Chapter 4,5,6 Negotiation – Flashcards

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The more complex the situation, the greater the number of parties, and the more contentious
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The more important pre negotiations become.
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Lack of preparation
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is our most serious handicap on average we think you should spend as much time preparing as you expect to spend in face-to-face negotiation
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Before negotiations begin, negotiators need to ....
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Consider the consequences of failing to reach an agreement. Remember the goal of negotiating is not to reach just any agreement but to reach an agreement that is better for you than what you would get without one.
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BATNA is the standard....enables you to determine...must be a high-quality, realistic...
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Is the standard against which any proposed agreement should be measured Knowing your BATNA enables you to determine what is a minimally acceptable agreement is.
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Researchers, Roloff and Dailey found
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negotiators who possessed BATNAS achieved higher Outcomes but Pinky, Neale, and Bennett point out that not just any BATNA will do. The BATNA must be a high quality, realistic alternative.
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BATNAs can be enhanced through two additional factors:
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Clear goals and confidence about expectations and performance.
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Pre-negotiation should include several additional tasks:
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a. assessment of the level of commitment to negotiation; b. creation of expectations for reciprocity; c. transition in the nature of the relationship; d. agreement on definition of problem; e. And weighing the benefits, costs, and risks of negotiation.
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Questions to ask .... Answers to these questions ....
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7. Questions to ask .... a. How negotiable are you on this issue? b. Is there any room for further discussion on the price? c. Are you open to considering alternatives for resolving this issue? i. Answers to these questions frame the context for discussions.
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The more formal, complex, or large the negotiations, the more important
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a. These initial introductions are. b. When parties use representatives to negotiate for them, representatives often need to establish authority to make agreements for their clients.
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A ground rule common to negotiations is
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a. Listen to understanding before judging; b. listen without interrupting; c. demonstrate respect for others; d. focus on one problem at a time; e. Only one person speaks at a time.
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Carpenter and Kennedy propose ground rules
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a. For people involved in these more complex, multiple party negotiations: i. Personal attacks will not be tolerated; ii. the motivations and intentions of participants will not be impugned; iii. delay will not be employed as a tactic; iv. commitments will not be made lightly and will be kept; v. disagreements will be regarded as problems to be solved rather than to be won; vi. before a decision is requested, on an matter, sufficient time will be provided for participants to seek advance from constituents, council, or experts; participants will provide pertinent information
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Cairns suggests ground rules for discussing intragroup (within the party)and intergroup(between two groups)
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a. The union is given equal status with management at the negotiating meeting; b. The place and time of the meeting are mutually agreeable; c. The frequency of meetings suits the purpose of both parties; d. the length of meeting is known beforehand and is mutually acceptable; e. there are facilities for the union sides to meet separately; f. The size and composition of negotiating teams are known and are acceptable.
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In the information stage, participants explain their perception.....
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a. Of the problem, identify specific rules that need to be addressed, and list interests that need to be satisfied for satisfactory agreement. The more open negotiators can be, in the sharing of information, the greater the possibilities for solving underlying issues and creatively addressing needs.
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Rackham compared the behaviors of successful negotiators with average negotiators.
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a. He found that skilled negotiators ask more questions, tested for understanding more often, and summarized more of what they heard than average negotiators.
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During the information sharing stage (early statements), there is a tendency for parties to
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a. State positions before identifying interests and issues. b. A second tendency is for parties to move to quickly to proposing and evaluating options before sufficient information has been shared to understand the problem.
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Option generation is occurring too quickly when
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One of the parties responds, "Yes, but" to each of the suggestions and provides reasons why proposed solutions cannot be carried out.
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Interests can go beyond the obvious and tangible, be difficult to evaluate....
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a. And may change during the life of a negation: i. In short interest include anything that the negotiator carries about, any concerns that are evoked by the issues discussed.
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Price is rarely the only element .... As negotiators expand discussions to include...
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a. If you make price the dominant factor the negotiation quickly becomes distributed as parties attempt to divide the fixed pie. b. as negotiators expand discussions to include i. other factors package becomes easier to create that will satisfy the breadth of mutual interests
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The goal of information sharing phase is... overstatement... Dawson recommends this as a useful....
