When You Should NOT Negotiate and Other Expert Tips

McCabe, who is professor of management at the McDonough School of Business, Georgetown University, offered his negotiating tips at the BLR® HR Strategic Summit, held recently in Scottsdale, Arizona.

When NOT to Negotiate

• When you have not done your research or are ill-prepared
• When there is a locus-of-authority issue—that is, when the other party sitting at the table does not have the power to consummate a deal
• When the other side is obviously bargaining in bad faith or using a multitude of unethical tactics
• When you have reached your bottom line on one or more issues and more movement downward would place you or your firm in a precarious position

Good-Faith Negotiation

Negotiating in good faith means:

• Make offers and counteroffers.
• No stalling, stonewalling, or being late.
• Make a proactive, sincere effort to reach an agreement.

Note that good faith does not require an individual negotiator to reach a settlement, agree to a specific proposal, or make a specific concession to the other side.

Bad-Faith Negotiation

Bad-faith negotiation involves:

• Surface, shadow bargaining;
• Take-it-or-leave-it bargaining; and
• Utilization of delaying tactics.

Ethical Negotiation Issues

Human resources professionals should always maintain a high level of ethical conduct in negotiations, says McCabe. In particular, do not use such unethical tactics as:

• Bribery;
• Pirating of confidential information;
• Electronic surveillance or “bugging” of caucus rooms;
• Defaming the other chief negotiator; or
• Falsification, misrepresentation, and deception.

Consider the line between exaggeration versus outright lying (bluffing, puffing, and exaggerating are acceptable, within limits), says McCabe, but beware. No universal code of conduct for negotiating exists.

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Cross-Cultural Negotiations

Cross-cultural negotiations are becoming more frequent. To be a successful negotiator, says McCabe, an appreciation of cultural differences is most essential.

• Become familiar with the history, culture, and customs of the other negotiator. This is paramount. Especially:
• The issue of time, and
• The strategic importance of informal socializing.
• Use intercultural bargaining styles as appropriate.
• Understand the nature of the contractual agreement.
• Respect the other side, and make an attempt to adapt.
• Develop personal, long-term business relationships.
• Comprehend national sensitivities of the other negotiator.
• Don’t use American jargon or sports jargon.
• Understand the concept and importance of saving face.

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