Essay Undergraduate 640 words

Negotiation Techniques: Reciprocity and Reward Theory

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Abstract

This paper examines two key negotiation techniques — reciprocity theory and reward strategy — and demonstrates how each can be applied in a professional context, specifically by a production manager. Drawing on Wall (1977) and Klein (2006), the paper explains reciprocity theory's premise that concessions between negotiating parties should be proportional, and illustrates this through a workplace scenario involving reduced work hours instead of layoffs. The reward strategy is similarly explained and applied to a salary negotiation with a prospective employee. Together, the two examples show how different situations call for different negotiation approaches.

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What makes this paper effective

Each theory is introduced with a clear scholarly definition before being illustrated with a concrete workplace example, making abstract concepts accessible and grounded.
The paper uses parallel structure throughout — defining a theory, citing a source, then applying it — which gives the argument a consistent and readable rhythm.
The conclusion ties both techniques together by noting that situational uniqueness determines which strategy is most effective, providing a unifying insight rather than simply restating points.

Key academic technique demonstrated

The paper demonstrates applied theory writing: taking an academic concept sourced from peer-reviewed literature and translating it into a specific professional scenario. This technique requires the writer to both understand the theory precisely and construct a realistic example that faithfully reflects its logic — a core skill in business and management coursework.

Structure breakdown

The paper opens with a brief framing introduction, then devotes one section each to reciprocity theory and the reward strategy, pairing definition with application in each case. A short conclusion synthesizes both examples. The structure is symmetrical and straightforward, making it a useful model for short applied-theory essays at the undergraduate level.

Introduction to Negotiation Techniques

There are a variety of negotiation techniques that can be applied in everyday situations, especially in one's professional life. Two of these are the reciprocity theory and the reward strategy. This paper describes how these two concepts are applied to the position of production manager, including a discussion of how, when, where, and why each technique is used.

Reciprocity Theory

According to Wall (1977), the reciprocity theory is based on the assumption that there is a universal norm of reciprocity. Because of this norm, when a negotiator makes a concession, he can expect that his opponent will also make concessions. The reciprocity theory further holds that these reciprocal concessions are proportional to one another. If the negotiator makes a large concession, he should be able to expect his opponent to make a similarly sized concession in return.

Applying Reciprocity Theory as a Production Manager

This concept can be applied to the role of production manager through a variety of negotiations. One specific instance arose from the need to cut back production due to lower sales and a need to reduce labor costs and overhead. The original solution proposed was to lay off several dozen workers. However, after negotiating with the employees on the production line, an alternate compromise was reached: no employees would be laid off, but all employees would work a shortened 32-hour-per-week shift.

The concession that management made was that no employees would be laid off and that all employees would retain their current benefits. This was a fairly large concession; in light of the reciprocity theory, management could reasonably expect the production employees to accept a comparably significant concession in return. As Klein (2006) notes, not every negotiation results in a win-win situation. However, in this case, the employees' concession of a 20% reduction in their work hours was accepted, and both parties achieved their ultimate goals — reducing costs while preventing any job losses.

Reward Strategy

The reward strategy involves offering a reward to the other party in exchange for any concessions they make. Wall (1977) uses the analogy of a car purchase negotiation: if the dealer makes a concession of $100, the buyer should then make a concession of $105, with the extra $5 serving as a reward to the dealer for making the first concession. Under this concept, first offers must be crafted with this subsequent reward in mind.

1 Locked Section · 110 words remaining

Applying the Reward Strategy in Hiring · 110 words

"Salary negotiation example demonstrates reward concession"

Conclusion

The art of negotiation is an often complex process. For this reason, there are a variety of concepts that can be utilized when negotiating. In the context of a production manager's responsibilities, both the reciprocity theory and the reward strategy prove valuable. The two techniques were used in two very different situations, which demonstrates how the uniqueness of each situation often dictates which technique will be most effective.

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Key Concepts in This Paper

Reciprocity Theory Reward Strategy Concession Making Proportional Concessions Workplace Negotiation Production Manager Salary Negotiation Labor Costs Win-Win Outcome Negotiation Norms