MAN4441 Exam 1 Study Guide This is a non exhaustive list of topics that will likely be covered to a certain extent on the exam What is the definition of negotiation and why is negotiation important An interpersonal decision making process necessary whenever we cannot achieve our objectives single handedly We negotiate everyday far more than we realize 4 key reasons negotiation skills are important o Dynamic nature of business o Interdependence o Economic Forces o Globalization like competition ambiguity What are the 4 negotiation traps people fall into Leaving Money on the Table Settle for too Little Walking away from Your Best Option Settling for less than your BATNA lose lose nego fail to expand pie winners curse smaller slice of the pie leaving the better slice on the table there was a better pie at Most people are lousy negotiators 4 reasons WHY Egocentrism people view their experiences in a way that is flattering to them Confirmation Bias people see what they want to see always leads us to the self reinforcing idea or self satisfaction Satisficing settleing for less than you can otherwise haveSelf Reinforcing Incompetence a cycle of approving your own poor negotiation results What are some of the myths associated with negotiation 1 Negotiations are fixed Sum you can actually expand the pie if you cooperate 2 You need to be either Tough or Soft instead be principled u must work together but also leverage your own power strengths 3 Good Negotiators are Born 4 Experience is a great teacher kinda but feedback is more important memories are selective see self reinforcing incompetence 5 Good Negotiators take Risks instead evaluate risks be smart 6 Rely on Intuition nope much better to come prepared Proactive not reactive Know the characteristics of the individual differences that we talked about and how they might apply to the negotiation setting Assertive Uncorporative driver They also want to see you lose Competing Collaborating Compromising Avoiding Accommodating assertive cooperative intermediately assertive and cooperative Unassertive Uncooperative Unassertive cooperative Political skill is defined as the ability to understand others at work and to use that knowledge to influence others to act in ways that enhance one s personal or organizational objectives MAN4441 Exam 1 Study Guide 4 facets SAIN influence the ability to use subtle and convincing personal style to exert Social astuteness the ability to comprehend social interactions and accurately interpret their own behavior and the behavior of others Interpersonal a powerful influence on those around them position oneself to both create and take advantage of opportunities genuineness real or faked Apparent sincerity the ability to display integrity authenticity sincerity and Networking ability the ability to easily develop friendships build strong alliances and Big 5 Personality OCEAN Openness to experience Conscientiousness Curious imaginative creative complex and sophisticated Reliable organized ambitious hardworking and persevering Talkative sociable passionate assertive bold and dominant Warm kind cooperative sympathetic helpful and courteous Extraversion Agreeableness Neuroticism Nervous moody emotional insecure and jealous 3 key Prepare for a negotiation Self assessment What are my alternatives Set BATNA Set reservation point What do I want Rank issues in order of importance Target Asses the other party o Try to know their reservation point knowing there BATNA can inform o The bargaining zone is the range between the two parties resistance this point Assess the situation o Conflict values or resources o What is the relationship o Time constraints o What is their BATNA o Legal implications PROBLEMS o Under aspiring negotiatior o Over aspiring negotiator o Grass is greener winners curse too tough wanting what you cant have Know the three phases of distributive negotiation Information Phase Cooperative Phase continues through the whole process MAN4441 Exam 1 Study Guide Competitive Phase dividing the pie What is the sure thing principle When no matter what the outcome of a certain event or circumstances one option will be preferred over another What is risk propensity Ones tolerance of risk risk aversion seeking Be able to explain the different types of social comparison Upward comparison Downward comparison Comparison with similar others comparing yourself to someone who is better off yourself to someone less fortunate to someone of similar background and skill How do we cognitively restore equity justice fairness Non cognitive distortion o Alter the inputs o Alter the outcomes o Leave the situation Cognitive distortion o Cognitively distort one s own inputs or outcomes o Cognitively distort the other party s inputs or outcomes o Change the reference point well he s a good guy this will make us closer Know some of the types patterns and attributes of concessions Concessions are the reductions that a negotiator makes during the course of Negotiators need to consider three things when formulating counteroffers and negotiations concessions o The pattern of concessions Unilateral concessions bilateral concessions are concessions made by one party are made by both sides o The magnitude of concessions graduated reduction in tension GRIT The which parties avoid escalating conflict in order to reach mutual settlement within the bargaining zone model is a method in Usually done by slowly giving up things on both sides o The timing of concessions Immediate gradual or delayed What are the things that interfere with a person knowing what they want in a negotiation o Under aspiring o Over aspiring o Grass is greener negotiation and winners curse negotiator too tough wanting what you cant have Know the steps and the landmines of determining your reservation point MAN4441 Exam 1 Study Guide 4 Steps to developing a Reservation point 1 Brainstorm your alternatives 2 Evaluate each alternative 3 Attempt to improve your BATNA reservation price 4 Determine your Landmines in setting reservation point o Be Aware of focal points Focal points are salient numbers figures or values that appear to be valid but have no basis in fact o Beware Sunk Costs Sunk costs is money invested that is gone expenses that can t be un done Trying to recoup sunk costs can lead to trouble o Confusing your target point w your reservation point What is the Dual Concerns Model How is it applied Determining nego Strategy based on value of relationship and value of