Negotiation Basics Flashcards
Defining negotiation
Any effort to influence or persuade someone else to a particular course of action.
Self-fulfilling prophecies
When an originally false expectation leads to its own confirmation.
Someone fear rejection, which causes anxiety, which might make behaviors that push others away, which then confirms the rejection fear.
Dangerous assumptions in negotiation
- Our interests must be opposed
- Fixed pie bias; the value in front of us is all that there is
- Their intentions must be unfriendly
Win-lose and win-win assumptions
Win-lose: when u expect a negotiation is distributive. That any value one person get is equal and opposite to the other
Win-win: when you expect the negotiation to be ways of growing the pie to increase the total amount available ot both.
How our assumptions affect negotiation
assuming negotiation is win-lose/distributive are likely to be competitive and secretive.
Those who believe its win-win are likely to be collaborative and look for ways to make value
Value negotiation - create value
- Bringing in more issues to expand the pie
- Moving from position to interest
- Bringing in more issues to expand the pie
Single issue negotiations like price only have claiming value. If we include more issues, it creates more opportunities for tradeoffs. Each side trades what they want least and most.
- Moving from position to interest
Positions: the parties demand. What they want. Inflexible and narrow usually.
Interests: why they want it. Underlying motivations.
The shift is important as interests are more flexible, now options emerge, and relationships improve.
How to change from position to interest
- understand others interest; ask why and why not
- figure out your own interests
- look forward
Balancing inquiry and advocacy
effective communication require
Balancing inquiry (understanding others) and Advocacy (explaining our own perspective)
Advocacy vs Inquiry
Too much advocacy means you dominate the conversation. Too much inquiry mean you make it too hard to influence discussion. You ask but never share your views. Balanced approach is the best.
The joint bid example in class
The example of the flower. Everyone focused on their parts, but failed to notice both parts was used in different ways. Balancing adequacy and inquiry could help us understand it more.
Creating more value for yourself means understanding and working with others.
first offer as value
set the tone by collaborate first. It also means your not anchored. If you anchor, shoot for the highest legitimate value.
first offer effect and midpoint bias
Firs offer effect: final agreements on price are strongly predicted by first offers.
Midpoint bias; the best predictor of final settlements is the midpoint between the first and offer and first counter offer.
Make strong offers and counter offers
Legitimacy in proposals
use legitimate offers. it claims value, reduced resistance and preserve your reputation.
how to respond to illegitimate offers
ask “Where does this number come from?”.
When to not make aggressive first offer?
- Unfamilirar with bargaining zone
- Socially inappropriate
- You want creative solutions
- Multi party situatuons since otger parties may form a coalition against you
- Long-term focus
Basic elements of a negotiation
(BATNA) Best alternative to a negotiated agreement: what you’ll do if no agreement reached.
Reservation point: worst deal you will accept without walking away.
Aspiration point: the deal you aspire to achieve.
Key takeaways of claiming value
- Remember your basic elements of negotiation
- Think of negotiation as opportunity to achieve your aspirations. Not beat alternatives.
- Develop a strong BATNA, reveal it only at last.
