Topic 16: Negotiation Flashcards Preview

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Flashcards in Topic 16: Negotiation Deck (18):
1

What is negotiation?


Negotiation is the process whereby two or more conflicting parties attempt to resolve their divergent goals by redefining the terms of their interdependence. 

Where:

  • Agreement is voluntary.
  • Deadlock is a possible outcome.

2

What is a BATNA?

Best alternative to a negotiatied agreement.

 

3

In negotiation, what are interests and positions?

  • Interests: What a party really values as important to achieve.
  • Positions: What a party states as a claim to the other side.

4

What is positional bargaining?

  • Distributive Negotiation. (win-lose.)
  • Limited resources view - what one side gains the other must lose. 

5

What is principled bargaining?

  • Integrative Negotiation. (win-win.)
  • Focus on the real interests of each party - these may differ enough to enable both sides to gain what they value most. 

6

How is the duel concern model modified for negotitation?

Assertaveness = Concern for self / own outcome and goals.

Cooperativeness = Concern for others outcomes / relationship maintaince.

7

What are some tactics to distribututive negotiation?

  • Exaggerate true interested by stated position to influence opponents belief about possible settlements.
  • Get opponent to alter reservation/resistance point.
  • Emphasise risks of not settling on curent offer.

8

What are the dangers to distributive negotiation?

  • Overcommitment to own initial position.
  • Excessive focus on opponents position.
  • Blindness to trade offs that help one side without damaging other.
    • Myth of the fixed pie.

9

What are some tactics to integrative negociation?

  • Expand the pie. (Requires more then one aspect of interest.)
  • Unbundle the issues. (create dimensions of interest.)
  • Introduce non-specific compensation.
  • Give big concessions to the other side that are cheap for you, valuable to them.

10

What factors effect negotiation outcomes?

  • Negotiator power.
    • This could mean a better BATNA. 
    • Greater power -> less integrative bargaining.
  • Cognitive biases in negotiation, which affect perception of:
    • Positions.
    • Concessions
    • Risk.

11

What is the process of negotiation?

  1. Time management.
  2. Phases of the negotiation.
  3. Tactics in the negotiation.

12

What are the phases of negotiation?

  • Preperation.
  • Contact.
  • Explore interests.
  • Create options.
  • Endgame.

13

Describe the preperation phase in negotiation.

  • Identify your side’s needs
  • Research your BATNA
  • Research the other side
  • Develop your power 

 

14

What is process power?

Power you hold in negotiations, due to situation factors like:

  • Timing of meetings.
  • Place.
  • People to be present.
  • Agenda.
  • Concession moves.

15

Outline the contact phase in negotiations.

  • Gather information.
  • Listen.
  • Understand.
  • Acknowledge. (describe problem in terms of their interests).
  • Act. (focus on and explore interests.)

16

Outline the explore phase in negotiations.

  • Ask lots of questions.
  • Substantive interests (outcome desired).
  • Procedural interests (to be fully heard).
  • Psychological and emotional interests.

17

Outline the create options phase in negotiations.

  • Suggest more dimensions
  • Non-specific compensation
  • Make some concessions to create new packages.
  • Support with research.

18

Outline the last phase in negotiations.

The endgame.

  • Usually distributive on remaining competing interest.
  • Concessions in ever smaller increments
  • Power used to trigger agreement.