Chapter 1: Negotiation-The Mind and the Heart

Question 1

Negotiation is not just about resources. It is equally about _________ and _______.

Answer 1

relationships; trust

Question 2

your key communication and influence tool; an interpersonal decision-making process necessary whenever we cannot achieve our objectives single-handedly

Answer 2

negotiation

Question 3

Throughout the textbook, we focus on the ______ of the negotiator as it involves the development of deliberate, rational, and thoughtful strategies for negotiation.
We also focus on the ______ of the negotiator, because ultimately, we care about relationships and trust.

Answer 3

mind; heart

Question 4

We base all our teaching and best practices for negotiation on scientific research in the areas of _______ and _______, reflecting the idea that both the bottom line and our relationships are important.

Answer 4

economics; psychology

Question 5

doing just enough to reach one’s minimum goals, not pushing to maximize one’s potential gains.

Answer 5

satisficing

Question 6

(Satisficing/optimizing) negotiators capture all of the potential gain in a situation.

Answer 6

optimizing

(satisficing = bad, optimizing = good)

Question 7

T or F: Negotiators often struggle with which strategy they should use in a single-shot negotiation versus negotiations that could potentially recur with the same party again in the future.

Answer 7

True

Question 8

All negotiators should assume that the details of their negotiation will be _________ for anyone to view and that all negotiations have long-term _________.

Answer 8

accessible; implications

Question 9

At first blush, it would seem that internal negotiations might go more smoothly and collaboratively than external negotiations.
However, ______ and internal ________ may in fact loom larger when people negotiate internally vs. externally.

Answer 9

envy; competition

Question 10

A _________ negotiation is a negotiation inside an organization (ex: for a job, etc.). Sometimes it is easier to do an _______ negotiation where you don’t already have relationships with people within the work environment (think about you would rather borrow money from a bank than a family member)

Answer 10

internal; external

Question 11

situations in which both negotiations optimize the potential joint gains.

Answer 11

win-win negotiations

Question 12

Win-win negotiations are also known as _________ ________ because the outcome is one that creatively combines parties’ interests in a way that maximizes the _____ _______ _______.

Answer 12

integrative agreements; joint economic value

Question 13

T or F: In a win-win negotiation, there can be a bigger winner than the other side, but both people are happy with the outcome.

Answer 13

True

Question 14

What are the 2 types of agreements?

Answer 14

1. Distributive (also known as transactional)
2. Integrative (known more as expansion)

Question 15

situations in which one party prevails at the other party’s expense.

Answer 15

Win-Lose Negotiations (ex: car dealership deals)

Question 16

situations in which both parties have made sacrifices that are ultimately unwise or unnecessary, resulting in an outcome that both parties find less than satisfying.

Answer 16

Lose-Lose Negotiations

Question 17

What are the 4 Key Reasons effective negotiation skills are important?

Answer 17

1. The knowledge economy
2. Specialized expertise
3. Information Technology
4. Globalization

Question 18

What are the 4 major shortcomings between disputants in a negotiation?

Answer 18

1. Leaving money on the table
2. Settling for too little
3. Walking away from the table (If you walk away from the table you better be prepared to not go back)
4. Settling for terms (an outcome) that are worse than your best alternative (option) (most important bullet)

Question 19

Investigations of contract negotiations consider four key objectives when assessing the quality of contracts:

Answer 19

1. What is the likelihood of reaching a good agreement?
2. Does the agreement fulfill its intended purpose?
3. Will the agreement last?
4. Will the agreement lead to subsequent negotiations?

(Have to assess these questions upfront)

Question 20

What are the 2 steps prior to negotiation?

Answer 20

1. Initiate negotiation
2. Preparation (very important):
   
   • Planning worksheet (do research
     and find out what’s the main
     goal)
   • Assess BATNA
   • Develop reservation price
   • Develop target price (aspiration)

Question 21

In a negotiation, what are the 5 aspects of strategy?

Answer 21

1. Opening
2. First offer(s)
3. Counter-offers
4. Substantiation and persuasion
5. Concessions

Question 22

In a negotiation, what are the 4 aspects of agreements?

Answer 22

1. Efficiency
2. Economic value
3. Individual gain
4. Joint gain

Question 23

In a negotiation, what are the 2 aspects of relational value?

Answer 23

1. Satisfaction
2. Fairness

Question 24

What are the 5 aspects of post-negotiation?

Answer 24

1. Post deal implementation
2. Durability
3. Reputation
4. Willingness to negotiate again
5. Trust

Question 25

T or F: There should be 2-3 counter-offers before reaching an agreement (this is optimizing).

Answer 25

True

Question 26

justifying your offer

Answer 26

substantiation

Question 27

giving something up to get what you want

Answer 27

concessions

Question 28

There are three key elements to improving your negotiation skills:

Answer 28

1. Diagnostic feedback 2. Analysis of success/failure of negotiation 3. Focused behavioral practice (Diagnostic feedback = getting metrics, getting something out of it. Then, you want to analyze that information. Focus on the things you’re weak at (behavioral practice).)

Question 29

What are 4 negotiation myths that aren't true?

Answer 29

1. Negotiations are fixed sum. 2. You need to be either tough or soft. 3. Good negotiators are born with the skill. 4. Good negotiators rely on their intuition.

Question 30

T or F: You should aim to pursue negotiations from an enlightened model which assumes that the other person you are negotiating with is every bit as motivated, intelligent, and prepared as you are.

Answer 30

True