Week 11 Flashcards
why do people negotiate?
- To agree on how to share or divide a limited resource, such as land, or money, or time;
- To create something new that neither party could do on their own
- To resolve a problem or dispute between the parties.
what is interdependence of parties?
- Either they must coordinate with each other to achieve their own objectives, or they choose to work together because the possible outcome is better that they can achieve by working on their own.
- When the parties depend on each other to help achieve their own preferred outcome, they are interdependent.
- Having interdependent goals does not mean that everyone wants or needs exactly the same thing
what is a competitive situation or zero-sum or distributive situation?
When the goals of two or more people are interconnected so that only one can achieve
the goal—such as running a race in which there will be only one winner
what is mutual gain situation, or non-zero sum or integrative situation?
when parties’ goals are linked so that one person’s goal achievement helps
others to achieve their goals
what are the two main approaches to negotiaion?
- Positional/ Distributive bargaining – win/lose; value claiming (gain largest piece of the pie)
- Principled/ Integrative negotiation – win-win; attempt to find solutions so that both parties can do well and achieve their goals
- principled negotiation is a form of integrative negotiation, which is an umbrella term for approaches beyond positional/distributive bargaining
what is positional/ distributive bargaining?
- In distributive bargaining, the goals of one party are usually in fundamental and direct conflict with the goals of the other party.
- Resources are fixed and limited, and both parties want to maximize their share.
what is principled/ integrative negotiation?
- making decisions about how to deal with
problems of differences and conflict
-involves working towards a win/win by not negotiating over positions, but focusing on interests behind the positions of each party
what are the stages of principled negotiation (Fisher & Ury, 1992)?
- Separate the people from the problem.
- Focus upon interests, not positions.
- Invent options for mutual gain.
- Insist upon objective criteria.
- Prepare alternative options (BATNA)
what are some examples of objective criteria?
- health and safety standards
- professional standards criteria
- Costs
- Laws/regulations
- Job description
what is power differentials?
the situation where you think what if the other party is more powerful?, they refuse to negotiate?, you dont trust the other party to keep their promise?
how do you overcome power differentials?
Don’t attack their position = explore the interests and emotions that lie behind it.
- Don’t take up a fixed position= invite criticism and advice.
- Reframe personal attacks as an attack on the problem.
- Ask questions instead of making statements.
- Institute a pause.
what are the other reasons why its difficult to achieve principled negotiation?
- The history of the relationship between the parties
- The belief that the issue can only be resolved distributively
- The mixed-motive nature of most bargaining situations
- Short time perspective
how does the history of the relationship between the parties affect principled negotiation?
The more competitive and conflict-laden their past relationship, the more likely negotiators are to approach the current negotiation with a defensive, win–lose attitude.
- Long-term opponents are not likely to trust each other or to believe that a cooperative gesture is for an ulterior motive/
- if one party has never shown any genuine concern to cooperate in the past, why would they act different now
how does the belief that an issue can only be resolved distributivity affect principled negotiation?
In addition, negotiators may be prone to several cognitive biases or heuristic decision rules that systematically bias their perception of the situation, the range of possible outcomes, and the likelihood of achieving possible outcomes, all of which tend to preclude negotiators from engaging in the behaviors necessary for integrative negotiation
(Neale and Bazerman, 1985, 1991)
how does short time perspective affect principled negotiation?
Effective integrative negotiation requires sufficient time to process information, reach true understanding of one’s own and the other party’s needs, and manage the transition from creating value to claiming value.
what is better approach distributive or integrative negotiation?
- Principled negotiation is more effective and often leads to better outcomes, but an understanding of both approaches is important:
- no evidence that integrative/principled approach will work when you are
faced with a strong, distributive bargainer who is unwilling to take an integrative/principled approach - Integrative situations may involve a claiming value portion and this may
involve the use of distributive tactics e.g., you could be faced with someone who says they are win-win, but are in fact trying to steer a win-lose situation that benefits them.
What do Fisher and Ury (2012) say about positional bargaining?
Whether a negotiation involves a contract or a family disupute, people regularly engage in positional bargaining. Each side takes a position, argues for it, and makes concessions to reach a compromise.
what do fisher and ury (2012) say about arguing over positions?
when negotiators bargain over positions, they tend to get stuck in these places. the more one party tries to defend their side, the more committed you become to it.
what do fisher and ury (2012) say individuals try to do in positional bargaining?
parties try to improve the chance that any settlement reached is advantageous to them by beginning with a strong, extreme position therefore deceiving the other party of your real views, then making small concessions as needed to keep the negotiation going.
what do fisher and ury (2012) say about soft vs. hard bargaining?
- the soft game focuses on the importance of the relationship
- however, taking this stance may make those who choose the soft game vulnerable to the party who chooses the hard game
- as a hard bargainer may make threats to get to their settlement, to which the soft party agrees in order to, avoid confrontation
- this will produce an agreement but not a wise one