Negotiation and Management Study Guide
Understand the various disciplines which are involved in the subject of negotiation.
Theory, economics, political science, communication, labor relations, law, psychology, sociology, anthropology
What are the characteristics of a negotiation situation?
Two or more parties;
Conflict of needs or desires;
Parties negotiate by choice;
We expect there to be a “give and take”;
The parties prefer the negotiation to the alternative;
Successful negotiation involves management of tangibles and intangibles
Win-lose bargaining is also known by another name – what is it?
What is BATNA?
Best Alternative to a Negotiated Agreement
What is the Dual Concerns Model?
Concerns about own outcome vs concern about others outcome
Yielding- concern about others > own
Inaction- not concerned about either
Contending- concern about own > other
Problem solving- lots of concern about both
Compromising- same amount of concern about both
What characterizes a dysfunctional dispute resolution system?
Triangle is upside down, power at the top, rights in the middle, interests at the bottom
Power is the biggest and most important thing, rights are medium, interests are of very little importance
What are the characteristics of Distributive Bargaining?
Goals of one party are often in direct conflict with those of the other party.;
Resources are fixed and limited.;
Both parties want to maximize their share;
Each party will use a set of strategies and tactics to maximize outcome;
These strategies and tactics often dictate whether one of both parties will achieve their objectives
What is a “target” in the context of negotiations?
The preferred outcome
Understand the concept of a starting point or opening position.
An opening offer is the first offer made in a negotiation. Can be competitive, moderate, or accommodating
What is the difference between an opening position and an opening stance? Is there (or should there be) any relationship between the two?
An opening offer is the first offer made in a negotiation.
The opening stance is the attitude the negotiator adopts at the beginning of a negotiation.
It can be a competitive stance, or even an accommodating stance.
There can be a relationship between the two.
A negotiator can have a competitive stance and also make a competitive opening offer.
This will make your your negotiation tactic more solid by having your stance align with your offering strategy.
Understand the importance of the pattern of concessions. What can you infer when a party’s concessions are progressively smaller? When they are the same amount?
When a party’s concessions are progressively smaller, there’s a clear signal that they’re almost done making concessions;
When a party’s concessions are the same amount, they’re sending the wrong signal if they’re reaching the end of the road.
What are some of the ways to deal with the other sides’ “hardball” tactics?
Respond in kind
Co-opt the other party
What are the elements or characteristics of integrative negotiation?
Allows both sides to achieve objectives
Situation often appears distributive at first
Mutual explorations and discussion will often suggest integrative alternatives
What is a collaborative strategy? What are its characteristics?
Working together to achieve each side’s objectives
1. Both relationship and outcome are important
2. Intangibles are important and must be respected
3. Parties must be willing to make concessions to accomplish their goals
4. Deadlines are not used for manipulation
5. Similarities are emphasized
What are the various types of underlying interests which are often present in bargaining?
Substantive; Process; Relationship; Principle
What are the methods used to generate alternative solutions in integrative bargaining?
Redefine the problem
Expand the pie
Logroll – different people have different priorities
Use non-specific compensation
Cut costs for compliance
Bridge solution – meet in the middle on the important issues
Finding the solutions to the problem as given
What factors predict success in integrative bargaining?
Faith in one’s own problem solving ability
Belief in validity of one’s own position and that of other party
Motivation and commitment to work together
Clear and accurate communication
Understanding how integrative bargaining works
Why should goals be concrete and measureable?
So the negotiator knows where they are going with the negotiation and what they are doing.
When is it best to use the strategy of avoidance?
When you can meet your need without negotiating
When it’s not worth your time and effort
When your alternatives are either very good or very bad
How can you analyze the other party’s resources and likely issues they will raise?
analysis, past experience, information gathering, and consultation with others
What factors should you consider when planning your presentation to the other party?
-What facts support your argument and how you can validate these facts;
-what records or documents exist to help;
-is there an expert with whom I can talk?;
-what is the other party’s view likely to be?;
-how can I maximize the persuasiveness of my presentation?
What is the main theme of the article entitled “Where Have All of the Washington Dealmakers Gone?”
There is a structural problem in our society
• The 2 parties have moved toward opposite ends of the political spectrum, leaving fewer in the middle ground where compromises are made
• There are machines in both parities working hard to keep away from the middle ground
What was the integrative solution to the Pakistani Prunes exercise?
Compatible Goals; Capitalized on differences
What did the union do to prepare for negotiations in the Magic Carpet Airline case?
Did research to find out what other similar airline carriers were supplying for their flight attendants (i.e. average working conditions, benefits, and wage rates).
Know what hardball tactics are, how do you counter them, and what kind of negotiation is most suited for their use.
What are they?
good cop/bad cop
low ball/high ball
How do you counter them?
Respond in Kind
Co-Opt the other party
What is Pareto’s Efficient Frontier?
is a state of allocation of resources in which it is impossible to make any one individual better off without making at least one individual worse off.
Did the Knight/Excalibur negotiation regarding the sale of pistons have any opportunities for integrative bargaining? What were they?
Carefully read the article about the Reddit corporation: “Haggle Over Salary—It’s Not Allowed”. Be able to name at least one reason for Reddit’s policy on salary negotiation?
-Level playing field-So that bad negotiators are not penalized
What is the relationship between strategy and tactics when applied to negotiation?
Tactics are actions to further strategy.
What is the “field analysis” as discussed in class?
Analyzing your “playing field” making note of who is sitting where and what side they are “playing” for