Tutorial 1 Flashcards
What are the five stages of the negotiation process?
1) Preparation
2) Relationship building
3) The exchange of task-related information
4) Persuasion
5) Concession and agreement
What is the anchoring effect and how does it apply to negotiations?
Anchoring effect: is the common human tendency to rely too heavily on the first piece of information offered when making decisions
-> The one who makes the initial offer benefits from the anchoring effect
Why do aggressive offers typically lead to good results?
Because they give the other party the opportunity to ask for concessions
When should you NOT make concessions?
Never make large concessions at the end, and never EVER make a concession without something in return
Should you split the difference?
You can if the other party offers - do not offer first
Should you bluff?
If it’s one time only - not a repeat game
What is the difference between distributive bargaining and integrating bargaining?
Distributive bargaining: each party seeks to maximize its resources
Integrative bargaining: win-win solution
Which bargaining style suits countries like Japan, Korea, Taiwan, and which style suits European and North American?
Japan, Korea, Taiwan: Integrative style
European and North American: Competitive/distributive style
What does universalism vs particularism mean?
Universal rules vs context-based rules
What does individualism vs communitarianism mean?
Focus on individual goals vs group goals
What does specific vs diffuse mean?
Separation of personal and professional lives vs integration
What does neutral vs emotional mean?
Controlled emotions vs openly expressed emotions
What does achievement vs ascription mean?
Status by merit vs status by attributes like age or gender
What does sequential vs synchronous mean?
One task at a time vs multitasking
What does internal vs external control mean?
Belief in personal control vs external factors influencing outcomes
