Negotiations & Conflict Management 4441 – Spring 2011Exam #1 Study Guide Chapters 1-3 coveredChapter 1 – The nature of negotiation and conflict- What is negotiation vs. bargaining? - Negotiations refer to win-win situations such as those that occur when parties are trying to find a mutually acceptable solution to a complex conflict- Bargaining describes the competitive win-lose situations that involve haggling over the price for various things.- What are the key characteristics of a negotiation process? 1) There are two or more parties- that is two or more individuals, groups, or organizations.2) There is a conflict of needs and desires between two or more parties- and parties must search for a way to resolve the conflict.3) The parties negotiate by choice – they negotiate because they think that they can get a better deal by negotiating than by simply giving in4) There is a “give-and-take” process. (Concessions)5) Parties prefer to negotiate rather than fight openly, give in, permanently break off contact, or take it to a higher authority6) Successful negotiation involves management of tangibles, and the resolution of intangibles.o Differences between tangible vs. intangible factors  Tangible Factors are factors that are up-front. Like the price or the terms of the agreement. Intangible Factors are the underlying psychological motivations that may directly or indirectly influence the parties during a negotiation.- Describe interdependence within negotiations. How is this different than independence? - Parties within a negotiation that are interdependent are characterized by having interlocking goals and the parties need each other in order to accomplish their objectives. - Independence parties are able to meet their needs without the help of otherso Types of interdependence? - Distributive (zero-sum)- the goals of two or more people are interconnected so that only one can achieve their goal- Mutual Gains (Integrative, non-zero-sum)- when parties goals are linked so that one person’s goal achievement helps others achieve their goals. o How do these types influence outcomes obtained? - Depending on the type of interdependence, the parties within the negotiation could be facing a win-win or a win-lose situation- What is the role of alternatives in negotiations? - Alternatives can change the interdependence between the parties within a negotiation because if there is something better a party is more likely to give up on tough negotiations and go with that, and vice versa.o What is a BATNA? How does this influence your negotiation if it’s yours versus the other parties? - BATNA stands for- Best Alternative to a Negotiated Agreement. If the BATNA outcome is better that a negotiated outcome then, it is more likely that would influence my attitude about the negotiations, my interests and even my position.- What is the concept of mutual adjustment? Concessions?- Mutual Adjustment is the influence on a party’s decisions by another negotiating party. Concessions are changes that a party makes in their position. Making concessions puts a further constrain on the bargaining rangeo What are the two basic dilemmas in mutual adjustment? - The Dilemma of Honesty- or how much truth to tell the other party- The Dilemma of Trust- or how much should you trust that what the other party is saying is that truth.- What is value-claiming versus value-creation? When are these processes used in negotiations?  Value-Claiming usually refers to distributive negotiations where the purpose of the negotiation is to claim value. Value-Creation usually refers to integrative situations where parties attempt to find solutions so they all can do well and achieve their goals.o Are they used together? If so, how?  Most negotiations are a combination of claiming and creating value processes. Negotiators must…. 1. be able to recognize situations that require more of one approach than theother…..2. be versatile in their comfort and use of both major strategic approaches…..and 3. Be able to accurately perceive the nature of the interdependence between the parties.o How may value be created in negotiations?  Value can be created by exploiting common interests, but it can also be created by exploiting the number of differences between negotiators.- What is conflict? - Conflict is defined by a sharp disagreement or opposition, as of interests, ideas, ect…and includes the perceived divergence of interest, or a belief that the parties’ current aspirations cannot be achieved simultaneouslyo What types of conflict are there?  The types of conflict include:1) Intrapersonal or intrapsychic: Conflicts that occur within an individual2) Interpersonal: Conflict between individuals3) Intragroup: Conflict within a parties’ team or group4) Intergroup: Conflict between organizations or different groupso How is conflict functional?  Conflict is caused by something that is wrong, broken, or dysfunctional. This can make positions known to the other party and allow the process of negotiation to get parties closer to their goals.o How is conflict dysfunctional?  Conflict is dysfunctional in many ways, conflict leads to….Competitive, win-lose goals, Misperception and bias, Emotionality Decreased communication, Blurred Issues, Rigid commitments, Magnified differences/Minimized similarities, and Escalation of conflict. - Understand/know the Dual Concerns Model (Figure 1.3 in 6 th edition text) - Y-AXIS: Concern about others outcomes.1) Low C.For others/Low C.For own: Inaction2) Low C.For others/High C.For own: Contending3) High C.For others/Low C.For own: Yielding4) High C.For others/ High C.For own: Problem Solving (COMPROMISING IS IN THE MIDDLE)o What situation is each conflict style appropriate to use in? When is it more inappropriate?  Contending: Appropriate to use when you are in pursuit of your own outcomes with little concern for the other parties outcomes and there is need for a speedy outcome. Inappropriate when issue is complex and not important to you Yielding: Used when a party has little care for their own outcomes or they are at a position of weakness. Inappropriate to use when the issue is important to you or you believe you are right. Inaction: This is when a party becomes passive best used when that party has little concern wether either party reaches their goals. Used when the issue is trivial.