Negotiation: Chapter 4

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Dilemma of honesty
How much about your position and motivates you will disclose to the other party.
Dilemma of Trust
The extent to which you believe you can rely on the other party to be truthful with you.
Fixed-pie perception
The belief that people’s interests are fundamentally opposed, such that a gain for one must result in a loss for the other.
Generating Options
Looking for possible solutions to the problem at hand.
Integrative negotiation/interest based bargaining
An approach to negotiation where the focus is on the interests of each party as opposed to the distribution of a fixed resource.
Process Interests
The needs that a negotiator has that have to do with a party’s interests in the negotiation or dispute resolution process itself.
Reactive devaluation
When negotiators perceive that that concessions made by the other party are made to benefit the other party.
Relationship Interests
The needs that a negotiator has that deal with the ongoing relationship between the parties.
Substantive Interests
The needs that a negotiator has that relate to the material outcomes of the negotiation.
What is integrative negotiation or win-win?
1. A method of expanding the pie so that both parties involved get what they want.
2. Focus on both outcomes and the relationship
3. Assumes infinite resources, a non-zero game
4. Cooperative relationship
5. Collaborative strategies, maximize total value
Are needs, desires, concerns, and fears.
o One party’s concern about an issue, WHY.
The stances a negotiator takes during the course of a negotiation.
o One party’s solution to an issue
What’s being negotiated
o Topics of negotiation, items, bargaining mix.
When should you use integrative? What type of situation calls for win-win?
• When the outcome and the relationship with the other party are both important.
o Relationship negotiations.
o Business partner negotiations.
Needs that relate to the material outcomes (ex: price)
Deal with ongoing relationship between parties
Interests concerned with the negotiation process itself
Interests in the Principle
Concerns about what is ethical and just
What is the importance of the relationship in win-win
When both parties win, you maintain a positive ongoing relationship between parties
4 Steps/components in integrative negotiation process
1. Separate the people from the problem
2. Focus on interests, not positions
3. Generate a variety of alternatives (options) that provide mutual gain
4. Evaluate the alternatives (options) based on objective criteria/standards
Expand the pie
More for everyone
Tradeoff low priorities for high priorities where your priorities differ
Nonspecific compensation
Give the other something else
Cost cutting
Make doing what you want more palatable
Find a different, third option that resolves both of your interests
Why examine the situation from the other person’s point of view?
To get a mutual understanding and discover areas where your needs and interests are the same.
What are the behaviors you should and should not use in a win-win negotiation?
Anything not used in distributive negations.
Categories: Negotiation