All Weeks - Negotiation Flashcards
What is negotiation?
The act of back and forth communication intended to reach and agreement when you and the other side have some interests that are shared and others that are opposed.
What are the three reasons that negotiations occur?
1) to agree on how to share or divide a limited resource, such as land, property, or time.
2) to create something new that neither party could do on their own.
3) to resolve a problem or dispute between the parties.
What is Avoidance (lose-lose)?
The priorities for the relationship and the outcome are low.
What is Avoidance (lose-lose)?
Neither aspect of the negotiation is important enough for you to pursue the conflict further.
What is Avoidance (lose-lose)?
Implement this strategy by withdrawing from active negotiation or by avoiding negotiation entirely.
What is Accommodating (lose to win)?
Identifies the importance of the relationship is high and the importance of the outcome is low.
What is Accommodating (lose to win)?
In this situation one backs off the concern for the outcome to preserve the relationship.
What is Competitive (win-lose)?
Strategy is used if you want to win at all cost.
What is Competitive (win-lose)?
No concern about the future state of the relationship.
What is Competitive (win-lose)?
Assumption is that the future relationship is not important while the specific outcome is important.
Factors in Competitive Strategy
1) Each side has a bargaining range which consists of Starting point, a Target and Ending point (walking away point).
2) Starting point is announced or inferred as the negotiation begins.
3) Target point is one’s aspiration point.
4) Walk-away point is the cutoff point, usually not known nor stated.
A Good Alternative
An alternative or BATNA (best alternative to a negotiated agreement) is the option that is pursued if the current negotiation fails.
Collaborative (Win-Win)
Strategy there is a high priority for both the relationship and the outcome. Parties attempt to maximize their outcomes while preserving or enhancing the relationship.
Collaborative (Win-Win)
This results is most likely when both parties can find a resolution that meets the needs of each.
Compromising Strategy * split the difference
Compromising or middle ground is using a satisfying strategy.
Compromising Strategy * split the difference
It represents a combination approach that is used in a variety of situations.
Compromising Strategy * split the difference
It is often used when the parties are under time pressure and need to come to resolution quickly.
Integrative Bargaining (Collaborative)
Focus on commonalities rather than differences.
Integrative Bargaining (Collaborative)
If one side achieves its goals, the other is not necessarily precluded from achieving its goals, One party’s gain is not necessarily at the other party’s expense.
Integrative Bargaining (Collaborative)
Attempt to address needs and interests, not positions.
Integrative Bargaining Process
Identify and define the problem in a way that is mutually acceptable to both sides.
Factors That Facilitate Integrative Bargaining
Some common goal or objective
Common goal is one that all parties share equally, each one benefitting in a way that would not be possible if they did not work together.
Shared goal is one that both parties work toward but that benefits each party differently.
Joint goal is one that involves individuals with different personal goals agreeing to combine them in a collective goal.
Distributive Bargaining (Win-Lose)
A competition over who is going to get the most of a limited resource.
Distributive Bargaining (Win-Lose)
Goal of one party is usually in fundamental and direct conflict with the other party.
Distributive Bargaining Process
When they are at the claiming value stage of negotiations.
Distributive Bargaining Process
Target point is a negotiator’s optimal goal or the point at which he/she would like to conclude negotiations.
Resistance point is a negotiator’s bottom line- the point beyond which a person will not go. This is not known to the other party and should be kept a secret.
The asking price is the initial price set by the seller, or the first number quoted by the seller.
Distributive Bargaining Process
Both parties to a negotiation should establish their starting point, target, and resistance point before beginning a negotiation.
BATNA
An alternative plan in case the negotiation doesn’t go according to plan.
