1. Nature of Negotiation Flashcards
1
Q
Why do negotiations occur?
A
- To agree on how to share or divide a limited resource
- To create something new that neither party could attain on his or her own
- To resolve a problem or dispute between the parties
- Sometimes we fail just because we do NOT recognize we are in a negotiation situation
2
Q
Two Negotiation Concepts
A
Bargaining: Win-lose competitive situations
Negotiation: Win-win situations
3
Q
The definition and characteristics of negotiation
A
- Two or more parties
- 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
- Parties expect a “give-and-take” process
4
Q
Parties search for agreement rather than:
A
- Fight openly
- Surrender
- Break off contact permanently
- Take their debate to a third party
5
Q
Successful negotiation involves:
A
- Management of tangibles (e.g. the price or the terms of the agreement)
- Resolution of intangibles (the underlying psychological motivations) such as winning, losing, saving face, appear fair
6
Q
Interdependence of negotiations
A
- Interdependent parties are characterized by interlocking goals
- This does not mean that everyone wants or needs exactly the same thing
- Sometimes there is a mix of convergent and conflicting goals
7
Q
The type of interdependence affects processes and outcomes
A
- Zero-sum or distributive – one winner
- Non-zero-sum or integrative – a mutual gains situation
8
Q
Mutual Adjustments
A
- As parties act to influence each other in a negotiation, they engage in a mutual adjustment
- Concession: When one party agrees to make a change in his/her position
9
Q
Two strategies in Mutual Adjustments
A
- Outcomes perception – try to manage how the receiver views your proposal
- Process perception – try to create an image that signals fairness and reciprocity in proposal and concessions
10
Q
Two dilemma’s in mutual adjustment
A
- Dilemma of honesty - how much of the truth to tell the other party
- Dilemma of trust- how much should negotiators believe what the other party tells them
11
Q
Value Claiming and Creation
A
- Claiming value: result of zero-sum or distributive situations where the object is to gain largest piece of resource (distributive bargaining)
- Creating value: result of non-zero-sum or integrative situation where the object is to have both parties do well (integrative negotiation)
12
Q
How to create value?
A
- Exploiting differences between the parties, such as:
- Differences in interests;
- Differences in judgments about the future;
- Differences in risk tolerance;
- Differences in time preferences.