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a. to learn as much as possible about preference of goals i. This goal may be sidetracked when parties overstate their interests in initial statements. ii. Many negotiators use overstatement as a tactic that they hope will make later requests although, still strong sound reasonable. iii. Negotiating tactic: 1. You might just get it. It gives you negotiating room and it raises the perceived value of what you are offering.
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Negotiators will match their messages to the kind ....When negotiators make statements involving rights or power....
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a. They are receiving. b. When negotiators make statements involving rights or power i. They significantly raise the probability their opponents will respond in kind, creating a negative conflicting spiral. c. Focusing on interests creates a positive spiral in which you demonstrate commitment to identifying what the other party needs into helping the other party understand what you need.
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How to respond when others begin with communication involving demands....77% of the time....
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a. Rights or powers i. Recommend staying interest focused and resisting reciprocation with rights or power messages. b. 77% of the time when negotiators did not reciprocate in kind, creators of the forcing and rights messages refocused their messages in more collaborative directions.
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Resistance in the problem solving stage...
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Occurs because negotiators find it difficult to break out of old patterns of thinking.
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Researchers found that people will choose problem solving over distributive....
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Approaches when parties perceive the psychological climate to be fair and open to innovation and where success will be recognized.
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Agreeing on a no-criticism rule ....
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a. During idea generation reduces some of the resistance to thinking in new and different ways.
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Asking questions that enable parties to think outside the box ... such as...
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a. Sometime helps b. Such as, is there anything we have not considered that might help us here? In an ideal world, what can we do about this? c. Some negotiators use supposals "Suppose we try this..." Because supposals lack commitment to courses of action. Parties feel more willing to consider new ideas.
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Generation and use of options to resolve problems can take one of two forms....
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a. In the first negotiators generate options for each of the problems (one issue: many problems) Parties evaluate each of the possible solutions based on its ability to resolve the dispute or satisfy interests. b. The second form involves creation of a comprehensive package in which parties use their differences in expectations to create tradeoffs (many issues: many options)
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Logrolling, Linkage, Bridging
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Logrolling- a. This practice involves parties making concessions on other issues of lower priority to themselves but of higher priority to others. b. Linkage- interactive technique. i. Occurs when parties expand the scope of negotiation by linking agreements of the current discussions to other negotiations between the parties. c. Bridging- when both parties back off on their original demands in favor of new options that satisfy their underlying interests.
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Concessions made without explanation or expectation of reciprocity...
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a. Maybe become risky, high cost, gambits.
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Mitchell reached insights about the use of conciliatory gestures or concessions in highly conflictual negotiations 87
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a. The greater the change from established patterns of behavior represented by an action, the more likely the action will be perceived as a genuine concession; b. the fewer the benefits conferred on the initiator and the greater the benefits for the target, the more concessions are likely to be perceived as genuine; c. the less in action appears to result from one party's demands or coercion, the more the likely the action will be perceived a conciliatory; d. conscious, voluntary and deliberate actions that take the form of refraining from harmful behavior are more highly regarded as conciliatory gestures; e. An action that is precedent breaking and that clearly confers benefits on its target has higher probability as being perceived as genuine.
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Freund recommends ... an opening offer
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a. Those negotiators make an opening offer that is not less than 10% nor more than one-third away from the client's realistic expectations.
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30. Many agreements include:
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a. Provisions for penalties in the event that commitment doesn't follow agreement. Some agreements include stipulations that an outside party will monitor compliance to performance standards. i. Others include performance bonds (money set aside that is forfeited by parties that fail to comply with the agreement.)
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In some cases, no settlement may be the best course of action. ...
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a. This option occurs when cost outweighs the benefits. If a BATNA is better than a negotiated settlement, if total victory is the goal and could be better achieved in court... or blocking the settlement serves a longer strategic plan.
