Negotiations Chapters 1-5

Accommodation approach to negotiation

Adoption of a lose-win strategy because the relationship is more important than the substantive terms of the deal

Appreciative moves

A strategy that negotiators use to capture applicable synergies and thereby overcome non productive negotiation tactics and irrelevant issues

Avoidance approach to negotiation

A hands-off approach to conflict management

Collaborative approach to negotiation

Substantial importance is attached to both the relationship and the substantive terms of the outcome for both parties

Competitive approach to negotiation

Adoption of a win-lose strategy because the substantive terms of the outcome are more important than the relationship

Compromising approach to negotiation

A negotiation outcome in which both parties get something they wanted but neither is fully satisfied with the rest

Distributive Negotiation/ Bargaining

A competitive process for determining how to distribute or allocate scarce resources

Dual concerns model

Posits five approached for handling conflict and negotiation: competition, accommodation, avoidance, compromising and collaboration

Final Stage of Negotiation

Typically includes implementing agreements as intended

Initial Stage of Negotiation

Typically includes pre-negotiation preparation, rapport building and additional information gathering (testing assumptions)

Integrative approach to negotiation

A collaborative process for creating value to help the parties satisfy their interests

Interest-based approach to negotiation

Substantial importance is attached to both the relationship and the substantive terms of the outcome for both parties

Lose-win approach

Negotiating party cares more about preserving the relationship with the other party than winning

Middle Stage of Negotiation

Typically include formulating arguments and counterarguments, exchanging offers and counteroffers and closing the deal

Mixed-motive negotiation

Negotiators must cooperate enough to reach an agreement and compete enough to claim sufficient value for themselves

Mutual gains approach to negotiation

A collaborate process for creating value to help the parties satisfy their needs

Negotiation

A social process by which interdependent people with conflicting interests determine how they will allocate resources or work together in the future

Positional Negotiation

A competitive process for determining how to distribute or allocate scarce resources

Principled Approach to Negotiation

A collaborate process for creating value to help the parties satisfy their interests

Shadow negotiation

The subtle games negotiators play that underlie the substantive aspects of the negotiation, including strategic moves, strategic turns and appreciative moves

Strategic moves

Tactics that persuade the other party to come to the bargaining table and to give your interests and arguments a fair heading

Strategic Turns

Tactics that help reframe the negotiation when it moves in an unproductive direction

Win-Lose

A competitive process for determining how to distribute or allocate scarce resources

Win-win approach to negotiation

A collaborate process for creating value to help the parties satisfy their interests

Zero-sum negotiation

A competitive process for determining how to distribute or allocate scarce resources

Aspiration Levels

What you realistically hope to achieve for each issue

Bargaining mix

The issues to be negotiated

Bargaining power

The ability to bring about desired outcomes

Best alternative to a negotiated agreement (BATNA)

The best alternative outcome available to you without the other negotiator

Dilemma of honesty

The other party may take advantage of you if you share too much information, but you may not be able to reach an agreement if you share too little

Dilemma of trust

The other party may take advantage of you if you believe too much of what he or she tells you, but you may not be able to reach an agreement if you believe too little

Interests

The motives underlying your positions, your reasons for wanting them or the purposes they will serve for you

Issues

The specific components or dimensions of the situation that must be addressed

Position

commonly an offer or a counteroffer, it is possible outcome

Reservation price or point / Walk away price

Your breakeven point or the worst acceptable outcome for each issue. You would rather walk away without an agreement if you cannot achieve terms that are better than or equal to this point

Strategy

The plan or process by which negotiators attempt to achieve their goals

Tactics

The specific, short-term actions that serve to implement the broader strategy

Target points

What you realistically hope to achieve for each issue

Wise agreement

One that satisfies your interests and perhaps, the other party's

Zone of Possible Agreement (ZOPA)

The range between resistance points

Bogey

Involves pretending that an issue is very important even though it is not. It is later traded, reluctantly for a concession from the other side that is more important.

Commitment

A strong position combined with a pledge of a specific course of action that can sometimes be perceived as threats

Concessions

Reductions in demands made to opening offers

Dirty Tricks/ Hardball tactics

Aggressive distributive bargaining tactics in which one party pressures the opposing party into doing something it otherwise would not do

Distributive Tactics

Tactics that are used to implement the distributive bargaining strategy

Final Offer

A point in the negotiation beyond which a negotiator is unwilling or unable to go

Flinching

Feigning shock or surprise when the other party extends an offer

Good cop-bad cop

A hardball negotiation tactic in which two negotiators in the same party pretend to take different approaches: one opens with a very tough position and the other follows this playing nice

Intimidation

A form of aggressive behavior, such as anger, guilt, threats, insults, attacks, pushiness, impatience, intransigence and hard-nosed demands, used to make the negotiators appear more powerful in order to impose their position on the other party

Lose Face

A loss of image or status in the eyes of others

Lowball-highball

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

Nibble

After negotiating for some time, in which a negotiator asks for a small concession on an issue that has not yet been discussed to close the deal

Snow Job

An aggressive negotiation tactic in which one party inundates the other with so much information that it is not possible to determine what is accurate or relevant

Winner's curse

Getting what you want too easily and being unhappy with it

Bridging Solution

An integrative solution that bridges the gap between incompatible positions

Cutting the costs for compliance

One party's costs are minimized in return for agreeing to allow the other party to satisfy its interests

Creating value

Expanding the pool of available resources by creating solutions that satisfy all parties' interests

Dealcrafting

Creating solutions that help you make deals is unnecessary

Fixed Pie

Fixed or limited resources

Instrumental interests

Something a negotiating party needs or values because it will help him or her in the future

Intrinsic interests

Something a negotiator needs or values because it will help him or her now

Logrolling

A solution process in which parties maximize joint gain by finding trades that capitalize on their differences

Nonspecific compensation

A solution in which one party is paid off for allowing the other to satisfy its interests

Alternatives

A closing tactic in which one party offers multiple choices to the other party

Assuming the close

A closing tactic in which one party assumes the other party has agreed to the deal, even though the other party has not done so

Assumptive question

Used to augment the tactic of assuming the close by asking a question that assumes the other side has agreed to the deal

Balance Sheet (Cost benefit) Closing Tactic

One party lists the benefits of their own proposal on one side of a piece of paper and then asks the other party to list their costs on the other side in order to demonstrate that the first party's benefits outweigh the second party's costs

Closing tactics

Tactics that a negotiating party uses to persuade the other party to say yes

Comparison closing tactic

One negotiating party delineates and compares the benefits and/or costs that the other party will derive from different proposals in order to demonstrate the advantages of the desired proposal

Compromise closing tactic

The parties divide in half the difference between each of their last offers

Default option

People are more concerned about the risk of change than the benefits of changing, so proposals persuade people to say yes if they preserve the status quo and do not require them to change

Exploding offers

Attempting to close deal using time pressure

Multiple equivalent offers

A closing tactic in which one party offers more than one choice to the other party, and all of the offers are neatly equivalent

Sequential questions

A closing tactic that uses a sequence of questions which begins with a question that is sure to elicit a yes response and continues with questions that lead logically and incrementally from the first question

Split the difference closing tactic

The parties divide in half the difference between each of their last offers

Status quo bias

People are more concerned about the risk of change than the benefits of changing, so proposals persuade people to say yes if they preserve the status quo and do not require them to change

Sweeteners

A closing tactic in which one party offers a final concession if the other party accepts their offer