Ch.4 Flashcards
The goals set have direct and indirect effects on the negotiator’s strategy. What are the direct effects?
- Wants are not goals
- Goals are often linked to the other party’s goals
- Goals must be attainable
- Effective goals must be concrete, specific and measurable
The goals set have direct and indirect effects on the negotiator’s strategy. What are the indirect effects?
Forging an ongoing relationship. Ex: you are going to buy your grandmother’s car and could get a cheap price bc she doesn’t know anything about cars. But it might ruin the relationship if she discovers it.
What arethe steps of the planning process
- Define the issues
- Assemble the issues and define the bargaining mix
- Define your interests
- Define limits(resistance point) and alternatives
- Set your targets and opening bids (where to start)
- Assess constituents and the social context of the negotiation
- Analyze the other party’s ( resources, interest, resistance points, reputation, etc)
- Plan the issue presentation and defence
- Defining the protocol to be followed in the negotiation
What is asking price
the best outcome that one can hope to achieve
What is the bargaining mix
the combined list of issues from each side
What are the two steps of prioritization
- Determine which issues are most important and which are less important.
- Determine whether the issues are linked or separate. ( if separate, issues can easily be added and subtracted, if linked making concessions on one issue will be linked to some other issue)
What are alternatives
Other agreements negotiators could achieve and still meet their needs
Target setting requires three things
- Target setting requires positive thinking about our own objectives
- Target setting often requires considering how to package several issues and objectives
- Target setting requires an understanding of trade-offs and throwaways
Explain a throwaway item
If the item( issues) can be ignored in the bargaining mix.
Trade-offs
something that might not have a value for you but you know it has a value to the other party, so you can trade it off for something that is important to you. Might be useful to find a common dimension( such as dollar), although it doesn’t always work.
When assessing constituents and the social context of the negotiation, it is important to use field analysis. Explain
a. The direct actors (who is on the fiel on our side? Negotiators?)
b. The opposite actors ( who is on the field on their side?)
c. Indirect actors (who is on the sidelines?)
d. Interested observers (who is in the stands)
e. Environmental factors( what is going on in the broad environment of the game-outside the stadium,, but shaping and defining what happens in the stadium)
What are the three important things when analyzing the other party
The other party’’s :
- resources, issues, and bargaining mix
- interests and needs
- limits and alternatives
- target and openings
- constituents, authority, and social structure
- reputation and style
- strategy and tactics
What is important when analyzing the other party;s interests and needs
- conducting a preliminary interview: broad discussion of what the other party would like to achieve in the upcoming negotiations.
- anticipating the other party;s interests
-a asking others who know or have negotiated with the other party - reading how the other party portrays himself or herself in the media
Explain what includes in defining the protocol to be followed in the negotiation
The agenda
The location
The length
What might be done if negotiation fails?
How will we keep track of what is agreed to?
How do we know whether we have a good agreement?
What is the difference between strategy vs tactic
Strategy: The overall plan to accomplish one’s goals in a negotiation
Tactics: Short-term, adaptive moves designed to enact or pursue broad strategies
- Tactics are subordinate to strategy
- Tactics are driven by strategic considerations
What are the two approaches to strategy
Unilateral choice – one that is made without active involvement of the other party
Bilateral – considers information about the other party, as well as the impact of the other’s strategy on one’s own
Explain the dual concerns model
Was developed to describe te basic orientation people take toward conflict.
Two levels of concern: level of concern for their own outcome( substantive) and level of concern for the other’s outcomes( relational).
Collaboration in the dual concerns model
Substantive: yes
Relational: Yes
Competition in the dual concerns model
Substantive: yes
Relational: No
Accommodation in the dual concerns model
Substantive: No
Relational: Yes
Avoidance in the dual concerns model
Substantive: No
Relational: NO
When does competing work best
- a large sale
- If terms are critical( can’t change your terms)
When does avoiding work best?
When does avoiding work best?
- if outcome doesn’t matter
- trying to be mutual, not engage
When does accommodating work best?
company has caused harm to a customer or other company and need accommodator to step in
Characteristics of accommodating:
- maintaining the relationship
- Way to win people over
Share too much information - less assertive
- usually well liked
Characteristics for compromising
Tends to split the difference
- Exchange concessions with the other party
- Look for a quick middle ground
- Form of bargaining
The choice of strategy is reflected in the answers to two questions:
How much concern do I have for achieving my desired outcomes at stake in the negotiation?
Strong interest in substantive outcomes
How much concern do I have for the current and future quality of the relationship with the other party?
Strong interest in relationship goals
What are the two alternative situational strategies
- The Non-engagement Strategy: Avoidance
- Active-engagement Strategies
Explain the Non-engagement Strategy: Avoidance
If one is able to meet one’s needs without negotiating at all, it may make sense to use an avoidance strategy
It simply may not be worth the time and effort to negotiate
The decision to negotiate is closely related to the desirability of available alternatives
Explain the Active-engagement Strategies
Competition – distributive, win-lose bargaining (“I win, you lose”)
Collaboration – integrative, win-win negotiation
Accommodation – involves an imbalance of outcomes in opposite direction (“I lose, you win”)