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32. A few of the strategies that we see from parties as they more to agreement
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a. Incremental convergence- parties make gradual concessions and engage in tradeoffs until they reach an acceptable agreement. Based on acceptable process, parties engage in problem solving, addressing of issues and mutual gain. b. Leap to agreement- parties move slowly, offering few concessions and as a deadline approaches, leap to package settlement. We defend our interests as much as possible while conceding as little as possible to the interests of others. Car buying, sports contracts, and labor negotiations frequently demonstrate this kind of strategy. c. Development of agreements and principle- Parties engage in discussion, eventually reaching a conceptual agreement in principle and then, based on this agreement, look for specific incremental agreements. i. We agree first that something needs to be done and then we work on the specifics. Agreements in principle are usually the first stage in child custody discussions, family disputes, and departmental staff negotiations d. Procedural agreement- parties who have difficulty agreeing on resolution of specific substantive issues may first pursue agreement in decision making process. They agree on how to handle this type of dispute, before they return to discussion about substantive issues. International negotiations in human resource issues frequently begin with this level of agreement.
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Don't be satisfied with an agreement, get ....Many agreements include provisions for ....
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Don't be satisfied with an agreement, get ....Many agreements include provisions for ....
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Four factors that affect the likelihood of success in reaching agreement in multiparty disputes.
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a. Initial assessments determines if negotiation is the best course of action for the dispute and if parties are committed to a mutual gains solution, are aware of expectations, and are willing to abide by ground rules for discussions. b. Parties must have an incentive to negotiate. The gains for working together must outweigh other course of action. c. The way parties conduct negotiations influences the likelihood of success. Interested-based negations stand a better chance of satisfactory settlements than positional or distributive negotiations. d. Involving in the negotiation the parties with decision making authority to implement the agreement raises the likelihood of settlement.
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Scholars or practitioners identified factors that describe effective negotiators.
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a. Brain- preparation and good questioning b. Heart- listening, managing emotion and integrity c. Courage- speaking clearly, building relationships, and creativity
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Research shows student negotiators who use a formal preparation system
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a. Reach better agreements in both the face-to-face and computer network conditions, not just for themselves but for both sides.
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How do we know how much preparation is necessary for a negotiation?
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a. Provide valuable questions to assess the amount of preparation necessary for a negotiation. i. Are we likely to be quarreling about the nature of the problem or interests? ii. Am I clear about what the other party believes about these issues? iii. Is this situation by nature one that promotes winners or losers? iv. Do the outcomes have short term or long term consequences? v. How important is it for each of us to reach an agreement? vi. Will the level of power or leverage greatly affect how well we collaborate? vii. How difficult will the other parties be to work with? viii. How much will be expected of me in the final agreement?
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Negotiation often has less to do with issues than it does with
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a. Issues than it does with unsureness about potential outcomes, emotions underlying the issues, or participants fear they will be taken advantage of during the settlement.
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Skilled negotiators ask ....
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a. More than twice the number of questions than average negotiators does during a negotiation.
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Questions used in negotiation by skilled negotiators
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a. Tend to be open-ended, probing for information that will provide clues for creative solutions. i. What is asked more than often than why? What questions promote descriptive responses that uncover hidden information? Why questions tend to be confrontational, promoting judgment, evaluation, and defensive responses. Questioning in some settings is to prove a point; the purpose of questioning is to promote dialogue about an issue, test for understanding or probe for underlying issues and interests.
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Found that less-skilled negotiators have a great deal of difficulty asking the "right" question
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a. The one that unlocks the mystery behind the problem. i. This skill is difficult to teach. It involves listening as much to what is not being said as to what is being said.
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A few of the questions that might be useful during the different phases....
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a. Information Sharing i. What is important to you? ii. To help me understand, prioritize your needs for me? iii. What would you like to know about us in this deal? iv. What is not working that we need to fix? v. Can I ask you a few questions to see if my facts are correct? vi. What is the problem as you see it? b. Problem Solving i. Are you willing to do some problem solving on areas that we appear to have differences? ii. Can we break the problem into smaller parts? iii. What are we trying to achieve by... iv. If we thought outside of the box, what is a different way we could handle the problem? v. Is there a better way we can do this? c. Option Generating i. In an ideal world, what would you like to see happen? ii. Can you reframe your proposal in a different way? iii. Would you consider... iv. Supposed we tried... v. What if... vi. Can you explain the drawbacks you see in this option? vii. What do we need to do to make this work for you? d. Settlement i. Are you willing to give a little on this one issue, so that we can finalize this agreement today? ii. Do you see any problems later, if we choose this course of action? iii. What will you need from me in order to sell this agreement to your group?
