Test 2 Avoiding Just not worth time and effort wouldn t invest a lot of time If relationship is important you re not going to walk away If the outcome is important then you re going to try to stay in it Accommodating lose the battle win the war relationship is high most important willing to lose in the short term to try and create an ongoing relationship you will be dealing with them a lot Willing to take a hit for the short term and Sacrifice outcome for relationship Collaborative Inagreative win win we get an outcome that s good for both parties and still maintain a good relationship Competitive want the best outcome you can get win at all cost not worried about the relationship Distributive Compromise split the difference If deal cant be reached in any other method Both not going to get what they want deals get done with the deadline is near Several questions about your relationship you can ask yourself Relationship do you have one Positive or negative Is a future relationship desirable History of relationship Outcome of buying a car Seller you want to get the best price don t care because you will never see him again so you will haggle it Buying from a friend not going to push so hard on the price because he is your friend Buying from your mom not going to try to get the best outcome because its your mom and you are expecting her to give you a good price That s when you ask yourself which is more important My relationship Ongoing Or Outcome Situation Minor had a pair of boots stolen at work when there it s sign that said not responsible for any stole items at work probable damage relationship if the owner doesn t pay for the boots TRY TO AVOID 1 Reconcile Interest Simplest cheapest and easiest a Company pays for the boots then the employee is happy the company is taking care of him Interest of the Minor not having to pay for the boots b Not having to pay better for overall picture and interest c d Better choice for relationships e Try to Satisfy what people want a Go by Law b What s wrong with deciding who is right Someone lose so they are 2 Who is right not happy 3 Who has more power a Minor can exert power by going on strike b Employee can not show up to work c Cost a lot of money to go on strike got no labor force and sales coming in d Cheaper solution to buy him the boots i Question the owner must ask will they go on strike Cost of Disputing 1 Transaction cost a Tangible amount b Simplest c Minor s cost of buying boots 100 Go on Strike 1 000 or more d What it cost us to actually solve the problem 2 Effecting on relationship a Bad attitude spreads fast amount employees i Employees now talk to each other and they spread their madness and its like cancer from spreading b What s going to happen to the employee if you don t replace the boots i Are they happy ii Will they work as hard Probably not 3 Satisfaction with the outcome a You should feel like you were heard treated fair with the outcome or process b Even if you lose c Process Fair not with outcome but with process 4 Reoccurrence a 100 vs Strike b The next person that looses something they will expect you to pay them if you did the same c Biggest mistake to bent the rules which leading to Reoccurrence d What happens if you say no to the 2nd person Good case for a lawsuit on discrimination e Precedence Legal term f Ex of Walmart settling every case then litigating every case drawing the line Did this to stop Reoccurrence Minors Choices What they could of done 1 Lumping it 2 Withdraw a Minor could quit the company b Thinks company is not fair a Just drop the claim they think they have a good job and want to keep it Are there times where their needs to establish who is right Yes to get on with the thing puts other stuff to rest Ex Same sex marriage by doing so it puts a lot of things to rest and it it slowing happening so now its done with and on with it DUMMEST PERSON EVER TO GRADUATE HIGH SCHOOL MATT HATTINGTON High school going into the draft 7TH pick Pitcher Lawyer said you worth 4 9 million NO LESS Got offered 4 5 million for 2 years and turned it down Options Go to College Big schools you have to stay 3 years Plays independent for a year get offered 1 25 million 58th pick turns it down Plays independent for a year gets offered a couple 100 000 turns it down Then walks on somewhere barely made anything Now working at Costco making 11 50 HR changing tires What he did wrong 1 View the negotiation as a fixed pie a Fixed amount of outcome b Solution Share information i Should have asked for incentives likes what s there besides the 4 2 million ii Should of asked for performance goals iii Free agents have there best year before they sign a contract 2 Anchoring on the First Offer a The agent and the kid came to the table thinking 4 9 or NOTHING b No flexibility c Solution Reject anchors come prepared with realistic expectations so you wont be swayed by others 3 Escalating Commitment Big One a Psychology need to justify prior bad decisions b Pride c Solution Don t Dwell on the past i 1 25 million Not a bad start ii Don t be upset because you got offered less then before iii Last offer is OVER 4 Feeling to Confident a Solution consider the opposite i Your not as good as you think you are ii Help bring in outsiders to see more realistic view iii People are 100 replaceable 5 Focusing to narrowly on the Issues a Only looking at short term never looks down the road b Never thought about how many people get this opportunity c Never considered d Solution Ask questions and make multiple offers Chipper Jones Braves worst team at the time Drafted out of high school Hall of Fame Got picked because another player told them not to draft him Any kid should come out of college on Junior Year Leverage You can always go back to school senior year After Senior you don t sign and hopefully get drafted Kid out of high school doesn t have much leverage o Go to school you are tired up for 3 years o Injuries are high Zuckerburg a billion dollars offer for Facebook You should take it Make money on advertising not to effective or justify the billion dollar evaluation When starting a business plan ALWAYS have an EXIT plan in mind What s your out If you get too big you don t have many people that can pay …