Ch 1
Style and Approach
Bargaining vs. Negotiation:
Bargaining: competitive win-lose situations.
Negotiation: win-win situations.
Importance of give-and-take.
Context influences negotiation.
Insights drawn from:
Personal experience
Media
Research
Characteristics of a Negotiation Situation
Two or more parties involved.
Conflict of needs and desires exists.
Participation in negotiation is voluntary.
Expectation of give-and-take.
Preference to negotiate is present.
Management of tangibles and intangibles is necessary.
Interdependence
Working interdependently enhances outcomes.
Independent parties: meet own needs without assistance.
Dependent parties: rely on others to fulfill needs.
Interdependent parties: depend on each other for mutual outcomes with shared goals.
Types of Interdependence Affecting Outcomes
Goal Interdependence: shapes negotiation processes and outcomes.
Zero-sum (Distributive):
Competitive scenario with one winner.
Negative correlation between goal attainments.
Mutual-gains (Integrative):
Positive correlation; achieving one goal may enhance the other's.
Alternatives Shape Interdependence
B.A.T.N.A (Best Alternative To a Negotiated Agreement):
The value of an agreement depends on best available alternatives.
Understanding own and other's B.A.T.N.A is crucial.
Alternatives can lead to independence, dependence, or interdependence.
Ability to walk away preserves interdependency.
Mutual Adjustment and Concession Making
Negotiations evolve over time; mutual adjustment drives these changes.
Initial proposals may not be accepted; critique of proposals follows.
Concessions occur when one party alters their position.
Making concessions constricts the bargaining range.
Two Dilemmas in Mutual Adjustment
Dilemma of Honesty:
Risks of revealing too much and potentially being exploited vs. leading to stalemate by holding back information.
Dilemma of Trust:
Balancing belief in the other party to avoid exploitation vs. skepticism that hinders agreement.
Outcomes and Processes
Concessions facilitated by trust and perceived fairness.
Manage the receiver's perceptions of outcomes for credibility.
Signal fairness in proposals to enhance perceptions of the process.
Value Claiming and Value Creation
Negotiation strategies shaped by interdependence structure.
Distributive Bargaining: pursuit of win-lose outcomes, primarily for claiming value.
Integrative Negotiation: aims for win-win outcomes, focused on creating value.
Implications of Claiming and Creating Value
Blend of claiming and creating value in negotiations.
Recognizing when to apply each approach is critical.
Versatility in strategy use helps avoid leaving value on the table.
Effective management of interdependence can lead to synergy.
Value Creation and Negotiator Differences
Core process of value creation involves leveraging differences.
Differences in Interests: compatibility leads to value creation.
Differences in Future Value Judgments: perceptions of future worth vary among negotiators.
Differences in Risk Tolerance: risk profiles influence negotiating strategies.
Differences in Time Preferences: varying timelines for gains impact negotiation dynamics.
Conflict
Origins of conflict include:
Strongly divergent needs.
Misperceptions and misunderstandings.
Shared goals but differing outcomes.
Conflict represents a disagreement over simultaneous need fulfillment.
Levels of Conflict
Intrapersonal Conflict: within an individual.
Interpersonal Conflict: between individuals.
Intragroup Conflict: within a group.
Intergroup Conflict: between organizations or groups, most complex form.
Functions and Dysfunctions of Conflict
Productive Aspects:
Enhances discussion, leads to change, strengthens relationships.
Promotes self-awareness and psychological growth.
Destructive Aspects:
Competitive goals lead to win-lose mentality.
Misperception, reduced communication, emotional escalation.
Rigid commitments impede resolution and increase conflict escalation.