PACS 4050 1st EditionExam # 2 Study Guide Lectures: 4 - 7Lecture 4 (Chapter 4 October 1)The Challenges of Cross-Country DrivingIntegrative negotiation: A negotiation where parties attempt to integrate their interests. To do so, Parties must be willing to share their interests, and be able to prioritize the issues to be negotiated, so they can concede on low-priority issues in order to claim more value on high-priority issues.Principled negotiation: A term used by Fisher and Ury in Getting to Yes, which advocates deciding on issues based on their merits rather than haggling. This type of negotiation is soft on the people and hard on the issues.Mutual gains bargaining: Another term for integrative negotiation that is often used in collectivebargaining. The focus is on both parties doing the best they can in the negotiation.Win-win negotiations: Integrative negotiation, principled negotiation, and mutual gains bargaining are all forms of win-win negotiations.Positions: A position is a stand taken in a negotiation, like “I must have a salary of $100,000.” Positional bargaining can lead to impasses if a negotiator will not move from his or her position. Interests: Are the underlying reasons for the position a negotiator takes. For example, the reasons for asking for $60,000 are unpaid college loans, need for a new house and new car, etc. Positions are singular, interests are multiple.Priorities among issues: When there are multiple issues in a negotiation a negotiator should be able to prioritize among them.Compatible issues: When there are multiple issues in a negotiation there is a tendency to think that the parties want different things on all the issues. However, there may be several compatible issues. In an employment negotiation both parties may want the job candidate to bein a certain location and doing a certain type of job. Recognizing compatible issues can help negotiators build integrative agreements.Bundling issues: When there are multiple issues in a negotiation it is often helpful to “bundle” like issues together and offer them as a package. For example, in an employment negotiation a recruiter might make an offer that bundles benefits, retirement, and vacation days together.Creating value: Value is created when parties make trade-offs among issues rather than simply compromise on all issues. Creating value is often called “expanding the pie.”Multi-attribute utility analysis: A process of weighting the issues in a negotiation (weights must add to 1) and then assigning a numeric value to the options within each issue. This process forces a negotiator to prioritize the issues and allows the negotiator to quantify the issues and option, thereby helping him or her see where the trade-offs might be.MESO: An acronym for “multiple Equivalent Simultaneous Offer.” If a negotiator has done a multi-attribute utility analysis of the issues then he or she can bundle some of the issues and offer two bundles simultaneously that are of equal value to him or her. This signals a willingness to be flexible in the negotiation; it also helps discover where the trade-offs might be.- Integrative negotiation comes in different guises: some refer to it as win-win bargaining; others call it mutual gains bargaining, interest-based bargaining, or principled negotiation. - Win-win unfortunately, is a greatly overused term that has come to mean that everyone isequally satisfied with the outcome, or that both parties gained equally.- Distributive bargaining is most likely to occur when negotiators are bargaining over a single issue, often price. - Distributive bargaining is all about claiming value when resources are fixed.- Integrative negotiation, on the other hand, is about trying to grow the fixed pie in order tocreate value. - Taking a position in negotiation is like drawing a line in the sand and telling the other negotiator that you will not cross it. Positions are by their nature non-negotiable. To achieve an integrative solution, one has to understand the interests that lie beneath the position.- However, if the recruiter and potential employee were to look beyond their positions and share their underlying interests which can be thought of as the reasons they hold the positions they do, it might be possible to strike a deal.- If parties stick to their positions and never share their interests, opportunities will be lost and value left on the table.- The “tools” that are required in the negotiation toolkit to be a successful integrative negotiator are: 1. Know yourself, your interests and your priorities. 2. Know the other; take person’s perspective. 3. Gather information: ask and answer questions. 4. Develop reciprocity-share information about interests and priorities. 5. Think about the negotiation holistically rather than piecemeal. 6. Be patient and trust the process.- Log rolling is the price of trading off low pricing issues for higher priority issues in an integrative negotiation.Lecture 5 (Chapter 5 October 8)Preparing to Drive the Negotiation Streets and HighwaysStages of a successful negotiation: Preparation, rapport-building, information trading, deal making and closing.Interests (tangible and intangible): Tangible interests represent things that a negotiator wants orneeds that are tangible, such as money, a new job, or specific price in a sales transaction. Intangible interests, on the other hand, are things a negotiator may want or need which are lessobvious, things such as recognition, respect or fair treatment.Bargaining goals: A negotiator must plan to be successful by identifying specific and desired outcomes in his/her negation. These specific outcomes are called bargaining goals and represent outcomes that may exceed what the negotiator may generally expect to achieve in the negotiation.Rapport: Effective negotiators establish a personal connection with the other negotiator by asking questions, sharing information and building a trusting and sincere working relationship. This personal connection is called rapport and allows both negotiators to share information and trust that negotiated agreements will be implemented and followed by both sides.Schmoozing: Unlike a personal connection established with the other negotiator (rapport), schmoozing is a tactic used by some negotiators to emphasize similarities (real or pretend) with the other negotiator.Mimicry: Rapport can sometimes be established with the other negotiator by