Negotiation and Alternative Dispute Midterm
Which of the following is an example of a BATNA?
Going on a strike
During the negotiation, Edith makes an offer for settlement of all issues to Horace. The offer is 10% salary increase, 0.10% decrease in insurance premiums and status quo and class size. Horace advises Edith that he must check with schools Superintendent before he can agree to anything. Horace should be aware that:
Horace is using a distributive bargaining tactic
Creating value is an objective of this bargaining approach:
Integrative
During the negotiation, Horace proffers a report from the State Board of accounts which showed the average salaries of teachers in school Corporation throughout the state. Horace argues that Monroe County teachers should be paid according to the salaries of teachers and similar school corporations. The bargaining strategy being employed by Horace is:
Integrative Bargaining
Going below the line to discover the interests of the parties is consistent with which bargaining approach:
Integrative bargaining
In a negotiation with a negative ZOPA:
Integrative bargaining will likely provide the best strategy for settlement
Those things that drive people to take the positions they take:
Interests
All of the following are "cons" of Distributive Bargaining EXCEPT:
It can be used as protection in the face of hardball negotiation tactics
Based on our discussions in class, the Opening Offer should be placed:
Just inside the Credible Zone
A lawyer representing a public interest group involved in dispute may wish to create legal precedent by choosing:
Litigation
Example of authoritative mediator:
Manager or Director
Modes and levels of communication
Modes of Communication (giving the message): Non-verbal (body language) Verbal (actual stated words) Para-Verbal (tone, inflection, emphasis) Levels of Communication (receiving the message): Not hearing (distractions, noise) Hearing content (understanding words) Hearing feelings (understanding the emotion)
Ned's target price to buy a new car is $25,000 and his resistance point is $27,000. Bill's target of selling and his resistance point is $27,500. In this situation, the Zone of Potential is
Negative
Sam wants to sell his boat for $1,200. Jack is interested in buying the boat and makes an offer of $700. Sam counters with $1,000. Jack counters with $900. Sam says "No thanks." The spread between Sam and Jack's final offers may be described as a:
Negative bargaining range
Lie by omission versus by commission
Omission: Intentionally withholding information that is relevant to the negotiation in order to gain an advantage. Commission: A statement, believed to be false, made with the intent to deceive.
Facilitative mediation makes the most sense when:
Parties are in an on-going relationship and need help communicating -The mediator focuses on facilitating effective negotiation between the disputants with the goal of helping them reach their own agreement -The main goal is to meet each party's legitimate interests through collaborative problem-solving -Mediator is the process expert When is it most effective? -An ongoing relationship is involved -When parties need help communicating effectively -When the problem is more of a dispute than a conflict
The principle of social proof says:
People determine what is correct by finding out what other people think is correct
The target point is:
Point at which a negotiator would like to conclude negotiations
The target point is the:
Point at which a negotiator would like to conclude negotiations.
A party's perspective of how an issue or conflict should be resolved is his/her:
Position
Horace is a private attorney who has been retained to represent the Monroe County School Corporation in its negotiation of a new collective bargaining agreement with the United teachers Association, the union representing the teachers at Monroe County schools. Edit is the lead negotiator for the union. According to the terms of the contract, Horace has authority to negotiate for Monroe County schools, and only the issues of salary, insurance premiums in class size may be negotiated. Prior to the negotiation, Horace advised Edith that and less she agrees to work towards a two-year contract, he will advise the school to forgo any negotiations relating to salary. Horace is using a tactic known as:
Precondition command
Key Steps to an Ideal Negotiation Process
Preparation, Relationship building, information gathering, information using, bidding, closing the deal, implementing the agreement
The book, Getting to Yes is mostly about:
Principled bargaining Methods: people, interests, options, criteria 1. Separate people from the problem being negotiated 2. Focus on the negotiating parties' interests, not their positions 3. Invent options for mutual gain 4. Insisting on using objective criteria A term used by Fisher and Ury in Getting to Yes, which advocates deciding on issues based on their merits rather than haggling. This type of negotiation is soft on the people and hard on the issues.
