Module 10 Flashcards
Legitimate Power
This comes from the belief that a person has the formal right to make demands and to expect others to be compliant and obedient.
Reward Power
This results from one person’s ability to compensate another for compliance.
Expert Power
This is based on a person’s high levels of skill and knowledge.
Referent Power
This is the result of a person’s perceived attractiveness, worthiness and right to others’ respect.
Coercive Power
This comes from the belief that a person can punish others for noncompliance.
Power Based Approach
those in which a party that believes it has more power uses its power to coerce or compel the other party to concede
Interest-based approach
the intent is to reach a mutually acceptable outcome, something that is mutually beneficial to both parties.
Power and rights are used to
Distribute
Interests are used to
integrate
Rights-based approach
focuses on the legal rights of the parties and attempts to achieve a resolution that meets the relevant legal criteria of the dispute in a manner that is consistent with what would be achieved in a court setting.
Positive Leverage
What can you do for them
Negative Leverage
What can I do to get you?
Negative Leverage
What can I do to get you?
Normative
What is the counterparties normal operating procedure
Four criteria for evaluating the process and outcomes obtained by using the interests vs. rights vs. power approach
- Transaction Costs
- Likelihood of reoccurrence
- satisfaction with the outcomes
- Effect on relationship
Cialdini’s principle of influence
- Reciprocity: be the first to give
- Scarcity: The rule of the rare
- Authority: Showing knowing
- Commitment: The starting point
- liking: Making friends to influence
- Consensus (social proof): people proof, people power
How to develop an honest reputation
- Be consistent at the bargaining table
- Clearly communicate issues
- ask for feedback
- “If you were me how would you deal with this”
Four types of trust
Relation-based trust
Knowlege- based trust
Identity-based trust
institutional-based trust
calculus-based trust
Why people are unethical
-greed
-profit
-competition
How to deal with unethical tactics
- Ask questions of the other negotiator about his or her proposals in order to determine if the negotiator’s answers are consistent.
- Use “fairness” and “accountability” as authoritative standards in the negotiation.
How to repair trust
-Set up face-to-face meetings
-focus on the relationship and not on who is “right” or “wrong”;
- apologize if necessary;
- let the other person vent or discuss why they are upset/frustrated;
- don’t get defensive as the person is venting; - - -ask for clarifying information
The best predictor of future trustworthy behavior is probably ________________ trust.
relation based
irrational escalation of commitment
irrational decision making that is based upon rational decisions made earlier
Anchoring
a cognitive bias that causes us to rely too heavily on the first piece of information we are given about a topic.
Loss aversion
assumes that people are more sensitive to losses then they are to gains of the same size
Consistent preference structure
in a choice problem, you have the same preference for different options and are not affected by framing effects.
preference reversal
occurs in a choice problem framed as a choice between a sure gain or a 50/50 chance of no further gain. However when framed as a sure 50/50 loss people select the 50/50 loss.
Cognitive bias
- Overconfidence
- Self serving bias
- Hard mentally
- loss aversion
- framing
- anchoring
-Confirmation
endowment effect
an emotional bias that causes individuals to value an owned object higher, often irrationally, than its market value.
M-TIme
United States
United states score high on hofstedes dimension of
individualism
Most useful predictor in cultural differences
individualism-collectivism
U.S scores low on
Long-term orientation
Cultures that value Salacuse’s cultural dimensions of ______________ and _____________ tend to see negotiations as a zero-sum distributive situation
assertiveness; competition
Ethnocentrism
is the belief that your culture, your religion, or your views are the “right” ones and that those who do not share your perspective are somehow “deviant.”
Traditional male and female skills and stereotypes would associate men with _____________________ and women with ________________________.
Distributive bargaining; integrative negotiation
N.I.C.E approach
N: Neutralize your emotions
I: identify why they have emotions
C: control the encounter, shift locations, empathize
E: exchange solutions, and involve them in problem-solving
Effective apologies
- include recognition of the emotional impact of the action on the person
-expression of regret, and a commitment not to repeat the negative action
When to use a mediator
-when the parties want to continue and preserve their relationship
-going to court would adversely impact morale and productivity; confidentiality is important
-there is a need for creative solutions and realistic assessments;
ADR with no control over the outcomes
Mediators
___________________ is more similar to a court trial than is __________________.
Arbitration; mediation
Ury’s breakthrough strategy
- Go to the balcony
- Step to the other side: role reversal
- Reframe
- Build them a golden gate bridge: try not to push them into agreeing but find a way to make them say yes. What if questions, how would you solve this?
- Use power to educate
Name two benefits and two potential problems associated with using an agent in negotiations.
The benefits:
- his or her expertise
- detachment
- tactical flexibility or status.
The problems:
- expense
- additional communication links
- the agent’s interests may differ from those of the principal
- an agent may have different ethical standards
ADR with low control over the process but high control over the outcome
Arbitrators, Judges
