Negotiations Key Points

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Conflict

A sharp disagreement or opposition, as interests, ideas, etc. and includes the perceived divergence of interest, or belief that the parties' current aspirations cannot be achieved simultaniously.

Common Goal

One that all parties share equally, each one benefiting in a way that would not be possible if they did not work together

Shared Goal

One that both parties work toward but that benefits each party differently

Joint Goal

One that involves individuals with different personal goals agreeing to combine them in a collective effort

Type: Aggressive Behavior

Relentless requests for more concessions and better deals with an aggressive tone

Type: Logroll

Requires the parties to find more than one issue in conflict and to have different priorities for those issues -- Done by trial and error

Type: Brainstorming

Small groups of people work to generate as many possible solutions to the problem as they can

Explanations and Justifications

The tactics was unavoidable, the tactic was harmless, the tactic will help to avoid negative consequences, the tactic will produce good consequences, they deserved it, they were doing it anyways, he started it, the tactic is fair for the situation

Type: Modifying the Resource Pie

The resource pie is modified in a way to support both parties

Alternative Solutions

The techniques in this category call for the parties to define their underlying needs and to develop alternatives to meet them

Direct Effect 3

There are boundaries or limits to what "realistic" goals can be. If what we want exceeds these limits, we must either change our goals or end the negotiation

Power

capabilities negotiators can use to give themselves an advantage to increase chances of achieving their objective. Having the ability to bring about outcomes one desires.

Informational Sources of Power

derived from a negotiator's ability to assemble/organize facts or data to support their position

Accomidation

(Win-Lose) Involves an imbalance of outcomes, but in the opposite direction ("I lose, you win") - An accommodation strategy may be appropriate when the negotiator considers the relationship outcome more important than the substantive issues.

Direct Effect 4

*Effective goals must be concrete, specific, and measurable*

5 Major Sources of Power

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Both parties to a negotiation should establish their starting, target, and resistance points before beginning negotiation

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Direct Effects of Goals on Choice of Strategy

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Integrative Negotiation

- Creating a Free Flow of Information - Attempting to Understand the Other Negotiator's Real Needs and Objectives - Emphasizing the Commonalities between the Parties and Minimizing the Differences - Searching for Solutions That Meet the Needs and Objectives of Both Sides

Dealing with Typical Hardball Tactics

- Discuss Them: Indicate that you know what they are doing - Ignore Them: Not responding to a threat is often the best way of dealing with it - Respond in Kind - Co-Opt the Other Party: Be-friend them

Characteristics of Integrative

- Honesty and Integrity - Abundance Mentality - Maturity - Systems Orientation - Superior Listening Skills

Guidelines for Evaluating Options and Reaching a Consensus

- Narrow the range of solution options - Evaluate solutions on the basis of quality, standards, and acceptability - Agree to the criteria in advance of evaluating options - Be willing to justify personal preferences - Be alert to the influence of intangibles in selecting options - Use subgroups to evaluate complex options - Take time out to cool off - Explore different ways to logroll

Strategy vs. Tactics

- One major difference is that of scale, perspective, or immediacy - Tactics are short-term, adaptive moves designed to enact or pursue broad strategies, which in turn provide stability, continuity, and direction for tactical behaviors.

Positions Taken during Negotiation

- Opening Offers - Opening Stance - Initial Concessions - Role of Concessions -Pattern of Concession Making -Final Offers

Closing the Deal

- Provide Alternatives: Provide two or thee alternative packages for the other party - Assume the Close: Start the paperwork - Split the Difference: "why don't we just split the difference?" *Most Popular Closing Tactic* - Exploding Offers: Contains a tight deadline in order to pressure the other party to agree quickly - Sweeteners: Save a special concession for the close

Targets

- Targets should be specific, difficult but achievable, and verifiable - Target setting requires proactive thinking about one's own objectives - Target setting may require considering how to package several issues and objectives - Target setting requires an understanding of trade-offs and throwaways

Some Observations on Interests

- There is almost always more than one type of interest - Parties can have different types of interests at stake - Interests often stem from deeply rooted human needs or values - Interests can change - Surfacing interests - Surfacing interests is not always easy or to one's best advantage

A negotiator should consider a number of elements of protocol or process

- What agenda should we follow? - Where should we negotiate? - What is the time period of the negotiation? - What might be done if negotiation fails? - How will we keep track of what is agreed to? - Have we created a mechanism for modifying the deal if necessary?

