Chapter 19 - Effective Negotiations And Alternative Dispute Resolution

Question 1

The ANCHORING EFFECT is the psyCHOlogical phenomenon where the first number proposed by either side in a negotiation ANCHORS the negotiation around that initial number, so that all future proposals are stated in reference to that initial number.

Question 2

The negotiation tactic whereby a negotiating party agrees to a proposed solution, but then returns to the negotiating table claiming that his partner or superior will not agree to the deal until more concessions are made is called FALSE AUTHORITY.

Question 3

What are the two most common types of alternative dispute resolution?

Mediation

Arbitration

Question 4

Identity three advantages of alternative dispute resolution over the traditional court process.

ADR has a number of advantages:

• more cost efficient and time efficient
• offers more privacy to the parties
• mediators and arbitrators tend to be more experienced in the particular industry then judges would be.
• provides parties greater sense of control that going to court
• more effective for maintaining the relationship between parties

Question 5

Describe the integrative perspective to negotiation

Is a mindset that negotiations are a collaborative problem solving process rather than a head to head conflict, whereby the parties focus on the underlying interests and needs of each other.

Question 6

The RESISTANCE POINT is the bottom line, or the least acceptable deal, that a particular party will accept in a negotiation.

Question 7

The acronym ADR stands for:

Alternative Dispute Resolution

Question 8

In negotiations, it is critical to focus the negotiation on INTERESTS, not process.

Question 9

In negotiations, your ideal best case scenario is known as your ASPIRATION TARGET

Question 10

Describe the distributive perspective to negotiation.

Distributive perspective is a mindset that negotiations are a zero-sum conflict, wherein one party’s gain is equal to the other party’s loss.

Question 11

What is an Interest vs Position

Interest statement has an underlying reason explained
Ex. I like the house because there is a school nearby

while

Position is just a statement

I like the house and everything about it.

Question 12

What is ADR

ADR is frequently used to settle a wide range of disputes:
—less formal than court of law
—rules of the procedure are flexible, and unlike a court proceeding
—Parties in conflict decide on the process they will use rather than giving power to lawyers or judges
—voluntary and participative process that us focused on creative and mutual understanding
—both parties must be present
—fast and less expensive
—more direct communication
—private

Both parties have to participate
Fast and less expensive
Private matter

Question 13

Forms of ADR

Mediation
Neutral third party to assist them with resolution process
Mediators

Arbitration

Question 14

What is Zero Sum Game during Negotiations?

Means negotiations need not be a “zero sum game” where the only solution is a compromise down the middle.

Question 15

What is distributive perspective?

It is viewing negotiation as a conflict with one winner and one loser, can inhibit creative problem solving and makes it difficult to reach optimal results.

Question 16

What are important points in a succesful negotiation

Efficiency
Satisfaction of both parties
Minimal wasted resources
Preservation of the relationship

Question 17

Nature of Effective Negotiations

— Both parties are satisfied at its conclusion
— Efficiency of the Negotiation
— Find creative Ways by which to divide a set of goods so that value of the goods is fully realized or utilized
— preservation of relationship
— minimal wasted resources
— focus on aspirations target
— framing the discussion around objective standards
— preparation
— make necessary concessions
— package multiple issues

Question 18

Negative aspects of Negotiation

—Stay away from “distributive results “ (WINNERS/ LOSERS”

—Determine ISSUE BY ISSUE

—Lack of Strategy - Going back and forth on a single issue -ZERO SUM GAME

—Focus on what party WANTS

— Trial and Error method. - have set strategy

Question 19

Should NOT FOCUS On defending each parties position. RATHER FOCUS ON INTERESTS.

Question 20

Focus on INTERESTS not POSITIONS

INTERESTS motivate parties to take a particular position or be set on a particular solution

Has an explanation telling WHY

WHY?
Find house before school starts, too many mortgages etc

POSITION
— I WANT…. No reasoning behind the position

Close the deal by Dec 31. No reason given.

Question 21

AnCHOring Effects (comes up on exams)

A PsyCHOlogical phenomenon
— whereby the first number quoted in a negotiation causes the rest of the negotiation to be based on that number

Question 22

Dirty Tactics (know for exam)

—recognize dirty tactic and explicitly raise the issue with the other party

— question it and argue against THIS IS A GOOD RESPONSE

— Naming out loud

— remain non-emotional and focus on problem with the eye toward mutual resolution

—do not personally attack the other party

— take a break until such behaviour stops

Question 23

Dirty Tactics What Not to Do?

Respond in kind

Put up with it

Ignore dirty Tactics and continue

Make insults regarding a person’s future

Question 24

In Negotiations Focus on

Aspiration Targets, Not Resistance points or WANTS

Don’t focus on Resistance point

Question 25

The negotiation tactic where one party agrees to a solution, but later on, states that someone else, such as the boss or a partner, will not agree to the deal is called:

False Authority

Question 26

Advantages of ADR

—minimize cost of seeking solution to your conflict
—produce more efficient solution
—Greater sense of Privacy than court
—greater sense of Control than court

Question 27

Forms of ADR - MEDIATION

Mediation (always start with this method)
— identify neutral mediator
— mediators do not have authority to decide or impose a solution
—decision not binding on parties

Question 28

Forms of ADR - Arbitration

—neutral 3rd party is to decide outcome of dispute
—3rd party May be an individual, but in some cases it maybe a panel
—can be binding and non-binding

Question 29

Zero Sum Game

Negotiations should not be a ZERO SUM GAME, where the only solution is a compromise down the middle.

Should be give up something to get something

Question 30

Distributive Perspective

Viewing negotiations as 1 winner and 1 loser. Will not be able to get creative solution or problem solving and will not get best results

Question 31

Best order for Successful Negotiation

1. Efficiency
2. Satisfaction of Both parties
3. Minimal Wasted Resources
4. Preservation of Relationship