Studied by 6 people
Why do people negotiate?
-To agree on how to share or divide a limited recourse(time, money)
-To create something new that neither party could do on their own
-To resolve a problem or dispute between parties
What is conflict?
The result of the interaction of interdependent people who perceive incompatible goals and interference in achieving those goals(Wilmot and Hocker)
Levels of Conflict:
Internal conflict
Interpersonal conflict
Intragroup conflict(within a group)
Intergroup conflict(between groups)
Interdependence
I need you and you need me in order to achieve what each of us wants
Distributive Negotiation
Definition: a competitive negotiation strategy also called "claiming value" or "zero sum"(win it all for self if you can).
Characteristics of DN: -Use words like win or loss of negotiation
-Perception of "fixed pie" meaning that if one person gets more than the other gets less
-Used to decide how to distribute something of value
-Issues are framed as questions of how to compromise or how to choose among mutually exclusive options
-Power is applied to convince the other party that they have no choice but to make concessions
-A party will push for a settlement near the other party's bottom line
-Agreement occurs when parties feel convinced that the proposal is better than their alternative
Value Claiming vs. Value Creating
Value Claiming: Splitting the pie (used in distributive negotiation)
Value Creating: Expanding the pie (Adding more stuff into the negotiation that might help us get stuff done; used in integrative negotiation)
Integrative Negotiation
-Focuses on commonalities rather than differences
-2 parties have common goals or objectives
-Addresses needs and interests, not positions
-Commits to meeting the needs of all involved parties, exchanges information and ideas, invents options for mutual gain
Key Steps in Integrative Negotiation
Identify and define the problem
Understand the problem fully (Identify interests and needs on both sides)
Generate alternative solutions
Evaluate and select among alternatives
Win-Win v. Win-Lose
Win-Win: A resolution allowing both sides to win -negotiators aim to work together towards finding a solution to their differences that results in both sides being satisfied -normally a characteristic of Integrative Negotiation
Win-Lose: While one side wins, the other side loses -may damage the relationship between the parties
characteristic of Distributive Negotiation
Conflict Engagement Strategy/ Dual concerns model
Collaboration: I gain, you gain, enhance relationship, care about both sides
Compromising: both parties give up something that they want in order to get something else they want more (typically occurs in a win-lose situation)
Competition: I gain, ignore relationship, can still compete with people you care about→ willing to risk relationship to accomplish goals
Accommodation: I let you win, enhance relationship
Avoidance: Knowing when to pick your battles, not worth your time
6 principles of negotiation(I think she said that we didn't need to know this in class)
Negotiation is a process between individuals, within groups & between groups
There's a conflict of needs and desires between 2 or more parties: what one party wants is not the same thing that the other party wants
Parties negotiate by choice
We expect give-and-take in negotiation. Both sides are expected to modify and move away from their opening requests or demands
Negotiation occurs when the parties prefer to invent a solution rather than accept a solution, when there is no fixed set of rules or procedures for resolving conflict, or when they choose to bypass existing rules.
Successful negotiation involves tangibles and intangibles.
BATNA
Best Alternative to a Negotiated Agreement (Walk-Away)
--Gives negotiator power to walk away from the negotiation --You're normally willing to accept any deal that's better than your BATNA
ZOPA
Zone of Possible Agreement
--Settlement range where bargaining takes place --Spread between resistance points
Resistance Points
"Bottom line" or point beyond which you will not go
The point beyond which you will not accept a deal and will turn to your BATNA.
Targets
Your preferred price/optimal goal
--Best targets are well researched and well reasoned as opposed to esoteric "wishes" --Do not set aspirations too low: the "winner's curse"
Asking Price/ Opening Offer
A reference point for a decision that affects that decision
--Becomes an anchor --There are positives and negatives to being the one to make the opening offer --Opening offer should be something you can reasonably request with a straight face, that you would hope for, even if you may not expect to ultimately achieve --You should consider setting your opening offer at a point that acknowledges give and take
Alternatives
-Choosing another option
-Invent options by redefining the problem in a new way
-What does it mean for us to reach a successful agreement? What would that look like?
-Determine the criteria for evaluating the possible solutions
-Keep the intangible interests, not just the tangible interests in mind when evaluating the quality of the solutions.
Anchors
Cognitive bias that describes the common human tendency to rely too heavily on the first piece of information offered (the "anchor") when making decisions, individuals use an initial piece of information to make subsequent judgements
Risk tolerance in negotiation
change in any factor that carries the potential to achieve less than the desired outcome.
