Negotiation Strategies Flashcards
Hard (Distributive) Bargaining
Hard bargaining is a negotiation approach often used when there is a limited amount of resources or conflicting interests. In this strategy, parties aim to maximize their own gains while minimizing
concessions.
Security point
Refers to the minimum a party is willing to accept in the negotiation.
Represents the bottom line, below which they are not willing to compromise
Optimal outcome
maxium a party is able to obtain in the negotiation. It represents the ideal result for the parrty, which they strive to achieve.
Bargaining space
also known as the Zone of Possible Agreement (ZOPA)
is the range between the security points of the parties.
It represents the area where negotiation can take place, and mutually beneficial agreement can be reached.
ZOPA/ Volutnary exchange zone
Zone of Possible Agreement
The range between the security points of the parties within negotiations.
It represents the area where negotiation can take place and a mutually beneficial agreement can be reached.
No overlap, no agreement
if the security points of the parties do not overlap within the bargaining space, it becomes challenging to reach an agreement.
Finding common ground and bridging the gap between the security points is crucial for succesful negotiations.
Integrative bargaining
Integrative or Interest-based bargaining is a negotiation strategy in which all parties collaborate to find beneficial outcomes for each. The strategy focuses on finding a ‘win-win’
Ways of integrative bargaining
- Reframing issue to find common ground
–> collaborative problem-solving - Exchanging information for reframing to be successful
- Creating value ( not the same as claiming value)
Creating value
- previously hidden joint gains
- not focusing on dividing a fixed pie
- finding ways to fullfil all parties’needs and interests
- avoiding zero-sum
Englightened self-interest
helping others to help oneself.
Pro/cons Hard (distributive) bargaining
Risks:
* deteriorating relationships+ reputation
* risk of creating deadlocks
* ineffective to address deep-stated interests: impedes value creation
Pro:
* Effective to defend vital interests + essential principles
Integrative bargaining –> collective problem-solving
Risks:
* creating unrealistic expectations
* time intensive
Pro:
* opens new perspectives: creates a new bargaining space
* improves deteriorated relationships
( looking through counterpart’s eyes)
* Effective for conflicts that deal with hard to quantify interests
Negotiation Jujitsu (Fisher & Ury)
concept of redirecting te oppontens force, akin to martial art, to gain control and achieve a more constructive negotiation process.
Negotiation Jujitsu 3 approaches
3 approaches to shift focus of counterparty:
1. changing game by concentrating on merits (verdiensten) oneself, rather of positional stances.
2. negotiation jujitsu –> counters the moves of positional bargaining + redirection of attention to merits
3. introducing third party as external mediation.
- can faciliate negotiation
Common tactics of negotiation
- Tit-for-tat
- inviting unreciprocated offers
- Extreme claims + but small concessions
- commitment tactics
- Take-it-or-leave-it offers
- Trying o make you flinch (power play)
- personal insults + feather ruffling
- Bluffing, puffing, and lying (deception)
- Threats (and rewards)
- belittling alternatives
- Good/bad cop