Ch 1: Nature of Negotiation Flashcards
What is the author’s approach to negotiation
A win-win situation
A complex social process
Process by which two parties attempt to resolve their opposing interest
Several characteristics of negotiation situation
- There are two or more parties
- Conflict of needs and desires between the parties and it needs to be resolved
- Parties negotiate by choice
- When we negotiate we expect a give and take process that is fundamental to our understanding of the term negotiation
- Parties prefer to negotiate than fight openly and make. a scene
- Successful negotiation involves management of the tangibles( the price or terms of agreement) and intangibles( psychological motivators- need to be right, win, look tough
- Interdependence
What is Interdependence
Means that the parties rely in each other, they need each other to function
They may have to work together
Or they choose to, because they can get better outcomes if you do.
What are the 5 types of Interdependence
Sequential
Pooled
Reciprocated
Task
Goal
Zero-sum or distributive situations
Persons try to split limited resources. Typically one person achieves goal and the other doesn’t
How does type of Interdependence affect outcomes
I dont know- look up
How do alternatives shape Interdependence
If parties have a better alternative to working together, they will go fo it
What is BATNA
Best Alternative To a Negotiated Agreement..
Next best thing
What is mutual adjustment
Parties must make some adjustment to their position to reach an agreement that satisfies both
So Both can influence each other to make adjustments to their stance
What us a concession
Reducing range of options within which a solution can be reached
Two dilemmas if mutual concession
Dilemma of honesty: how much of the truth to share with other party
Dilemma of trust: how much should u belive what the other party says
What is value creating and value claiming
Non-zero sum: when goals are linked in such a way that one person’s goal achievement helps another achieve their goals
In distributive bargaining the aim is to claim value as there can only be one winner
In integrative bargaining the aim is to find solutions in which both parties can do well and achieve their goals
(Finding satisfactory solutions is the creating of value)
Most negotiations are a combination of seeking to claim value and create value. What then are the 3 implications of this?
- Negotiators must be able to recognize situations that require more of one approach than the other: those that require predominantly distributive strategy and tactics, and those that require integrative strategy and tactics
Distributive: when time and money limited, when other party is likely to be competitive, no chance of interaction in the future
- Negotiators must be versatile in their comfort and use of both major strategic approaches
- Negotiator perceptions of situations tend to be biased toward seeing problems as more distributive/competitive than they really are. Accurately perceiving the nature of the interdependence between the parties is critical for successful negotiation.
What are the 4 differences in negotiators
Differences in interest
Differences in judgments about the future.
Differences in risk tolerance.
Differences in time preference
while value is often created by exploiting common interests, differences can also serve as the basis for creating value.
What is conflict
Conflict may be defined as a “sharp disagreement or opposition, as of interests, ideas, etc.” and includes “the perceived divergence of interest, or a belief that the parties’ current as
What are the four levels of conflict
Intrapersonal or intrapsychic conflict
Interpersonal conflict.
Intra group conflict
Intergroup conflict
Elements that contribute to negative perception of conflict
- Competitive win-loss goals
- Misperception and bias
- Emotionality
- Decreased communication
- Blurred issues
- Rigid commitments
- Maximised differences and minimized similarities
- Escalation of the conflict
What are the 7 ways in which conflict can be productive?
… fill in on Sat night
Factors that make conflict easy/difficult to manage
If issue is based on values, ethics or if it can be easily divided into small parts, pieces, units.
Size of stake- large/small
Interdependence- degree to which one party’s win means certain losses for the other
Continuity of interaction
Structure of parties
Involvement of 3rd parties (None- more difficult, 3rd party-less difficult)
Perceived progress of conflict: balanced
Effective conflict management- Dual Concerns model
People in conflict have 2 concerns- one for self (x-axis) and one for the other(y-axis)
When party cares more for self- pursues strategies to the left; for others- to the right.
Yielding(accommodating/obliging)
Inaction(avoiding)- withdrawal/passivity/retreat/be silent/ do nothing
Compromising- the middle; let’s settle
Problem-solving (Collaborating)
Contending (Competing/dominating)- try to get other party to yield.
When is it appropriate to use the integrating conflict management approach
When the issue is complex
When the synthesis of ideas is needed to come up with better solutions
Not Appropriate when:
Issue is simple
Immediate decision required
When is it appropriate to use the obliging conflict management approach
When you think you are wrong
When the issue is more important to other parties.
Not appropriate:
Issue important to you
You think you are right
Other party is wrong/unethical
When to use Dominating approach
Issue is trivial
Speedy decision needed
Necessary to overcome assertive subordinates
Not:
Issue complex
Issue not important to you
Decision does not need to be made quickly
When do you use the avoiding approach?
Issue is trivial
Potential dysfunctional effect of controlling other parties outweighs the benefits
A cooling off period is needed
Not:
Issue is important to you
Your responsibility to make decision
Prompt attention needed
When it is appropriate to use Compromising
Goals for both parties are mutually exclusive
Parties are equally powerful
Consensus cannot be reached
Not:
One party is more powerful
Problem complex enough to need a problem-solving approach
