Negotiation Flashcards
What are the two types of bargaining techniques?
Distributive Bargaining: Win-Lose Situation, want the most out of the negotiation
Integrative Bargaining: Win-Win Situation, seeks one or more settlements
What are your three points when negotiating?
Target Point:
- teams realistic goal for final agreement
Resistance Point:
- beyond the resistance point you prefer no agreement
-point beyond where the team will not make any more offers
Initial Offer Point:
- opening offer
What is the Bargaining Zone?
Positive Bargaining Zone: Area between the buyer and sellers resistance points
Negative Bargaining Zone: if there is no overlap in the buyer and sellers resistance point, it is best to walk away and not negotiate
What are the 5 steps to a negotiation?
Preparation & Planning
Definition of Ground Rules
Clarification & Justification
Bargaining & Problem Solving
Closure & Implement
What is the Preparation & Planning step?
- State your goals and potential outcomes
- prepare data and expected arguments
- assess your opponents goals, strategy, resistance value
- figure out best alternative to a negotiated agreement
What is the Definition of Ground Rules step?
- both parties coordinate on timing, logistics, and rules of engagement
- will not include defining the purpose of the negotiation
- may involve exchange of initial proposals or demands
Decide time and place, thats about it
What is the Clarification & Justification step?
- a chance to justify the importance of issues and initial demands
- provide supporting documentation to the other party if applicable
What is the Bargaining & Problem Solving step?
- Interplay of actions and reactions with objective of reaching a agreement
- both parties might have to make concessions
What is the Closure & Implement step?
- formalize the agreement
- develop procedures to implement
- may involve a communication strategy
