MBA506 - Thinking Styles, Negotiation, and Conflict Management

This report details a negotiation role-play scenario involving the purchase of a commercial property, focusing on the application of different thinking styles, particularly the hierarchical style, in the negotiation process. It outlines the pre-negotiation phase, including the assessment of thinking styles using Sternberg-Wagner Thinking Style Inventories, and the determination of BATNA (Best Alternative to a Negotiated Agreement) and reservation values for both the client (Farnsworth Property Trust) and the other party (Pashendale Holdings Ltd.). The report also discusses the ZOPA (Zone of Possible Agreement) range and the negotiation strategy employed. Furthermore, it includes a communications log documenting the interactions during the negotiation phase and a post-negotiation letter summarizing the current status of the negotiation. The goal is to secure the purchase of the property at a price not exceeding $24.3 million, while considering alternative properties and potential price reductions. The document emphasizes the importance of hierarchical thinking in managing multiple tasks and prioritizing them effectively during the negotiation.

1
Management

2
Table of Contents
Stage 1: Pre-negotiation...................................................................................................................3
Thinking style form.....................................................................................................................3
Thinking style scope....................................................................................................................4
Sternberg-Wagner Thinking Style Inventories............................................................................4
Significance of the thinking style form and scope.......................................................................4
Adjustments.................................................................................................................................4
Client’s BATNA and Reservation value.....................................................................................5
Other party’s BATNA and Reservation value.............................................................................5
ZOPA range and strategy.............................................................................................................5
Stage 2: Negotiation........................................................................................................................5
Stage 3: Post Negotiation.................................................................................................................6
Reference List..................................................................................................................................8
Appendix..........................................................................................................................................9

3
Stage 1: Pre-negotiation
As a listed property agent and the negotiator, I approached Pashendale Holdings Ltd. for the
purchase of commercial property 34 Taylor Street, Parramatta, Sydney, listed for sale by
Pashendale Holdings Ltd, website. It is a commercial building and the purchase of this property
which will serve as on of the client company’s strategic plan to invest in optimal and high
performing assets. Currently, the negotiation is continuing for the sale of the property listed with
Pashendale Holdings Ltd. The price quoted for the property was $ 27 million.
Thinking style form
The theory of mental self-government shows that there are different styles of thinking which can
be understood our constructs and from the notions of the government (Zhang and Fan, 2012).
There are different kinds of governments in the world that shows the reflection of our own
selves. From this we understand that the kind of governments existing really not coincidentally,
but this can be related with the way we think, organize and govern ourselves (Jung, 2013).
According to the theory of Robert J. Sternberg, people can be understood with regards to the
levels, scope, functions, and learnings of the government. Even when there are different
governments, people will exhibit their preferable styles across current situations they are put
into. There are four different top mental self-government comprised in the theory of Robert J.
Sternberg. These forms are monarchic, hierarchic, oligarchic and anarchic (Sternberg and Zhang,
2014). Mental self-government generally comprises of two levels local and global. The local
individual prefers keeping a track of details and focus on only the important aspects of the task.
The global individual focus on the overall idea of completing the task rather than focusing on the
details.
The individual following the monarchic form has special preferences for projects situations
uncertain tasks only specific details. The individual focuses on only one aspect of the situation or
the tasks till the time it is completed. Hierarchical individual has preferences for tasks or projects
which allows them to do multiple things within a given time. The priorities the tasks as per its
urgency. The oligarchic individual preface tasks or situations likes to do and complete multiple
tasks within a given time, however face difficulties priorities for each of the tasks (Wallace,
2013). A person who is anarchically oriented keeps flexibility in their work and are a-systematic.

