Chapter 1 Bargaining describes a competitive win lose situation Negotiation is a win win situation where parties find a mutually acceptable solution to a conflict Characteristics of a negotiation Two or more parties are involved Conflict of needs and or desires between parties Parties negotiate because they think they can get a better deal than by accepting what the other party offers them Parties expect the give take process Successful negotiation involves managing 1 Tangibles i e outcomes Price terms ownership status options features 2 Intangibles i e psychological motivations Happiness piece of mind person s desire to get a good deal Maintained relationships Desire to be heard Personal values and beliefs Ego protection In negotiations parties need each other to achieve their preferred outcomes or objective INTERDEPENDENCE Interdependent goals are an important aspect of negotiation Win lose The more I win the more you lose Fixed pie mentality Example Win win We both can win Mutual gains Example Market share between rival firms car sales Merger Acquisition business contracts Interdependent parties are characterized by interlocking goals Having interdependent goals does not mean that everyone wants or needs exactly the same thing A mix of convergent and conflicting goals characterizes many interdependent relationships The desirability to work together is better for outcomes Mutual adjustment continues throughout the negotiation process as both parties influence the other Adjustment is the key cause of changes during negotiation process Effective negotiators need to understand how people adjust and readjust and how the negotiation might twist and turn Often based on each parties moves and other s expectations When one party agrees to make a change in his her position a concession has been made Concessions restrict the range of options When concessions are made the bargaining range difference between preferred acceptable settlement is also further constrained Whether you should or should not agree on something in a negotiation depends entirely upon the attractiveness to you of the best available alternative Best Alternative To Negotiated Agreement BATNA The value of a person s BATNA is always relative to the possible settlements available in the current negotiation A BATNA may offer independence dependence or interdependence with someone else Two dilemmas of mutual adjustment Dilemma of Honesty Concern for how much of the truth to tell the other party How honest should people be Is it unethical to lie in a negotiation Dilemma of Trust Concern for how much should negotiators believe that the other party tells them When similar concessions are made trust is enhanced What would lead to mistrust Satisfaction with negotiation is as much determined by the process through which an agreement is reached as with the actual outcome obtained To eliminate or even deliberately attempt to reduce this give and take is to short circuit the process and it may destroy both the basis for trust and any possibility of achieving a mutually satisfactory result The process is often times just as important as the outcome Value differences that exist between negotiators include Differences in interests Differences in judgments about the future Differences in risk tolerance Differences in time preference Value creation vs Value claiming Most actual negotiations are a combination of claiming distributive and creating integrative value Negotiators must be able to recognize situations that require more of one approach than the other Negotiators must be versatile in their comfort and use of both major strategic approaches Negotiator perceptions of situations tend to be biased toward seeing problems as more distributive competitive than they really are What is conflict A sharp disagreement or opposition The perceived divergence of interest or a belief that the parties current aspirations cannot be achieved simultaneously We all have various levels of comfort handling conflict Some thrive on it while others run from it We all have various levels of effectiveness in handling conflict Some of us do it well while some of us don t There are different levels of conflict Intrapersonal or intrapsychic conflict Within an individual Sources Ideas thoughts emotions values predispositions personal drives that conflict with others Interpersonal conflict Between individuals Sources coworkers spouses siblings roommates neighbors Intragroup conflict Within a group of individuals Sources families classes living units etc Intergroup conflict Between groups of individuals Sources organizations nations communities political groups Dysfunctions of conflict Competition win lose goals Misperception and bias 1 Perception of with me of against me 2 What types of misperceptions can appear in conflict Bias of win lose Unhealthy desire for your own valued outcome Different lens from which to view the same situation Rigid commitments Negative bargaining ranges republicans vs democrats Magnified differences minimized similarities Escalation of conflict 1 As conflict increases Less acceptance of others More defensive More emotional escalation Further entrenchment in own view Emotionality can help or hinder negotiations 1 2 aspects to negotiation Emotional needs intangibles Actual needs tangibles Appropriate shows of emotion Strategic use of emotion 1 Decreased productive communication We communicate less with people we disagree with 1 Blurred issues Ever argue with someone and they bring in extra issues Functions of Conflict Makes organizational members more aware and able to cope with problems through discussion o More exposure to conflict more skill and ability in handling it Promises organizational change and adaptation o How often does change occur easily Strengthens relationships and heightens morale o When you experience conflict and get through it it actually strengthens the ties between people Promotes awareness of self and others o Heightens one s knowledge of what causes them anxiety o Do you know what triggers you Enhances personal development o Helps you figure out how to handle conflict in the future Encourages psychological development helps people become more accurate and realistic in their self appraisals o Enables one to understand other perspectives that are different than their own Can be stimulating and fun Yielding strategy High on cooperation low on assertiveness care less about self and more about the others outcome Use