Lindsay Wolf COMM425 Midterm 1 Study Guide Lauren Edelstein 1 Why people negotiate Negotiation is a form of decision making in which two or more parties communicate with one another in an effort to resolve their opposing interests To agree on how to share or divide a limited resource To create something new that neither party could do on his or her own To resolve a problem or dispute between parties 2 What is conflict Conflict is the result of the interaction of independent people who perceive incompatible goals and interference in achieving those goals Levels of conflict Internal Conflict Conflict within oneself Struggle between competing elements within the character Interpersonal Conflict Conflict between a person and another person Intragroup Conflict Conflict between two or more members of the same group or team Intergroup Conflict Conflict between two or more different groups Resolving conflict Competition Avoidance Compromise Collaboration Accommodating Interdependence I need you and you need me in order to achieve what each of us wants 3 4 Distributive Negotiation Distributive Bargaining Situation goals of one party are fundamental direct conflict to another party Resources are fixed and limited Maximizing ones own share of resources is the goal for both parties A competitive negotiation strategy also called Claiming Value or Zero Sum Used to decide how to distribute something of value Fixed pie All equal parts of the pie A fixed amount of stuff to be divided up Assumes that the more one side gets the less the other side gets Issues are framed as a question of how to compromise or how to choose among mutually exclusive options either or Power is applied to convince the other party that they have no choice but to make concessions A party will push for settlement near the other party s bottom line Information is shared in order to convince the other side why their side is weak is desirable since it can help convince them to compromise Agreement occurs when parties feel convinced that the proposal s better than their alternatives Integrative Negotiation 5 Focus on commonalities rather than differences Address needs and interests not positions Commit to meeting the needs of all parties involved Exchange information and ideas Invent options for mutual gain Create a free flow of information Attempt to understand the other negotiators real needs and objectives Emphasize the commonalities between the parties and minimize the differences Search for solutions that meet the foals and objectives of both sides Successful integrative negotiation some common goal or objective Faith in ones own problem solving ability A belief in the validity of ones own position and the others perspective The motivation and commitment to work together Look for ways to create value Ex United States Postal Service and the band they collaborated and created new ways to problem solve and fix it Key steps identify and define the problem Understand the problem fully identify interests and needs on both sides Generate alternative solutions Evaluate and select among alternatives 6 Win Win vs Win Lose Win win both parties win Win Lose one or both parties sacrifice something sometimes to get something better or sometimes to save their relationship See following chart outcomes 7 Conflict Engagement Strategy Dual concerns model Take into account Is the substantive outcome important Is the relational outcome important Substantive Outcome Important Yes No Relational Outcome Important Collaboration Competition Yes No Avoidance Don t negotiate Competition I gain ignore our relationship Collaboration I gain you gain enhances our relationship Accommodation I let you win enhances our relationship Accommodation Avoidance 8 Collaboration 9 Compromising I gain you gain enhances our relationship Both parties give up something that they want in order to get something else they want more 10 Competition I gain ignore our relationship 11 Accommodating I let you win enhances our relationship 12 6 Principles of negotiation 1 Negotiation is a process between individuals within groups and between groups 2 There is a conflict of needs and desires between two or more parties what one party wants is not the same thing that the other party wants 3 Parties negotiate by choice Negotiation is voluntary People negotiate because they can get a better deal by negotiating rather than simply accepting what the other party will give them or let them have We are seldom required to negotiate 4 We expect a give and take in negotiation Both sides are expected to modify and move away from their opening requests or demands 5 Negotiation occurs when the parties prefer to invent a solution rather than accept a solution when there is no fixed set of rules or procedures for resolving a conflict or when they choose to bypass the rules that exist Negotiation will take place when parties seek to search for agreement rather than fight openly have one side dominant the other capitulate permanently break off contact or take their dispute to a higher authority to resolve 6 Successful negotiation involves tangibles and intangibles a Intangibles are the psychological motivations that influence parties need to win or beat the other party or avoid losing to the other party The need to look good competent or tough to the people you represent The need to defend an important principle or precedent in a negotiation The need to appear fair or honorable The need to maintain a good relationship with the other party after the negotiation is over 13 Prisoners Dilemma It is better to defect than to cooperate even though it may seem that cooperation is the better choice Game of self interest Example Two guys are arrested and charged with a crime If they both stay silent both will be held partially responsible and sentenced to one year in jail If both confess they will each get three years in jail If one confesses and implicates the other who stays silent the confessor will go free and the implicated party will spend eight years in jail Best alternative to the negotiated agreement Alternatives give the negotiator power to walk away from the negotiation You are normally willing to accept any deal that is better than your BATNA A good BATNA is a valuable source of negotiating power Zone of possible agreement The settlement range bargaining range is the spread between the resistance points The area where bargaining takes place A s Concession Making Bottom Line Resistance Point