5. Contextual Power

-Power derived from context in which negotiations take place 1. Availability of BATNAs- strong alternatives gives power 2.Organizational and national culture 3.Availability of agents/audiences who can affect outcome of negotiation- multiple parties involved in a negotiation

Interdependence

-The relationship between people and groups that most often leads them to need to negotiate -When the parties depend on each other to achieve their own preferred outcome

When You Shouldn't Negotiate

-When you'd lose the everything -When you're sold out -When the demands are unethical -When you don't care -When you don't have time -When they act in bad faith -When waiting would improve your position -When you're not prepared

1. Informational Sources of Power

-derived from negotiator's ability to assemble/organize facts to support their position -Expert power- someone who is seen to have mastery of a body of information

4. Relationship Powers

1. Goal interdependence: How parties view their goals and other parties goals and how they align 2. Referent Power: based on appeal to other based on common experiences, group membership, status, etc. important attributes are personality, integrity, interpersonal style

Seeking Power Motives

1. A negotiator believes they have less power than the other party and wants to have equal. 2. Negotiator believes they need more power to secure their desired outcome

Tactical Tasks

1. Assess the other party's target, resistance point, and cost of terminating negotiations 2. Manage the other party's impression of the negotiator's target, resistance point, and cost of terminating negotiations 3. Modify the other party's perception of his or her own target, resistance point, and cost of terminating negotiations 4. Manipulate the actual costs of delaying of terminating negotiations

-- Rules for Brainstorming --

1. Avoid judging or evaluating solutions 2. Separate the people from the problem 3. Be exhaustive in the brainstorming process 4. Ask outsiders

Redoing the Deal (After the deal breaks down)

1. Avoid negativity and anger 2. Decide whether what you want to renegotiate could ruin the relationship -- whether it is worth it 3. Create new value through the renegotiation 4. Fully evaluate the costs of failure 5. Involve all the critical parties 6. Design the right environment and process to do renegotiation 7. Consider how to involve a mediator or other third party to help out

Redoing the Deal (Before the deal breaks down)

1. Build a relationship with the other side that can be used in case the deal falters 2. Take the time to build the relationship. 3. Provide the mechanisms to renegotiate if the deal breaks down 4. Consider how to involve a third party if the deal breaks down

Network Strcuture

1. Centrality: the more central an individual is within overall network of exchanges, the more power he will have 2. Criticality and relevance: a person may have control over very important responsibility such as a major task or product 3. Flexibility: degree to which a key individual can exercise discretion in how certain decisions are made or who gains access 4. Visibility: how visible the task performance is to others in an organization 5. Membership in a coalition: Coalitions act together to represent a point of view. Making friends and such.

2. Power based on personality/individual differences

1. Cognitive orientation: individual differences in ideological frames. a. Unitary frame: Characterized by beliefs that society is an integrated whole and interests of individuals and society are one. "communal power" b. Radical frame: society is a continual clash of social, political, and class interests. Power is unbalanced c. Pluralist frame: characterized by beliefs that power is distributed equally across various groups who compete/bargain for balance of power 2. Motivational: Differences rooted in ones needs and "energizing" elements 3.Dispositions and related skills: One's preference towards being cooperative or competitive 4. Moral: individuals with strong moral identity are less likely to act in their own self-interests 5. Moods: Emotional states can enhance power. Anger helps a negotiator focus on what they want and is distracted less by another parties emotions

Functions and Dysfunctions of Conflict

1. Competitive, win-lose goals 2. Misperception and Bias 3. Emotionally 4. Decreased communication 5. Blurred issues 6. Rigid commitments 7. Magnified differences, minimized similarities 8. Escalation of the conflict

Dual Concerns Model

1. Contending (also called competing or dominating) is the strategy in the lower right-hand corner. 2. Yielding (also called accommodating or obliging) is the strategy in the upper left-hand corner 3. Inaction (also called avoiding) is the strategy in the lower left-hand corner 4. Problem Solving (also called collaborating or integrating) is the strategy in the upper right-hand corner 5. Compromising is the strategy located in the middle

The Planning Process

1. Define the negotiating goal 2. Define the major issues related to achieving the goal 3. Assembling the issues, ranking their importance, and defining the bargaining mix 4. Defining the interests 5. Knowing your alternatives (BATNAs) 6. Knowing your limits, including a resistance point 7. Analyzing and understanding the other party's goals, issues, and resistance points 8. Setting one's own targets and opening bids 9. Assessing the social context of negotiation (who is at the table, who is not at the table, etc.) 10. Presenting the issues to the other party: substance and process

Key Differences Among Negotiators

1. Differences in interests 2. Differences in judgments about the future 3. Differences in risk tolerance 4. Differences in time preference

