Business 132 – Negotiation & Conflict Resolution – Test 2 – Flashcards

wants to avoid personal conflict and so makes concessions readily in order to reach agreement. He wants to an amicable resolution; yet he often ends up exploited and feeling bitter.

sees any situation as a contest of wills in which the side that takes the more extreme positions and holds out longer fares better. He wants to win; yet he often ends up producing an equally hard response, which exhausts him

decides issues on their merits rather than through a haggling process focused on what each side says it will and won't do. It suggests that you look for mutual gains whenever possible, and that where your interests conflict, you should insist that the result be based on some fair standards independent of the will of either side. • Discuss interests • Develop agreements to maximize the gains of both parties • Attack the problems on its merits

Wise agreement; reached efficiently and amicably.

• Leads to unwise agreements (WASTES TIME) • INEFFICIENT (people start with extreme offers & the longer time it take to form an agreement) • ENDANGERS ONGOING RELATIONSHIPS • Being nice is no answer / Business is business

1. PEOPLE - Separate people from the problem. Depersonalize. The participants should come to see themselves as working side by side, attacking the problem, not each other. 2. INTERESTS - focus on the interests not the positions 3. OPTIONS - Before trying to reach agreement, invent options for mutual gain. 4. CRITERIA - Insist that the result be based on some fair standards such as market value, expert opinion, custom, or law determine the outcome. (Objective - the standards are independent of the will of either side.)

1. ANALYSIS - diagnose the situation - gather information, organize it, and think about it. Identify your interests as well as those of the other side. You will want to note options already on the table and identify any criteria already suggested as a basis for agreement. 2. PLANNING - diagnose the situation - gather information, organize it, and think about it for a 2nd time. Generate ideas and decide what to do. How do you propose to handle the problems? Which interest is more important? What are some realistic objectives? 3. DICUSSION - when the parties are communicating back and forth, looking toward agreement, the same four elements are the best subject to discuss - diagnose the situation - gather information, organize it, and think about it. Differences in perception, feelings of frustration and anger, difficulties in communication can be acknowledged and addressed.

Participants are friends. The goal is agreement. Make concessions to cultivate the relationship. Be soft on the people and the problem. Trust others. Change your position easily (don't want to offend). Make offers. Disclose your bottom line. Accept one-sided losses to reach agreement. Search for the single answer: the one they will accept. Insist on agreement. Avoids confrontation (at all costs). Try to avoid a contest of will. Yield to pressure.

Participants are adversaries. The goal is victory/winning (at all costs). Demand concessions as a condition of the relationship. Be hard on the problem and the people. Distrust others. Dig into your position. Make threats. Misleads. Uses confrontation. Demands one-sided gains as the price of agreement. Search for the single answer: the one you will accept. Insist on your position. Try to win a contest of will. Apply pressure.

Sees themselves as a problem solver. The goal is wise outcome reached efficiently and amicably. Separate the people from the problem. Be soft on the people, hard on the problem. Proceed independent of trust. Focus on interests, not positions. Explore interests. Avoid having a bottom line. Invent options for mutual gain. Develop multiple options to choose from, decide later. Insist on using objective criteria. Try to reach a result based on standards independent of will. Reason and be open to reason; yield to principle, not pressure.

• Be soft on people, hard on the problem • Develop options • Yield to principles but not to pressure • Explore interests

SUBSTANCE - the issue of the problem at hand. RELATIONSHIP - interaction or bond between 2 or more people.

1. Perception 2. Emotion 3. Communication

the difference between your thinking & their thinking. How you think (fears, hopes, facts)

• Put yourself in their shoes - how you see the world depends on where you sit. Try-on their views. The ability to see the situation as the other side see it, as difficult as it may be, is one of the most important skills a negotiator can possess. •Don't put the worst possible interpretations on what they say or do - don't deduce their intentions from your fears. • Don't blame them for your problems - assessing blame firmly entangles the people with the problem. When you talk about the problem, separate the symptoms from the person with whom you are talking. • Discuss each other's perceptions and look for opportunities to act inconsistently with their perceptions. • Give them a stake in the outcome - act as a partner. • Face-saving: Make your proposal consistent with their value. - Face-saving involves reconciling an agreement with principle and with the self-image of the negotiators. Its importance should not be underestimated.

• Recognize emotions are part of the negotiation process • Make emotions explicit and acknowledge them as legitimate • Allow other side to vent, don't react to outbursts • If other side attacks you, recast it as an attack on the problem • Take a break

• Listen actively • Ask non-threatening. Open ended questions • Use "I" statements • If you disagree with what they say, critique the merits, not the person • If they don't understand you, restate your message in a different way • Look forward, not back 1 - Make yourself understood 2 - Make yourself heard 3 - Misunderstandings

define a problem

reconcile interests, look for underlying intrests

1. Ask "WHY?" 2. Ask "WHY NOT" 3. Realize each side has multiple interests 4. Most powerful interests are basic human needs

• Make your interests clear • Acknowledge their interests • Look forward, not back • Be hard on the problem, soft on the people

anxiety that results from simultaneously holding contradictory or otherwise incompatible attitudes, beliefs, or the like, as when one likes a person but disapproves strongly of one of his or her habits. An uncomfortable feeling caused by holding conflicting ideas at the same time. • In order to get rid of the conflict they rationalize and then change their beliefs.

