negotiation midterm
What are the key reasons why effective negotiation skills are increasingly important in the business world?
- dynamic nature of business (people must renegotiate their existence in organizations, create possibilities) -interdependence (people need to integrate interests and work) - economic forces (know how to operate in uncertain situations) -information technology -globalization (cross cultural boundaries)
What are the most prevalent myths about negotiation, and how do these myths hamper people's ability to learn effective negotiation skills?
- negotiations are fixed sum - you need to be either tough or soft - good negotiators are born -life experience is a great teacher - good negotiators take risks -good negotiators rely on intuition They hamper ability because people are operating with faulty beliefs.
What are the most important factors to consider when making concessions in negotiation (so as to maximize your share of the bargaining zone)?
- the pattern of concessions -- don't offer more than one at a time -the magnitude of concessions - don't consistently make greater concessions than counterpart -the timing of concessions - gradual concessions are better than immediate concessions
Why should negotiators break down the issues in a negotiation into multiple issues, rather than engage in a single-issue negotiation?
Multiple issues create integrative potential. With multiple issues you can identify multiple alternatives. Shouldn't focus on single issues because they are fixed sum
Be prepared to address some of the misperceptions about the meaning of win-win negotiation. Why do these misperceptions contribute to leaving money on the table in negotiation situations?
Win-win is not: compromise, even split, about satisfaction, about building a relationship. They contribute because they don't focus on expanding the pie
What are some of the advantages and disadvantages to negotiations between businesspeople, and how do they differ from purely personal negotiations?
advantages - exchange norm, don't have to divide down the middle disadvantages- you may not like counterparty, status/rank issues, swift trust, consequences of interactions due to network personal- difference of opinion/agreement often downplayed, friends are too willing to compromise
What are some of the most common errors made by negotiators who are attempting to expand the pie of resources?
false conflict, fixed pie perception, making faulty assumptions about the counterparty and negtiation situation
Be prepared to 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?
great BATNA = power/power to walk away/alternatives/strengthens bargaining power, helps get a bigger slice of the pie because if he does not, he will be unduly influenced by counterparty and persuaded to settle for less
Why is creativity often downplayed or ignored in the process of negotiation?
this is driven by fixed pie perception (belief that negotiation is a win-lose sitch), people fixate on competetive aspect
What are the fundamental differences between tough and soft negotiators, and what are the disadvantages of adopting either stance?
tough - unflinching, makes high demands, concedes little, rejects offers in bargaining zone, holds out until the end. Disadvantages: gains bad rep, walks away from potentially profitable sitches soft - too many concessions, reveals reservation point, too concerned about the counterparty's feelings. Disadvantages: agrees to readily, never reaps much of bargaining surplus
