14 Negotiation Flashcards
Contrast distributive and integrative bargaining
Define
negotiation
Negotiation
A process in which two or more parties exchange goods or services and attempt to agree on the exchange rate for them.
Negotiation
Distributive vs Integrative Bargaining
Goal
Negotiation
distributive: get as much of the pie as possible
integrative: expand the pie so that both parties are satisfied
Negotiation
Distributive vs Integrative Bargaining
Motivation
Negotiation
distributive: win-lose
integrative: win-win
Negotiation
Distributive vs Integrative Bargaining
Focus
Negotiation
distributive: positions
integrative: interests
Negotiation
Distributive vs Integrative Bargaining
interests
Negotiation
distributive: opposed
integrative: congruent
Negotiation
Distributive vs Integrative Bargaining
information sharing
Negotiation
distributive: low
integrative: high
Negotiation
Define
distributive bargaining
Negotiation
Negotiation that seeks to divide up a fixed amount of resources; a win-lose situation
Negotiation
Define
fixed pie
Negotation
The belief that there is only a set amount of goods or services to be divvied up between or among the parties
Negotiation
What is the best course of action in distributive bargaining?
Negotiation
make the first offer, and make it an aggressive one.
Reason: making the first offer shows power; making the first offer creates an anchoring bias.
Negotiation
Describe
anchoring bias
Negotiation
- people tend to fixate on initial information
- once the anchoring point has been set, they fail to adequately adjust it based on subsequent information
Negotiation
Define
integrative bargaining
Negotiation
Negotiation that seeks one or more settlements that can create a win-win solution
Negotiation
Fill in the blank
In terms of intraorganizational behavior, ____ bargaining is preferable to ____ bargaining.
Negotiation
integrative bargaining is preferable to distributive bargaining
Negotiation
Why is integrative bargaining better than distributive bargaining in terms of intraorganizational behavior?
Negotiation
- integrative bargaining builds long-term relationships
- win-win
- breeds cooperation
Negotiation
Expalin
why don’t we see more integrative bargaining in organizations?
Negotiation
- The conditions necessary for its success rarely exist in organizations
- This leads to a win-at-any-cost dynamic
Negotiation
Apply
five steps of the negotiation process
Negotiation
- preparation and planning
- definition of ground rules
- clarification and justification
- bargaining and problem solving
- closure and implementation
Negotiation