Negotiation Flashcards
Define distributive negotiation
Win-lose negotiation in which a fixed amount of assets is divided between parties
Define compatible issues
Issues that benefit both parties equally
Define integrative negotiation
Win-win negotiation that assumes that mutual problem solving can enlarge the assets to be divided between parties
What are the five negotiation strategies?
- Avoiding
- Accommodating
- Competing
- Compromise
- Collaborating
Define the avoiding negotiation strategy
A conflict management style characterized by low assertiveness of one’s own interests and low cooperation with the other party
Define the accommodating negotiation strategy
A conflict management style in which one cooperates with the other party while not asserting one’s own interests
Define the competing negotiation strategy
A conflict management style that maximizes assertiveness and minimizes cooperation
Define the compromise negotiation strategy
A conflict management style that combines intermediate levels of assertiveness and cooperation
Define the collaborating negotiation strategy
A conflict management style that maximizes both assertiveness and cooperation
Does avoiding change the situation?
No; although it can provide some short-term stress reduction from conflict, it does not change the situation
When should avoidance be used?
When the issue is trivial, information is lacking, people need to cool down, or the opponent is very powerful and hostile
When should accommodating be used?
When you are wrong, the issues is more important to the other party, or you want to build good will
When should competing be used?
When you have a lot of power, you are sure of your facts, the situation is truly win-lose, or you will not have to interact with the other party in the future
When should compromise be used?
When the conflict stems from scarce resources
When should compromise not be used?
When conflicts stem from power asymmetry, because the weaker party may have little to offer the stronger party
When should collaboration be used?
When the conflict is not intense and when each party has information that is useful to the other
Define negotiation
A decision-making process among interdependent parties who do not share identical preferences
Define threat in terms of negotiation
Implying that you will punish the other party if he or she does not concede to your position
When can threats be used effectively in negotiation?
When one party has power over the other that corresponds to the nature of the threat, especially if no future negotiations are expected or if the threat can be posed in a civil and subtle way
Define promises in terms of negotiation
Pledges that concessions will lead to rewards in the future
When can promises be used effectively in negotiation?
When your side lacks power and anticipates future negotiations with the other side
Define verbal persuasion
An attempt to change the attitudes of the other party toward your target position
What are the two “prongs” of verbal persuasion?
- Asserting the technical merits of the party’s position
2. Asserting the fairness of the target position
When is verbal persuasion most effective?
When the persuaders are perceived as expert, likeable, and unbiased
Define superordinate goals
Attractive outcomes that can only be achieved through collaboration
Describe mediation in terms of negotiation
When a neutral third party helps to facilitate a negotiated agreement; they do anything that aids the process or atmosphere of a negotiation
When does mediation work best in negotiation?
When the conflict is not too intense, and the parties are resolved to use negotiation to deal with their conflict
Describe arbitration in terms of negotiation
When a third party is given the authority to dictate the terms of settlement of a conflict
What are the two types of arbitration?
- Conventional arbitration
2. Final offer arbitration
Define conventional arbitration
The arbitrator can choose any outcome
Define final-offer arbitration
Each party makes a final offer, and the arbitrator chooses one of them
How do you best negotiate?
Plan
How can you plan your negotiation?
- Assess personal goals
- Consider other party’s goals
- Develop strategy
Define the target in negotiation
What one would like to achieve
Define the resistance point/reservation point in negotiation
The lowest acceptable outcome
Define BATNA
Best Alternative To a Negotiated Agreement (i.e. your backup plan)
What is the goal of distributive negotiation?
Individual gain
What is the goal of integrative negotiation?
Mutual and individual gain
What are the tactics used in distributive negotiations to claim value for self?
- Threats/Promises
- Firmness
- Persuasion
- Not “budging”
- No compromise
- No actual communication
What are the tactics used in integrative negotiations that help you create value?
- Information exchange
- Framing differences as opportunities
- Cutting costs
- Increasing resources
- Finding superordinate goals
Define anchoring
An anchor is a standard against which future adjustments are measured
Where is the bargaining zone?
The overlap between the two parties “aspiration range”; where they are willing to settle or make a deal
