Chapter 1 Understand why negotiations occur o Agree to share divide limited resource o Create something new that neither party could do on their own o Resolve problem or dispute between the parties Understand difference between bargaining and negotiation o Bargaining describes the competitive win lose situation o Negotiation refers to win win situations such as those that occur when parties try to find a mutually acceptable solution to a complex conflict Know the characteristics of a negotiation situation o Two or more parties o Conflict between desires needs o Negotiate by choice o Expect give and take o Parties prefer to search for an agreement rather than fight openly o Negotiation is management of tangibles resolution of intangibles understand the difference Understand different degrees of dependence o Interdependent In negotiation parties need each other to achieve their preferred outcomes or This mutual dependency is called interdependence o Dependent parties that must rely on others for what they need o Independent parties that are able to meet their own needs without the help and assistance of Understand different characteristics structures of negotiation o Zero Sum Distributive one winner o Non Zero Sum or Integrative Mutual Gains Understand mutual adjustment and concession making o Mutual adjustment Continues throughout the negotiation as both parties act to influence the o Concession making When one party agrees to make a change in his her position a concession Concessions restrict the range of options objectives others other has been made When a concession is made the bargaining range is further constrained o Two Dilemmas in Mutual Adjustment Dilemma of Honesty Concern about how much of the truth to tell the other party Dilemma of Trust Concern about how much should negotiators believe what the other party tells them Value Claiming Value Creation piece of resource parties do well o Claiming value result of zero sum or distributive situations where the object is to gain largest o Creating value result of non zero sum or integrative situation where the object is to have both o Value claiming occurs in all negotiations including integrative negotiations o Value is created by differences in Interests Judgments about the future Risk tolerance Time preference Understand the Nature of Conflict Not always bad o Levels of Conflict o Dysfunctions of Conflict Win Lose goals Misperceptions bias Emotionality Etc o Conflict sharp disagreement or opposition and includes the perceived divergence of interest or a belief that the parties current aspirations cannot be achieved simultaneously Intrapersonal or intrapsychic Conflict that occurs within an individual Interpersonal Conflict is between individuals Intragroup Conflict is within a group Intergroup Conflict can occur between organizations warring nations feuding families or within splintered fragmented communities o Conflict Management Contending Actors pursue own outcomes strongly show little concern for other party obtaining their desired outcomes Yielding Actors show little interest in whether they attain own outcomes but are quite interested in whether the other party attains their outcomes Inaction Actors show little interest in whether they attain own outcomes and little concern about whether the other party obtains their outcomes Problem Solving Actors show high concern in obtaining own outcomes as well as high concern for the other party obtaining their outcomes Compromising Actors show moderate concern in obtaining own outcomes as well as moderate concern for the other party obtaining their outcomes Chapter 2 Understand attributes of distributive bargaining o Starting Points Asking price Initial Price Initial offer opening offer o Target Point Aspiration Point o Resistance Points Walkaway o Bargaining Range Settlement range Zone of potential agreement Spread between resistance points Negative or positive Negotiations that begin in negative range are likely to stalemate Define alternatives and BATNA o The role of the alternatives Gives negotiator power to walk away Influence how the negotiation unfolds Clearly understand BATNA clarifies outcome if agreement not reached BATNA Best Alternative to a Negotiated Agreement one s best alternative that will influence the decision to close the deal or walk away Understand settlement point o An agreement as close to the other party s resistance point as possible o Both parties must believe that the settlement is the best that they can get Define bargaining mix The package of issues for negotiation is the bargaining mix Strategies for distributive bargaining o Discover other s resistance point Indirect assessment Determine information opponent used to set Target Resistance points Direct assessment Opponent reveals the information o Influence other s resistance point Screening activities Silence is golden Say and do as little as possible Calculated incompetence Selective presentation negotiator only reveals the necessary facts to support their Emotional reaction way for negotiator to provide information about what is Direct Action case important to them Modify Perceptions Conceal information Make preferred outcomes seem unattractive Manipulate the actual costs of delay or termination Disruptive action Raise the costs of delay to the other party Alliance with outsiders Involve or threaten to involve other parties who can influence the outcome in your favor Schedule manipulation One party is usually more vulnerable to delaying than the other o Understand difference between interest positions At the beginning of a negotiation each party takes a position a side Interests are desires or desirable outcomes o Tactics Strategies for making an opening offer Where will you start Opening stance What is your attitude Competitive Moderate Initial concessions Should any be made If so how large Role of concessions Without them there is either capitulation or deadlock Pattern of concession making The pattern contains valuable information Final offers making a commitment This is all I can do Commitments Establishing a commitment 3 properties o Finality Specific Consequences Ways to Create a Commitment o Public pronouncement o Link with outside base o Make demands prominent repetition o Reinforce the threat or promise How to abandon a commitment o Plan a way out o Let it die o Restate it in more general terms o Minimize the damage to the relationship if the other backs off Closing the Deal Provide