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 o Dynamic nature of business o Interdependence o Economic Forces like competition o Globalization What are the 4 negotiation traps people fall into Leaving Money on the Table lose lose nego fail to expand pie Settle for too Little winners curse smaller slice of the pie Walking away from Your Best Option leaving the better slice on the table Settling for less than your BATNA Most people are lousy negotiators 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 have This creates a cycle of approving your own poor negotiation results Self Reinforcing Incompetence 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 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 Competing Assertive Uncorporative driver They also want to see you lose Collaborating assertive cooperative Compromising intermediately assertive and cooperative Avoiding Unassertive Uncooperative Accommodating Unassertive cooperative MAN4441 Exam 1 Study Guide 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 4 facets Social astuteness the ability to comprehend social interactions and accurately interpret their own behavior and the behavior of others Interpersonal influence the ability to use subtle and convincing personal style to exert a powerful influence on those around them Networking ability the ability to easily develop friendships build strong alliances and position oneself to both create and take advantage of opportunities Apparent sincerity the ability to display integrity authenticity sincerity and genuineness real or faked Big 5 Personality 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 do I want Target What are my alternatives BATNA Set reservation point Rank issues in order of importance Problems Asses the other party o Try to know there 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 Understang negotiation and winners curse o Overaspiring negotiator too tough o Grass is greener wanting what you cant have MAN4441 Exam 1 Study Guide Know the three phases of distributive negotiation Information Phase Cooperative Phase Competitive Phase What is the sure thing principle When no matter what the outcome of a certain event or crcumstances one option wil 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 comparing yourself to someone who is better off Downward comparison yourself to someone less forunate Comparison with similar others to someone of similar background and skill How do we cognitively restore equity justice fairness Cognitive distortion o Alter the inputs o Alter the outcomes o Cognitively distort one s own inputs or outcomes o Cognitively distort the other party s inputs or outcomes o Leave the situation o Change the reference point 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 made by both sides are concessions made by one party and o The magnitude of concessions The graduated reduction in tension GRIT model is a method in which parties avoid escalating conflict in order to reach mutual settlement within the bargaining zone 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 Understang negotiation and winners curse o Overaspiring negotiator too tough o Grass is greener wanting what you cant have MAN4441 Exam 1 Study Guide Know the steps and the landmines of determining your reservation point Steps to developing a Reservation point o Brainstorm your alternatives o Evaluate each alternative o Attempt to improve your BATNA o Determine your reservation price 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 Trying to recoup sunk costs can lead to trouble o Do not confuse your target point with your reservation point What is the Dual Concerns Model How is it applied Determines negotiation strategy Know the three types of fairness i e needs based equity equality and the four types or applications of justice i e procedural distributive informational interactional Fairness o Equality rule o Equity rule o Needs based rule or blind justice equal shares