Test 2

Question 1

How does email affect negotiations?

Answer 1

Pros
Ability to think and compose
ability to resist and pressure
may be easier to separate the people from the problem in contentious relationships

Cons
Increased time and effort
tougher to establish a relationship
tougher to convey/assess emotion/personality
tougher to coordinate and develop shared understandings
increased risk-taking

Question 2

Benefits of using agents

Answer 2

provide critical knowledge/expertise
provide access to people / marketplace
HAve relationships needed for success
Enable you to reduce workload

Also
possible scapegoat, if you need to do some bottom fishing, if need to bring on the bad cop

Question 3

Downside of agents

Answer 3

Claim resources (bargaining zone shrinks)
goals may conflct with your own
experience loss of control

Question 4

How to be a good agent

Answer 4

set structural boundaries
consisten information updates to client
“reeling-in” the constituency
Depersonalize to reduce irrationality and hostility

Question 5

How to be a good client

Answer 5

Is an agent needed or desired?
Analyze the incentive structure
Provide your agent some freedom and flexibility
Selectively provide information to your agent

Question 6

Agency issues

Answer 6

buyer’s power to choose many agents to switch to
negotiate a commission rate
understand market independent of your agent
select an agent carefully who plays by rules, reputation of selling high (not frequently)
Experience = higher sales prices
In disclosure state that “nothing conveys” to leave room to added appliances, etc. later

Question 7

Highlights of selling real estate

Answer 7

do not give agent or neighbors information that may reduce your power

do not indicate an desire to move in appearance of house

Auction fever; many potential buyers at home during open house increases interest/demand

Question 8

Highlights of buying real estate

Answer 8

Tell agen to give you information on houses witha large range;
Do not disclose your RP to your agent

Question 9

REal Estate BATNAs

Answer 9

time ressure, don’t reveal; consider renting

Find 3 homes would be indifferent to purchasing

Question 10

Coalition

Answer 10

A group of people who join together to pursue common goals, attempting to influence outcomes

Two or more parties who agree to cooperate toward mutually desirable goal; make an explicit agreement about the division of the attained reward

Power shifts in fragile coalitions lead to defections

Question 11

Who to include in coalition?

Answer 11

minimum number of persons required to achieve your goals

add those who bring more value than they subsequently remove

Question 12

How be attractive coalition partners?

Answer 12

Get in early!
impression management; bring lots of power with minimal demands

Highlight trust and interdependence to strengthen

Question 13

When do coalitions form? Likely vs. Unlikely

Answer 13

Likely
unequal power because one group has nothing to lose or flaunts their power
insufficient individual resources to control the outcome, but combined resources can control outcome
Decision rule is majority rule (vs. concensus)

Unlikely
trust ahs been broken, conflict
powerful party blocks coalitions
insufficient combined resources
communication is restricted
Decision rule is consensus

Question 14

Flaunting power

Answer 14

In 2-party negotiations you want to highlight your power; but flaunting in multi-party negotiation can be dangerous

Flaunting can cause others to coalesce against you, even if not in their own best interest

Question 15

Multi-party challenges

Answer 15

greater range of:
interests
personalities
relationships
procedural complexity

Coordination (goals and processes) becomes increasingly difficult with each new member

Question 16

Strategies for multi-party (3)

Answer 16

Individual / power based approaches
Coalition formation
group problem solving

Question 17

Group based problem solving

Answer 17

If we work together, what are the chances we succeed?
3 factors predictive productivity:
Actual productivity = Potential productiviy + interaction gains - interaction losses

Question 18

Potential productivity

Answer 18

nature of the task
available resources
process managed effectively?

Question 19

Interaction gains

Answer 19

Social facilitation processes = some perform better when working in groups, more motivated

Group efficacy = believe more in groups, results in us trying harder and longer when others are around

Question 20

Interaction losses

Answer 20

Coordination issues - who speaks first, when, how
Social loafing - people may get laxy, work less hard in a group
Social inhibition - may lose motivation and perform worse in a group; reconcile social inhibition and social facilitation

Question 21

Managing multi-party negotiations

Answer 21

1) determine who to invite (or disinvite)
2) consider appointing a facilitator (interpersonally skilled, granted authority by all parties)
3) establish discussion norms (rules of order, opportunity for voice and info gathering
4) consider utilizing “delphi” technique (gather info on individual parties, combine info, adapt)
5) strive for an initial agreement (form a basis from which to work)
6) brainstorming vs. alternatives

