BUSI 545 Negotiations - Day 2 Review

Flashcards covering key vocabulary and concepts from the BUSI 545 Negotiations Day 2 lecture, including single and multi-issue negotiations, dispute resolution, job offer strategies, and negotiation preparation.

Single-Issue Negotiations

Negotiations focused on one primary factor, often involving aspirations, reservations, BATNAs, first offers, and anchoring.

Multi-Issue Negotiations

Negotiations involving several factors, which require distinguishing between positions and interests to find integrative solutions.

Dispute Resolution

A type of negotiation focused on settling disagreements, exemplified by the 'Viking Investments' case.

Recurring Negotiation

A negotiation scenario that may happen multiple times or with implications for future interactions, such as an 'Outside Offer' for an employee.

Integrative Solution

An outcome in negotiation that seeks to maximize value for all parties involved, rather than just one side.

Integrative Caveat

The principle that while seeking integrative solutions, one should always look out for their own interests and not confuse being integrative with being compliant.

Relationships in Negotiation

The idea that when long-term relationships are involved, the tone and outcome of a negotiation can have broader, lasting consequences.

Dispute Resolution Approaches

Three possible ways to resolve disputes: integrate interests, determine rights, or leverage power.

Rejected Claim

A common scenario in disputes where one party makes a claim (e.g., for more money), and the other party refuses it based on agreed terms or contract specifics.

Rights (in negotiation)

Actions that comply with justice or reason, normatively and/or morally correct acts, or granted privileges.

Power (in negotiation)

The ability to enforce one's will, depending on resources and the legal or non-legal capability to coerce others.

Threats (in negotiation)

An if/then statement indicating the circumstances under which an individual will turn to their BATNA, often leading to escalating conflict.

Responding to Rights/Power-Based Approach

Instead of reciprocating with rights or power, side-step by using interest-based questions (e.g., 'What would you like to accomplish?', 'Why do you want…?').

Apology in Negotiation

A gesture that can reduce tension, ease conflict, preserve relationships, and acknowledge hurt, though often avoided in the U.S. due to perceptions of weakness or admission of fault.

Legal Steps to Encourage Apologies

State laws (e.g., Massachusetts, NC) that specify gestures expressing sympathy for pain or adverse outcomes are not admissible as evidence of liability, encouraging open communication.

Ideal Dispute Resolution Approach

Integrating interests (needs, desires, concerns, fears, values), as it is most likely to create win-win outcomes.

When to Use Power and Rights

Only when the counterpart won't negotiate, interest-based negotiations have failed, the counterpart is dependent on your resources, or the relationship is not important.

Criteria for Evaluating Dispute Outcomes

Satisfaction with process/outcomes, transaction costs (minimizing time, money, energy), effect on relationship, and recurrence (avoiding future problems).

Reasons People Don't Negotiate Job Offers

Undervaluing skills, fear of appearing greedy, or fear of losing the offer or ruining the relationship.

Job Offer Negotiation Preparation

Figuring out what you really want, doing homework on market value, determining your BATNA and reservation, thinking about the employer’s BATNA, and determining the issue mix.

Issue Mix (Job Offers)

The combination of multiple negotiable factors in a job offer, such as salary, bonus, title, relocation, housing, vacation days, training, responsibilities, and work arrangements.

Strong BATNA Job Offer Response

A statement acknowledging interest while highlighting a competitive offer to prompt further negotiation (e.g., 'having trouble reconciling the difference between your offer and another').

Weak BATNA Job Offer Response

A strategy to redirect conversation from other offers to what it would take for you to accept their offer (e.g., 'I’m still talking with other companies, but I don’t really feel comfortable discussing that information…').

During Job Offer Negotiation Do's

Assume the offer is negotiable, use a target number (not a range unless bottom is target), imagine negotiating for someone else, and have comparables/benchmarks.

During Job Offer Negotiation Don'ts

Stating a broad salary range, revealing your BATNA or reservation value, issuing ultimatums, lying, or misleading.

Salary History Inquiries

Questions about a candidate's current or previous salary, which are illegal to ask in several U.S. states due to transparency laws.

Initiating Negotiation Process (Example)

Starting the conversation with an open-ended inquiry about the offer details, e.g., 'I have some questions about the salary/benefits package that I would like to talk with you about…'.

Negotiating Raises

Strategies include focusing on performance specifics, negotiating dollars (not percentages) based on market value, and not using outside offers as threats but as impetus for discussion.

Balancing Multiple Issues (Steps)

Listing all issues, generating alternative options for each, and providing relative weights for alternatives based on given points.

Good Scoring System (Negotiation)

A criterion for evaluating negotiation agreements that is complete (identifies all important issues), measurable (provides common metric), and useful (determines preferable agreements).

Impact of Previous History/Relationship

Reciprocal negotiations alter dynamics; trust, reputation, and social capital persist and can carry over with other parties or in 'small world' industries.

Real World Negotiation Assignment Purpose

To provide students with practice outside of class, to work through the planning and preparation process, and to create a thoughtful analysis based on personal negotiation.

Preparation: Self-Assessment

Determining what you want (target/aspiration), your BATNA, reservation point, focal points, and being aware of sunk costs.

Preparation: Assessing the Other Party

Understanding the other party's interests, position, BATNAs, and reservation values through perspective-taking.

Preparation: Assessing the Situation

Analyzing whether the negotiation is one-shot, long-term, or repetitive; necessity or opportunity; requiring commitment or agreement; time constraints; and power differentials.