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Negotiation
process that involves interactions between two or more parties, seeking to reach an arrangement or resolve a conflict
Why do people say they hate negotiation?
-fear of rejection
-fear of conflict
-loss aversion
-lack of confidence
-culture and gender norms
-time and effort
-outcome certainty
-psychological comfort zone
-they don’t know what negotiation is
Rackham study findings
this study found that effective negotiations tend to use more cooperative type skills in negotiation than confrontational or competitive tactics. Cooperative people can, therefore, be effective negotiators.
What are the characteristics of an effective negotiator
genuine, flexible, ethical, active listener, curious
Zero-Sum Game
one person must win and one person must lose
What is the relationship between negotiation style and negotiation situation?
they are closely related, the best negotiation style for a given situation depends on a number of factors.
Conflict Handling Styles
avoiders, competitors, accommodators, collaborators, compromisers
Avoiders
view the negotiation process in and of itself as conflict to be avoided
Competitors
excel in win-lose situations and looks out for their own interests, cares little about the relationship with the other person
Accommodators
prefer to give in or give the other what they want to keep peace
Collaborators
see situations as a problem or challenge, seek to achieve an outcome where everyone is happy
Compromisers
value equality and fairness, willing to accept outcomes that are in the middle
9-Trial Decision Task
A method used to study decision making processes and the dynamics of negotiation strategies. It is used to find what a persons motives are if they get to decide how to divide resources between them and another person. It asks a series of questions to be answered. The task provides a score on three social orientation measures: collectivism, self-determination, and individualism
Self-Fulfilling Prophecy
a situation where you assume something is true of an individual and you treat them in a way consistent with that assumption (they are competitive, you act competitively toward them)
Stereotype
beliefs about a group or culture that are based on generalized knowledge that are assumed to be true of any individual from that group or culture.
Social Values
the deeply rooted system of principles that guide individuals in their everyday choices and interactions
Reservation Price
The worst agreement you are willing to accept before ending negotiations
Bottom Line
the very least for which a person will settle
Aspiration Level
a high target that a negotiator sets for themselves for the negotiation
BANTA
the course of action you’ll take if negotiations fail, and no agreement is reached. what you have left if the ENTIRE deal falls apart, NOT the worst you are willing to accept. what you have as a certainty
Assumptions of a distributive bargaining situation
there is a fixed amount of resources to be divided
the interest of the parties is diametrically opposed (neither parties will achieve their goals)
distributive bargaining is more likely to occur when negotiators are negotiating over a single issue
assumption: the relationship between the two parties is not a strong one
assumption: negotiators may be willing to engage in contentious or hardball tactics to achieve their goals
Hardball Tactics
tactics that negotiators may use to claim as much value for themselves as possible. these tactics are used to undermine, fool, or confuse the other negotiator
Roger Dawson’s “Power Negotiation/Sales Strategies.”
ask for more than you expect to get, never say yes to the first offer play the reluctant seller, concentrating on issues and not the personality of the other negotiator, use a high authority, avoiding confrontational negotiating, never offer to split the difference among other.
ZOPA
where the settlement occurs, between the parties’ initial reservation prices
Nibble
a tactic when first getting commitment on the price of an item and then asking for the person to toss in a little more.
Highball/Lowball Tactic
a tactic used when a negotiator makes a first offer that is extremely high or low in hopes of convincing the other negotiator that their own goals are unachievable.
Intimidation
a tactic that seeks to undermine the other negotiator’s confidence, often by providing false or dubious information.
Bogey
a tactic where a negotiator pretends something or some issue is important to them but it is not to get something of value in return
Good Cop/Bad Cop
when negotiating with a partner, one takes the hard line and puts extreme pressure on the other side, leading them to believe that a deal may not even be possible, then the good cop comes in and makes a concession that allows the cop duo to receive what they had hoped for all along
Chicken
a tactic that forces the other to show their hand
Flinch
negotiators should react with shock and surprise when receiving a first offer to signal to the other negotiator has gone too high or too low
Sweetener
a small proposal or concession that is made during the closing stage of negotiation to persuade the other negotiator to agree to a final offer.
Pareto Field
represents the pinnacle of efficient negotiation outcomes. A negotiation is considered pareto optimal when no further changes can be made to the agreement but would benefit one party without simultaneously harming another. The most equitable distribution of resources and benefits possible.
Claiming Value in a negotiation
advocating for your interests and ensuring that the solutions reached are aligned with your objectives. Its about making the right balance between collaboration and self-assertion
Integrative Negotiation
negotiation where parties attempt to integrate their interests.