Sources of Power

1. Expert power: derived from having unique, in-depth information about a subject 2. Reward power: derived from being able to reward others for doing what needs to be done or bribing 3. Coercive: ability to punish others 4. Legitimate: holding an office/formal title and using those powers 5. Referent: derived from respect/admiration because of one's personality, integrity, interpersonal

Different Ways to Logroll

1. Explore differences in risk preference 2. Explore differences in expectations 3. Explore differences in time preferences

Key Steps in the Integrative Negotiation Process

1. Identify and define the problem 2. Surface interests and needs 3. Generate alternative solutions 4. Evaluate and select alternatives

Levels of Conflict

1. Interpersonal or intrapsychic conflict (self) 2. Interpersonal conflict (indivduals) 3. Intragroup conflict (group) 4. Intergroup conflict (organizations)

Implications for Negotiations

1. Negotiators must be able to recognize situations that require more of one approach than the other 2. Negotiators must be versatile in their comfort and use of both major strategic approaches 3. Negotiatorperceptions of situations tend to be biased toward seeing problems as more disributive/​competitive than they really are

Dealing with others who have more power

1. Never do an all or nothing deal 2.Make the other party smaller- deal with less people at a given time 3.Make yourself bigger- build coalitions with other small players 4.Build momentum through deals in sequence 5.Use power of competition to leverage- Have BATNAs 6.Constrain yourself- limit the ways you do business 7.Good information 8.Ask lots of questions 9.Do what you can to manage the process

2 Perspectives of Power

1. Power used to dominate/control others. 2.Power is jointly developed and shared with both parties

Five major concerns to be considered in developing a negotiation agenda

1. Scope: What issue should be considered? 2. Sequence: In what order should those issues be addressed? 3. Framing: How should the issues be presented? 4. Packaging: Should the issues be taken one at a time, or in various groupings/packages? 5. Formula: Should we strive to first get an agreement on general principles, or should we immediately begin to discuss each of the issues?

Three tactics to elicit information from the other negotiator when he or she mistrusts you

1. Share information and encourage reciprocity 2. Negotiate multiple issues simultaneously 3. Make multiple offers at the same time

Influencing the Other's Party's Resistance Point

1. The higher the other party's estimate of your cost of delay or impasse, the stronger the other party's resistance point will be 2. The higher the other party's estimate of his or her own cost of delay or impasse, the weaker the other party's resistance point will be 3. The less the other party values an issue, the lower their resistance point will be 4. The more the other party believes that you value an issue, the lower their resistance may be

Factors that Facilitate Successful Integrative Negotiations

1. The presence of a common goal 2. Faith in one's own problem-solving ability 3. A belief in the validity of the other party's position 4. The motivation and commitment to work together 5. Trust 6. Clear and Accurate Communication 7. An understanding of the dynamics of integrative negotiation

Characteristics of a Negotiation Situation

1. There are two or more parties (individuals, groups, organizations) 2. There is a conflict of needs and desires between two or more parties 3. The parties negotiate by choice 4. When we negotiate, we expect a "give-and-take" process that is fundamental to our understanding of the word "negotiation" 5. The parties prefer to negotiate and search for agreement rather than to fight openly, etc. 6. Successful negotitatio​n involves the management of tangibles and also the resolution of intangiabl​​es.

Negotiation

A form of decision making in which two or more parties talk with one another in an effort to resolve their opposing interests (win-win situation)

Fraud

A knowing misinterpretation of a material fact on which the victim reasonably relies and which causes damage

Misrepresentation by Commission

Actually lying about the common value of the issue

Type: Expand the Pie

Add resources in such a way that that both sides can achieve their objectives

Misrepresentation

Affirmative misstatement of something

Type: Nonspecific Compensation

Allow one person to obtain his objectives and compensate the other person for accommodating his interests

Type: Good Cop/Bad Cop

Alternating between negotiators who use tough and more lenient negotiation approaches

Negotiators dealing with other party's deception?

Ask probing questions, phrase questions diff, force the other party to lie or back off, test the other party, call the tactic, ignore the tactic, discuss what you see and offer to help the other party be more honest, respond in kind

Type: Nibble

Asking for a proportionally small concession on a new item to close the deal

Social Contract Ethics

Basing tactical choices on view of appropriate conduct for behavior in community, if others would deceive in the same situation so would you/rightness of action determined by societal norms

BATNA

Best Alternative to a Negotiated Agreement **Whether you should or should not agree on something in a negotiation depends entirely upon the attractivness to you of the best available alternative

Mutual Adjustment

Both parties can influence the other's outcomes and decisions, and their own outcomes and decisions can be influenced by each other

