Negotiation Flashcards
Anchoring
An offer that is at (or slightly more aggressive) than the aspiration point
Aspiration point
The best outcome each party hopes to achieve from a negotiated agreement
Best alternative to a negotiated agreement (BATNA)
An alternative that, should negotiation fail, you are willing and able to execute without the other party’s participation or permission
Convergent thinkers
Tend to be reliable, rational, and principle-based
Divergent thinkers
Tend to be creative and spontaneous
Demand
A statement of terms with no room for adjustment
Interests
The why behind what you want
3 types of interests
Procedural interests
Psychological interests
Substantive interests
Procedural interests
How a process is conducted
Psychological interests
How people feel, how they are perceived, how they relate with others
Substantive interests
Schedules, prices, salaries , etc
Interest-based negotiations
Focus on the interests, not the positions of the two negotiating parties
Negotiation
Process involving 2 or more people or groups who have a degree of difference in positions, interests, goals, values
Position
What you want
Reservation point
Bottom line
Zone of possible agreement (ZOPA)
Bargaining range
What is the (TIPO) model
Trust
Information
Power
Options
2 types of trust (tipo)
Trust in person
Trust in process
Trust in person
Personal trust stands alone. Not reliant on any institution or third party
Trust in process
Both parties have faith in a governing institution and believe that it supports their negotiation
Information (tipo)
Trust directly influences the amount of information shared between/among negotiating parties.
2 types of Power (tipo)
Personal power
Position power
3 types of position power
Coercive and reward
Connection
Legitimate
What is coercive and reward position power
Ones belief that his or her opposite is willing and able to inflict punishment and /or offer incentives
What is connection power
Who you know or are affiliated with
Legitimate power
Based on ones rank, position, or level of authority
3 types of personal power
Referent
Information
Expert
People orientation
Centers on the relationship that exists between the individuals or groups involved
Task orientation
This approach places more importance on reaching an outcome, solution, or resolution
High-context culture
More people oriented and prefer to establish trusting relationships
Low-context culture
Task-oriented and work towards negotiation a resolution as quickly as possible
Readiness
The capacity of parties to decide it is in their best interest to negotiate an agreement rather than to continue a dispute
Ripeness
Timing is critical to successful negotiation
Mediation
Alternative form of dispute resolution that supports negotiations between two disputing parties
