Negotiations Chapters 1-5 – Flashcards
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Accommodation approach to negotiation
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Adoption of a lose-win strategy because the relationship is more important than the substantive terms of the deal
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Appreciative moves
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A strategy that negotiators use to capture applicable synergies and thereby overcome non productive negotiation tactics and irrelevant issues
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Avoidance approach to negotiation
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A hands-off approach to conflict management
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Collaborative approach to negotiation
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Substantial importance is attached to both the relationship and the substantive terms of the outcome for both parties
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Competitive approach to negotiation
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Adoption of a win-lose strategy because the substantive terms of the outcome are more important than the relationship
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Compromising approach to negotiation
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A negotiation outcome in which both parties get something they wanted but neither is fully satisfied with the rest
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Distributive Negotiation/ Bargaining
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A competitive process for determining how to distribute or allocate scarce resources
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Dual concerns model
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Posits five approached for handling conflict and negotiation: competition, accommodation, avoidance, compromising and collaboration
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Final Stage of Negotiation
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Typically includes implementing agreements as intended
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Initial Stage of Negotiation
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Typically includes pre-negotiation preparation, rapport building and additional information gathering (testing assumptions)
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Integrative approach to negotiation
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A collaborative process for creating value to help the parties satisfy their interests
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Interest-based approach to negotiation
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Substantial importance is attached to both the relationship and the substantive terms of the outcome for both parties
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Lose-win approach
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Negotiating party cares more about preserving the relationship with the other party than winning
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Middle Stage of Negotiation
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Typically include formulating arguments and counterarguments, exchanging offers and counteroffers and closing the deal
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Mixed-motive negotiation
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Negotiators must cooperate enough to reach an agreement and compete enough to claim sufficient value for themselves
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Mutual gains approach to negotiation
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A collaborate process for creating value to help the parties satisfy their needs
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Negotiation
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A social process by which interdependent people with conflicting interests determine how they will allocate resources or work together in the future
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Positional Negotiation
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A competitive process for determining how to distribute or allocate scarce resources
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Principled Approach to Negotiation
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A collaborate process for creating value to help the parties satisfy their interests
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Shadow negotiation
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The subtle games negotiators play that underlie the substantive aspects of the negotiation, including strategic moves, strategic turns and appreciative moves
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Strategic moves
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Tactics that persuade the other party to come to the bargaining table and to give your interests and arguments a fair heading
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Strategic Turns
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Tactics that help reframe the negotiation when it moves in an unproductive direction
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Win-Lose
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A competitive process for determining how to distribute or allocate scarce resources
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Win-win approach to negotiation
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A collaborate process for creating value to help the parties satisfy their interests
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Zero-sum negotiation
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A competitive process for determining how to distribute or allocate scarce resources
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Aspiration Levels
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What you realistically hope to achieve for each issue
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Bargaining mix
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The issues to be negotiated
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Bargaining power
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The ability to bring about desired outcomes
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Best alternative to a negotiated agreement (BATNA)
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The best alternative outcome available to you without the other negotiator
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Dilemma of honesty
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The other party may take advantage of you if you share too much information, but you may not be able to reach an agreement if you share too little
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Dilemma of trust
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The other party may take advantage of you if you believe too much of what he or she tells you, but you may not be able to reach an agreement if you believe too little
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Interests
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The motives underlying your positions, your reasons for wanting them or the purposes they will serve for you
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Issues
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The specific components or dimensions of the situation that must be addressed
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Position
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commonly an offer or a counteroffer, it is possible outcome
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Reservation price or point / Walk away price
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Your breakeven point or the worst acceptable outcome for each issue. You would rather walk away without an agreement if you cannot achieve terms that are better than or equal to this point
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Strategy
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The plan or process by which negotiators attempt to achieve their goals
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Tactics
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The specific, short-term actions that serve to implement the broader strategy
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Target points
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What you realistically hope to achieve for each issue
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Wise agreement
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One that satisfies your interests and perhaps, the other party's
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Zone of Possible Agreement (ZOPA)
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The range between resistance points
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Bogey
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Involves pretending that an issue is very important even though it is not. It is later traded, reluctantly for a concession from the other side that is more important.
