Def of negotiations
Decision-making situations in which two or more interdependent parties attempt to reach agreement
Characteristics of a negotiation situation(6)
Successful negotiation involves
Most relationships between parties may be characterized in one of 3 ways
Interdependent
Independent
Dependent
Interdependent parties are characterized by
interlocking goals. A mix of convergent and conflicting goals characterizes many interdependent relationships. The parties need each other to accomplish their objectives.
zero-sum or distributive situations
one winner only
Non-zero-sum or integrative situations
goals are linked to achieve a mutual gain
What does BATNA stand for
Best Alternative to a Negotiated Agreement
concessions
Both parties engage in mutual adjustment as each attempts to have an influence on the other
when one party alters his/her position based on the other party’s suggestion to do so
When one party agrees to make a change in position, the party has made a conscession
Examples of intangibles in negotiation.
Dependent parties are characterized by
must rely on others for what they need
Independent
parties are able to meet their own needs without the help and assistance of others.
A mix of ______ and ______ goals characterizes many interdependent relationships
convergent and conflicting
What are the two dilemmas in mutual adjustment
What is the dilemma of honesty
Explain dilemma of trust
how much of what the other party tells them should negotiators believe?
Two efforts in negotiation help to create trust and beliefs:
Explain Outcome perception
Outcome perceptions can be shaped by managing how the receiver views the proposed result
- Perception of results can create/destroy trust
Explain process perception
The process itself has an effect on trust in negotiations
Perception of the trustworthiness and credibility of the process can be enhanced by conveying images that signal fairness and reciprocity in proposals and concessions
Distributive bargaining
there can only be one winner given the situation an pursues a course of action to be that winner. Purpose s to CLAIM VALUE
Integrative negotiations
attempts to find solutions so both parties can do well and achieve their goals. Purpose of the negotiation is to create value
Create value goes with ______
integrative negotiations
Claim value goes with _________
distributive negotiation
Most actual negotiations are a combination if value-claiming and value-creating processes. The implications of this are:
Negotiators must be able to recognize situations that require more of one approach than the other
Negotiators must be versatile in their comfort and use of both major strategic approaches
Negotiator perceptions of situations tend to be biased toward seeing problems as more distributive/competitive than they really are