COMM425 Final Exam Study Guide Why people negotiate Agree on how to share or divide a limited resource Create something new that neither party could do on his or her own Resolve a problem or dispute between parties Conflict Result of the interaction of independent people who perceive incompatible goals and interference in achieving those goals Levels o o o o Internal conflict Interpersonal conflict Intragroup conflict within a group Intergroup conflict between groups I need you and you need me in order to achieve what each of us want The more interdependent you are the more you re going to be compelled to Interdependence negotiate Distributive Negotiation Goals of parties are in conflict they both want the same thing Resources are fixed and limited Maximizing one s own share is each parties goal one set gets more the other side gets less Fixed pie splitting the pie Conflict Strategy Map Dual concerns model Avoidance don t negotiate Competition I gain ignore relationship usually distributive Collaboration I gain you gain enhance relationship usually integrative Accommodation I let you win enhance relationship 6 principles of negotiation Listen Aim high Do your homework Be patient Get something in return Be willing to walk away BATNA Best Alternative To Negotiated Agreement If someone has a bad BATNA they ll probably accept any terms A good BATNA is valuable source of negotiating power ZOPA Zone of Possible Agreement The settlement range sometimes called the bargaining range is the spread between resistance points This is the area where bargaining takes place Resistance Points Bottom Line point in which you will not go past where you ll walk away Trigger point where you will take your next best alternative instead of this negotiation Target Points Highest or lowest offer depending on the scenario Preferred price optimal goal Don t set this goal too low or you can experience the winner s curse and accept an offer too low Asking Price Reference point anchor Have to be able to request it with a straight face Acknowledge that the negotiation will require give and take don t set too Base it off of something if this offer dramatically changes it will affect your high or too low credibility Alternatives Goals Interests Underlying concerns needs desires or fears that motivate a negotiators o Substantive or topic interests relate to key issues in the negotiation o Relationship interests indicate that one or both parties value their relationship o Identity based interests relate to the lead to feel good about oneself to feel competent fair powerful etc o Process interests are related to the way the dispute is settled Nested Interests Sub interests Underneath the key things but still relevant Relationships personal feelings Positions What you say you want Pre determined way to resolve a problem conflict May limit creative solutions 21 Context issues in negotiation Gathering information in negotiation Ask good questions How did you arrive at this opening offer Concessions Commitment Something granted in response to demands something that is conceded Irrational escalation of commitment negotiators maintain commitment to a course of action even when it s irrational once you say yes you cant change your mind Motivation and commitment work together Logrolling Halo Effect Practice of exchanging favors Occurs when an individual generalizes about a variety of attributes based on knowledge of one attribute on an individual Stereotyping Selective Perception Is a very common distortion Occurs when an individual assigns attributes to another solely on the basis of the other s membership in a particular social or demographic category Perpetuates stereotypes or halo effects The perceiver singles out information that supports a prior belief but filters out contrary information Projection Arises out of a need to protect one s own self concept People assign to others the characteristics or feelings that they possess themselves Frames Subjective way people evaluate and make sense of situations Focus shape and organize the world around us Makes sense of complex realities Define people events or processes Impart meaning and significance Cognitive Bias Irrational escalation of commitment Mythical fix pie beliefs o Negotiations assume that all negotiators involve a fixed pie do not see the potential for everyone getting what they want Negative and positive emotions Communication tactics Tactics of persuasion o People like those who like them and are like them o Reciprocity o People follow the lead of similar others o Self disclosure o Develop and use your reputation Definition of power Capacity or potential to exert influence Leverage Tactics for gaining power and exerting influence are called leverage tactics Use the power of competition to leverage power Methods for dealing with power imbalances in negotiation When power is uneven and where o The parties are dependent on one another to achieve a goal o Expect an ongoing relationship The party that is more powerful may use force to dominate the lesser powerful party This may involve verbal physical abuse blackmail and actions that are irrational but serve to demonstrate power Domination or threats of domination reduce trust Where power is imbalanced a lesser powerful negotiator may decide to give up become aggressive avoid negotiation Types of power o Designated o Distributive o Relational Relationship between power and trust Capacity to act Willingness to act Action Power Trust Negotiated Agreement Dilemma of trust Risk of trust dilemma of trust Are we playing poker Should I or should I not trust what you are telling me Dilemma of honesty Applying Ethical Reasoning in negotiation o Duty ethics you might perceive an obligation to never engage in subterfuge and might therefore reject a tactic that involves an outright lie o Social contract ethics base tactical choices on your view of appropriate conduct for behavior in your community if others use deception in a situation like this you lie too o Personalistic Ethics consult your conscience and decide whether your need for cash for your upcoming trip justified using deception or dishonest tactics How can negotiators deal with the other party s use of deception o Asking probing questions o Phrase questions in different ways o Force the other party to lie or back off o Test the other party o Call the tactic o Ignore the tactic o Discuss what you see and offer to help the other party change to more honest behaviors