Logrolling
trading off issues or making concessions to maximize the value for both sides
Multi-Attribute Utility Analysis
a process of weighting the issues in a negotiation and then assigning a numeric value to the options within each issue. This process forces a negotiator to quantify the issues and allows the negotiator to quantify the issues and option, helping them wee where the trade-offs may be
How do you convert a distributive bargaining situation into an integrative negotiation?
adding issues
What are the ways to build trust with another negotiator?
develop reciprocity, share information about interest and proprieties. Reciprocity builds the trust that is required to feel comfortable in sharing information about interests and priorities.
Stages of Negotiation
preparation
rapport-building
information-trading
deal-making
closing
Preparation Stage
deciding whether there is something to be gained through negotiation, identifying the type of negotiation situation, and developing an appropriate strategy
Rapport-Building Stage
negotiators attempt to build a personal connection so they feel comfortable sharing discussing various things
Information-Trading Stage
an exchange of information between negotiators about their respective proposals
Deal-Making Stage
actively attempt to find a mix of different proposals that may lead to an agreement
Closing Stage
negotiators make final offers to complete the deal and discuss ways to implement their agreement
Why must all issues be discussed? (Simon&Tripp)
for any issue that is not discussed, the parties risk the possibilities of making different assumptions
How can you slow down the pace of a negotiation?
?
Dennis Ross’ “12 Rules of Negotiation.”
Know what you want, know what you can live with
Know everything there is to know about the decision maker(s) on the other side
Build a relationship of trust with the key decision makers
Keep in mind the other side’s need for an explanation
To gain the hardest concessions, prove you understand what is important to the other side
Tough love is also required
Employ the good cop bad cop approach carefully
Understand the value and limitations of deadlines
Take only calculated risks
Never lie, never bluff
Don’t paper over differences
Summarize agreements at the end of every meeting
How does BATNA affect negotiations?
a strong BATNA gives leverage to the negotiator and allows them to push a little harder than normal to get a deal better than what is available away from the bargaining table. A weak BATNA can take steps to improve the negotiators position.
How do you establish rapport in a negotiation?
asking questions, sharing information and building a trusting and sincere working relationship.
Tangible Interests
represents things that a negotiator wants or needs that are generally easy to identify such as money, a new job, or specific price
Intangible Interests
represents things that a negotiator may want or need that are sometimes hard to detect such as recognition, fair treatment, respect
Authoritative Standard
such as agreed upon market rates or the opinion of an expert source accepted by both negotiators that can be used to better explain of justify the bargaining proposals
What questions to use during the rapport building stage
open ended questions that allow a negotiator to better understand the other negotiators issues and interests
What questions to use during the info trading stage
focus on each side’s proposals and attempt to narrow the issues for discussion through the use of clarifying questions
What questions to use during the deal making stage
if-then and what-if questions in attempt to find a mix of new ideas and proposals that can lead to an agreement that satisfies may of the parties’ different interests possible
What questions to use during the closing stage
questions that determine whether there is any room for movement and to raise issues about the parties’ alternatives if they cannot reach an agreement
Why is it important to discuss the negotiation process?
talking about the ground rules of the process helps establish rapport with the other negotiator, provides structure to the process, and may create momentum for both negotiators to ultimately reach an agreement.
How can negotiators bridge the power gap with another negotiator?
identify what the other person wants or needs (tangible and intangible interests), creating a working relationship with the other negotiator, and make proposals that indicate you understand their interests.
What is the role of concessions in negotiation and how to deploy then effectively?
a concession is a change or modification in a proposal a negotiator has previously made in the negotiation
How do you ensure that there is commitment to the negotiated agreement?
engage in some sort of “social ritual” (shaking hands at the end of the deal), hold a press conference announcing the deal that has just been negotiated, summarizes the agreement in the form of a memorandum of understanding or contract
Interests
the underlying reasons for the position a negotiator takes, multiple
Positions
a stand taken in a negotiation, singular
Boulwarism
a negotiation technique in which a negotiator makes an initial “take it or leave it” first and only offer in negotiation.
Deal-closing strategies
exploding offer, sweetener, splitting the difference
Exploding Offer
a proposal made during the closing stage that has a specific time limit for acceptance
What is the most powerful tool in any verbal communication?
asking questions?
What are the three types of yes?
?
Tactical Empathy
the deliberate use of empathetic skills to influence and guide the negotiation process. It’s about understanding the emotions and perspectives of the other party while also strategically steering the conversation to your objectives.
Calibrated Question
open ended questions that are strategically designed to gather information and guide conversations without making the other party defensive.
Mirroring
matching the other negotiators body language, degree of eye contact, and level of passion for a particular issue to establish rapport.
What does “No” represent in a negotiation?
just because someone says no doesn’t mean the negotiation is over. Use the no to gain a better understanding of what interests must be met in order to turn the no into a yes
Labeling
acknowledging the emotions underlying the statements and actions of your negotiating counterpart. It’s about understanding their feelings and signaling that understanding back to them
Note 
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