Negotiation

Question 1

negotiation definition

Answer 1

A social process through which conflict is resolved; results in the allocation of resources or an agreement of how individuals will work together in the future

Question 2

5 requirements of a negotiation

Answer 2

needs 2 or more parties
better outcome from a negotiation
preference to mutual agreement
give-and-take involved
tangible / intangible factors involved

Question 3

distributive negotiation

Answer 3

haggling over a fixed amount of value, slicing up the pie, and price is the only talking point, negotiators goals are a direct conflict, don’t care about the relationship

Question 4

integrative negotiation

Answer 4

parties collaborate to find a “win-win” solution to their dispute and focus on developing mutually beneficial agreements based on the interests of the disputants

Question 5

soft vs hard negoatiator

Answer 5

soft: easily changes position, just wants to reach an agreement and keep the relationship

hard: adversarial, just wants to win, won’t change and doesn’t care about relationship

Question 6

BATNA

Answer 6

best alternative to a negotiated agreement; what would you do if you don’t come to an agreement

• if you don’t buy the car, you keep taking the bus

Question 7

reservation value

Answer 7

minimum you’ll walk away with (worst case scenario) but deal still goes thru

• like min. price you’ll sell a car for OR the most you would buy a house for

Question 8

aspiration value

Answer 8

maximum you could get from the deal, best case scenario

• don’t want to have an unreasonable aspiration value or your partner may walk away

Question 9

ZOPA, zone of possible agreement

Answer 9

the range at which an agreement can be met and both parties can leave happy

• between the buyer & seller’s reservation values

Question 10

why is it good to make the first offer (aggressive offer)

Answer 10

because of anchoring bias, allows you room to offer concessions

Question 11

why shouldn’t let the other person make the first offer

Answer 11

leaves you with little room for concessions, or you have to stand your ground entirely

Question 12

cons of distributive negotiaitons

Answer 12

Creates unwise agreements that don’t actually satisfy either party

inefficient, lots of concessions and may not reach any agreement

Endangers relationships

Question 13

principled negotiator

Answer 13

Efficient and amicable

Use reason, but are grounded in making the most optimal decision

Produce wise agreement, even under pressure