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Tangible factors: include quantifiable items, such as the price, terms of agreement, etc. Intangible factors: we are referring to the deeper psychological motivations that may directly or indirectly influence the parties during the negotiation.

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What are tangible and intangible factors in negotiation?

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That is, they negotiate because they think they can get a better deal by negotiating than by simply accepting what the other side will voluntarily give them or let them have. Negotiation is largely a voluntary process. We negotiate because we think we can improve our outcome or result, compared to not negotiating or simply accepting what the other side offers. It is a strategy pursued by choice; seldom are we required to negotiate.

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Why do parties negotiate by choice?

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A concession has been made when one party accepts a change in his or her position. Concessions restrict the range of options within which a solution or agreement will be reached

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What are concessions?

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In distributive situations negotiators are motivated to win the competition and beat the other party, or gain the largest piece of the fixed resource that they can. In order to achieve these objectives, negotiators usually employ "win-lose" strategies and tactics. This approach to negotiation—called distributive bargaining--accepts the fact that there can only be one winner given the situation, and pursues a course of action to be that winner. The purpose of the negotiation is to claim value---that is, to do whatever is necessary to claim the reward, gain the lion's share, or gain the largest piece possible.

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Describe the strategies and tactics a negotiator would employ in a distributive bargaining situation

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Contending, Yielding, Inaction, Problem Solving, and Compromising

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What are the five major strategies for conflict management (as identified in the Dual Concerns framework)?

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when parties' goals are linked so that one person's goal achievement helps others to achieve their goals, it is a mutual-gains situation, also known as a non-zero-sum or integrative situation, where there is a positive correlation between the goal attainments of both parties.

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Describe a "mutual gains" situation

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distributive

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A zero-sum situation is also known as a _________ situation

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best alternative to a negotiated agreement.

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BATNA stands for

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contending

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An individual who pursues his or her own outcomes strongly and shows little concern for whether the other party obtains his or her desired outcomes is using the _________ strategy.

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None of the above

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Parties pursuing the __________ strategy show little interest or concern in whether they attain their own outcomes, and do not show much concern about whether the other party obtains his or her outcomes.

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-depends on the reputation of the other party -is affected by the circumstances of the negotiation. -is related to how he or she treated you in the past. -is the dilemma of trust.

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How much to believe of what the other party tells you

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Substantive (tangibles), intangibles, and procedural

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What are the three types of goals?

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The less concrete and measurable they are, the harder it is to communicate to the other party what we want, to understand what he/she wants, and to determine whether any particular outcome satisfies our goals.

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Why is important for goals to be concrete, specific and measurable?

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Tactics are short-term, adaptive moves designed to enact or pursue broader (or higher level) strategies, which in turn provide stability, continuity, and direction for tactical behaviors.

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Define strategy and tactics

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First, if you are able to meet your needs without negotiating at all, it may make sense to use an avoidance strategy. Second, it simply may not be worth the time and effort to negotiate. Third, the decision to negotiate is closely related to the desirability of available alternatives—what outcomes the negotiator can hope to achieve if negotiations fall through or don't work out. Finally, avoidance may be appropriate when the negotiator is responsible for developing others into becoming better negotiators.

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What strategic negotiation purposes can be served by avoidance?

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1) preparation, (2) relationship building, (3) information gathering, (4) information using, (5) bidding, (6) closing the deal, and (7) implementing the agreement.

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Research by Greenhalgh suggests there are seven key steps to an ideal negotiation process. What are those seven steps?

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The combined lists of issues from each side in the negotiation

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Define bargaining mix.

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Large bargaining mixes give us more possible components and arrangements for settlement, thus increasing the likelihood that a particular package will meet both parties' needs and, therefore, increasing the likelihood of a successful settlement. At the same time, larger bargaining mixes can lengthen negotiations because there are more possible combinations of issues to consider, and combining and evaluating all these mixes makes things very complex

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What are the advantages and disadvantages of large bargaining mixes?

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*Advantages*: Negotiators kept on a "short leash" cannot be won over by a persuasive presentation to commit their constituency to something that is not wanted. They cannot give out sensitive information carelessly. *Disadvantages*: When a negotiator always has to "check things out" with those he represents, the other party may refuse to continue until someone who has the power to answer questions and make decisions is brought to the table. The limited authority may frustrate the other and create an unproductive tension in the negotiating relationship.

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What are the advantages and disadvantages of limiting a negotiator's authority?