4
These kinds of individuals take decisions randomly which might be difficult for people to
understand.
In the given case, as a negotiator, I have chosen hierarchical thinking style to continue with the
negotiation process. . Looking at the various aspects of the deal, I found the hierarchical thinking
the most suitable one. Throughout the entire negotiation, I have focused on each and every task
and set priorities for each of them.
Thinking style scope
Sternberg in his theory has mentioned two scopes of mental self-government namely internal and
external (Zhang, 2011). The person having internal scope has a preference or predilection for
certain tasks, situations and projects requiring activities allowing an individual to work
independently. It is often seen that such internal individuals are not comfortable in working
within a group and are mostly introverts. On the other hand, an external individual has
preference for the situations, projects and tasks allowing them to interact with other people in a
group. These kinds of individuals are generally extrovert uncomfortable in working with a group
(Chen and Liu, 2012). Being an extraverted person, it becomes easy for me to communicate my
opinions and viewpoints within a group. I would prefer the external scope for the negotiation
process since I need to work with different people to finalize the deal.
Sternberg-Wagner Thinking Style Inventories
Refer Appendix provided.
Significance of the thinking style form and scope
I have chosen hierarchical thinking style because of the various aspects of the deal. For the entire
negotiation deal, I have focused on multiple tasks within a given time frame and accordingly
prioritized each of them. This kind of style would help me to enhance my communication skills
and working with different team members. Focusing on multiple tasks will make me accomplish
within a given time frame. This will enhance my time management and communication skills in
the future course of time.
Adjustments

5
The hierarchical thinking style will be portable thinking style for closing the deal as negotiations
like this required better communication observing skills. The hierarchical style will not require
any other adjustment as equal importance and priority has already been provided to each task.
This will ensure that all the tasks are undertaken and accomplished within time (Walters,
Hagman and Cohn, 2011).
Client’s BATNA and Reservation value
BATNA stands for best alternative to a negotiated agreement. It refers to substitution provided
with relation to the earlier agreed negotiation between two parties (Wei and Luo, 2012). I am
representing on behalf of Farnsworth Property Trust for the purchase of commercial property 34,
Taylor Street, Parramatta, Sydney. The best alternative BATNA available company was the
quoted price of $ 27 million. If the client company, Pashendale Holdings Limited does not sell
the property, already has an alternative comparable property in the area. Since the negotiation
still continuing the exact BATNA cannot be fixed at this point of time.
Other party’s BATNA and Reservation value
Reservation value refers to the minimum point at which the value can be decided or accepted by
the people negotiated agreement (Williams, Robu, Gerding and Jennings, 2014). As mentioned
earlier the negotiation is still going on so the BATNA cannot be fixed. The reservation value of
my company not be less than $ 24.3 million. Since the client has not offered the valuation to its
alternative company the reservation value will stand at the value we have decided.
ZOPA range and strategy
ZOPA refers to zone of possible agreement which allows to fix a range for the offer that can be
accepted by both parties involved in the negotiation process (Moon, Yao and Park, 2011). Since
the negotiation continuing, the ZOPA from client company still undetermined. My company can
offer nothing less than $ 23.5 million and this would be the final offer for the deal.
Stage 2: Negotiation

6
Communications Log Template
Date Communication Method Items Discussed Outcome Notes
01-01-19
Through email:
adammurphy298@gmail.
com The introductory email was sent to Adam Murphy
He replied to the mail confirming his identity and
interest in the selling the property.
02-01-19
Through email:
adammurphy298@gmail.
com
I received a mail from him stating to confirm the
interest in selling the property but after having
discussion on the offer.
He mentiones about the exact property and opens
up for making an offer.
05-01-19
Through email:
adammurphy298@gmail.
com and
[e-mail]
I questioned Adam about the pricing and benefits
of purchasing the property. Basically I wanted to
do a background search for my client on the
property if it has any legal issues or not.
He mentions about amking an offer with our
company.
07-01-19
Through email:
adammurphy298@gmail.
com and
[e-mail]
Adam invited me to make an offer on the property
and the negotiation is still continuing.
To his mail, I replied asking him about the details of
the property on the basis of certain questions. The negotiation is still ongoing.
Stage 3: Post Negotiation
[Your Name]
Email: [Your email address]
[Date]
By email:
Adam Murphy
Chief Executive Officer
Pashendale Holdings Ltd.
Dear Adam,
RE: NEGOTIATION FOR SALE OF 116, DAVIES STREET, LIVERPOOL, SYDNEY
Thank you for your instructions.
I wish to confirm final outcome of the negotiation is still not determined as the conversation is
continuing. Fusion was initiated for the purchase of a commercial property 34 Taylor Street,
Parramatta, Sydney, listed for sale by Pashendale Holdings Limited in their website. The
property is a commercial building and its purchase will benefit client's company strategic plan to
invest in optimal and high performing assets. Since you have expressed your interest in selling

