9.3: Explain when to negotiate, and when not to. Flashcards
In which everyday situations do people commonly negotiate?
Assigning work, getting projects, purchases and discounts, deadlines with clients, and support for ideas in group meetings.
What is a misconception about negotiation? (OB Myth 9.2)
That negotiation always creates a winner and a loser. The best negotiations aim for win-win outcomes.
What is a better alternative to the win-lose or even win-win mindset?
A “both are better off” (BABO) mindset, which promotes mutual improvement over competition.
How do you know when an issue is NOT negotiable?
When no value can be added through negotiation. For example, safety rules or unexcused absences should not be negotiated.
What is the danger of negotiating nonnegotiable issues?
It undermines legitimate authority and adds no value (e.g., negotiating with kids over seat belts).
What does BATNA stand for?
Best Alternative to a Negotiated Agreement.
Why is knowing your BATNA important?
It helps you determine if negotiating will lead to a better outcome than your current situation.
What should you compare to determine if negotiation is worthwhile?
Compare the benefit of the negotiated outcome minus your BATNA to the cost of negotiating.
What costs should be considered when deciding to negotiate?
Direct costs (e.g., travel)
Indirect/opportunity costs (e.g., lost time)
Likelihood and value of favorable outcomes
How does a poor BATNA affect negotiation?
It makes meaningful negotiation very difficult, as you have little to leverage.
What is an example of applying BATNA in decision-making?
Deciding whether to interview for a new job by weighing benefits vs. costs like time, money, or risk at your current job.
