Final Exam - Negotiating Skills

Question 1

whats a negotiation

Answer 1

when two or more people talk to reach an agreement about something they want — like a job offer, price, or plan.

Question 2

why is it important

Answer 2

essential life and career skill
used in job offers, salaries, team projects, business deals, daily life

Question 3

whats negotiaphobia

Answer 3

• fear of negotiating due to skill deficiency or negative beliefs
• rooted in fear of conflict, lack of preparation, social discomfort
• can result in missed opportunities or financial loss

Question 4

main reasons for negotiaphobia

Answer 4

• most people dont wanna engage in fights/arguments
• most people dont know how

Question 5

negotiating strategies

Answer 5

competing: high outcome, low relationship
avoiding: low outcome, low relationship
collaborating: high outcome, high relationship
accommodating: low outcome, high relationship

Question 6

principled(integrative) negotiation

Answer 6

produces wide agreement that is reached efficiently, more amicably

Question 7

steps of principled negotiation

Answer 7

people: separate from problems
interests: focus on interests not positions
options: generate options for mutual benefit
criteria: use objective criteria

Question 8

positional(distributive) negotiation

Answer 8

• focuses on each side taking a position and arguing for it
• results in win-lose situation’
• rigid and can harm relationships

Question 9

value creating

Answer 9

• purpose of integrative situation negotiations
• “Grow the pie”
• Find ways so everyone gets more
• Focus on shared interests
• Happens in win-win negotiations
• Example: “What if we combined both our ideas to get a better result?”

Question 10

value claiming

Answer 10

• purpose of distributive situation negotiations
• “Divide the pie”
• Try to get the biggest slice for yourself
• Focus on your goals
• Happens in win-lose or competitive negotiations
• Example: “I want $100K — take it or leave it.”

Question 11

BATNA

Answer 11

best alternative to a negotiated agreement
- backup option if deal fails
- know your batna
- if can negotiate better deal = ideal outcome
- if cant negotiate better deal = walk away

Question 12

negotiation process

Answer 12

1. Recognize you are in a negotiation or about to enter one.
2. Plan for the negotiation
   * What do you want to get out of the negotiation (aspiration)?
   * What is your Best Alternative To a Negotiated Agreement (BATNA)?
   * What is your initial offer/starting point?
   * What is your reservation point?
3. Select a negotiation strategy that makes sense given the situation

Question 13

anchor point

Answer 13

initial offer

Question 14

reservation point

Answer 14

min. acceptable offer