Negotiation Strategies Ch.6,7,8,and 10

Three different types of trust

-Deterrence based: based on consistency of behavior, meaning that people will follow through on what they promise to do (ex: couple getting prenuptial agreement) -Knowledge based trust: is grounded in behavioral predictability and it occurs when a person has enough information about others to understand them and accurately predict their behavior (ex: suppliers who regularly negotiate with certain customers develop highly specialized products for those customers) -Identification based trust: is grounded in complete empathy with another person's desires and intentions (ex: married couple)

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

-businesspeople use market pricing to value a deal -more likely to expand pie unlike personal where friends settle too quickly -business relationships are not one shot situations because the business world is a web of networked relationships -trust needs to be built quickly unlike with friends you have built it overtime

What are some of the reasons that people are uncomfortable negotiating with friends, and what are some of the advantages and disadvantages to negotiating with friends?

-friends want to reach win-win outcome -friends are concerned more about the other person rather than outcome -friends are built on communal norm ~Advantages: trust, less competitive, more open about information, make fewer demands, more giving ~Disadvantages: reach inefficient outcomes, settle too fast

The 5 influence tactics

1. Assertion: describing reasons for being dependent and requesting help from target 2. Alternatives: searching for alternative route or person to obtain what is needed 3. Coalition: joining with at least one individual or set of individuals to put pressure on target 4. Coercion: using threats 5: Acquiescence: accepting situation and giving into demands

Four key reasons that act as barriers for women asking for what they want in a negotiation

1. They don't feel a given situation is negotiable 2.They don't think they will be given things when they "deserve" them 3. They do not establish aggressive goals 4. They do not want to damage the relationship

Outline the process for repairing broken trust. Are there ways in which these steps might be modified to apply to different types of relationships?

1. arrange personal meeting 2. put focus on the relationship 3. apologize (tied with action) 4. let them vent 5. do not get defensive 6. as for clarifying information 7. test your understanding 8. formulate a plan 9. think about ways to prevent a future problem 10. do a relationship checkup

What are the five types of mental mode of negotiation? Which one is most related to the ability to create win-win outcomes?

1. haggling model 2. cost benefit analysis 3. game playing 4. partnership model 5. problem solving negotiators (most related to the ability to create win-win outcomes)

What are some of the effects of status on the conduct of bargaining? What are some of the disadvantages to paying attention to secondary status characteristics in negotiation?

A high status person will generally control when they speak in conversation, while a low status person will defer to the high status person in terms of turn taking in conversation. Some disadvantages of paying attention to secondary status in negotations are that even though the status is made up because of gender, race, and age, they may not actual be a high status person and will cause your performance in a negotiation to suffer

What are some of the things people might care about maximizing in a negotiation that are not necessarily monetary in nature?

Affection, rank, services, data, and material goods.

What is an embedded relationship? Provide an example of embedded relationships (personal or historical). What were some of the pitfalls associated with these relationships?

An embedded relationship is when friends, and family do business together. An example of an embedded relationship would be the Ricketts' family who purchased the Chicago Bulls.Pete Ricketts ran as a Republican for US Senate, running on conservative values which included traditional marriage. His only sister Laura served on the board of a national gay rights organization at the time. Some major pitfalls can be internal value conflict, myopia, and the emotional potential is higher. People tend to be less competitive with friends and want to reach a win-win outcome, therefore are willing to settle and compromise too quickly.

Recall the "iceberg model" of culture. How does a limited definition of culture (or the "tip of the iceberg") contribute to cross-cultural negotiation problems?

Cross cultural negotiations are more complex. The differences in national cultures, differences in political, legal, and economic systems often separate potential business partners

How do differences between direct and indirect communication cultures affect how negotiators share information?

Differences between direct and indirect communication cultures affect how negotiators share information because cultures who use direct communication, they like to get straight to the point (straight line example), they prefer to have clear questions and answers (ex: US).Cultures who use indirect communication prefer to share information indirectly, telling stories in attempt to influence their opponents, and gleaning information from proposals (ex: Mexico).

