What are the primary purposes
of negotiation?
3
- To share or divide a limited resource
- To create something new
- To resolve a problem or dispute
Negotiation occurs almost daily in various contexts.
People often fail to negotiate because they do not recognize they are in a _______.
negotiation situation
Misunderstanding the negotiation process can also lead to poor outcomes.
What are some key differences among negotiators?
- Differences in interests
- Differences in judgments about the future
- Differences in risk tolerance
- Differences in time preference
Value can be created by exploiting common interests and differences.
Negotiation is a form of decision-making involving two or more parties to resolve what?
opposing interests
Each party believes they can achieve a better deal through negotiation.
What is the difference between bargaining and negotiating?
- Bargaining: competitive win-lose situation
- Negotiation: win-win situations with mutually acceptable solutions
Negotiation involves back-and-forth communication aimed at reaching an agreement.
What are tangibles and intangibles in negotiation?
- Tangibles: price or terms of the agreement
- Intangibles: underlying psychological motivations
Successful negotiation manages both tangibles and intangibles.
The purpose of Distributive Bargaining is to _______.
claim value
It aims to gain the largest part of the resources.
The purpose of Integrative Negotiation is to _______.
create value
It seeks to find a way for all parties to meet their goals.
What are the four levels of conflict identified?
- Intrapersonal conflict
- Interpersonal conflict
- Intragroup conflict
- Intergroup conflict
Intergroup conflict is the most complex form.
What are some functions of conflict?
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- Raises awareness
- Brings change and adaptation
- Strengthens relationships
- Promotes self-awareness
- Enhances personal development
- Can be stimulating and fun
Conflict can have both positive and negative impacts.
What 5 criteria make conflict difficult to resolve?
- Matter of principle
- Large stakes and big consequences
- Zero-sum situation
- Single interaction
- No neutral third party available
These factors complicate the resolution process.
What are the three ways to resolve a dispute?
- Interests: reconciling needs
- Rights: determining who is right
- Power: determining who is more powerful
Most disputes are solved by reconciling interests.
Negotiations that focus on interests are called _______.
Interest-Based Negotiation
This approach is also known as Problem-Solving Negotiation.
What are the five major conflict management strategies?
- Competitive Strategy
- Accommodating Strategy
- Avoiding Strategy
- Compromising Strategy
- Collaborative Strategy
Each strategy is suited for different relationship dynamics and situations.
What is the difference between distributive and integrative bargaining strategies?
- Distributive: competitive, zero-sum outcome
- Integrative: mutual-gain, non-zero-sum outcome
Understanding this difference is crucial for effective negotiation.
What is a BATNA?
Best Alternative to a Negotiated Agreement
A strong BATNA gives negotiators the power to walk away from a negotiation.
What is the Asking Price in negotiation?
Initial price set by a seller
It serves as a starting point for negotiations.
What are concessions in negotiation?
Progressive adjustments made by parties
Concessions are central to negotiation and help parties feel better about a settlement.
What are the pros and cons of premature commitment?
- Pros: Lock in opponent’s position
- Cons: Less likelihood they will stick to their word
Premature commitments can lead to both advantages and disadvantages.
What are the three important tactical tasks within distributive bargaining?
- Assess the other position
- Modify the other party’s perception
- Manipulate the actual costs of delaying or terminating negotiations
These tasks are crucial for effective negotiation outcomes.
What are the three steps to prioritize issues in the bargaining mix?
- Determine most important and least important issues
- Determine whether issues are linked or separate
- Use ‘Carrots’ and ‘Sticks’ to motivate parties
This prioritization helps in managing negotiation effectively.
What is a Field Analysis used for in negotiations?
- Assessing key parties involved
- Identifying allies and opponents
- Understanding sideline influences
- Evaluating the broader environment
Field Analysis helps anticipate different interests and relationships among parties.
What are the key components of Integrative Negotiations?
- Effective information exchanges
- Collective goals
- Willingness to reveal true objectives
- Listening carefully
- Firm but flexible approach
Successful integrative negotiation depends on meeting the needs of both sides.
List the four major steps in the Integrative Negotiation Process.
- Identify and define the problem
- Surface interests and needs
- Generate alternative solutions
- Evaluate alternatives and select among them
The first three steps focus on creating value, while the fourth involves claiming value.