Question 22

Multi-party tips

Answer 22

Understand the decison rule (who decides)

Invent, then evaluate (provide lots of time for exploration)

utilize process aids (visual aids or single text)

Question 23

Group Superiority Effect

Answer 23

Groups tend to be more effective than individuals but individuals tend to be more efficient

Groups learn faster and make fewer errors, but can be less productive

Question 24

Conjunctive Tasks

Answer 24

Performance depends on how well the least talented member is:

• weakest link
• teams usually do worse than individuals

group size negatively correlated with performance

Heterogeneity: decreases productivity in conjunctive tasks

Question 25

disjunctive Tasks

Answer 25

Performance depends on how well the most talented member is: - teams more effective than individuals if the most talented member can convince other team members to go along; high tide lifts all ships - works best when unique information is shared and there is one obvious best solution that can be demonstrated group size positively correlated with performance , but diminishes if team gets too large to effectively manage Heterogeneity - increases potential productivity in disjunctive tasks

Question 26

Team Negotiations

Answer 26

Added challenges: greater range of interests, personalities, relationships, procedural complexity Tend to result in more integrative agreements - more information exchange about interests and priorities - individuals and teams both tend to believe that the team has an advantage - 2-7 team members optimal; larger teams have coordination issues - Structure: leadership issues, social status / power of individuals - Roles: expected behaviors of positions; divisions of labor/specialization

Question 27

Team communication

Answer 27

Each member has unique information - need to pool that information Common information bials - teams tend to focus on common info rather than the more useful unique info

Question 28

Conflict Defined

Answer 28

Conflict - interdependent people perceive incompatible goals or interference with goal achievement - Direct interactionas a CHEAP means for resolving conflict/difference we initiate based upon our perceptions of difference

Question 29

Conflict downsides

Answer 29

Negativity, pessimism, frustration, criticism and blame, increased pitch and volume Can be beneficial, but could also spiral downward into ugly behaviors and personalization

Question 30

When do things go wrong?

Answer 30

Norm violation noted, rejection, personal attacks/insults, sarcasm and aggressive humor - anything that pulls away from tasks, toward the personal

Question 31

Benefits of conflict

Answer 31

signals growth and opportunity yield focus and energy gets problems into the open demonstrates effort and interest

Question 32

Three approaches to resolving Disputes

Answer 32

Focus on interests - what do they really want and why? Focus on rights - who is right and do they have a right to their claim Focus on power - What forms of coercion, who can hurt the other most effectively

Question 33

Interest Based Approach

Answer 33

Exploring the nature of the problem, building an environment that promotes exchange, probing questions Requires tolerance of conflict - rigid interests, flexible means to achieve goals Pros - more likely to reach agreement - more likely to abide by the agreement - more satisfying Cons - Added time and energy - what if there is a "right" answer?

Question 34

Rights Based Approaches

Answer 34

Must search for an OBJECTIVE view; turn to social standards, legal standards Pros - great when a clear standard exists - better for having broad impact, setting precedent - divide issues fairly; good for single issues ``` Cons Competing standards Biased use of standards - can become about values, which are usually non-negotiable - usually need 3rd party assistance ```

Question 35

Power: Foundations

Answer 35

Ability to accomplish objectives and overcome resistance; coerce or inflict harm

Question 36

Sources of Power

Answer 36

RICE Resource control - dependency, value Interpersonal linkages - quantity, quality Communication Skills - advocacy skills; strategy use Expertise - a form of resource control

Question 37

Powers and Threats; Levels

Answer 37

When you make a threat, will be judged on three levels: 1 - Magnitude of harm 2 - Probability of being carried out 3 - Can/will this solution meet my interests and solve my problem?

Question 38

Power Strategies

Answer 38

Higher power players - messages from powerful people carry added weight - externalize your power - give opportunity for voice - don't oversell, soften your demand Low Power players - dont fixate on a single source, use extreme caution when pushing powerful people - search for alternative power sources - change the nature of dependency - realize that the onus is on you to be creative

Question 39

Power Costs / Benefits

Answer 39

Pros - sometimes outcome more important than relationship - need for speed of implementation - previous efforts have failed/stalled - vengeance is key Cons - significant costs - can be viewed as aggressive, could create enemies - short term results, long term pain

Question 40

When to use rights and power

Answer 40

when other party wont come to the table when negotiations are at impasse and all other attempts fail when moving toward agreement and parties are positioning themselves

