Everyone negotiates. Whether it is the scientist seeking research grants, the designer looking for a freelance assignment, the engineer discussing her first salary, or a team of entrepreneurs trying to secure financing for their new venture, all of these situations call for skills in persuasion and negotiation. All firms rise and fall with their sales, and most students at SSES partner schools will at some time find themselves in a negotiations and sales role; either as entrepreneurs in their own firms, or employed at e.g. biotechnology companies, creative firms or consulting firms. In addition, holding a management positions in any type of organisation is essentially about the identification and resolution of conflicts, and doctors will find themselves dealing with reluctant patients refusing treatment, which also requires an understanding of negotiation, mediation, and persuasion processes.
Negotiations and sales are here defined as the art and science of securing agreements between two or more interdependent parties. This course will (1) help students to understand the theory and processes of negotiations and sales in a variety of settings, (2) highlight the components of an effective negotiation, and (3) help students to analyse their own behaviour in negotiations. After the course, the participants will have increased knowledge, skill, and confidence relating to negotiations and sales situations.
Intended Learning Outcomes
After the course the participants will be able to:
- Understand the process of human decision-making
- Discuss common psychological heuristics and biases
- Explain negotiation frameworks e.g. BATNA & reservation price
- Better prepare, plan, and act in negotiation and sales situations
- Understand the dynamics of bilateral and multiparty negotiation
- Identify usage of different negotiation strategies and approaches
This is a 7.5 ECTS credit course. The classes will be based on lectures, literature, teaching cases and exercises. There will be guest lecturers and some multi-media elements. Examples of topics covered in the course, as applied to negotiations and sales:
- Psychology of decision-making
- Game theory and behavioural economics
- Gender effects in negotiations and sales
- How to avoid bargaining breakdown
- Multiparty negotiations
Grades and form of assesment
1. Active participation
The pedagogy of the course is based on active learning and much of the knowledge is created through participation in the exercises and cases; for this reason individual participation will be noted and graded. 75% participation is required to pass the course.
2. Literature exam
A literature exam will be held early to mid-course – the purpose of the timing is to make sure that all participants have read the literature and to ensure that their focus is on the exercises for the remainder of the course.
3. Written assignments
The course language is English. The course is offered within the framework of the Stockholm School of Entrepreneurship. Responsible institution: Stockholm School of Economics (SSE).
Literature and teaching aids
Literature will be announced in connection to the start and communicated to enrolled students.