Week 1 Flashcards
(37 cards)
1
Q
Characteristics of a Negotiation
A
- Negotiation is a basic means of getting what you want from others
- There is a 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 - Back and forth communication designed to reach agreement
- Parties prefer searching for an agreement rather than:
- Fight openly
- Capitulate
- Break off contact permanently
- Take their dispute to a third party
- Negotiation involves tangibles and intangibles
2
Q
Interdependence
A
- In negotiation, parties need each other to achieve their preferred
outcomes or objectives
3
Q
Interdependent goals
A
➢ win-lose: I win, you lose (conflicting goals)
➢ win-win: opportunities for both parties to gain (convergent goals)
4
Q
Type of interdependence shapes processes and outcome
A
➢ Zero-sum or distributive – one winner
➢ Non-zero-sum or integrative – mutual gains
5
Q
Mutual adjustment
A
Throughout the negotiation, both parties act to influence the other
* An effective negotiator understands how people will adjust and readjust
and how the negotiation might twist and turn
6
Q
Which dilemma’s do negotiators face in mutual adjustment?
A
Dilemma of honesty, dilemma of truth
7
Q
Part of mutual adjustment is concession making
A
- When one party agrees to make a change in his/her position
- Fairness and reciprocity in concessions is importan
8
Q
Bargaining range & ZOPA
A
see slides
9
Q
How can conflict be defined
A
- sharp disagreement
- perceived divergence of interest
- belief that the parties’ current aspirations cannot be achieved simultaneous
10
Q
Dysfunctions of conflict
A
- Competitive, win-lose mindset
- Misperception and bias
- Emotionally charged
- Decreased communication
- Blurred issues
- Locked into positions
- Magnified differences
- Escalation
11
Q
Functions and benefits of conflict
A
- Content-related discussions
- Creative problem-solving
- Change and innovation
- Awareness of self and others
- Strengthened relationships
- Stimulating and fun
12
Q
Negotiation is a strategy for what?
A
➢Negotiation is a strategy for productively managing conflict
13
Q
Dual concerns model
A
see slides
14
Q
Distributive negotiations
A
- In distributive negotiations, the goals of one party are in fundamental
and direct conflict with the goals of the other party - Purpose of the negotiation is to claim value
- A competition over who is going to get the most of a limited resourc
15
Q
3 reasons every negotiator should understand distributive bargaining
A
- In order to do well in interdependent situations that are distributive
- To know how to counter the effects of such widely used strategies
- Every negotiation requires skills at the “claiming-value” stage
16
Q
Basic elements of distributive bargaining situations 1
A
- Positions
- Opening offers
- Create room for making concessions
- Target points
- Stretch goals that parties aspire to
- People who aim high get better deals but don’t become too greedy with
a large stretch goal - Resistance points
- Negotiators will not go beyond this point (i.e., their bottom line)
- Should be kept secret from the other part
17
Q
basic elements of distributive bargaining situations 2
A
- ZOPA
- When resistance points overlap, there is a positive bargaining range
- With a negative bargaining range, there is no room for settlement
- Concessions
- Patterns of concession making contain valuable information
- Final offers
- “This is all I can do”
- “I asked my boss and he allowed me to give you a special deal…”
- Settlement point
18
Q
Alternatives to a negotiated agreement
A
- Every interdependency has an alternative; negotiators can always walk
away - But how attractive are the alternatives?
➢BATNA (acronym for Best Alternative to a Negotiated Agreement) - People with strong BATNAs
- Set their goals higher
- Make fewer concessions
- If no attractive alternatives, negotiators have little bargaining pow
19
Q
developing negotiation power
A
- To develop your power, answer the following questions:
✓What is my BATNA?
✓Should I disclose my BATNA to the other side during
negotiations?
✓If I have a weak BATNA, should I lie about my alternatives?
✓Do I know what the other side’s BATNA is? How can I find their
BATNA?
✓How can I weaken the other side’s BATNA?
✓How can I strengthen my BATNA?
