Negotiation Terms For Exam 4 Acceptance Time Time allotted for buyer or seller to accept the changes that occur during a negotiation once you agree on a deal are you willing to accept those changes Big Pot Tactic Creating issues some real some made of straw designed to reduce the sellers aspiration level provide themselves with trading room assure others in their own organization that they are hard bargainers make it easier for the salesperson to take a lower package back to their own people Bogey Tactic Complementing the seller on the product but setting a limit on the amount the buyer can spend that s really great but I m not authorized to spend more than 100 Plumber Principle Value of service rendered is greater before it is rendered than after when your house is flooded a plumber is very valuable when he fixes the leak the plumber is not so valuable Change of Pace in Tactics changing tactics throughout the negotiation process to refrain from telegraphing your motivations or desire to close Change the Negotiator Tactic Bringing in a new negotiator after the negotiation has begun Its interruptive and you have to start over but basically that negotiator that was there can pass on information that they gained during the first party Cherry picking optimizing tactic where the buyer gets multiple bids then compares each individual line item against the competitors When Professor Garner built his restaurant he got bids from 3 different contractors he got the contractor he wanted to do the business with and told the others what their bids are Look at line by line what they charge try to get some concession Decoy the Briar Patch dissuading an opponent from taking action by directing their attention to an area that is less threatening or better protected focus on something that s not really important to you Escalating Authority Tactic pass the approval level higher so that your opponent is forced to literally renegotiate or repeat arguments at each level in the car dealership their going tot are you to the sales manager Escalation Changing the terms after an agreement has been reached that s not ethical but people do it to see if they can get anymore I ve got this why not try to get that once you make a deal you should honor that deal Good Cop Bad Cop Tactic where one person begins the negotiation with very tough demands then later another person takes over with a nicer demeanor person begins a negotiation being a tough and mean person and then the second person walks in being nice it s a psychological tactic Chapter 7 Finding and Using Negotiation Power You can have power in a negotiation The difference between power and authority is that authority is the issuance of power if you have authority you have power but you cant have power without having authority If you have authority but your employees reject you Power is the ability to influence people Why is Power Important to Negotiators Seeking power in negotiation arises from one of two perceptions 1 The negotiator believes he or she currently has less power than the other party Most commonly negotiators employ tactics designed to gain power equalization as a way to level the playing field which minimizes either side s ability to dominate the negotiation which should lead to a compromising collaborative integrative agreement At a minimum People want to create a level playing field you don t want to be in position where your being bullied or a position where you don t have any strength People will try to gain power just to level the playing field If you do that it will lead to a compromise and integrative solution If you believe you have less power than the other party that s going to affect your strategy 2 The negotiator believes he or she needs more power than the other party Some negotiators use tactics designed to create power differences as a way to gain advantage or to block the other party s power moves which can lead to a competitive or distributive relationship Some negotiators try to create a power to create an advantage over people Most people want to feel at least equal and in a level playing field Your going to deal with people that their only goal is to win they aren t trying to create a level playing field If you believe you need more power than the other party that s going to affect your strategy The Definition of Power Power who has control over the resource and is able to influence people Two perspectives on power Power Over power used to dominate and control the other If you use power to gain an advantage power over Power With power used to work together with the other power with If you use power to level the playing felid power with In either situation you want the power the position of strength Major Sources of Power How People Acquire Power Personal Sources of Power Expert derived from having unique in depth information about a subject Some of the informal leaders in the workplace will have expert power which means they been around for a lot of years people trust them people ask them questions Based on age or experience There s going to be certain people that are informal leaders based on expert power Referent derived from the respect or admiration one commands because of attributes like personality integrity interpersonal style etc Referent power one of the people that have the most referent power is president Clinton even people that dislike him still love him regardless if you disagree with his politics or personal choices People just gravitate towards you Personal Sources expert and referent Organizational Sources of Power Legitimate derived from holding an office or formal title and using the powers Legitimate power How people acquire power is going back to authority You are the associated with that office boss Reward ability to reward others for their actions Reward power the ability to reward people Coercive ability to punish others for not doing what needs to be done Coercive power punish or correct people Informational Sources of Power Information is the most common source of power Derived from the negotiator s ability to assemble and organize data to support his or her position arguments or desired outcomes A tool to challenge the other party s position or desired outcomes or to undermine the effectiveness of the other s negotiating arguments Knowledge is power if you re dealing with someone who is intelligent and has a lot of knowledge their going to have an advantage over you Power Based on