All Weeks - Negotiation

Question 1

What is negotiation?

Answer 1

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.

Question 2

What are the three reasons that negotiations occur?

Answer 2

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.

Question 3

What is Avoidance (lose-lose)?

Answer 3

The priorities for the relationship and the outcome are low.

Question 4

What is Avoidance (lose-lose)?

Answer 4

Neither aspect of the negotiation is important enough for you to pursue the conflict further.

Question 5

What is Avoidance (lose-lose)?

Answer 5

Implement this strategy by withdrawing from active negotiation or by avoiding negotiation entirely.

Question 6

What is Accommodating (lose to win)?

Answer 6

Identifies the importance of the relationship is high and the importance of the outcome is low.

Question 7

What is Accommodating (lose to win)?

Answer 7

In this situation one backs off the concern for the outcome to preserve the relationship.

Question 8

What is Competitive (win-lose)?

Answer 8

Strategy is used if you want to win at all cost.

Question 9

What is Competitive (win-lose)?

Answer 9

No concern about the future state of the relationship.

Question 10

What is Competitive (win-lose)?

Answer 10

Assumption is that the future relationship is not important while the specific outcome is important.

Question 11

Factors in Competitive Strategy

Answer 11

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.

Question 12

A Good Alternative

Answer 12

An alternative or BATNA (best alternative to a negotiated agreement) is the option that is pursued if the current negotiation fails.

Question 13

Collaborative (Win-Win)

Answer 13

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.

Question 14

Collaborative (Win-Win)

Answer 14

This results is most likely when both parties can find a resolution that meets the needs of each.

Question 15

Compromising Strategy * split the difference

Answer 15

Compromising or middle ground is using a satisfying strategy.

Question 16

Compromising Strategy * split the difference

Answer 16

It represents a combination approach that is used in a variety of situations.

Question 17

Compromising Strategy * split the difference

Answer 17

It is often used when the parties are under time pressure and need to come to resolution quickly.

Question 18

Integrative Bargaining (Collaborative)

Answer 18

Focus on commonalities rather than differences.

Question 19

Integrative Bargaining (Collaborative)

Answer 19

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.

Question 20

Integrative Bargaining (Collaborative)

Answer 20

Attempt to address needs and interests, not positions.

Question 21

Integrative Bargaining Process

Answer 21

Identify and define the problem in a way that is mutually acceptable to both sides.

Question 22

Factors That Facilitate Integrative Bargaining

Answer 22

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.

Question 23

Distributive Bargaining (Win-Lose)

Answer 23

A competition over who is going to get the most of a limited resource.

Question 24

Distributive Bargaining (Win-Lose)

Answer 24

Goal of one party is usually in fundamental and direct conflict with the other party.

Question 25

Distributive Bargaining Process

Answer 25

When they are at the claiming value stage of negotiations.

Question 26

Distributive Bargaining Process

Answer 26

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.

Question 27

Distributive Bargaining Process

Answer 27

Both parties to a negotiation should establish their starting point, target, and resistance point before beginning a negotiation.

Question 28

BATNA

Answer 28

An alternative plan in case the negotiation doesn’t go according to plan.