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competitive

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A strong interest in achieving only substantive outcomes tends to support a/an_________ strategy

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long-term focus trust and openness efforts to find mutually satisfying solutions pursuit of goals held jointly with others

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Characteristics of collaborative strategies include:

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Relationship Building

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Getting to know the other party and understanding similarities and differences represents what key step in the negotiation process?

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A) substantive, directly related to the focal issues under negotiation B) process-based, related to the manner in which we settle this dispute C) relationship-based, tied to the current or desired future relationship between the parties D) based in the intangibles of the negotiation

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Interests can be...

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set and push for high objectives

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If the other party has a strong and viable alternative, he/she will

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How will we keep track of what is agreed to?

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Under which of the following questions of protocol would you find a bargaining relationship discussion about procedural issues that should occur before the major substantive ones have been raised?

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When a negotiator wants to maximize the value obtained in a single deal and when the relationship with the other party is not important

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List two situations when distributive bargaining strategies are useful.

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(1) Assess the other party's outcome values and the costs of terminating negotiations; (2) manage the other party's impression of one's own outcome values; (3) modify the other party's perception of his or her own outcome values; (4) manipulate the actual costs of delaying or aborting negotiations.

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What are the four important tactical tasks for a negotiator in a distributive bargaining situation?

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Gives more room for movement in negotiation and therefore more time to learn the other party's priorities. May create the impression that there is a long way to go before a reasonable settlement will be achieved and more concessions than originally intended may have to be made to bridge the difference between the two opening positions.

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Why is advantageous to make an extreme opening offer?

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Concession making indicates an acknowledgment of the other party and a movement toward the other's position. It implies a recognition of that position and its legitimacy. If the other party does not reciprocate, the concession maker may appear to be weaker by having given up something and received nothing in return. If the giver has made a major concession on a significant point, it is expected that the return offer will be on the same item or one of similar weight and somewhat comparable magnitude. To make an additional concession when none has been received (or when what was given was inadequate) can imply weakness and can squander valuable maneuvering room

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Discuss the importance of reciprocating (or not reciprocating) concessions

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ignore them, discuss them, respond in kind, co-opt the other party. Also discussed in the text but not listed specifically: preparation, familiarity with hardball tactics, identification and discussing the tactics, halting the negotiation process, team negotiations.

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What are the strategies for responding to hardball tactics?

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ignore what the parties have in common.

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Distributive bargaining strategies can cause negotiators to

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bargaining range

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The objective of both parties in distributive bargaining is to obtain as much of the __________ as possible

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the opening offer and the counteroffer

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The bargaining range is defined by

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pressure targeted parties to do things they would not otherwise do.

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Hardball tactics are designed to

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conclude the final settlement as close to the other's resistance point as possible.

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The negotiator's basic strategy is to

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ensure that there is enough room in the bargaining range to make some concessions

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Good distributive bargainers will

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Perceptual distortion by generalization occurs when small amounts of perceptual information are used to draw large conclusions about individuals.

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Define perceptual distortion by generalization

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Stereotyping occurs when attributes are assigned to an individual solely on the basis of his or her membership in a particular social or demographic group.

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What is stereotyping

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Frames are shaped by conversations that the parties have with each other about the issues in the bargaining mix.

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What role do frames play in the way they are constructed so that bargainers define problems and courses of action jointly through their talk?

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When information that is presented in more vivid, colorful, or attention-getting ways becomes easier to recall and thus also becomes more central and critical in evaluating events and options.

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In negotiation, when does the availability bias operate

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(1) Overconfidence can solidify their support of positions or options that are incorrect or inappropriate (2) overconfidence can lead negotiators to discount the worth or validity of the judgments of others

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Describe the double-edged effect of overconfidence

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A) the process by which individuals connect to their environment. B) strongly influenced by the perceiver's current state of mind, role and understanding or comprehension of earlier communications. C) a factor that can affect how meanings are ascribed. D) a complex physical and psychological process.

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Perception is

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people assign to others the characteristics or feelings that they possess themselves

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Projection occurs when

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Specific frames may be likely to be used with certain types of issues

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An insight drawn from research of the frames negotiators use in disputes would suggest that parties discussing salary may be likely to use outcome frames and may be related to which of the following

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a negotiator's commitment to a course of action, even when that commitment constitutes irrational behavior on his/her part.

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The irrational escalation of commitment bias refers to

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Overconfidence

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10. Which of the following cognitive biases can lead negotiators to discount the worth or validity of the judgment of others?

