MGMT CH 16

Best alternative to a negotiated agreement, or BATNA

The course of action that a person will take if a negotiation ends in an impasse.

Reservation value

The lowest offer a negotiator is willing to accept. It is the point at which a negotiator is indifferent between accepting a proposed offer and rejecting it in favor of pursuing his or her BATNA.When trying to sell your used "Call of Duty" videogames, you decide that the lowest price you will take, or your ___________ , will be $20 per game.

Claim value

The process by which a negotiator attempts to gain benefits or concessions for his or her position.

intergroup conflict

The students living in the Gibson and Wig residence halls at Pomona College have always had a friendly (and sometimes not-so-friendly) rivalry. Now the Gibsons have challenged the Wigs to a massive paintball war. The Gibson team leaders are huddled in a room plotting strategy. You overhear them saying, "Those Wigs! What a bunch of losers! We're the only ones who know anything about strategy, and we'll crush them!" In another room across campus, the Wig team leaders are crying, "We'll crush those idiots from Gibson! We're better, faster, and stronger than they are!"The team members in this scenario are engaged in___________.

Issue

The subject of a discussion.The labor-management negotiations were complex. The ___________ on the table was health care benefits, but the underlying concern was profitability for the company and improving workers' quality of life for the union.

o Group loyalty that exaggerates group differences o Competition for scarce resources o Stereotyping the other group as the "enemy"

What are the causes of intergroup conflict?

social categorization

When sitting in on a team meeting, you hear a group member say, "When we get together as a group, we always get right to work. We're a great team. Let's call ourselves the Stars!" Social identity theory would classify this statement as ________________. This happens when team members find a niche for themselves that differentiates them from other groups. For example, a team might say, "We're the best soccer players!" or "We're the most awesome team."

Individualist

__________ cultures place individuals' needs above the needs of the group

High-context

__________ cultures prefer to communicate indirectly

Collectivist

___________ cultures place the needs of the group above individuals' groups

Negotiation

A process by which two parties attempt to reach agreement on an issue by offering and reviewing various positions or courses of action.

hierarchical

Negotiators from ____________ cultures with differentiated social status are less willing to engage in confrontational negotiations

Distributive negotiations

Single-issue negotiations that are assumed to be part of a "fixed pie" where one person's gain is the other person's loss. There was only so much money in the company bank account. What one department used would be taken from the budget of another department. As the department managers started their ____________, each presented a rationale for giving the money to his or her department. The discussion got quite heated.

o Build trust and share information o Ask questions o Strategically disclose information o Make package offers and multiple offers simultaneously

Strategies for creating value by assessing each side's preferences or interests are?

Package reservation value

The lowest value that a negotiator would be willing to accept for a package offer.

Social Competition

- occurs as a response to rivalry and competition between groups

Giving both groups of employees one goal that they have to work together to accomplish

According to realistic conflict theory, which of the following actions will reduce conflict between two groups of employees?

Escalation

An increase in conflict that occurs when one person's negative behaviors encourage or foster another person's negative behaviors.It started when Randy "borrowed" Stella's favorite pen. Stella got angry and started spreading rumors about Randy's personal life. In retaliation, Randy confronted Stella in the parking lot. A passing manager had to stop the two of them from exchanging blows as the last step in the conflict ____________.

Affective conflict

Conflict in which individuals tend to attack each other's personalities through criticism, threats, and insults.

Intergroup conflict

Conflict that occurs between two or more groups.

Groupthink

Extreme consensus during a decision-making process.Such consensus is dysfunctional because it prevents the group from considering opposing views that might lead to a better final decision. Resulting from an overestimation of the team's opinion, closed-mindedness, and pressures toward uniformity, _____________ can result in a team making poor decisions.

o The need to influence the work of others o Interdependence of individuals who must coordinate their work to achieve a common goal o Perceptions that achievement of one individual's goals comes at the expense of another's ability to attain his or her goals o Lack of communication that leads to negative assumptions about motives and interactions of others

What are the causes of interpersonal conflict?

cognitive conflict; ideas;

Xin Li and Yoshi are experiencing _________, based on _______. Notice that in discussing their differences, Xin Li and Yoshi stick to the task at hand and do not let their feelings get in the way. Cognitive conflict leads to creativity, challenging the status quo, personal development, learning, increased motivation, and a greater awareness of the problem at hand. It may also reduce the chances of groupthink.

Intergroup conflict

_____________ occurs as a team differentiates themselves from other teams. Two ways of doing this are to compare one team positively to the other team by exaggerating the differences between the two teams and stereotyping the other team. When teams are under intense pressure to perform or when each of the members of the team has different goals and objectives, conflict is likely to arise within the team.