7
the property, we can have further discussion on this and the pricing by eliminating any other
alternative comparable property in the area listed for sale. The price quoted for the property was
$ 27 million. Since I am the negotiator in this case, my hierarchical thinking style would be
beneficial to focus on each and every element of this negotiation. Till the date the negotiation has
started I have focused on every task and set priorities for each of them. This negotiation process
is very important for me to prove my skills as a negotiator and managing time. Currently our
negotiation process still continuing and also needs to be discussed before finalizing the BATNA
and the reservation price that would secure the deal of purchasing the property. Since we already
have figured out our reservation value which amounts to $ 24.3 million, we are not accepting
anything below this. You also have mentioned about another alternative comparable property in
the area by Simon Drucker at a comparable value. You may ask for 10% reduction in the original
price of the property Simon Drucker but as mentioned, we might not be able to go any low
beyond $ 24.3 million. This can be the best discounted price or even the better price that you
might be looking for. Considering the location of the property, this is the best pricing my client
can offer. The ZOPA will be fixed and the value of reservation will be addressed and inform to
the company. Finally, after communicating on the property over mail, we would require a
confirmation stating the current status of the negotiation process.
Yours Sincerely,
Sujitha

8
Reference List
Chen, G.H. and Liu, Y., 2012. Gelotophobia and thinking styles in Sternberg's
theory. Psychological reports, 110(1), pp.25-34.
Jung, C.G., 2013. The undiscovered self. Abingdon, United Kingdom: Routledge.
Moon, Y., Yao, T. and Park, S., 2011. Price negotiation under uncertainty. International Journal
of Production Economics, 134(2), pp.413-423.
Sternberg, R.J. and Zhang, L.F., 2014. Perspectives on thinking, learning, and cognitive styles.
Abingdon, United Kingdom: Routledge.
Wallace, R.W., 2013. Councils in Greek oligarchies and democracies. A Companion to Ancient
Greek Government, pp.191-204.
Walters, G.D., Hagman, B.T. and Cohn, A.M., 2011. Toward a hierarchical model of criminal
thinking: Evidence from item response theory and confirmatory factor analysis. Psychological
Assessment, 23(4), p.925.
Wei, Q. and Luo, X., 2012. The impact of power differential and social motivation on
negotiation behavior and outcome. Public Personnel Management, 41(5), pp.47-58.
Williams, C.R., Robu, V., Gerding, E.H. and Jennings, N.R., 2014. An overview of the results
and insights from the third automated negotiating agents competition (ANAC2012). In Novel
Insights in Agent-based Complex Automated Negotiation (pp. 151-162). Springer, Tokyo.
Zhang, L.F. and Fan, W., 2012. The Theory of Mental Self-Government Grows Up: Where Has
It Led the Field after 21 Years?. In Style differences in cognition, learning, and management (pp.
64-77). Abingdon, United Kingdom: Routledge.
Zhang, L.F., 2011. The developing field of intellectual styles: Four recent endeavours. Learning
and Individual Differences, 21(3), pp.311-318.

9
Appendix
Figure 1: Sternberg Self-Assessment Inventory