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escalate the conflict

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Negative emotions may lead parties to

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The tactics of distributive and integrative bargaining are leverage tactics—tactics used to exert influence over the other party in the service of achieving the best deal for one or both of the parties

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What are leverage tactics?

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To be effective, threats must be specific and credible, targeting the other party's high-priority interests. Otherwise, the other party has little incentive to comply

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How can the use of threats be effective?

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Legitimate power is derived from occupying a particular job, office, or position in an organizational hierarchy. The power resides in the title, duties and responsibilities of the job itself

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Define legitimate power

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(1) The negotiator believes he or she currently has less leverage than the other party; that the other party already has some advantage that can and will be used, so he or she seeks power to offset or "counter-balance" their leverage; (2) the negotiator believes that he or she needs more leverage than the other party to increase the probability of controlling the other and/or securing a desired outcome

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Seeking power in negotiation usually arises from one of which two perceptions?

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level the playing field.

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Tactics designed to create power equalization are often employed as a way to

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the accumulation and presentation of data to change the other person's point of view or position on an issue

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Information as a source of power is

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B) Social structures are inherently inefficient, and this realization creates the basis for legitimate power.

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Which of the following statements about legitimate power is false? A) Legitimate power is at the foundation of our social structure. B) Social structures are inherently inefficient, and this realization creates the basis for legitimate power. C) Legitimate power cannot function without obedience. D) Legitimate power is often derived from manipulating other sources of power. E) All of the above statements about legitimate power are true

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accorded to those who are seen as having achieved some level of command and mastery of specific information.

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Expert power is

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A focus on commonalties rather than differences, an attempt to address needs and interests, a commitment to achieving needs of all involved parties, the required exchange of information and ideas, the invention of options for mutual gain, the use of objective criteria for standards of performance

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What elements must a negotiation contain to be characterized as "integrative?

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Interests are the underlying concerns, needs, desires, or fears behind a negotiator's position, which motivate the negotiator to take that position

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Define interests

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Substantive interests are the types of interests that relate closely to "tangible issues," and relate to the focal issues under negotiation. Process interests are related to the way we settle the dispute. Relationship interests mean that one or both parties value their relationship with each other and do not want to take actions that will harm or damage the relationship. Interests in principles involve what is fair, what is right, what is acceptable, what is ethical, or what has been done in the past and should be done in the future

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Identify and define the four types of interests

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The parties are able to invent new options that meet each side's needs. Successful bridging requires a fundamental reformulation of the problem such that the parties are no longer squabbling over their positions; instead, they are disclosing sufficient information to discover their interests and needs and then inventing options that will satisfy both parties' needs.

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Define "bridging"

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Exploit differences in risk preference, exploit differences in expectations, exploit differences in time preferences.

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What approaches to logrolling can be particularly helpful in the "evaluation and selection of alternatives" phase of integrative negotiation?

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B) an attempt to address positions

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Which of the following is not an element of integrative negotiations? A) a focus on commonalties B) an attempt to address positions C) a required exchange of information and ideas D) the use of objective criteria for standards of performance E) All of the above are elements of integrative negotiations.

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the interests that relate to the focal issues under negotiation

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Substantive interests are...

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that the parties establish more than one issue in conflict and then agree to trade off among these issues so one party achieves a highly preferred outcome on the first issue and the other person achieves a highly preferred outcome on the second issue.

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Successful logrolling requires

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D) one person is allowed to obtain his/her objectives and "pay off" the other person for accommodating his interests.

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In nonspecific compensation

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C) positional bargaining

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When people do not trust each other they are more than likely to engage in which of the following behaviours?

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C) Interests are often based in more deeply rooted human needs or values

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Which of the following statements about interests is true? A) There is only one type of interest in a dispute. B) Parties are always in agreement about the type of interests at stake. C) Interests are often based in more deeply rooted human needs or values. D) Interests do not change during the course of an integrative negotiation. E) All of the above statements about interests are true.

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The use of questions, listening, and role reversal

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What three techniques have been proposed for improving communication in negotiation?

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Because they let the other know that you are listening and prepare the other party to receive your message.

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Some nonverbal acts, called attending behaviors, are particularly important in connecting with another person during a coordinated interaction like negotiation. Why?

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Ask what logic or data might change their views; and, ask if there is any way you might jointly design a technique that might provide more information.

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What two questions should be asked when arriving at an impasse?

