Chapter 1: Negotiation-The Mind and the Heart Flashcards
Negotiation is not just about resources. It is equally about _________ and _______.
relationships; trust
your key communication and influence tool; an interpersonal decision-making process necessary whenever we cannot achieve our objectives single-handedly
negotiation
Throughout the textbook, we focus on the ______ of the negotiator as it involves the development of deliberate, rational, and thoughtful strategies for negotiation.
We also focus on the ______ of the negotiator, because ultimately, we care about relationships and trust.
mind; heart
We base all our teaching and best practices for negotiation on scientific research in the areas of _______ and _______, reflecting the idea that both the bottom line and our relationships are important.
economics; psychology
doing just enough to reach one’s minimum goals, not pushing to maximize one’s potential gains.
satisficing
(Satisficing/optimizing) negotiators capture all of the potential gain in a situation.
optimizing
(satisficing = bad, optimizing = good)
T or F: Negotiators often struggle with which strategy they should use in a single-shot negotiation versus negotiations that could potentially recur with the same party again in the future.
True
All negotiators should assume that the details of their negotiation will be _________ for anyone to view and that all negotiations have long-term _________.
accessible; implications
At first blush, it would seem that internal negotiations might go more smoothly and collaboratively than external negotiations.
However, ______ and internal ________ may in fact loom larger when people negotiate internally vs. externally.
envy; competition
A _________ negotiation is a negotiation inside an organization (ex: for a job, etc.). Sometimes it is easier to do an _______ negotiation where you don’t already have relationships with people within the work environment (think about you would rather borrow money from a bank than a family member)
internal; external
situations in which both negotiations optimize the potential joint gains.
win-win negotiations
Win-win negotiations are also known as _________ ________ because the outcome is one that creatively combines parties’ interests in a way that maximizes the _____ _______ _______.
integrative agreements; joint economic value
T or F: In a win-win negotiation, there can be a bigger winner than the other side, but both people are happy with the outcome.
True
What are the 2 types of agreements?
- Distributive (also known as transactional)
- Integrative (known more as expansion)
situations in which one party prevails at the other party’s expense.
Win-Lose Negotiations (ex: car dealership deals)
situations in which both parties have made sacrifices that are ultimately unwise or unnecessary, resulting in an outcome that both parties find less than satisfying.
Lose-Lose Negotiations
What are the 4 Key Reasons effective negotiation skills are important?
- The knowledge economy
- Specialized expertise
- Information Technology
- Globalization
What are the 4 major shortcomings between disputants in a negotiation?
- Leaving money on the table
- Settling for too little
- Walking away from the table (If you walk away from the table you better be prepared to not go back)
- Settling for terms (an outcome) that are worse than your best alternative (option) (most important bullet)
Investigations of contract negotiations consider four key objectives when assessing the quality of contracts:
- What is the likelihood of reaching a good agreement?
- Does the agreement fulfill its intended purpose?
- Will the agreement last?
- Will the agreement lead to subsequent negotiations?
(Have to assess these questions upfront)
What are the 2 steps prior to negotiation?
- Initiate negotiation
- Preparation (very important):
- Planning worksheet (do research
and find out what’s the main
goal) - Assess BATNA
- Develop reservation price
- Develop target price (aspiration)
- Planning worksheet (do research
In a negotiation, what are the 5 aspects of strategy?
- Opening
- First offer(s)
- Counter-offers
- Substantiation and persuasion
- Concessions
In a negotiation, what are the 4 aspects of agreements?
- Efficiency
- Economic value
- Individual gain
- Joint gain
In a negotiation, what are the 2 aspects of relational value?
- Satisfaction
- Fairness
What are the 5 aspects of post-negotiation?
- Post deal implementation
- Durability
- Reputation
- Willingness to negotiate again
- Trust
T or F: There should be 2-3 counter-offers before reaching an agreement (this is optimizing).
True
justifying your offer
substantiation
giving something up to get what you want
concessions
There are three key elements to improving your negotiation skills:
- Diagnostic feedback
- Analysis of success/failure of negotiation
- Focused behavioral practice
(Diagnostic feedback = getting metrics, getting something out of it. Then, you want to analyze that information. Focus on the things you’re weak at (behavioral practice).)
What are 4 negotiation myths that aren’t true?
- Negotiations are fixed sum.
- You need to be either tough or soft.
- Good negotiators are born with the skill.
- Good negotiators rely on their intuition.
T or F: You should aim to pursue negotiations from an enlightened model which assumes that the other person you are negotiating with is every bit as motivated, intelligent, and prepared as you are.
True
