Mind and Heart of the Negotiator- Ch. 1 Negotiation – Flashcards
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Negotiation
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An interpersonal decision-making process necessary whenever we cannot achieve our objectives single-handedly
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1. Creating value 2. Claiming value 3. Building trust
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3 major negotiation skills
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1. Dynamic nature of business 2. Interdependence 3. Economic forces 4. Information technology 5. Globalization
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5 key reasons for the importance of negotiation skills
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Dynamic, changing nature of business
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People must renegotiate their existence in organizations throughout their careers
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Interdependence
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People need to know how to integrate their interests and work across business units and functional areas
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Economic forces
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Negotiators need to know how to operate in uncertain and ambiguous environments
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1. Leaving money on the table 2. Settling for too little 3. Walking away from the table 4. Settling for terms that are worse than your best alternative
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4 negotiation traps
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Leaving money on the table (lose-lose)
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Negotiation trap: Negotiators fail to recognize and capitalize on their win-win potential
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Settling for too little (winner's curse)
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Negotiation trap: negotiators make too large concessions, resulting in a too small share of the bargaining pie
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Walking away from the table
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Negotiation trap: negotiators reject terms offered by the other party that are demonstrably better than any other option available to them
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Settling for terms that are worse than your best alternative (agreement bias)
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Negotiation trap: negotiators feel obligated to reach agreement even when the settlement terms are not as good as their other alternatives
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1. Egocentrism 2. Confirmation bias 3. Satisficing 4. Self-reinforcing incompetence
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4 reasons people are ineffective negotiators
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Egocentrism
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Tendency for people to view their experiences in a way that is flattering or fulfilling for them.
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Confirmation bias
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Tendency of people to see what they want to see when appraising their own performance
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Satisficing
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Settling for something less than they could otherwise have
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Self-reinforcing incompetence
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Overconfidence leads to doing worse than you thought like when taking a test. Most people are "blissfully unaware of their own incompetence" and the fact that people are reluctant to change their behavior and experiment with new because of the risks.
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1. Negotiations are fixed-sum 2. You need to either be tough or soft 3. Good negotiators are born 4. Life experience is a great teacher 5. Good negotiators take risks 6. Good negotiators rely on intuition
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6 negotiation myths
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Negotiations are fixed-sum(fixed-pie)
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Negotiation myth: whatever is good for one person must be bad for the other party
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You either need to be tough or soft
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Negotiation myth: negotiators believe they must choose between behaving punitive or be "reasonable" to the point of concessionary
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Good negotiators are born
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Negotiation myth: effective negotiation skills are something that people are born with, not something that can be readily learned.
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What is the 3 phase cycle model of learning;
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experiential learning, feedback and learning new strategies and skills.
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Information Technology
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IT has created a culture of 24/7 availability and technology makes it possible to communicate with people anywhere in the world so managers are expected to negotiate at a moments notice.
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globalization
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globalization presents challenges in terms of different norms of communication because most managers must effectively cross cultural boundaries to do their jobs.
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optimizing
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setting high aspirations and attempting to achieve as much as possible.
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Life Experience is a great teacher
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Negotiation Myth: experience can improve negotiation skills. You need feedback in order to improve skills, and memories tend to be selective so we remember our successes and forget our failures. Experience improves confidence but not accuracy.
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Good Negotiators Take risks
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Negotiation Myth: effective negotiation necessitates taking risks and gambles.
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Good Negotiators rely on intuition
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Negotiation Myth: negotiation style involves a "gut feeling" or intuition. Effective negotiation involves deliberate thought and preparation and is quite systematic.
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enlightened model of negotiation
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being a successful negotiator does not depend on your opponent's lack of familiarity with a book or lack of training in negotiation.
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fraternal twin model
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assumes that the other person you are negotiation with is every bit as motivated, intelligent and prepared as you are.
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mind and heart
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the bottom line and our relationships are both important