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

Having a BATNA is the most important source of power because it means you have alternatives for each issue and you will have alternatives prepared that benefit you. The more alternatives the more power you have. A negotiator should cultivate their BATNA prior to negotiate so they are prepared and do not settle for something less than they want/deserve

Why is it so difficult to pinpoint "ethical" or "unethical" behavior? How does this relate to the concept of determining "fairness" (discussed in Chapter 3)? What are some strategies a negotiator can use to determine whether a given behavior is ethical?

It is so difficult to pinpoint ethical or unethical behavior because there is not set rules on what is ethical or not. Our own judgment on what is ethical or not can be bias. Strategies negotiator can use to determine whether a given behavior is ethical: 1. front page test: would I be okay if this was on the front page of the paper? 2. role modeling: would I advise others to do this? 3. the reverse golden rule: if the tables were tuned how would I feel if my opponent did this to me? 4. third party advice: see how that person regards to the given behavior

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

Negotiators focus on the competitive aspect of the deal and forget about the creativity aspect. This tendency is driving by the fixed pie perception, the belief that it is a win-lose enterprise.

In what ways do different types and methods of feedback affect the performance of negotiators on subsequent negotiations?

Negotiators who received negative ability feedback were the least competitive and achieved the worst performance. Negotiators who received negative-ethicality feedback were the most honest. Negotiators who received the positive ethicality feedback were the most cooperative. Nearly everything is better than no feedback at all because if you don't know what you are doing wrong then you can not fix it.

Define power distance and collectivism and give an example of a country that is high on each of these cultural dimensions.

Power distance: tendency to see large distance between those in upper part of social structure to lower part. Collectivism: rooted in social groups, and individuals are viewed as members of groups. (EX: that is high on each is Panama)

What are some of the advantages of creating contingency contracts? What are some of the characteristics that ensure the viability and usefulness of contingency contracts?

~Advantages: allows negotiators to- build on their differences, solve problems of trust, manage decision making biases, reduce risk through risk sharing, increase the incentive of the parties to perform. ~Characteristics that ensure viability and usefulness: contracts include the continued interaction between the parties, the enforceability of the contingency contract and the degree of clarity and measurability set forth in the contract

What are some of the advantages and disadvantages to the ways in which we assign reputation to others? What are some of the ways that repairing a 'bad reputation' is similar to repairing broken trust?

~Advantages: use it in knowing how to negotiate with a person (Halo effect-people think you do everything right and well) ~Disadvantages: Forked tail effect-people think you do everything poorly ~Repairing a reputation is similar to repairing broken trust because you must follow steps and it is important to act, not just talk, in a trustworthy fashion

What are some key differences between individualistic and collectivist cultural values? What are the implications for negotiation?

~Individualistic culture values (competitive): (US,UK)- goal is to maximize own gain, source of identity is the self, people regard themselves as free agents ~Collectivists cultures (cooperative):(Japan,China)- goal is to maximize the welfare of group, source of identity is group, individuals regard themselves as group members

What are the indices by which creativity is measured? What are some of the methods by which to enhance your own creativity (along these indices)?

~Measured by: fluency, flexibility and originality ~Methods to enhance creativity: analogical training, incubation, feedback, counter factual reflection, rational problem solving model

What are some examples of acceptable and taboo trade-offs in negotiation? How does the trade-off principle operate within systems of sacred and secular values?

~Sacred values are beliefs that a group or social system hold to be fundamental that are not open to negotiation. ~Secular values are issues that can be negotiated or exchanged. ~Taboo trade offs are the exchange of sacred values for secular ones. ~Examples of taboo tradeoff: raising IQ of normal children by giving them (safe) drugs, letting people sell their organs, putting people in jail for expressing non violent political views, fishing in a way that leads to a painful death of dolphins, forcing woman to have abortions for population control

What are some behaviors that are generally regarded to be unethical in negotiation? Under what conditions do people usually engage in this kind of behavior?

~behaviors that are generally regarded to be unethical: lying, traditional competitive bargaining, manipulation of opponent's work, retracting and offer, reneging on negotiated agreement, and nickel and diming. ~People usually engage in this behavior under these conditions: lure of temptation, uncertainty, powerlessness, anonymity of victims, perceptive taking in a competitive market.

What is "stereotype regeneration"? Explain how this affects the negotiation process

~definition: process by which members of groups which have been stereotyped redefine their beliefs about the group. ~How this affects negotiation: Stereotypes lurk below the surface and creep into our subconscious and this interferes with our performance