Which of the following is not one of Axelrod's 4 steps to Avoiding Exploitation:
Punish They are: start cooperatively, respond in kind, forgive, be clear
Deb is a lawyer and a mediator. She has a legal practice that involves 80% advocacy and 20% mediation. She is also in the midst of a divorce as the result of her inability to deal with her alcoholism. She has only recently sought counseling. She's also stressed about a number of big cases scheduled for a trial period three months ago, she was assigned by the court to mediate a contract dispute. Mediation is scheduled for Friday. On Thursday, she contacted the parties in begged them to reschedule the mediation for a later date. Parties reluctantly agreed but noted that this was now the third time she had requested to reschedule the mediation. Set up, the attorney for one of the parties filed a complaint with the local disciplinary Commission about the overseas attorney-mediator conduct. The attorney made the complaint based on which of the following Model Standards of Conduct for Mediators:
Quality of process
According to the Harvard program on negotiation article, what are 2 ways companies can overcome bias in negotiations?
Raise Standards - look for ways to improve the standards that negotiators in your organization use in their organizations. For example, your organization may be able to structure more equal job negotiations by specifying salary ranges and set times for performance reviews and compensation discussions.
In planning for this negotiation, Edith determined that if she wasn't able to secure at least a 10% increase in salary, .25% insurance premium reduction, and 1% decrease in class size she would recommend a teacher strike. Ideally, she would like to secure a salary increase of 25%, 1% insurance premium reduction, and a 5% decrease in class size. Edith's BATNA is:
Recommend a teacher strike
Which approach to resolving conflict generally takes the least time and costs the least amount of money?
Reconciling underlying interests
During the negotiations, Horace raises the issue of extracurricular duties, and is she never before considered by either party. The tactic most likely being employed by Horace is:
Red Herring
Dan has to clear everything out of his father's townhouse in a week. Dan is trying to sell his 12-piece china set. He didn't want to sell it for less than $2,500. A dealer has offered $2,150. However, Dan made the mistake of telling the dealer his plans for clearing out the townhouse. Sensing his urgency, the dealer decided to hold to the original offer of $2,150. Dan had to decide if he could live with a sale that was $350 less than what he wanted. He told the dealer he would think about it and call him the next day. In that time, he made few calls to see if he could find another dealer who might be interested, with no luck. He was running out of time, since it was already Wednesday, and he had to be done by Friday. Therefore, he decided it was worth the savings in time and effort to sell for less than what he originally wanted than to find another dealer in such a short time. This analysis is an example of a bargai
Reservation Price Your bottom line The most the buyer will pay The least a seller will accept
In negotiating for a job opportunity, a negotiator could improve their BATNA by:
Securing another lucrative job offer
All of the following are examples of distributive bargaining tactics except:
Separating the people from the problem
Horace knows that maintaining a good relationship with Edith is important for the school corporation. Therefore, Horace would most likely employ which strategy in negotiation:
Standards of Legitimacy - External criteria against which to measure possible agreements
in any negotiation 3 domains are in play
Substance, Process, and Relationship
All of the following are characteristics of evaluative mediation except:
The mediator may advocate for one of the parties Should: The main goal is a settlement, evaluate the case merits, and have a subject matter expertise The mediator helps the parties to resolve a dispute by making a neutral evaluation of the merits of the case Most effective when: -An ongoing relationship is not involved -A quick resolution is needed -Parties are at impasses due to differing methods of case evaluation
As we discussed in class, the most important move in negotiation is:
The opening offer
During the negotiation, Edith advises Horace that other school corporations in the district have agreed to 0.25% insurance premium reductions. Edith argues that Monroe County should do the same. He is attempting to influence the negotiation by using:
The principle of social proof
conciliation
The psychological component of dispute resolution where a neutral 3rd party attempts to create an atmosphere of trust and cooperation that is conducive to effective negotiation Efforts by a 3rd party neutral to improve the relationship between the disputants by improving communication, reducing mistrust and building positive perceptions
Functions of a mediator
- Catalyst - Provide forum - Educator - Resource person - Translator - Scapegoat - Bearer of bad news - Reality agent
Interests-based negotiation
- focus is on reconciling the parties' underlying interests - mediator does not offer any opinion on merits of case - caucuses used sparingly if at all - facilitative and transformative styles
Rights-Based Mediation
-Focus is on the parties' legal entitlements -Result is a non-binding opinion about the merits of the case -Caucus is used almost exclusively -Evaluative style used most often
Decision Making Errors
-Reactive devaluation immediately discounting the other party's idea(s) simply because it comes from the other party -Sunk costs already too much invested -Endowment Effect "my X, which is the same as yours, is worth more because it's mine" -Selection perception seeing only what you want to see -Attribution error angelic motives of yourself, demonic motives of your opponent
Transformative mediation
-The mediator focuses on healing the relationship between the parties rather than simply settling their dispute -Main goal is the empowerment of the parties along with their recognition of each other's perspective -Mediator supports parties in efforts to reach understanding-the parties are in control of the process when to use? -Parties need to establish an improved and respectful relationship on a sustained basis -Parties want to learn effective ways to communicate -Parties want to resolve the root cause of their conflict and transform their relationship UNDERLYING CONFLICTS
the three tasks of a mediator are:
-Understand why the conflict is occurring -Identify barriers to settlement -Identify procedures to resolve it
In planning for this negotiation, Edith determined that if she wasn't able to secure at least a 10% increase in salary, .25% insurance premium reduction, and 1% decrease in class size she would recommend a teacher strike. Ideally, she would like to secure a salary increase of 25%, 1% insurance premium reduction, and a 5% decrease in class size. Edith's target point is:
25% salary increase, 1% insurance premium reduction and 5% decrease in class size
Bogey
A contentious hardball tactic where a negotiator pretends something or some issue is important to him/her, but it is not. This tactic is often employed so that the negotiator can then "concede" on the issue (which really isn't a concession at all) and get something of value in return.