20
Q
Goals in distributive bargaining
A
- Settlement as close to the other party’s resistance point as possibl
21
Q
Strategies in distributive bargaining
A
➢Learn as much as possible about the other party’s position
- BATNA
- Resistance point
➢Influence the other party’s belief about what is possible
- Convince the opponent of your position
- Make the opponent change their mind about their own position
- Put the opponent under pressure
22
Q
Hardball tactics
A
- Good cop/bad cop
- Lowball/highball
- Bogey
- Intimidation
- Etc.
23
Q
Use of deceptive tactics
A
- Deception by omission: not disclosing information that would
benefit the other - Deception by commission: actually lying
24
Q
Taking positions
A
- Opening stance
- What attitude will you adopt during the negotiation? Competitive
or moderate? - Opening offer
- Who makes the first offer?
- Where do you start?
- How do you make the offer?
25
Divide the pie negotiations
* Distributive
* Competitive
* Win/lose
* Zero sum
* Adversarial
* Claiming value
* Position-based
26
Enlarge the pie negotiations
* Integrative
* Cooperative
* Win/win
* Non-zero sum
* Problem-solving
* Creating value
* Interest-based
27
What makes integrative negotiation different?
* Focus on commonalities rather than differences
* Address needs and objectives, not positions
* Exchange information and ideas
* Commit to meeting the needs of all involved parties
* Invent options for mutual gain
28
Factors that facilitate integrative negotiations
* Some common objective
* Faith in one’s own problem-solving ability
* A belief in the validity of the other’s perspective
* Firmness in pursuing one’s own position
* Balance in power
* Trust
* Communication skills
* Multiple issues
* Importance of a long-term relationship
29
Key steps in integrative negotiation process
Creating value through: 1. Identify and define the problem
2. Surface interests and needs
3. Generate alternative solutions
And claiming value through: 4. Evaluate and select among alternative
30
Identify and define the problem (integrative)
* State the problem in neutral terms
* Status the problem as succinctly as possible but comprehensively
* State the problem as a goal
* Identify any obstacles in attaining the goal
* Depersonalize the problem
* Do no jump to solutions until the problem is fully defined
31
Surface interests and needs (integrative)
* Types of interests
- Substantive interests
- Process interests
- Relationship interests
- Interests in principles
* Dialogues
➢ Why do I want this? Why is that important to me?
➢ Ask probing questions to the other party and pay careful attention
* Interests can change (quickly)
32
Generate alternative solutions (integrative)
* Redefine the problem as win-win
- Expand and modify the pie: add resources so that both
parties can achieve their objectives
- Logrolling: find more than one issue in conflict for
which priorities differ
- Nonspecific compensation: unrelated to substance of
negotiation but helps the other party to agree with the
deal
* Generate options to the problem as given
- Brainstorming
- Survey
33
Evaluate and select alternatives (integrative)
* Narrow the range of solutions
* Evaluate solutions on quality and acceptability
- Agree on objective criteria in advance!
* Explore differences and trade off loss in some issues for gain in
others (i.e., logrolling)
* Hold decisions tentative until final agreement is closed
* Don’t lose sight of the integrative process!
- Keep searching for interests and be alert to intangibles
- Keep paying attention to the relationship
34
Principled negotiation (integrative)
* Four principles for integrative negotiation (Fisher & Ury in Getting to
Yes)
1. People
- Separate the people from the problem
2. Interests
- Focus on interests, not positions
3. Options
- Invent options for mutual gain
4. Criteria
- Insist on using objective criteria
35
Winner's curse
*When making the first offer, watch out for the winner’s curse
- Feeling discomfort about a win that comes too easily
➢Let the other party throw in the first price when you are
dealing with something of which the value is very uncertain
36
First offers as anchors
If the buyer makes the first offer, sale price is often not as high when as when the seller makes the first offer
Making the first offer leads to a distributive advantage in negotiations
* Anchoring and adjustment
37
How to make the first offer
request frames reduce first mover advantage because it makes responder concession averse. Offers with phantom anchors result in less aggressive counteroffers and more beneficial agreements but also in perceptions of manipulativeness
