MGT Lecture Negotiation

  1. Define Negotiation.
    a discussion between 2+ parties with the apparent aim of resolving divergent interests.
  2. 3 Charateristics Common to all Negotiation Situations
    • 1. There are 2 + parties
    • 2. Conflict of Interst
    • 3. Parties negotiate bc they think they can get a beter deal than by taking what the other side will give them.
  3. What are the 4 Major Sins of negotiation?
    • 1. Leaving money onthe table (lose-lose)
    • 2. Settling for too little (winner's curse)
    • 3. Walking away from the table
    • 4. Settling for terms worse than your alternative (agreement bias)
  4. the lose-lose situation?
    leaving money on the table
  5. what is the winner's curse?
    settling for too little
  6. What is an Agreement bias?
    settling for terms worse than your alternative
  7. What does BATNA stand for?
    Best Alternative To Negotiated Agreement
  8. What is the indifference point?
    Reservation Point
  9. What is the aspiration level?
    Target point
  10. BATNA should =
    Reservation point
  11. T/F- Generally, do not accept an offer equal to or higher than your BATNA.
    False- do not except lower
  12. What % of negotiators have a Fixed Pie Perecption, assuming your interests and the other party's interests are opposed?
    80%, and it leads to information availablitly errors
  13. what type of culture is Fixed Pie Percept most prevalent in?
    Individualistic cultures like the US due to focus on self interests.
  14. T/F- Fixed Pie Perceptions are made worse under high time pressure
  15. What is the goal of Distributive Bargaining Situation>
    Maximizing the share of resources
  16. T/F- In Distributive Bargaining situations, the goals of one party are in indirect conflict to another party.
    false- direct conflict, resources are fixed and limited
  17. 3 Keys to effectiveness in Distributive Barg. when a settlement rage is present?
    • 1. Discovering the other party's resistance point
    • 2. Push for setltement near opponent's resistance point
    • 3. Get the other party to reduce their resistance point
  18. If there is no settlement range in Distributive Barg, then (2)
    • 1. Get the other side to reduce thier resistance point
    • 2. Modify your own resistance point
  19. T/F In distributive bargaining you should set HIGH aspirations
  20. T/F- In Distributive Bargaining you don't need to know yours or your opponent's BATNA.
    False, you should know both
  21. T/F- In Distributive Bargaining it is better to make the first offer.
  22. T/F- In Distributive Bargaining you should try to state ranges.
    False- avoid stating ranges
  23. T/F- In Distributive Bargaining it is better to counter offer immediately
  24. T/F- In Distributive Bargaining it is better to make BILATERAL concessions as opposed to UNILATERAL
  25. T/F- In Distributive Bargaining it is better to reveal a deadline and appeal to norms of fairness
  26. T/F- In Distributive Bargaining you should use objective-appearing rationale to support your offers
  27. T/F- In Distributive Bargaining you should never reveal your reservation point
  28. According to a graph shoing results of Distributive bargaining situations, what is the upshot when refering to first offers and considering BATNAs?
    Make first offer, and consider opponent's BATNA
  29. What is the term of how negotiation is described in terms of gains vs. losses?
  30. Negotiators who understand framing may understand...
    how to have more control over the negotiation process
  31. T/F Role of concessions is essential to negotiation.
  32. 2 Negatives of concessions..
    • 1. May communicate weakness
    • 2. Must be reciprocated
  33. T/F- Patterns matter in Role of concessions.
  34. In Integrative bargaining, increased # of issues results in (lower/higher) negotiator satisfaction due to __________ thinking.
    lower, counterfactual.
  35. When parties have different preferences across negotiation issues in integrative bargaining, it is potentially a.. negotiation
  36. What are the 4 faulty perceptions of a Win-Win Negotiation?
    • 1. Compromise
    • 2. Even Split
    • 3. Feeling good
    • 4. Building a relationship
  37. What is the 3rd level of the Pyramid Model of Integrative Agreements?
    Pareto-Optimal: Integrative agreement that are imposible to improve for both parties
  38. What is the 2nd level of the Pyramid Model of Integrative Agreements?
    Settlement demonstrably superior to other feasible settlements: negotiators create agreement that is better for both partiesthan other feasible agreements
  39. What is the 1st level of the Pyramid Model of Integrative Agreements?
    Mututal Settlement (positive bargaining zone): agreement exceeds parties' reservations points; creates value relative to next best alternative.
  40. What are strategies that do NOT work (4)?
    • 1. Fixed Pie perception
    • 2. compromise
    • 3. focusing on LT relationship
    • 4. adoptiong a 'coopertatve orientation'
  41. T/F- Low resistance to yielding is 'bad'.
  42. Research shows that fixed pie perceptions lead to _________ agreemnents
  43. Define: Information search
    Failing to ask for info about other's preferences bc they assume they are in opposition
  44. Define Information Processing
    distorting or ignoring info about the other's preferences even when it is available
  45. Define: Resistance to Yielding.
    Degree to which individual will hold "tough" in maintaining their own interests.
  46. T/F- Integrative tactics work especially well when there is low resistance to yielding.
    • False, works well with HIGH resistance to yielding.
    • *Low Resistance: caves easily and produces unilateral concessions or simple splitting of the pie
    • *High Resistance: holds tough in representing interests, and forces parties to problem solve.
  47. Keys to effectiveness in Integrative bargaining.. (7)
    • 1. battle fixed pie perception
    • 2. Frame negotiations as problem-sovling
    • 3. Be uncompromising on your issues and needs
    • 4. invent options (other issues side deals)
    • 5. Exploit different preferences across issues
    • 6. Exchange information and ideas
    • 7. Unbundle the issues
Card Set
MGT Lecture Negotiation
this is from negotiation slides