Boulwarism is:
A distributive bargaining tactic
Integrative bargaining
A negotiating process in which the parties involved strive to integrate their interests, as effectively as possible in the final agreement ID and define the problem, understand the problem, generate alternative solutions, evaluate and select among the alternatives - create value
Distributive Bargaining
A negotiation method in which two parties strive to divide a fixed pool of resources, each trying to maximize its share of the distribution Keys to Distributive Negotiation Tactics: Set a clear RP, Understand and improve BATNA, Good opening offer, make appropriate concessions, manage the commitment process - claim value
A person who serves as a third party assisting others in the resolution of a dispute is:
A neutral
dual concern model
A two-dimensional model that plots conflict handling styles as a function of level of concern for own outcomes and interests (Assertiveness) and as a function of the concern for the other's outcomes and interests (Cooperativeness).
Which of the following is/are examples of objective criteria
All of the above This includes case precedent, Kelley blue book, comparable salary statistics
MESO
An acronym for "Multiple Equivalent Simultaneous Offer." If a negotiator has done a multi-attribute utility analysis of the issues then he/she can bundle some of the issues and offer two bundles simultaneously that are of equal value to him/her. This signals a willingness to be flexible in the negotiation; it also helps discover where the trade-offs might be.
Hardball tactic
An aggressive distributive bargaining tactic in which negotiators begin with an extremely high or low opening offer in order to convince the other negotiators to temper their demands How to deal: ignore, discuss, respond in kind, co-opt the other party
Two attorneys in a public interest law firm are arguing about the best strategy for representing their client, a nonprofit environmental agency, in its efforts to persuade a local government to reject a proposed ordinance that would permit commercial development of formerly protected land. They ask a senior partner in the firm to mediate. This partner has no vested interest in the outcome of their dispute and only cares that they come to a mutually agreeable result. The senior partner may best, be described as what kind of mediator?
An authoritative/benevolent mediator
Jeremy is a lawyer and a mediator. He mediates cases that are currently in the legal system. He specializes in mediating contract disputes. Recently, in a case involving a breach of contract, he said to a party, "that argument doesn't sound very strong. I'm not sure a judge will find a valid based on legal precedent. You might want to settle." This statement best exemplifies what kind of mediator:
An evaluative mediator
The Conflict Continuum
Avoid, Talk, Negotiate, Mediate, Arbitrate, Litigate, Violence
Bob and Trudi are in conflict. Trudi doesn't want to talk about it nor see any reason to do so. She also doesn't like Bob. Trudi's response is best characterized by what conflict mode?
Avoiding
Sofia and Ashley are bargaining over the sale of guitar. Ashley is the seller and Sophia is the buyer. They bargain back and forth over a number of issues, including price, repair of the scratches, and replacing the strings. Sophia persuades Ashley to accept $213.00 with the guitar. In addition, Ashley agrees to replace his strings and touch up the scratches. She also throws in one lesson to help Sofia get the best sound from the guitar. She will deliver this lesson when she delivers the guitar to Sofia in one week. What is the term for Sophie and Ashley's back and forth negotiation of this full package of issues, involving price, strings, scratches, guitar lesson, and delivery?
Bargaining mix
Which of the following is consistent with an integrative bargaining approach?