Question 41

How to maintain interest based approach

Answer 41

Dont reciprocate contention dont get personal or take personal Be willing to reciprocate concessions Attempt process interventions

Question 42

Responding Counter-intuitively

Answer 42

``` Avoid the tendency to push back, create incompatible responses REfrae as a problem to be solved invite criticism for your proposals ask quesions, "what if" create strong BATNA ```

Question 43

Steps to calm angry party

Answer 43

1) Solicit information - what happened 2) acknowlegement / Apology - acknowledge emotions 3) Clarify intentions, manage impressions 4) Potential restitution 5) Future relations...looking forward

Question 44

Succeeding in conflict - 5 themes

Answer 44

Work on timing Reduce tension early in the process - spend more time learning before hard decisions Recognize and highlight similarities, empathize, seek shared goals or interests Depersonalize Troubleshooting: change the process

Question 45

Neutral party pros and cons

Answer 45

``` Pros Increased rationality positive climate - "best behavior" creativity - rational solution seeker motivation ``` Cons higher levels of investment - more people more $$ Added layer of complexity Loss of control

Question 46

3rd party impact: Motivation

Answer 46

Power to bring parties together power re: incentives power to add resources and impact outcomes What mandate is given?

Question 47

3rd Party Impact: Outcomes

Answer 47

Arbitration - seeking an outcome ruling from an outside party History - union vs. management Variations - voluntary vs. compulsory; binding vs, non-binding; conventional vs final offer

Question 48

3rd party impact: Processes

Answer 48

Mediation and process consultation - manipulating behaviors; helping to facilitate an agreement through disputants

Question 49

Ethics

Answer 49

Applied values | Moral principles that set standards of good or bad, right or wrong in one's conduct

Question 50

Drivers of unethical behavior

Answer 50

Profit - Competitiveness - thrill of victory Justice - sweet irony of fairness Lack of preparation - we don't anticipate the tough questions **First 3 are red flags - opponents tempted to take an unethical approach

Question 51

Fraud

Answer 51

``` knowingly misrepresenting material facts on which the victim reasonably relies, causing damage 4 areas: Knowledgeable misrepresentation Material facts victim reliance causing damage ```

Question 52

Knowledgeable misrepresentation

Answer 52

Does your partner intentionally give a false impression Deception vs delusion reasonalbe knowledge Sins of commission vs omission - commission riskier

Question 53

material facts

Answer 53

material central or critical to decision making | Factual - not opinion based, subject to testing

Question 54

Bluffing vs. Fraud

Answer 54

Bluff - exxaggerated demand; concealing bottom line; creating an enhanced perception of strength Fraud - telling lies or allowing misperceptions via important facts, verifiable data, known plans or intentions

Question 55

victim reliance

Answer 55

burden of proof for fraud rests with the victim

Question 56

causing damage

Answer 56

How much was gained vs. lost

Question 57

Ethical bargaining tips

Answer 57

Set standards that provide ample cushion between you and the law bring HEALTHY SKEPTICISM to the table, especially when red flags arise

Question 58

Cross culture basics

Answer 58

shared ways of thinking/acting = expectations passed via rituals, narratives Iceberg!!

Question 59

Trompenaars' Model: Onion

Answer 59

Layer 1 - visible/visual reality Layer 2: norms and values Layer 3: unquestioned, basic assumptions

Question 60

Cultural Challenges

Answer 60

``` Uncertainty and anxiety Rapport and respect more difficult to build and maintain communication barriers becomes harder to make good solutions harder to reach agreements that last ```

Question 61

Individualism

Answer 61

Personal achievement, separate personal and professional, independence, efficiency > loyalty

Question 62

Collectivism

Answer 62

highlights in group ties, welfare and responsibility, group/company takes care, honors loyalty

Question 63

Power Distance

Answer 63

Egalitariansims - minimizes the importance of wealth/status, seeks equality Hierarchical - guided by status, deference to social order

Question 64

Remedies to cultural trap

Answer 64

seek to establish BALANCE Recognize cultural differences, be cognizant DELAY judgements, hesitate seek interpretations of culture-based members Re-structure our environment to maintain comfort f

Question 65

Top 5 Pithy Negotiation Tips

Answer 65

1) Prepare x3 2) Develop your BATNA 3) Take time to build rapport 4) Always seek to understand interests and priorities 5) Search for high quality deals - ethical, rational, efficient, socially, beneficial, stable