Chapter 1: Nature of Negotiations Flashcards
Difference between bargaining and negotiation
Bargaining: describes the competitive, win-lose situation
Negotiation: refers to win-win situations such as those that occur when parties try to find a mutually acceptable solution to a complex conflict
Characteristics of a negotiation situation (List down 4)
- Two or more parties
- When there is a conflict of needs and desires between two parties - lead to (scarcity of resources)
- Parties negotiate because (they think they can better deal) than by accepting what the other side offers them
- Parties expect (reciprocity)
Characteristics of negotiation situation:
Parties search for mutual agreement rather than (List 4)
- Fight Openly
- Giving in quickly
- Break off contact permanently
- Take dispute to third party
Characteristics of negotiation situation:
Successful negotiation involves (List 2)
- (Management of Tangibles) eg. price or terms of agreement
- (Resolution of intangibles) - underlying psychological motivations like winning/losing
What is interdependence?
In negotiation, parties need each other to achieve their preferred outcomes or objectives.
- mutual dependence is called interdependence
-win-win: opportunities for both parties to gain
(Having interdependent goals does not mean that everyone wants or needs exactly the same thing)
(mix of convergent and conflicting goals)
What are the issues in interdependence (List 5)**
- (type of interdependence affects outcomes)
- customer vs vendor, prof vs student, politician vs citizens - (Alternatives shapes interdependence)
- (Mutual adjustment (concession making) shapes interdependence)
- (Two dilemmas in mutual adjustment)
- (Value claiming and value creation)
How do alternatives shape interdependence** (list 3)
- (Evaluating interdependence depends heavily on the alternatives if you dont work together
- would party be better off through collaboration - The desirability to work together is better for outcomes
- Best available alternative through BATNA
How does mutual adjustment shape interdependence**
Mutual adjustment continues throughout the negotiation as both parties act to influence the other
Gives way to changes that occur during a negotiation
The effective negotiator needs to understand how people will adjust and readjust based on one’s own moves and the other’s responses
When there is a change in position - this signifies that a concession has been made
when concessions are made, bargaining range further constrained
Example of concession making
Example: Sue expected starting salary $80,000. She gives a concession of $5,000 and now expects $75,000. Range is constrained, options are restricted
What are the dilemmas in mutual adjustment (List 2)**
- Dilemma of honesty
- concern of how much truth to tell the other party - Dilemma of trust
- Concern about how much should negotiators believe what the other party tells them
difference in value claiming and value creation
Most actual negotiations are a combination of claiming and creating value processes
Opportunities to “win” or share resources
▪Claimingvalue: resultofzero-sumordistributive situations where the object is to gain largest piece of resource
▪Creatingvalue: resultofnon-zero-sumorintegrative situation where the object is to have both parties do well
Value Claiming and Value Creation
What are the value differences that exist btw negotiatiors**
(IJRT)
- Differences in interest
- Differences in judgments about the future
- Differences in risk tolerance
- Differences in time preferences
What is conflict?
Defined as a “sharp disagreement or opposition” and includes “the perceived divergence of interest
What are the different levels of conflict (individual)
- Intrapersonal conflict
▪Conflict that occurs (within) an individual (internal dilemma)
➢We want an ice cream cone badly, but we know that ice cream is very fattening - Interpersonal conflict
Conflict is between individuals
➢Conflict between bosses and subordinates, spouses, siblings, roommates, etc.
What are the different levels of conflict (group)
- Intragroup Conflict
- within group conflict
- among team and committee members/within families - Intergroup Conflict
- conflict can occur between organizations, warring nations, feuding families, or within splintered, fragmented communities
-These negotiations are the most complex
What are the various Dysfunctions of conflict (List 8)
(CMEDBRME)
- Competitive, win-lose goals
- Misperception and bias
- Emotionality
- Decreased communication
- Blurred issues
- Rigid commitments
- Magnified differences, minimized similarities
- Escalation of conflict
What are the functions of conflict? (List 7)
- Makes organizational members more aware and able to cope with problems through discussion.
- Promises organizational change and adaptation.
- Strengthens relationships and heightens morale.
- Promotes awareness of self and others.
- Enhances personal development.
- Encourages psychological development—it helps people become more accurate and realistic in their self-appraisals.
- Can be stimulating and fun
What is the Thomas-Kilmann Conflict Mode Instrument
Y axis (Assertiveness)
X axis (Cooperativeness)
Puts in the 5 different styles of managing conflict
What are the 5 managing conflict styles
Hint: C-C-C-A-A
- Competing (Forcing) style
- Collaborating Style
- Compromising Style
- Avoiding Style
- Accomodating Style
What is a competing (forcing) style. What are the advantages/disadvantages of this?
1: Competing (Forcing) style
- when a quick decision and action is needed.
- when being right matters more than preserving the relationship with the other party.
Advantage: If the decision is correct, highly beneficial for all parties
Disadvantage: May breed hostility and resentment against the person using it.
What is a collaborating style. What are the advantages/disadvantages of this?
2: Collaborating style
- when maintaining relationships is important
- when time is not a concern
Advantage: both sides get what they want and negative feelings eliminated
Disadvantage: takes a great deal of time and effort
What is a avoiding style. What are the advantages/disadvantages of this?
3: Avoiding style
- when the stakes are not high
- when you need to let other party cool down
Advantage: may help to maintain relationships that
would be hurt by highly assertive approaches
Disadvantage: Conflicts remain unresolved, overuse of the style leads to others walking over them
What is an accomodating style. What are the advantages/disadvantages of this?
4: Accommodating style
- when harmony is important
- when a positive outcome is unlikely and it is better to end the dispute and move on.
Advantage: Accommodating maintains relationships
Disadvantage: Giving in may not be productive, and you may be taken advantage of in the future
What is a compromising style. What are the advantages/disadvantages of this?
5: Compromising (negotiating) style
- when people in conflict possess similar levels of power & interests
- when you need to find a quick middle ground solution
Advantage: relationships are maintained and conflicts are
removed
Disadvantage: compromise may create less than ideal outcomes and power politics will result
How can we do a situational assessment of context
- Who has greater needs?
- Is there a time pressure involved
- How important is your relationship with other party
- Who has greater perceived power
How can we apply our conflict management style
(6-step process)
1) Assess situation
2) Find sources of conflict
3) Choose appropriate style
4) Make clear your expectations
5) Open your communication channels
6) Wait and see