Be hard on the problem soft of the people
The Franco Harris-Pittsburgh Steelers negotiation example from class shows how a negotiator can be exploited by:
Being predictably competitive
Blair has decided she's not being paid enough in her position at Vandelay industries and has a scheduled meeting with her boss to negotiate a higher salary. In preparation for the negotiation, Blair has completed some research in according to the Robert half salary guide, the industry average for position and experience level indicates an annual salary of $100,000 which she believes she deserves and hopes to get. Her current annual salary is only $65,000. Blair also interviewed for a similar position with GTO industries and was able to secure a job offer which would pay her $75,000 and provide her an impressive corner office. Based on her research, Blair feels that any salary demand she makes which exceeds $110,000 would not be taken seriously by the industries. Blair's decided if she doesn't receive an offer from the industries of at least $8000 she will even accept the offer from GTO industries.
Blair's opening offer should be- 110,000 Blair's target-100,000 Blair's BATNA-75,000 Blair's reservation point-80,000 Standard of legitimacy- roberts half salary
The fact that every negotiation is a "mixed motive exchange" suggests that no matter how much value is created, it must still be:
Claimed MME: Negotiation that involves strategies of both Distributive and Integrative bargaining.
All of the following are barriers to active listening except:
Clarifying Barriers to active listen: - advising, diagnosing, discounting Active listening: Neutrally restating, in your own words, what the speaker has said Most effective when: it combines restating with empathic response
The Thomas-Kilmann Conflict Mode which is the most assertive and least cooperative is:
Competing
All of the following are synonyms for Integrative Bargaining EXCEPT:
Competitive bargaining
In the course of mediation, the mediator learns that one of the parties, Trevor, has a close business relationship with mediators' friend, Margaret. The mediator is very familiar with Margaret's business, but Margaret has never mentioned Trevor. The nature of the dispute is very similar to the kinds of situations Margaret has frequently discussed with the mediator in her ability to mediate the dispute fairly. The mediator should do the following:
Disclose her relationship with Margaret
During the negotiation, it proposes a generous salary increase of 15% and requires for us either accept or reject the offer by noon the following day. The bargaining strategy being employed by Edith is:
Distributive Bargaining
In litigated cases, the negotiating approach most often used is:
Distributive bargaining
Tactics of a mediator
Education parties Structuring process Improving communication Handling emotions Maintaining motivation Framing issues Listening
rapport building
Effective negotiators establish a personal connection with the other negotiator by asking questions, sharing information and building a trusting and sincere working relationship. This personal connection is called rapport and allows both negotiators to share information and trust that negotiated agreements will be implemented and followed by both sides. Rapport can sometimes be established with the other negotiator by matching ("mimicking") the other negotiator's body language, degree of eye contact or passion about issues discussed during the negotiation.
4 approaches to ethical reasoning
End-result ethics, Duty ethics, Social contract ethics, Personalistic ethics end-result: Based on best results; do what is necessary to get the best outcome duty: Based on the duty to uphold appropriate rules and principles; i.e., do not violate a law or lie by commission social contract: Based on the norms, values, and strategy of your organization or community; do what is considered appropriate conduct in your community. personalistic: Based on your personal convictions; do what your conscience tells you to do and follow your personal morals and values.
Nibble
This is a tactic that attempts to "nibble" away an agreement that has already been struck. After selling you a big ticket item at a reduced price the other negotiator may then try to add on extras like an extended warranty, which brings the price back up to what you would have originally paid.
schmoozing
Unlike a personal connection established with the other negotiator (rapport), schmoozing is a tactic used by some negotiators to emphasize similarities (real or pretend) with the other negotiator.
ZOPA
Zone of Possible Agreement - the space between the seller's walk away point and the buyer's highest willingness to pay
why caucus?
definition: Individual meetings held between the mediator and a disputant during a mediation -Ask questions -Party coaching-Reality check -Private information -Deal with emotion- Party candor -Comfort -Options for resolution -Evaluation
Pareto Efficiency
describes an allocation in which the only way to make any individual or group of individuals better off would require making at least one other person worse off
which approach to resolving the conflict generally takes the most time and costs the most money
determining who has the most power
playing your "X card" refers to engaging in
distributive bargaining
we know that conflict is both
inevitable and necessary
perception
is the process of using the senses to acquire information about a situation; it is how you make sense of the world.
