Ganesan, 1993). Negotiation is a process by which joint decision is made by two or more parties (Pruitt, 2013). Generally negotiators tend to pursue the two basic negotiating strategies: integrative and distributive (Beenen and Barbuto, 2014). The objective of integrative bargaining (also known as "symbiosis" or "problem solving" or "win-win negotiation") negotiation strategy is to create value by means of the negotiation (bargaining process). Using an integrative negotiation strategy, parties tend to reach mutual agreements by being collaborative, inventive, and persistent in searching for substantial joint (financial) gains (Beenen and Barbuto, 2014). An integrative negotiation strategy is used to develop and maintain long-term relationships between parties (Fisher and Ury, 2011). Integrative negotiators stress the importance of open communication and information sharing. The objective of the distributive (extreme forms of distributive negotiations are also known as "aggressive bargaining" or "hard distributive bargaining" or "hard-line approach" or "win-lose negotiation") negotiation strategy is to maximize substantive gains in an adversarial contest without caring about the needs of the other party (Anderson, 1992). The extreme forms of distributive bargaining employ strategies that involve ridiculing, attacking, or threatening adversaries and making excessive demands (Perdue and Summers, 1991). Distributive negotiators concede slowly, minimize benefits of others' concessions, exaggerate the value of concessions, conceal information, and argue forcefully to reach favourable settlements (Anderson, 1992; Fisher and Ury, 2011).