It depends on if the problem is "Perception", "Emotional" or Communication. If the problem is Perception, Put yourself in their shoes, Don't put the worst possible interpretations on what they say or do, Don't blame them for your problems, Discuss each other's perceptions and look for opportunities to act inconsistently with their perceptions, Give them a stake in the outcome If the problem is Emotional, Recognize emotions are part of the negotiation process, Make emotions explicit and acknowledge them as legitimate, Allow other side to vent, don't react to outbursts, If other side attacks you, recast it as an attack on the problem, Take a break. If the problem is Communication, Listen actively, Ask non-threatening. Open ended questions, Use "I" statements, If you disagree with what they say, critique the merits, not the person, If they don't understand you, restate your message in a different way, Look forward, not back.

1. Premature Judgment 2. Searching for single answers 3. Assumption of fixed pie (either / or situations no in between. Expand the pie) 4. Solving their problem is their problem

• Separate inventing from deciding - Brainstorming • Broaden you options • Look for mutual Gain

process of producing as many options as possible to solve the problem at hand • Before - define your purpose. What is the problem / issue? • During - through out ideas. Write down Ideas. • After - go through each idea and pick the most promising one.

o Look thru eyes of an expert o Invent agreement of different strengths o Change scope of proposed agreement

Identify shared interests

Give them a choice that is as painless as possible. Give them a stake in the outcome

facts independent of each sides will and applies to each side. Examples: Industry standards, laws/codes, scientific studies, reports, expert panels, maps/charts/articles, statistics.

Ask "What's your theory?" "How did you arrive at _____?"

Do not yield to pressure, only principle.

Best alternative to a negotiated agreement.

Protects you against making agreements you should reject. Helps you make the most of the assets you have so that any agreement you reach will satisfy your interests as well as possible.

the worst acceptable out come

• Easier to resist pressure • Easier to not get into an agreement that would be bad for you • Puts you in control because you have a plan

• Bottom line might be to high or low • Limits imagination or your options • You show your hand to soon • Limits your ability to use what you learn during the negotiation

• Invent a list of possible actions to take if agreement not reached • Improve on some of the promising ideas • Tentatively select the one alternative that seems best

yes

1. Recognize the tactics 2. Raise the issue explicitly (call them out on their behavior) 3. Question the tactics legitimacy

1. Deliberate Deception (lying/misrepresentation) 2. Psychological Warfare (Psychological uncomfortable to make you comply) 3. Positional Pressure Tactics - (to put pressure on you)

• Phony facts • Ambiguous Authority (the other party makes you believe they have authority & they don't) • Dubious intentions (you believe someone is to going to abide by the contract when they really aren't - add a compliance clause to the contract)

• Stressful Situations (where the negotiation is taking place) • Personal Attacks (you're dumb, etc) • Good guy/bad guy routine • Threats (the most abused tactic) (if you don't do what I say I will...)

• Refusal to negotiate (what's the reason you won't negotiate?) • Extreme demands • Escalating demands • Hard-hearted partner • Calculated delays • Take it or leave it

1 - Don't attack their position, look behind it. 2 - Invite criticism and advice. 3 - Recast an attack on you as an attack on the problem. 4 - Ask Questions & Pause. Use silence.

1 - Offer - a proposal by one party to another indicating an intention to enter into a valid contract. 2 - Acceptance - the party to whom the offer has been made accepts the proposal/contract, whether orally or in writing, or by his or her actions. 3 - Consideration - the subject matter of the contract; the thing for which the parties have bargained. Each party gives something of value. 4 - Legality of Subject Matter - a contract must be formed for legal purpose; it cannot be made for illegal purpose or objective. 5 - Contractual Capacity - The ability (mental and or physical) of a person to enter into a valid contract. 6 - Contractual Intent - A person must have the intent to enter into a valid contract, that is, enter into the contract under his/her own free will. All six elements must be present in order for there to be a valid and enforceable contract.

rule stating some contracts must be in writing in order to be enforceable. The following are contracts that must be in writing in order to be enforceable: 1 - Contracts for the sale of an interest in real estate, 2 - Contracts in consideration of marriage, 3 - contracts not to be performed within a year, 4 - Guarantees (on payments of debt/Loans), 5- Contracts for sale of goods over $500 (UCC), 6 - Executor's promise (to pay a dead persons debt.

Oral testimony not permitted to alter or vary the terms of a written contract. Exemptions: 1 - failure of consideration, 2 - fraud/duress/mistake, 3 - prove existence of a collateral oral agreement, 4 - explain ambiguities.

it is a matter of law for the judge

a question of fact for the jury

Recognize the tactics Raise the issue explicitly (call them out on their behavior) Question the tactics legitimacy