1. Nature of Negotiation Flashcards Preview

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Flashcards in 1. Nature of Negotiation Deck (12)
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Why do negotiations occur?

• To agree on how to share or divide a limited resource
• To create something new that neither party could attain on his or her own
• To resolve a problem or dispute between the parties
• Sometimes we fail just because we do NOT recognize we are in a negotiation situation


Two Negotiation Concepts

Bargaining: Win-lose competitive situations
Negotiation: Win-win situations


The definition and characteristics of negotiation

• Two or more parties
• Conflict of needs and desires between two or more parties
• Parties negotiate because they think they can get a better deal than by simply accepting what the other side offers them
• Parties expect a “give-and-take” process


Parties search for agreement rather than:

- Fight openly
- Surrender
- Break off contact permanently
- Take their debate to a third party


Successful negotiation involves:

- Management of tangibles (e.g. the price or the terms of the agreement)
- Resolution of intangibles (the underlying psychological motivations) such as winning, losing, saving face, appear fair


Interdependence of negotiations

• Interdependent parties are characterized by interlocking goals
• This does not mean that everyone wants or needs exactly the same thing
• Sometimes there is a mix of convergent and conflicting goals


The type of interdependence affects processes and outcomes

- Zero-sum or distributive – one winner
- Non-zero-sum or integrative – a mutual gains situation


Mutual Adjustments

• As parties act to influence each other in a negotiation, they engage in a mutual adjustment
• Concession: When one party agrees to make a change in his/her position


Two strategies in Mutual Adjustments

- Outcomes perception – try to manage how the receiver views your proposal
- Process perception – try to create an image that signals fairness and reciprocity in proposal and concessions


Two dilemma's in mutual adjustment

- Dilemma of honesty - how much of the truth to tell the other party
- Dilemma of trust- how much should negotiators believe what the other party tells them


Value Claiming and Creation

- Claiming value: result of zero-sum or distributive situations where the object is to gain largest piece of resource (distributive bargaining)
- Creating value: result of non-zero-sum or integrative situation where the object is to have both parties do well (integrative negotiation)


How to create value?

• Exploiting differences between the parties, such as:
• Differences in interests;
• Differences in judgments about the future;
• Differences in risk tolerance;
• Differences in time preferences.