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Researcher Rackham found that average negotiators create
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a. Twice as many counter-arguments compared to skilled negotiators.
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Perspective taking...
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a. Is a listening skill often associated with success and negotiation? This skill involves seeing the issue from different viewpoints... b. principles associated with perspective taking ... i. When listening, try to understand the intended meaning of what your counter-part is saying ii. When formulating a message, consider what the listener will take your words to mean
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Confirmation
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a. Involves statements that are supportive, display agreements about some aspects of content, express positive feelings, and affirm the contributions of others. It is one of the best predicators that a relationship or a negotiation will be successful. Conformation is one of the most effective ways to receive positive responses from another person. i. Disconfirmation- 1. Involves devaluing behaviors, demonstrated interrupting responses, irrelevant or tangential statements, or remarks that discount the contribution of others.
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Ineffective negotiators make ... regarded as irritating than effective
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It is not surprising that ineffective negotiators make a. 5 times more statements regarded as irritating than effective negotiators do.
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People who feel confirmed will be...
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a. More willing to disclose information and engage in give-and-take because they believe their contributions will be valued
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Defensive listening
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a. occurs when someone listens from a perspective of competition, an attitude of its "me or you", or from a perspective of fear i. To reduce defensive listening 1. We might demonstrate more willingness to be persuaded by others.
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No one factor sabotages principled negotiation...
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a. More than the inability to manage emotions. Statements during difficult negotiations trigger emotional reactions, which cause people to make defensive or attacking statements.
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The challenge will be to manage impulsive
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a. Responses that sabotage progress in discussions. Failure to control responses will escalate emotional spirals, which undermine our achievement of interests.
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Techniques designed to interrupt the cycle of provocation and reduce the influence of emotion on discussions...
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a. Take time out to step away from the emotional triggers. b. Where appropriate, try to communicate in writing, instead of face-to-face. c. Manage stress through exercise, rest, and diet prior to a potentially stressful situation. d. Allow more flexibility in the goals for negotiation. e. Look for small achievements in the movement towards larger goals. f. Reduce the intensity in situations, through appropriate humor. g. Talk over the problem with the third party i. The important thing to do is something to de-escalate potentially damaging emotional displays.
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If the issue is the other party's emotional display, the first rule is to ...
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a. Resist a similar emotional response. This will only make matters worse. Stop and refocus. Clarify the deeper message that you are hearing. Reframe the problem in more approachable less stressful terms.
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Recommendations when others display strong emotion in negotiation...
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a. Acknowledge their feelings. b. Withdraw from discussions, long enough to recompose. c. Step aside: let them vent. d. Separate the causes of the feelings from the substantive problem and deal with them in parallel. e. Return to the purpose of the negotiation.
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Integrity is expressed through
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a. Faithfulness to one's word. b. Resisting destructive tactics even when they might produce greater gain. c. Demonstrating concern for the interests of the other
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Rackham found that average negotiators use...
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a. Three times as many attacking, confronting, and defending statements compared to effective negotiators. Attack and defend statements trigger defenses and reluctance to cooperate in opponents.
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In simulated negotiations between Japanese and U.S. businessmen, Graham found...
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a. Favorable negotiated outcomes were associated with facial expressions that most closely matched, or mirrored, the other parties and negative outcomes were associated with brow wrinkles.
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Restricting nonverbal communication by phone, fax or computer...
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a. May actually improve the potential for integrative win, win solutions.
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Sometimes a one-time sale to a stranger for a high price
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a. Will be more valuable than an ongoing relationship.
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Lateral thinking in problem solving occurs in several ways...
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a. Looking again at things that are taken for granted (re-examining assumptions) b. Reducing division and polarization on issues which are natural tendencies of the mind. c. Engaging in deliberate generations of ideas. d. Repackaging information in different ways.
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Several guidelines for fostering creativity during problem-solving discussions
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a. Develop a serious but playful atmosphere. b. Foster confidence to take the risk of being outlandish. c. Provide the right environment in sufficient time (few distractions). d. Allow for alternating phases of closed or rigid thinking an open or novel thinking.
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61. Does personality style make a difference in negotiation?
