Negotiation Exam

addresss some of the misperceptions about the meaning of win-win negotation. Why do these misperceptions contribute to leaving money on the table in negotiation situations?

1. Compromise -Win-win negotiation does not pertain to how the pie is divided but, rather, to how the pie is enlarged by negotiators 2. Even split -Even slipts refer to how the bargaing zone is divided 3. Satisfaction -Satisfaction is no guarantee that money and resources have not been wasted 4. Building a relationship -people with genuine interest in the other party may not think creatively

What are some of the most common errors made by negotiators who are attempting to expand the pie of resources?

1. False Conflict -people believe that their interests are incompatible with the other party's interests when, in fact, they are not. 2. Fixed-Pie Perception -belief that the other party's interests are direcly and completely opposed to one's own interests

What are the most prevalent myths about negotiation, and how do these myths hamper people's ability to learn effective negotiation skills?

1. Negotiations are fixed-sum. -People become combative, which hampers cooperation 2. You need to be either tough of soft -The truly effective negotiator is principled 3. Good negotiators are born -effective negotiation requires practice and feedback 4. Life experience is a great teacher -people remember their successes and forget their failures or shortcomings 5. Good negotiators take risks -People use threats and bluffs, which are rarely effective 6. Good negotiators rely on intuition -excellent negotiators do not rely on intuition; they are deliberate planners

the most important factors to consider when making concessions in negotiation

1. pattern of concessions -unilateral vs. bilateral 2. magnitude of concessions -how much to concede -graduated reduction in tension (GRIT) model 3. timing of concessions -immediate, gradual, or delayed

key reasons why effective negotiation skills are increasingly important in the business world

1. the dynamic nature of business 2. interdependence 3. economic forces 4. information technology 5. globalization

Why should negotiators break down the issues into multiple issues, rather than engage in a single-issue negotiation?

Because single-issue negotiations are purely fixed-sum. By identifying other issues, negotiators can create integrative potential.

What are the fundamental differences between tough and soft negotiators, and what are the disadvantages of adopting either stance?

Neither negotiation style is particularly effective in simultaneously expanding and slicing the pie. The tough negotiator is unflinching, makes high demands, concedes little, holds out until the very end, often rejects offers that are within the bargaining zone, often walks away from potentially profitable deals, and gains a reputation for being stubborn. The soft negotiator offers too many and too-generous concessions, reveals his or her reservation point, gives away too much of the bargaining pie to the other party, and agrees too readily.

Why is creativity often downplayed or ignored in the process of negotiation?

This tendency is largely driven by the fixed-pie perception, or the belief that negotiation is a win-or-lose enterprise.

discuss why BATNA is the most important source of power in negotiation. Why should a negotiator constantly cultivate and improve his or her BATNA prior to negotiating?

When negotiators have a great BATNA, they have a lot of power. Negotiators can hold out for a greater share of resources if they are not willing to settle for less than the value of their BATNA. Additionally, a negotiator can signal to the other party that he/she has alternative courses of action. Because BATNA is time sensitive. At any point in time, BATNA is either improving or deteriorating as a result of market forces, enviornmental and situational conditions.

What are some of the advantages and disadvantages to negotiations between businesspeople, and how do they differ from purely personal negotiations?

advantages -businesspeople are much more likely to use an exchange norm disadvantages -we do not necessarily like the people with whom we do business -business relationships often have status and rank -need to build trust with people very rapidly -impossible not to experience the consequences of our interactions with others personal -communal norms -we (usually) like our friends less competitive -too willing to compromise -personal relationships are longer term