In negotiation, the level of 3rd party control over the outcome is _ and the level of third party control over the process is _
low and low
purely distributive bargaining approach will reach an agreement here
midpoint between the first two reasonable offers
what puts interests in bargaining
positional bargaining
advancing a false and highly distracting issue in order to bring pressure to bear on the opposing party is a
red herring
the psychological need parties have in a negotiation to preserve dignity and respect
saving face
in integrative bargaining, Blue Book values are an example of
standard of legitimacy
Mediation consists of ______ and ________?
substance; process
boulewarism refers to the distributive bargaining tactic more commonly known as
take it or leave it; final offer
3 dimensions of negotiation
tangible, intangible, procedural tangible: substantive issues that are negotiated intangible: psychological needs of other party procedural: how the negotiation is conducted
psychological ownership
the extent to which a party in a dispute resolution process feels that the process and/or outcome were freely chosen by him or her
identifying bargaining mix means knowing what these are
the issues in negotiation
rule of reprocity
this rule states that we should try to repay in kind what another has provided us
which of the following is not one of the domains in play in a negotiation
value
In planning for this negotiation, Edith determined that if she wasn't able to secure at least a 10% increase in salary, .25% insurance premium reduction, and 1% decrease in class size she would recommend a teacher strike. Ideally, she would like to secure a salary increase of 25%, 1% insurance premium reduction, and a 5% decrease in class size. Edith's reservation point is:
10% salary increase, .25% insurance reduction and 1% decrease in class size
5 Different Bargaining Styles
1. Competing Style -very uncooperative and very assertive -my way or the high way -more assertive and less cooperative - like to win - dominating style -claim value -take whole pie -my way or the high way-very uncooperative and very assertive -win-lose-hard on relationships -prefer to negotiate in games that result in gains and losses-finding best solution for self 2. Collaborating Style -very cooperative and very assertive-two heads are better than one-listen to the other side -make things extra complicated and create more problems because of extra focuses and extra focuses make things more complicated -solve problems in interactive and engaging ways-encourage everyone to be involved-two heads are better than one -very cooperative and very assertive -probe beneath surface of conflict to discover basic interests, perceptions and new solutions-committed to finding best solution for everyone-win-win 3. Compromising Style -lets make a deal-star is in the middle (in between unassertive and assertive, in between uncooperative and cooperative; dead center in the grid/graph) -might miss opportunities - good for relationships-closure as quickly as possible - make issues out of everything -let's make a deal-star is in the middle (in between unassertive and assertive, in between uncooperative and cooperative)-fair standards 4. Avoiding Style -very unassertive and very uncooperative-never do today what you can put off till tomorrow -deferring and dodging confrontational aspects of negotiation-never do today what you can put off til tomorrow -very unassertive and very uncooperative-can be seen a graceful and tactful diplomacy -permits group to function better in face of disfunction -conflict reducing methods as clear rules-do not like confrontation - minimize it 5. Accommodating Style -very unassertive and very cooperative -it wou
principles of ethical influence
1. Reciprocation-you, then me, then you, then me...-you do something, then i reciprocate and do something (smiling back)-exchanging things with others for mutual benefit 2. Consensus (social proof)-people proof, people power-unleash people power by showing:-responses of many others-others' past successes-testimonials of similar ones-people follow the lead of similar others 3. Authority-showing knowing-establish position through-professionalism-industry knowledge-your credentials-admitting weaknesses first-if has both strengths and weaknesses, admit the weaknesses first and then say "however our strongest points overwhelm that particular weakness." this establishes yourself as both knowledgeable and honest-people defer to experts 4. Consistency-the starting point-start:-small and build-with active commitments-and public positions-toward voluntary choices-people align with their clear commitments-make their commitments active, public and voluntary 5. Scarcity-the rule of the rare-emphasize-genuine scarcity-unique features-exclusive info-people want more of what they can have less of-highlight unique benefits and exclusive info-people are more motivated by the idea of losing something than gaining something 6. Liking-making friends to influence people-uncover:-similarities-areas for genuine compliments-opportunities for cooperation-people like those who like them-uncover real similarities and offer genuine praise
confronting your own biases
1. use 'System 2' thinking 2. learn through the use of analogies 3. adopt the outside lens
Stages of Mediation Process
1.) Convening -Getting the parties to the table -Agreement to Mediate → explains the roles of the mediator and the parties, confidentiality, caucuses Impediments to convening: 1. Lack of knowledge 2. Fear of showing weakness 3. Avoidance 4. Fear of Losing - Face issue 5. Not going to work 6. Logistics 7. Fees 8. Need a declaration - A judgment or order Must: - educate/answer questions - build trust in the process - build trust in the mediator - list alternatives 2.) Opening Statement/Setting the Stage 3.) Communication and Negotiation 4.) Framing Issues 5.) Negotiating Options/Considering Alternatives 6.) Nailing Down the Agreement
3 myths about negotiation
1.) No relevant theory exists 2.) Negotiation cannot be taught 3.) You will simply learn from experience
