COMM 425 Midterm Review 03 04 2014 Why people negotiate 1 To agree on how to share or divide a limited resource 2 To create something new that neither party could do on his or her 3 To resolve a problem or dispute between parties Conflict is the result of the interaction of interdependent people who perceive incompatible goals and interference in achieving those own What is conflict goals Levels of Conflict 1 Internal conflict conflict within yourself 2 Interpersonal conflict between you and someone else 3 Intragroup conflict within a group 4 Intergroup conflict between groups Interdependence A core part of negotiation I need you and you need me in order to achieve what each of us Distributive Negotiation Distributive Bargaining situation wants party Goals of one party are in a fundamental direct conflict to another o If you get what I want then I m very limited to get what I want Resources are fixed and limited Maximizing one s own share of resources is the goal for both parties Distributive Bargaining defined A competition negotiation strategy also called claiming value or zero sum Used to decide how to distribute something of value o Perception of a fixed pie Characteristics of Distributive Bargaining Issues are framed as a question of how to compromise or how to choose among mutually exclusive options either or Power is applied to convince the other party that they have no choice but to make concessions A party will push for settlement near the others parties bottom line Information is shared in order to convince the other side why their side is weak or desirable since it can help convince them to compromise Agreement occurs when parties feel convinced that the proposal is better than their alternatives Positions taken during negotiations Opening offers o Where will you start Opening stance o What is your attitude Competitive Moderate Initial concessions o Should any be made If so how large Fundamental Strategies Push for settlement near opponent s bottom line Get the other party to change their bottom line If settlement range is negative either o Get the other side to change their bottom line o Modify your own bottom line Convince the other part that the settlement is the best possible Integrative Negotiation Factors that Facilitate Successful Integrative Negotiation Some common objective or goal Faith in one s own problem solving ability A belief in the validity of one s own position and the other s The motivation and commitment to work together Overview of the Integrative Negotiation Process Create a free flow of information Attempt to understand the other negotiator s real needs and Emphasize the commonalities between the parties and minimize the Search for solutions that meet the goals and objectives of both perspective objectives differences sides Key Steps in the Integrative Negotiation Process Identify and define the problem Understand the problem fully o Identify interests and needs on both sides Generate alternative solutions Evaluate and select among alternatives What makes integrative negotiation different Focus on commonalities rather than differences Address needs and interests not positions Commit to meeting the needs of all involved parties Exchange information and ideas Invent options for mutual gain Identify and Define the Problem Define the problem in a way that is mutually acceptable to both State the problem with an eye toward practicality and State the problem as a goal and identify the obstacles in attaining sides this goal comprehensiveness Depersonalize the problem Separate the problem definition from the search for solutions Factors that Facilitate Successful Integrative Negotiation Trust Clear and accurate communication An understanding of the dynamics of integrative negotiation Win Win v Win Lose Conflict Engagement Strategy Dual concerns model 1 Relationship outcome important 2 Substantive outcome important 1 yes 2 yes collaboration 1 yes 2 no accommodation 1 no 2 yes competition 1 no 2 no avoidance Collaboration check slides vvv Compromising Competition Accommodating 6 principles of negotiation 1 Negotiation is a process between individuals within groups and between groups 2 There is a conflict of needs and desires between two or more parties what one party wants is not the same thing that the other party wants 3 Parties negotiate by choice o a negotiation is voluntary o b people negotiate because they can get a better deal by negotiating rather than simply accepting what the other party will give them or let them have We are seldom required to 4 We expect a give and take in negotiation Both sides are expected to modify and move away from their opening requests or negotiate demands 5 Negotiation occurs when the parties prefer to invent a solution rather than accept a solution when there is no fixed set of rules or procedures for resolving the conflict or when they choose to bypass the rules that exist o Negotiation will take place when parties seek to search for agreement rather than fight openly have one side dominate the other capitulate permanently break off contact or take their dispute to a higher authority to resolve 6 Successful negotiation involves tangible and intagibles o Intangibles are the psychological motivations that influence parties i Need to win or beat the other party or avoid losing to the other party people you represent ii The need to look good competent or tough to the iii The need to defend an important principle or precedent ina negotiation iv The need to appear fair or honorable v the need to maintain a good relationship with the other party after the negotiation is over Prisoner s Dilemma BATNA ZOPA negotiation BATNA Best alternative to a negotiated agreement Alternatives give the negotiation power to walk away from the Initial offer target point bottom line BATNA You normally are willing to accept any deal that is better than your A good BATNA is a valuable source of negotiating power Zone of possible agreement Bottom line resistance point BATNA Target point aspiration goal asking price initial offer A s concession making The settlement range sometimes called the bargaining range is the spread between resistance points This is the area where bargaining takes place Resistance Points This is your bottom line or the point beyond which you will not go This is where you will walk away The point beyond which you will not accept a deal and will turn to your BATNA The reservation point is the quantification of BATNA the