Social comparison

_______________ involves comparing the team to another team. When members feel that belonging to their team sets them apart from others in a good way, they identify more closely with their team and teammates.

Social identification

_____________is an individual behavior that occurs as team members come to view themselves as part of a group. They demonstrate their belonging by following the unwritten rules or norms of the team.

in group formation

group affiliation leads to development of internal social hierarchies, group norms, and in-group friendships

integration

intergroup conflict is reduced when groups must work together to achieve super-ordinate goals

Claiming value

occurs when a negotiator attempts to gain benefits or concessions for his or her position. There are many ways to do this, including making an offer that the other party will not accept and providing a justification for an offer.Claiming value is a process of gaining benefits for oneself during negotiations. This may cause conflict to escalate, as parties respond to requests that they perceive as unreasonable. One way toprevent the _____________in a negotiation is to make an offer you know the other party will not accept.

escalation of commitment

refers to the tendency to continue allocating resources to a project or negotiation, even when it would be in one's best interest to walk away from it.

o Ignore the other party's offer;Shift the conversation to an entirely different topic that allows you to reassert control of the discussion o Find information that would help understand the other party's opening offer o Make a high (equally extreme) counteroffer; Suggest the need to work together to bridge the gap between the other party's offer and your offer o Reject the offer and give the other party more time to reconsider his or her offer o Accept the offer if it meets your requirements and fits your reservation value

what are strategies for claiming value?

Conflict

An emotional or cognitive response that occurs when interests, perspectives, and behaviors of one individual or group explicitly differ from those of another individual or group.When people have very different opinions, styles, and outlooks,________ occurs.

egalitarian

Negotiators from ______________ cultures that do not emphasize social status are more comfortable in confrontational negotiations

Interests

The underlying reasons or needs of each party involved in an issue. Although management was offering a 2% pay increase in response to the union's demands for a 5% increase, the underlying management ____________ actually centered around a need for the organization to be profitable.

Low-context

__________ cultures prefer to communicate directly

Devil's Advocacy

creates c-type conflict by assigning an individual or a subgroup the role of critic 1. Generate a potential solution 2. Assign a devil's advocate to criticize and question 3. Present the critique of the solution to key decision makers 4. Gather additional information Decide whether to use, change, or not use the originally proposed solution

creating value

is the process of looking for solutions that will work for both parties in a negotiation, or the process of expanding the opportunities or issues that can be evaluated in a negotiation. By expanding the issues, there is a greater likelihood that each party will achieve some level of satisfaction. Asking questions and honestly answering the other party's questions are good ways to create value. One way to ___________in negotiations is to ask questions and build trust.

Interpersonal conflict

Conflict that occurs between two or more individuals who are members of the same group. When two people in the same work group argue over the best design ideas for a new product, they are engaged in ________ .

Winners curse

Making an unreasonable offer cannot prevent the _____________, which occurs when one party accepts what seems like a very good offer, without realizing that they have not gotten the deal they imagined.

Integrative negotiations

Negotiations that focus on multiple issues to "expand the pie" and actively seek alternative solutions that satisfy both parties. Although the students wanted to skip the final exam, they were really interested in having enough time during final exam week to study for all of their classes. By listening carefully to their professor's concern that they demonstrate their knowledge of the material, they were able to use ________________ to propose a solution that worked for both parties. Now the students are writing a research paper due the week before finals instead of taking their final exam.

Position

The perspective a person takes on an issue.

Social identity theory

A theory that proposes that group members of an in-group will seek to find negative aspects of an out-group to enhance their self-image.Labeling someone as a "nerd" and making fun of that person is an example of________________ at work, where one person tries to feel better about themselves by looking for negative characteristics about others.Suggests that teams band together when they perceive themselves as superior to other teams.

Realistic conflict theory

A theory that proposes that limited resources will lead to conflict between groups. In the aftermath of a hurricane, it is often difficult to get essential supplies like gasoline. The conflict that erupts can be explained by ___________ , which says that competing over scarce resources leads to conflict. The__________ suggests that competition makes members identify more strongly with their own group. Suggest that intergroup conflict is caused by fights over scarce resources. Competition causes teams to band together, seeing the outside group as a common enemy, and teammates as allies.

Mediator

An individual who does not make a final decision but works with each party to find some common ground on which both parties can agree.Although __________ has no authority to make a final decision in a negotiation, he or she can help the parties brainstorm new ideas to find a solution that works for all concerned.