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Commitment
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A strong position combined with a pledge of a specific course of action that can sometimes be perceived as threats
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Concessions
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Reductions in demands made to opening offers
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Dirty Tricks/ Hardball tactics
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Aggressive distributive bargaining tactics in which one party pressures the opposing party into doing something it otherwise would not do
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Distributive Tactics
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Tactics that are used to implement the distributive bargaining strategy
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Final Offer
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A point in the negotiation beyond which a negotiator is unwilling or unable to go
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Flinching
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Feigning shock or surprise when the other party extends an offer
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Good cop-bad cop
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A hardball negotiation tactic in which two negotiators in the same party pretend to take different approaches: one opens with a very tough position and the other follows this playing nice
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Intimidation
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A form of aggressive behavior, such as anger, guilt, threats, insults, attacks, pushiness, impatience, intransigence and hard-nosed demands, used to make the negotiators appear more powerful in order to impose their position on the other party
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Lose Face
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A loss of image or status in the eyes of others
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Lowball-highball
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An aggressive distributive bargaining tactic in which negotiators begin with an extremely high or low opening offer in order to convince the other negotiators to temper their demands
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Nibble
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After negotiating for some time, in which a negotiator asks for a small concession on an issue that has not yet been discussed to close the deal
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Snow Job
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An aggressive negotiation tactic in which one party inundates the other with so much information that it is not possible to determine what is accurate or relevant
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Winner's curse
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Getting what you want too easily and being unhappy with it
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Bridging Solution
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An integrative solution that bridges the gap between incompatible positions
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Cutting the costs for compliance
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One party's costs are minimized in return for agreeing to allow the other party to satisfy its interests
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Creating value
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Expanding the pool of available resources by creating solutions that satisfy all parties' interests
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Dealcrafting
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Creating solutions that help you make deals is unnecessary
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Fixed Pie
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Fixed or limited resources
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Instrumental interests
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Something a negotiating party needs or values because it will help him or her in the future
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Intrinsic interests
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Something a negotiator needs or values because it will help him or her now
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Logrolling
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A solution process in which parties maximize joint gain by finding trades that capitalize on their differences
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Nonspecific compensation
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A solution in which one party is paid off for allowing the other to satisfy its interests
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Alternatives
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A closing tactic in which one party offers multiple choices to the other party
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Assuming the close
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A closing tactic in which one party assumes the other party has agreed to the deal, even though the other party has not done so
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Assumptive question
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Used to augment the tactic of assuming the close by asking a question that assumes the other side has agreed to the deal
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Balance Sheet (Cost benefit) Closing Tactic
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One party lists the benefits of their own proposal on one side of a piece of paper and then asks the other party to list their costs on the other side in order to demonstrate that the first party's benefits outweigh the second party's costs
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Closing tactics
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Tactics that a negotiating party uses to persuade the other party to say yes
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Comparison closing tactic
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One negotiating party delineates and compares the benefits and/or costs that the other party will derive from different proposals in order to demonstrate the advantages of the desired proposal
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Compromise closing tactic
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The parties divide in half the difference between each of their last offers
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Default option
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People are more concerned about the risk of change than the benefits of changing, so proposals persuade people to say yes if they preserve the status quo and do not require them to change
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Exploding offers
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Attempting to close deal using time pressure
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Multiple equivalent offers
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A closing tactic in which one party offers more than one choice to the other party, and all of the offers are neatly equivalent
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Sequential questions
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A closing tactic that uses a sequence of questions which begins with a question that is sure to elicit a yes response and continues with questions that lead logically and incrementally from the first question
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Split the difference closing tactic
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The parties divide in half the difference between each of their last offers
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Status quo bias
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People are more concerned about the risk of change than the benefits of changing, so proposals persuade people to say yes if they preserve the status quo and do not require them to change
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Sweeteners
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A closing tactic in which one party offers a final concession if the other party accepts their offer