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The more long-standing the negative reputation, the harder it is to change that reputation to a more positive one. Reputations need to be actively defended and renewed in others eyes. Particularly when any event is likely to be seen by others in a negative light, we must work hard to defend and protect our reputation, and actively work to make sure that others do not remember the experience in a negative way.

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Why are negative reputations difficult to repair

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A)manage difficult or stalled negotiations. B) pry or lever a negotiation out of a breakdown or an apparent dead end. C) assist or force the other party to face up to the effects or consequences of their behaviors. D) collect and diagnose information.

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Questions can be used to...

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the receiver provides no feedback to the sender about the accuracy or completeness of reception.

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In passive listening ...

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B) leading questions that point toward an answer

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Which of the following are types of manageable questions?

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C) Negotiating within relationships may never end.

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Which of the following parameters shapes our understanding of relationship negotiation strategy and tactics A) Negotiating within relationships takes place at a single point in time. B) Negotiation in relationships is only about the issue. C) Negotiating within relationships may never end. D) Parties never make concessions on substantive issues. E) All of the above parameters shape our understanding of relationship negotiation strategy and tactics.

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A) a perceptual identity. B) reflective of the combination of personal characteristics. C) demonstrated behaviour. D) intended images preserved over time.

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Reputation is:

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D) Must we surface the deeply felt emotions that have produced anger, frustration, rejection and disappointment? Should we effectively vent these emotions, or understand their causes, so that we can move beyond them?

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Which question that should be asked about working on the improvement of a relationship is false?

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To increase the negotiator's power in the bargaining environment

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What is the purpose of using marginally ethical ambiguous negotiating tactics?

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(1) Ask probing questions; (2) force the other party to lie or back off; (3) "call the tactic"; (4) discuss what you see and offer to help them change to more honest behaviors; (5) respond in kind; and, (6) ignore the tactic.

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What actions can a negotiator take to respond to the other party's distributive tactics or "dirty tricks?"

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(1) Will this tactic really enhance my power and achieve my objective? (2) How will the use of these tactics affect the quality of my relationship with the other party in the future? (3) How will the use of these tactics affect my reputation as a negotiator?

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Negotiators who are considering the use of deceptive tactics should ask themselves what three questions in order to evaluate the desirability of the tactic?

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The more frequently negotiators engage in this self-serving process, the more their judgments about ethical standards and values will become biased, diminishing their ability to see the truth for what it is

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What is/are the risks associated with frequent use of the self-serving process?

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A situation in which all parties believe that they are the only dissenting member in a fairly strong emerging agreement about what actions to take. Afraid to express their dissent for fear of looking weak and foolish, group members self-censor their reservations and concerns, thereby reinforcing the apparent surface consensus and leading to a decision with possibly disastrous consequences.

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What is the "illusion of consensus?

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First, there are simply more parties involved in the negotiation. Second, more parties bring more issues and positions to the table. Third, negotiations become socially more complex. Fourth, negotiations become procedurally more complex, and the parties may have to negotiate a new process that allows them to coordinate their actions more effectively. Finally, negotiations become more strategically complex, because the parties must monitor the moves and actions of several other parties in determining what each will do next.

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Summarize the five ways in which the complexity increases as three or more parties simultaneously engage in negotiation.

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B) the rightness of an action is determined by existing laws and contemporary social standards that define what is right and wrong and where the line is.

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The concept of "duty ethics" states that

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A) End-result ethics.

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Only one of the approaches to ethical reasoning has as its central tenet that actions are more right if they promote more happiness, more wrong as they produce unhappiness. Which approach applies?

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C) lying was seen as an unacceptable type of behavior for that relationship

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McCornack and Levine found that victims had stronger emotional reactions to deception when

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B) exaggerate what you believe is the deception and state it, hoping that the other will jump in to "correct" the statement.

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When using the "altered information" tactic to detect deception, one should

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D) make a "no nonsense" accusation of the other.

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When using the "intimidation" tactic to detect deception, one should

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D) Negotiators will probably have to devote discussion time to how they will manage the process to arrive at the type of solution or agreement they want

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What is the result of procedural complexity in multiparty negotiations?

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C) Negotiators can simply choose to ignore the complexity of the three or more parties and proceed strategically as a two-party negotiation

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One-on-one negotiations in full view of all group members would have all but one of the following consequences on negotiators. Which one would not be a consequence?

Business Negotiations Mid Term CH 1-8 – Flashcards

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