Arbitrator

An individual who listens to both sides of a disagreement and makes a final decision based on the arguments.When a negotiation impasse occurs,an ________ may be brought in to listen to both parties and make a final decision about the topic at hand.

Cognitive conflict

Conflict that results from disagreements over work-related issues such as meeting schedules, work assignments, processes, or the task itself.Two people engaged in ___________ will hotly debate the advantages and disadvantages of different approaches but will not resort to personal criticisms.

Whenever you try to manage disagreement, you start by diagnosing the disagreement, and then you look to see how the disagreement can be resolved. In this case, determining the causes of differences will help to identify what the disagreement is. The cause of the disagreement here is the idea that employees are being paid differently to do the same work. Next, you want to focus on interests (increasing the rewards employees receive), not positions (negotiating over specific rewards). This will help to create a new disagreement perspective. Placing explicit blame on another person or walking away from the disagreement will not help to resolve the conflict.

How to manage a disagreement?

Step 1: Assess your BATNA (best alternative to negotiated agreement: the course of action that a person will take if a negotiation ends in an impasse) o Identify all possible alternatives to pursue if you are unable to reach an agreement with the other party o Estimate the value associated with each alternative o Select the best alternative Step 2: Calculate your reservation value o Reservation Value: the lowest offer a negotiator is willing to accept. It is the point at which a negotiator is indifferent between accepting a proposed offer and rejecting it in favor of pursuing his or her BATNA Step 3: Assess the other party's BATNA Step 4: Calculate the other party's reservation value Step 5: Evaluate the ZOPA o Zone of Possible Agreement - the set of all possible deals that would be acceptable to both parties. The ZOPA is the space between one party's reservation value and the other party's reservation value Step 6: Identify your multiple interests Step 7: Create a scoring system Step 8: Calculate a package reservation value o Package Reservation Value - the lowest value that a negotiator will be willing to accept for a package offer Step 9: Identify the other party's multiple interests o All the potential interests - even the ones that do not seem important to your side- that the other party may have in connection with the negotiation. Typically, both sides have multiple interests that can impact their position with respect to a negotiation

Negotiation Effectively: Preparing to Negotiate

Create value

The process of expanding the opportunities or issues that can be evaluated in a negotiation. By expanding the issues, there is a greater likelihood that each party will achieve some level of satisfaction.

Bargaining zone

The range of settlements within which it is better for both parties to agree than not to agree. Estaban wanted somewhere between $1,000 and $1,500 for his used car, while Fernando wanted to pay between $750 and $1,250 for a used car. The _______________ for Estaban and Fernando was $1,000 to $1,250.

De-escalation

The reduction or elimination of conflict. Steven and Joe never liked each other much. In fact, they got to the point where they couldn't be in the same room together. Thanks to a skilled mediator, the men first had a short conversation, then a longer discussion. As the ___________ process continued, Steven and Joe set aside their differences and eventually became friends.

Zone of possible agreement,or ZOPA

The set of all possible deals that would be acceptable to both parties. The ZOPA is the space between one party's reservation value and the other party's reservation value.Residing between one negotiator's lowest price and the other negotiator's highest offer, the ________________ represents an area where both parties can find an acceptable agreement.

- Exaggerating the differences between the Gibsons and the Wigs - Stereotyping members of the opposing team

The students living in the Gibson and Wig residence halls at Pomona College have always had a friendly (and sometimes not-so-friendly) rivalry. Now the Gibsons have challenged the Wigs to a massive paintball war. The Gibson team leaders are huddled in a room plotting strategy. You overhear them saying, "Those Wigs! What a bunch of losers! We're the only ones who know anything about strategy, and we'll crush them!" In another room across campus, the Wig team leaders are crying, "We'll crush those idiots from Gibson! We're better, faster, and stronger than they are!"Which of the following factors or behaviors are likely to increase the conflict between the Wigs and the Gibsons? Check all that apply.

Negative bargaining zone

The zone that exists when negotiators' acceptable positions do not overlap and no settlement will be acceptable to both parties.Often prompting the use of a BATNA, a ___________________ exists when two people's negotiation ranges do not overlap.

Positive bargaining zone

The zone that exists when negotiators' acceptable positions overlap.

friction

competition creates greater in-group solidarity, respectful in-group interaction, and enhanced in-group friendships

Distributive Negotiations

single-issue negotiations that are assumed to be part of a "fixed pie" where one person's gain is the other person's loss o The distribution of resources o A focus on winning o The notion of limits o A bargaining zone framework - the range of settlements within which it is better for both parties to agree than not agree :Positive Bargaining Zone and Negative Bargaining Zone