why do negotiations occur
(1) to agree on how to share or divide a limited resource, such as land, or money, or time;
(2) to create something new that neither party could do on his or her own;
(3) to resolve a problem or dispute between the parties
what is negotation
a form of decision making in which two or more parties talk with one another in an effort to resolve their opposing interests
bargaining vs negotiation
b: competitive, win–lose situations
n: talks peacefully
chars of negotiation
- 2+ parties
- conflict of desires
- negotiate by choice (create more value than upfront acceptance)
- ppl think it reqires give and take but creative negotiation is about coming up with an inventive solution
- mgmt of tangibles (price/terms) & resolve intangibles (psychological factors like need to win & look good/fair etc)
interdependance
When the parties depend on each other to achieve their own preferred outcome,
independant
dependant
interdependant
- meet their own needs without the assistance of others
- Dependent parties must rely on others for what they need. Because they need the help, benevolence, or cooperation of the other, the dependent party must accept and accommodate
- interlocking goals—the parties need each other in order to accomplish their objectives
Note that having interdependent goals does not mean that everyone wants or needs exactly the same thing. Different project team members may need different things, but they must work together for each to accomplish their goals. This mix of convergent and conflicting goals characterizes many interdependent
Types of interdependance
Zero sum/distributive: when parties are attempting to divide a limited or scarce resource(one wins one loses)
non-zero sum/integrative: To the degree that one person achieves their goal, the other’s goals are not necessarily blocked and may, in fact, be significantly enhanced
BATNA
best alt to negotiated agreement
bargaining zone
ZOPA! zoneo f potential agreements that exists ebtween the reservtion points “positive bargizinaing zone”
negative bargaining zone
When the resistance points do not overlap!
2 elements of negotiations
- Management of tangibles (price, terms, timing)
- Reso of intangibles (emotional needs to win/beat the other party, to look important, to look fair/reasonable, to feel like you have power)
What is interdependance and how does it lead to distributive or integrative negotiations?
When two parties have interlocking goals (converging or conflicting)-> not necessarily that everyone wants or needs the same thing
based on this you either have distributive scenarios (value claiming/1 winner) or integrative (value creating/multiple winners)
what are the two main strategies?
value claiming and value creating
distributive and integrative
when does the urge to win overwhlem being rational?
- RIVALRY: when lots of competition
- time pressure
- spotlight: if an audience is present people are less likely to concede
- the presence of attorneys: because of the payment structure they pressure clients to “win”
When the parties depend on each other to achieve their own preferred outcome, they are interdependent
BARS
What is a zero sum situtation?
when people are so closely linked that there is a negative correlations between their goal attainment
OR Dividing a limited scarce resource
Mutual Adjustment
Mutual adjustment continues throughout the negotiation as both parties act to influence the other. Note that negotiation is a process that transforms over time, and mutual adjustment is one of the key causes of the changes that occur during a negotiation.
to do mutual adjustment you often need to do what?
make concessions! this constrains the bargaining zone
2 dilemmas of Mutual adjustment
- HONESTY: how much truth to tell?
- TRUST: how much should you trust the other party?
2 ways to manage the dilemmas of Mutual Adjustment?
- Perception of outcomes: managing how the reciever views the result- if you can shape how the outcome is percieved, it can help increase honesty
- Perception of the trustworthiness of the process: signalling that it is a fair negoitation and concessions will be reciprocated
Satisfaction with a negotiation is as much determined by the PROCESS through which an agreement is reached as with the actual outcome obtained.
The HOW matters as much as the final result
non zero sum? mutual gains?
integrative!
are all negotiations either integrreative or distirbuutive? and what are implications?
no usually both!
implications:
1. Recognize when one approach is more needed than the other
2. Be comfortable with both
3. RECOGNIZE we are more likely to percieve situations as more distributive than they really are- openn ur eyes to integrative results
