Negotiation Flashcards
What are the characteristics of a negotiation
Two or more parties attempt to reach an agreement where there is a conflict of needs and desires between them. Parties believe they cannot achieve their objectives single-handedly or think they can get a better deal than accepting what is being offered to them. Parties depend on each other and expect a give-and-take process.
What is the planning process for a negotiation
Define the issues, assemble issues and define the bargaining matrix (the combined list f issues from each side), prioritize your issues, define your interests, define your reservation/resistance point (the minimum point you would consider), set your targets and opening bids (where to start)
What is the bargaining zone
The bargaining zone or zone of potential agreement (ZOPA) is the space between two parties’ resistance points, this area is the overlap of the bargaining range of the parties, this is where a reasonable deal could fall
What is BATNA
Best alternative to a negotiated agreement, identifying this will help you feel more confident and prepared. BATNA is the best course of action if your negotiation fails
How do goals of different parties conflict and how does this related to resources
The goals of one party are usually in fundamental and direct conflict with the goals of another party. The goal of each party is always to maximize their share of resources. Sometimes resources are actually fixed limited, but most times they are not but each party acts as if it is a zero-sum game (one party’s gain is the other party’s loss)
What are strategies for distributive bargaining
Push for a settlement near the opponent’s resistance point, get the other party to change their resistance point by influencing their beliefs, and convince the other party that this settlement is the best possible.
If the settlement range s negative either get the other side to change their resistance point or modify your own resistance point
What are integrative solutions and the key steps in integrative negotiation
Integrative solutions have more than one issue, negotiation is likely to recur over time, and parties have varying preferences across the issues.
Key steps, creating value (integrative) when parties with conflicting yet compatible interests trade low-priority issues for higher-priority issues, claiming value (distributive and integrative) when a negotiator carves out their share of finite resources that are being negotiated.
We want to create value first, make the cake bigger before you slice it
What are strategies to facilitate successful integrative negotiation
Create a common objective or goal, share underlying interests, priorities and preferences, interpretation of key facts, build trust, make multiple equivalent simultaneous offers (MESOs), find the motivation and commitment to work together, always try post-settlements, use clear and accurate communication
What is the difference between a distributive and integrative negotiation
Distributive negotiation is the zero-sum/ win or lose negotiation where both parties try to divide fixed resources between them and each maximize their share.
Integrative negotiation is known as win-win or interest-based negotiation, the goal is to maximize mutual gain by addressing the interests of all parties
