ORGA 314

  1. What is BATNA
    BATNA is your backup plan. The better your BATNA the more you can demand
  2. VISE Technique
    This is a tactic used to get the other side to disclose their position. Reveal target/Resistance Points
  3. Transaction Costs
    Time,Money,Emotional Energy
  4. Two Types of Trust
    Calculus Based Trust, Identification Based trust
  5. Calculus Based Trust
    based on the consistency of behavior that people will do what they say they are going to do
  6. Identification Based trust
    based on empathy with the other parties desires and intentions. Trust exists because each party understands each other
  7. Exploding Offers
    offers made with an extremely short, artificially imposed time limit
  8. Five Charactersitics of exploding offers
    • Exist when one party is more powerful then the other
    • They often place great time pressures
    • Used to deliberatly restrict the choice of the individual
    • Ignores the other parties situation and is inflexible
    • not a serious good faith attempt to reach a settlement
  9. Fairpoint Gamble
    • "I accept, with provisions!"
    • the provisions could be anything that takes negotiations beyond the exploding offers time limit
  10. The 1st Five minutes of Negotiating
    • Ask for more than you expect, start with the Maximum Plausible Position, which is the most you can ask for and still appear credible
    • Never say yes to the first offer, this triggers negative feelings
    • Anchoring on the first offer, reject anchors
  11. Reassurance Tactics
    • Build commitment to the agreement
    • the main thing holding people back from commitment is anxiety
    • anxiety arises because of purhcase dissonance-- Buyers remorse, Winners curse
  12. Reassurance Tactics Part 2
    • Restate specifically why it is a good deal for both parties
    • Emphasize the continuity of the relationship
    • Never gloat anout how well you did
  13. Moves
    In making moves, negotiators want to position themsevles as competent and legitimate in order to be credible advocates for themselves and their interests.
  14. Moves -- Challenging Competence or Expertise
    claims of competence or expertise are called into question
  15. Moves -- Deameaning Ideas
    The ideas themselves are attacking in ways that give the respondent little room to respond
  16. Moves -- Criticizing Style
    • the person becomes the subject of the move
    • e.g "dont get so upset"
  17. Moves -- Making threats
    • are used to try to force a choice on the negotiator
    • e.g " cut your price or there is no deal"
  18. Moves -- Appealing for Sympathy or Flattery
    e.g " i know you wont let me down" or "I'm asking you to do this extra work because i know i can trust you"
  19. Turns
    • are ways negotiators can challenge a move
    • they reposition the person by shifting the meaning of the move
  20. Turn -- Interrupting
    • interrupting the action disrupts the move
    • Even the shortest break means that people are not in precisly the same position after it
  21. Turns -- Naming
    To name the move signals the recognition of what is occuring
  22. Turns -- Questioning
    Suggests something is puzzling about the move
  23. Turns -- Correcting
    This subsitutes a different version to the on the move implied
  24. Turns -- Diverting
    Shifts the focus to the problem itself
  25. Closing Techniques -- Last Minute Concessions
    keep a few concessions in reserve until the end to encourage the other party to come to a agreement
  26. Closing techniques -- Summarizing
    one negotiator summarizes all the issues discussed emphasizing the concessions made
  27. Closing techniques -- Splitting the difference
    used when both parties are close to an agreement and the remaining differenes are minimal
  28. Closing Techniques -- Trial Offer
    One party makes a proposal, giving the other party an opportunity to express reservations. Used to test how close the other side is to agreement
  29. Closing Techniques -- Ultimatum or Else
    Used to force the other side to make a decision on the last offer
  30. Concessions -- Label
    • 1. let it be known that what you have given up is costly to you
    • 2. Emphasize the benefits to the other side
    • 3. Do not give up on your original demands to hastily
  31. Concessions -- Demand Reciprocity
    to ensure the likelihood that you get something in return for your concession, try to explicitly, but diplomatically deman reciprocity
  32. Concessions -- Contingent
    • state that you can make it only if the other party agrees to make a specific concession in return
    • Used when trust is low
  33. Concessions -- Installements
    • 1. Most negotiators expect that they will trade offers back and forth several times
    • 2. May lead you to discover that you do not have to make as large a concession as you thought
    • 3. shows you are flexible and willing to listen to their needs.
  34. Common Law Fraud
    A false misrepresentation of material fact
  35. Misrepresentations -- Affirmative
    highly material fact, information that must be disclosed honestly because the other party has a right to know
  36. Misrepresentations -- Partially true statements
    truthful statements may consistute actionable misrepresentations when they are made under circumstances in which the person making the statement knows the other party is misinterpreting what is being conveyed
  37. Misrepresentation -- Impermissible Omissions
    • Caveat emptor "buyer beware"
    • If the buyer does not ask the right questions the seller makes no affirmative misrepresentations
  38. Negotiating Strategies -- Avoiding
    you implement this strategy by withdrawing from active negotiations or by avoiding negotations entirely
  39. Negotiating Strategies -- Accomodating
    one party intentionally loses on the outcome to win in the relationship
  40. Negotiating Strategies -- Competing
    You want to win at all costs and have no concern about the future of the relationship
  41. Drawbacks of Competitive Strategy
    • Costly and time consuming
    • tend to underestitmate the strength of the other party
  42. Negotiating Strategy -- Collaborative
    • find a resolution that meets the needs of each party
    • both parties trust each other and can work together towards long-term goals
  43. Three keys to successful Collaboration
    • understand other parties goals
    • understand other parties objectives and their underlying needs
    • must be willing to ask questions and listen carefully to the answers
  44. Negotiation Strategies -- Compromising
    • A strategy in which each party will give in somewhat to find common ground
    • Seen as a "second choice"
  45. Disputes -- Three types
    • Needs or wants not being met
    • 1. interests
    • 2. Rights --> what the law says
    • 3. Power --> using threats in negotiation
  46. Integrative vs Distributive Bargaining
    Collaborative vs. Competing
Card Set
ORGA 314
ORGA final, short answer/long answer