Ethics

Broadly applied social standards about what is right or wrong in a particular situation

End-Result Ethics

Doing whatever is necessary to get the best possible outcome (including lying to the buyer) / rightness of action determined by considering consequences

Type: Compromise

Comprehensive agreement

Personalization Ethics

Consult conscious and decide whether your need for cash for your upcoming trip is justified for using deceptive or dishonest tactics/ rightness of action determined by conscience

Bargaining

Describes the competitive, (win-lose situations) such as haggling over the price of that item that happens at a yard sale

Hardball Tactics

Designed to pressure negotiators to do things they would not otherwise do

Type: Surveys

Does not solicit the ideas of those who are not present at the negotiation

Chapter 5

Ethics in Negotiation

Misrepresentation by Omission

Failing to disclose information that would benefit the other

Chapter 8

Finding and Using Negotiation power

Ethical vs. Prudent vs. Practicality vs. Legality

Frequently confused in business

Relationship between Key Steps in the Planning Process

Goals ---> Strategy ---> Planning

Spread Between Resistance Points (bargaining range, settlement range, or zone of potential agreement)

In this area the actual bargaining takes place, because anything outside these points will be summarily rejected by one of the two negotiators.

Chapter 4

Negotiation: Strategy and Planning

Dilemma of Honesty

Negotiator who tells the other party all of the exact requirements and limits will inevitably never do better than the other party

Resistance Point (Reservation Price)

Negotiators bottom line

Type: Superordination

Occurs when "the differences in interest that gave rise to the conflict are superseded or replaced by other interests

Direct Effect 2

One's goals may be, but are not necessarily, linked to the other party's goals. Linkage between two parties' goals defines an issue to be settled and is often the source of conflict

Zero-Sum/Distributive Situations

Ones in which there can be only one winner or where the parties are attempting to get the larger share or piece of a fixed resourse.

Type: Snow Job

Overwhelming the other party with so much information they cannot make sense of it

Ethically Ambiguous

People tend to regard others unsavory behavior as causes by disposition or personality while attributing causes of their behavior to the environment

Duty Ethics

Perceiving an obligation as never thinking lying is okay, rejecting tactics that involve an outright lie/ determined by considering if obligations apply to universal standards

3. Positional/Structural Power

Power derived from being located in a particular position in an organization/community 1. Legitimate power: formal authority derived from occupying a key position but can also influence social norms such as a. Reciprocity: expected exchange of favors b. Equity: expected return when one has gone out of one's way for other c. Dependence: expected obligation one owes to others who cannot help themselves. 2. Resource control: accumulation of money, raw materials, labor, time, and equipment used as incentives to encourage compliance or as punishments a. Reward power: use of tangible rewards/personal approval to gain other's compliance b. Punishment: used to gain other's compliance 3. Network structure power: A secretary holds power because they manage a information a. Tie strength: strength of relationship with another person b. Tie content: Flow of resources such as money, information, emotional support, friendship c. Network structure: refers to overall set of relationships within a social system

Target Point (Negotiation Aspiration)

Preferred Price

Type: Bogey

Pretending a low priority item is important in order to trade it for a concession on another item

Chapter 2

Strategy and Tactics of Distributive Bargaining

Chapter 3

Strategy and tactics of Integrative Negotiation

Chapter 1

The Nature of Negotiations

Goals

The first step in developing and executing a negotiation strategy is to determine one's goals

Type: Cut the Costs for Compliance

Through cost cutting, one party achieves their objectives and the other's cost are minimized if she agrees to go along

Type: Chicken

Using a large bluff plus a threat to force the other party to concede

Type: Intimidation

Using emotionally ploys such as anger and fear to force concessions

Type: Low-ball/High-ball

Using extreme offers to change the anchor of potential negotiation settlements

Practical

What a negotiator can actually make happen in a given situation

Legal

What the law defines as acceptable practice

Type: Find a Bridge Solution

When the parties are able to invent new options that meet all their respective needs they have created a bridge solution

Prudent (adj)

Wise, based on trying to understand the efficacy of the tactic and the consequences it may have on the relationship with the other

Direct Effect 1

Wishes are not goals, especially in negotiation. A wish is a fantasy, a hope that something might happen; a goal is a specific, focused target that one can realistically develop a plan to achieve

A Field Analysis of Negotition

a. The direct actors (who is on the field on our side) b. The opposition actors (who is on the field on their side) c. Indirect actors (who is on the sidelines) d. Interested observers (who is in the stands) e. Environmental factors (what is going on in the broad environment of the game)

Dilemma of Trust

negotiator who everything the other side tells them can be manipulated by dishonesty


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