Chapter 1 Flashcards
Why do we negotiate?
- to agree on how to share or divide a limited resource
- to create something that new that neither party could attain on his or her own
- to resolve a problem or dispute between the parties
Bargaining
describes the competitive, win-lose situation
Negotiation
refers to the win-win situation such as those that occur when parties try to find a mutually acceptable solution to a complex conflict
Characteristics of a negotiation situation
- There are two or more parties
- There is a conflict of needs & desires btwn 2 or more parties
- Parties negotiate bc they think they can get a better deal than by simply accepting what the other side offers them
- Parties expect a “give and take” process
- Parties search for agreement rather than fighting openly, capitulating, permanently breaking off the contract, taking their issue to a third party
- Successful negotiation that involved management of intangibles and resolution of intangibles
What is interdependence?
mutual dependency where parties need each other to achieve their preferred outcomes or objectives
Zero-sum/ distributive bargaining
one winner, win-lose
Non-zero sum/ integrative
mutual gains situation, win-win
BATNA
Best Alternative to a Negotiated Agreement–negotiators need to understand their BATNA as well as other parties
Best strategy for mutual adjustment
the more information that one person has about the other party, the better
What is a concession and what does it do to the bargaining range?
a concession statement is when one party agrees to make a change in his/her position based on the other party’s suggestion to do so; when a concession is made, the bargaining range is further constrained
What are the two dilemmas found in mutual adjustment?
dilemma of honesty and dilemma of trust
dilemma of honesty
concern about how much of the truth you decide to tell the other party AKA how much are you willing to be honest about?
dilemma of trust
concern about how much negotiators believe what the other party tells them AKA how much are you willing to trust the other party?
Distributive bargaining
the purpose of this type of negotiation is to claim value–to do whatever is necessary to claim the reward or gain the largest piece possible (zero sum)… usually happens when negotiations are reaching an end or limit
Integrative bargaining
the purpose of this approach to negotiation is to create value, or find a way for all parties to meet their goals and share the reward (non-zero sum)