Interests (Substantive, Procedural, Relationship based, Identity interests)
Underlying concerns, needs, desires, or fears that motivate a negotiator
Types of Interests:
-Substantive: quantitative needs such as time, money, and resources (key issues in the negotiation)
-Procedural: needs relating to the process in which the dispute is resolved
-Relationship Based: one or more of the parties having an interest in the relationship
-Identity: often riddled with emotions and histories of distrust and animosity. Parties are not just fighting for their interests, but for their core identities and rights.Related to the need to feel good about oneself, to feel fair/competent/powerful
Nested Interests
Sub-interests that may provide solutions
Ex: caring for the environment, worrying about crime
Positions v. Interests
Position: a predetermined way to solve a problem. It might be superficial, and you are forced to see the answer that way.
Interest: motivating forces/reasons which underlie their negotiation positions. The 'why' or the basis for negotiation positions.
Anxiety in negotiation
Anxiety about a negotiation is likely to work against you and you should work on your negotiating skills to combat this problem.
Managing perception in negotiation
Determine exactly what is being said and what is meant
Gathering information in negotiation
"What-If" and "Would-You-Consider" are excellent discovery devices that can help you build better agreements.
Good Cop / Bad Cop
Good Cop: Pushes the bad cop to give a little more
Bad Cop: Constantly objects and disagrees
Concessions
'Trade-offs' where one or more parties to a negotiation engage in conceding, yielding, or compromising on issues under negotiation and do so either willingly or unwillingly.
Characteristics of a strong agreement
Skills, dialogue, benefit, collaboration, communicate, compromise, difference Specific, detailed, mapped out well and easy to follow. More detailed the better, more broad→ harder it is to follow.
Logrolling
A powerful form of concession making involves wrapping a concession in a package. For example, "If you will move on A and B, I will move on C and D."
-There are multiple interests in a negotiation. Identify of all interests, which you care about most. -Might let the other person get what they want on one issue but then you get what you want on another issue
Halo Effect
Occur when an individual generalizes about a variety of attributes based on the knowledge of one attribute of an individual.
Similar to stereotypes just opposite
Selective Perception
The perceiver singles out information that supports a prior belief but filters out contrary information
Projection
People assign to others the characteristics or feelings that they possess themselves
Arises out of a need to protect one's own self-concept.
Frames
-A subjective way through which people evaluate and make sense out of situations
-Lead people to pursue or avoid subsequent actions
-Focus, shape and organize the world around us
-Make sense of complex realities
-Define a person, event or process
-Impart meaning and significance
Cognitive Bias
-Irrational escalation of commitment -Mythical Fixed Pies -Anchoring & Adjustment -Issue framing and risk -Availability of information -The Winner's Curse -Overconfidence -The Law of Small #'s -Self Serving Biases -Endowment Effect -Ignoring Others' Cognitions -Reactive Devaluation
Fisher and Ury's idea: Soft on the people, hard on the problem
In negotiation you can't blame the person or make it personal to make an agreement. We must focus on the problem in the parameters of negotiation. We need to try and remove emotion and identity issues that can make people become defensive in a negotiation. You will be more successful if you attack it as a problem.
Negative and positive emotions
Negative emotions generally have negative consequences for negotiations --They may lead parties to define the situation as competitive or distributive --They may undermine a negotiator's ability to analyze the situation accurately, which adversely affects individual outcomes --They may lead parties to escalate the conflict --They may lead parties to retaliate and may thwart integrative outcomes
Responding to Negative Emotions: -Separate the emotion from its expression -Turn the table -Reflect the emotion being expressed back to the other party -Ask questions to uncover the issue or interest behind the emotion
Positive Emotions: -Increase productivity and creativity, which in turn can lead to positive feelings within a team or an organization -May result from compliments and feeling like you have a step on on the alternatives by continuing to negotiate towards an agreement.
Listening: passive, acknowledgement, active listening
Passive: listening without reacting (allowing someone to speak without interrupting)
Acknowledgement: acknowledging what was said, including stating your understanding of what was said and the feelings associated with what was said
Active: make a conscious effort to hear not only the words that another person is saying but, more importantly, try to understand the complete message being sent.
Non-verbal communication channels in negotiation
Negotiation room, food, furnishing, clothing, the look of printed materials, and so on (sweating, eye movements, shaking, etc.)
When Sluggers Come Home video (names of key main characters, central theme)
Main Characters: -Curry Brothers (Ted, Billy) -Barbara -Carla -Al -JJ Bartel
Central Theme: -Whether or not the brothers would get a new team to play on their newly built stadium (want to keep it in the family) -Can help Barbara meet her lease payment needs by providing more than enough attendance at the game
Note 
Flashcard (27)