W11 - Negotiation Flashcards
Usual scenarios that happen when conflict arises
What happens when there is conflict?
- Winning becomes more important than a good solution
- Conceal or distort information
- Polarisation and increased cohesion of groups
- Restricted interaction with other group
- Increased group identification and enhancement of one’s group’s image
- Emergent leaders who may be more aggressive
In what situations will conflict be beneficial to influence change?
*Conflict is not necessarily bad
- “Friendly rut” : Peaceful relationships take precedence over goals
- People who should work together avoid one another to avoid conflict
- Conflict is suppressed or ignored
What is an integrative negotiation?
A collaborative approach to negotiation in which both parties aim to create mutually beneficial outcomes, often referred to as a “win-win” situation.
What are the stages of negotiation?
- Preparation
- Relationship building
- Information gathering and using
- Bidding
- Closing the deal
- Implementing the deal
Which is the most important stage for a good negotiation outcome?
The first step, preparation.
What are the key concepts of negotiation?
What is a:
- Target point
- Resistance point
- Starting point
- Bargaining zone
- Best alternative to a negotiated agreement (BATNA)
- Target point
The point where you hope to end the deal - Resistance point
The minimum you will accept - Starting point
The point at which you begin to negotiate - Bargaining zone
The spread between the respective resistance points of both parties - Best alternative to a negotiated agreement (BATNA)
Should you reach an impasse.
How should you set your resistance point?
Based on how much you value the outcome and your BATNA.
Should you reveal your resistance point?
No
How can you find out the other party’s resistance point?
- Gather information (about the market value, the person etc)
- Ask and listen (asking a direct question can lead to an answer sometimes, if not, it does give you some info)
What’s the meta-message?
Should you be the first to make an initial offer?
Yes, as the first offer acts as an anchor that will influence the final decision.
Sends a meta-message:
- Creates impression that there is a long way to go before reaching an agreement
- Suggests more concessions may be needed
- Influences the other to consider his or her own resistance point
What is a distributive negotiation?
A type of negotiation where parties compete over a fixed amount of resources, often described as a “win-lose” situation.
How to go about a distributive negotiation?
- Assess your BATNA
- Determine your resistance point (don’t reveal it)
- Research the other party’s BATNA and resistance point
- Set high aspirations (target point)
- Make the first offer
- Immediately re-anchor if the other party makes the first offer
(Diminishes the prominence of the opponent’s initial offer as an anchor) - Plan your concessions
- Use an objective-appearing rationale to support your offers
(Presenting your proposals in a negotiation with a justification that seems neutral, logical, and fact-based) - Appeal to norms of fairness
- Do not fall for the “even split” ploy.
Pattern, Magnitude, Timing
How should you plan your concessions?
Pattern: Only offer one at a time
Magnitude: Few early concessions with more generous concessions later seems more effective
Timing: Gradual, rather than immediate concessions results in more satisfaction
Is developing rapport with the other party important?
Yes.
Eg. Through coffee.
A deal has been reached, and the other side now seeks to change something: Winner’s curse (the party feels that more can be obtained through the deal)
What do you do?
Express surprise or disappointment, and indicate that a change to one aspect affects the entire package.
Ask “Are you wiling to negotiate other issues?
Do individuals or teams negotiate better, and why?
In general, teams have more ambitious goals, increased communication and different viewpoints.
Does culture matter during negotiations in teams?
Limited research suggests it’s better to negotiate in teams in individualistic cultures and individually in collectivistic cultures.
Reason: In a team, norms are amplified and may become too severe and detrimental.
Does gender matter in negotiations?
Depends on context, but men in general receive better negotiated outcomes.
Reasons:
- Men place higher value on status, power and recognition while
women place higher value on compassion and altruism.
- Men value economic outcomes more than women while women value relationship outcomes more than men.
- In negotiations, women are less self-interested and more accommodating than men.
How does experience in negotiating affect negotiation outcomes?
Experience can reduce gender differences.
Does being sad make your negotiations bad?
When one is sad, they tend to alter their circumstances to make themselves feel better.
Being sad makes you want to complete the deal –> Give more concessions.
Sinaceur & Tiedens (2006):
Does anger hurt or help negotiations?
Anger helps with negotiations.
Reason:
- Anger puts you in power and authority, and makes the person uncomfortable.
*But anger may affect your mental clarity