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a. Yes and no. it may be no in the sense that the qualities and skills described, in this chapter, may exist in many different styles of personality. From introvert to extravert, analytical to expressive. Each style of personality can involve effective or ineffective listening, effective or ineffective questioning, or the ability or inability to prepare for negotiations.
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62. Weakness of personality approaches...
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a. The stereotypes depicted fail to account for context, goals, subject matter, and individual variations. People will use different styles and goals as context and opponents change.
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63. Experienced negotiators...
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a. Are better able to judge the priorities and preferences of others and make better strategic use of compatible issues. They are also able to identify and strategically use information. Experience correlated with better personal and joint outcomes.
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Women experience negotiation differently from men
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a. Because women often view situations, in terms of relationships, they will treat negations more contextually in terms of ongoing relationships.
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Researchers Schweitzer and Croson found
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a. Studied 80 dyads engaged in negotiations. Almost all of the participants admitted to if the conditions warranted, they would use misleading statements to perspective buyers, and about half actually used deception during the negotiations.
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Impasse proceeds through a predictable sequence...
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a. Through a predictable sequence. People begin with requests; move to demands, complaints, angry statements, threats, and, under severe conditions, harassment and abuse. Disputants tend to use each of the tactics before moving on to the next tactic.
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67. In overcoming barriers, your text suggests 7 principles
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a. Not to react or strike back. b. Involves attempting to understand the problem from the other's perspective. c. Positive framing achieves more agreements than negative framing. d. Reducing the psychological anchoring involves finding a way of creating bridges from staunch positions to openness about possibilities. e. Make it hard to say no, bring them to their senses not to their knees. Educate your opponent about the benefits of achieving an agreement now. The impasse can be costly to both of you. f. Conciliatory gesture may unfreeze an impasse. Researchers suggest that conciliatory gestures may be effective if negotiators announce what they are offering and why they are offering it before offering the concession. g. Flip the tables on difficult people and shift responsibility to the other party. When other parties continuously resist discussion of issues or options say "I have offered a number of potential options, but you refuse to consider them. What do you suggest we take a look at?" Or, "we seem to be stuck."
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Difficult people
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a. Learned long ago that using high-pressured tactics, quibbling over details, and changing procedures to fit their goals can be effective ways to get others to capitulate. i. Minimize effects of their tactics 1. By making others aware that we are not giving in so easily, that we have no intention of being manipulated, and that we intend to conduct reasonable discussions based on fair processes.
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Tactics professionals find effective when dealing with crazymakers...
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a. Don't try to change the crazymaker. Stern words of warning, burst of anger, and complaints about lack of understanding are often met with a deaf ear by crazymakers. b. Manage you emotional reactions to crazymakers. You decrease their power by limiting nonverbal behaviors that communicate that they are getting to you. c. Ask a lot of questions. Divide the big issues that require a great deal of trust into smaller issues that require less risk. d. In a broken record style, communicate your expectations and unwillingness to agree to terms that do not address your needs and interest. e. Communicate understanding because crazymakers are aware they create tension in others through their manipulative tactics. They are frequently caught off guard by a demonstration of understanding about their pressures and interests. f. Decreasing their own rigid thinking the should's and ought's may create unnecessary tension listen constructively.
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Mediation
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a. Has the highest probability of success when conflict is moderate and when all parties are highly committed to resolution of the issues.
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Potential success for mediation increases...
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a. The potential success for mediation decrease when disputants are competing for highly scarce resources.
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Mediation has limitations
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a. The most consistent negative evidence about mediation is that it typically has little power to alter long standing, deeply entrenched negative patterns of relating. i. In hostile contexts, disputants frequently greet mediators with suspicion
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The big difference between mediation and arbitration
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a. Arbitration - there is a greater chance that one side will be a winner, and the other, a loser. i. In many cases, the threat of arbitration can make mediation more effective.
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tactics found to minimize deception
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a. Increase the number of direct questions, generating questions that illuminate missing information.
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Steps you can take when you become aware that the other party is using unethical tactics.
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a. Openly defy the tactic and describe the way it feels to you. Describe inconsistencies and ask for meaning, discussing the tactic - causes the other party to worry about alienating you, and ask good questions that make them stop the act.
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