Negotiation Basics – Flashcards
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A formal discussion between people who are trying to reach an agreement
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Negotiation
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Negotiation Phases
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1. Preparation 2. Opening 3. Bargaining 4. Closing and Implementation
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Why is negotiation important?
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1. Results 2. Responses 3. Outcomes 4. Relationships
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T/F: Negotiations should involve more rationally-based responses than emotionally based
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True
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T/F: Emotional responses should be ignored during negotiations
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False
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What are the risks between balancing outcomes and relationships
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(+) Outcome can cause negative relationship (+) Relationship so settle for negative outcome
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What do negotiations aim for
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outcomes
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What are examples of essential trains in a negotiator
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positive attitude knowledge of negotiation process understanding of people grasp of the subject creativity communication skills
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T/F: Don't go into a negotiation if you feel unsure of yourself
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True
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What is the term for believing in ourselves and in our negotiation skills means it will most likely go well?
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Self-Fulfilling Prophecy
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What are the steps of the negotiation process (once it has already started)
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1. Relate 2. Explore 3. Propose 4. Agree
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Which phase of the negotiation process do skilled negotiators use to get info
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Relate phase
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In what phase of the negotiation process are people talking about what they are interested in?
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Explore phase
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In what phase of the negotiation process are people bargaining and providing different ideas?
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Propose phase
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T/F: you should NEVER skip a step of the negotiation process
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True
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How can time of the negotiation influence outcome?
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If they don't have enough time to negotiate --> will not have time to explore deeply in depth and won't have time to argue as much
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How can you use body language in negotiation?
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Determine if someone is trying to be misleading, determining your success
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How can power influence negotiation?
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Will they treat you as powerful if you are? If they are more powerful will they make you feel shunned?
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What are the two ways most people make decisions in negotiation
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Rational or intuitive
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T/F: Negotiation requires an end agreement
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True
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How can you grasp the subject better before a negotiation?
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Do your homework. Find out what you want, it's value, what it would cost the employer, the other employees, compare to other places in the area, alternate ideas, consequences
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Why is it important to be creative in negotiations?
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1. develop novel win-win solutions 2. persuasive positions to support your position 3. solutions to implement after general agreement 4. alternative to the negotiated deal to make you less dependent on it
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Purposes of good communication:
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getting the info needed and developping rapport
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T/F: Good communication involves talking>listening
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False
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Relative worth of an item based on its importance to the possessor
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Value
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T/F: Value is determined by both parties in a negotiation
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True
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T/F: Value is often the same in negotiations
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False
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What defines how you will approach negotiations
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Value
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What is the worst acceptable outcome
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the least you hope to accomplish; "fallback"
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What is the preferred course of action when goals aren't met through negotiation?
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Best alternative to negotiated agreement (BATNA)
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the three key questions of a negotiation
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1. Is the substantive issue important to you? 2. Do you value your relationship with the other party? 3. Is time a factor?
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The issue is important to you in what 2 strategies
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win-win win-lose
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Use this strategy if you value this relationship
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win-win lose-win
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Use this strategy if you have enough time to find an approach that works for all
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Win-Win
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Use this strategy if the relationship doesn't matter
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win-lose
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use this is if you want to break even
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win-lose
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use this strategy if you have time to wait it out
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Win-lose
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Use these strategies if the issue isn't important
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lose-win lose-lose
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Use this strategy if the preserving the relationship is better in the long run
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lose-win
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Use this strategy if the issue is unimportant to both parties
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lose-lose
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use if time is a primary concern to both
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lose-lose
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Signs that they can be a partner vs opponent
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amicable negotiation willingness to see your viewpoint
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T/F: Partnership vs being an opponent builds the foundation for long-term relationships
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True
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T/F: The better the understanding of goals and how to offer points for negotiation, you will have increased opportunity to advance goals with greater chance of success
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True
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What are perks of a partnership vs being opponents
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more pleasant negotiation see things from each other's sides clearer understanding of goals and how you can work together
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Why is it important to know who makes decisions in a business in terms of negotiation
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you might be negotiation with a manager (head decision maker) or a HR rep (no say in decision making)
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Considerations if you have a good relationship in a negotiation
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maintain it less aggressive/not pushing it til things get bad
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Considerations if you have a bad relationship
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may want to improve it (not always necessary) plan to be accommodating and help achieve objective (shared goals)
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Considerations if you have no relationship
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competitive strategy maximize negotiations for goals develop relationship (optional)
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5 key components to planning and setting goals
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achievements limits offers alternatives agenda
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Perks of negotiating on your turf
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no travel costs psychological comfort you control environment
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Ideal location for the inexperienced negotiatior
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negotiator's own turf
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Downside of negotiationing on negotiator's own turn
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opponent gets to see how your department runs/the flow/strategies
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What type of turf is a sterile environment and is chosen often out of tradition
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neutral turf
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Types of communication methods for negotiations
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in person phone email fax
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Considerations when determining communication type of a negotiation
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time geographic location number of people rapport established complexity of issue will interaction be long or short term documents that everyone needs to read beforehand
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What does the initial phase of negotiation consist of
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setting the tone and opening the conversation
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Term: Built through observing and interacting with another party over time
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Rapport
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3 ways to facilitate rapport
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trust collegial atmosphere long-term relationship
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how to establish trust in a negotiation
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make sure other party feels valued personally and professionally
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Term: negotiation should be an extension of a relationship
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collegial atmosphere
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Ways to build rapport
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(+) Discussions about business prove your worth patience be supportive -- not selfish
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Term: position or rank relative to tohers
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Status
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T/F: You should try to establish a status that is either greater or equal to your opponent's
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True
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How is status determined
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by what value or potential value you can bring to those you negotiation with
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T/F: You shouldn't try to improve leverage in a negotiation
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False
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T/F: If you already have a relationship with someone, you may still need to establish rapport
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False
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Term: Shared guidelines that establish a framework for pending negotiations
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Rules of Engagement
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The rules of engagement clarify expectations on what two specific things
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Purpose and length of negotiation
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T/F: The Rules of engagement can be written or verbal, but written is often better so it can be referenced
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True
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What 3 factors determine a negotiation timeline
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deadlines, time needed to understand material, how much negotiation is involved
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The two steps of communicating results of the negotiation
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1. documentation 2. implementation
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step of negotiation that is "a game of give and take"
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bargaining
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Power: trusted b/c one's opinion is respected
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expert power
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Power: trusted b/c percieved to be trustworthy, competent, and motivated by good will
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Personal power
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Power: able to give something others don't want
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Reward power
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Power: able to punish others who don't conform
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coercive power
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Power: in a position that entitles you to give power
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legitimate power
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T/F: In a negotiation, we shouldn't expect to have to make concessions in order to reach agreement
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False
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What process do we use to move from opening bids to desired targets
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bidding process
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How does a competitive relationship affect negotiation
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push the other side to move their stance
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How does a cooperative relationship affect negotiation
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be prepared for both sides to move equally
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3 mistakes negotiators can make
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cling surrender change
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Mistake: person holds fast to desired outcome leading to angry parties; standoff with no satisfactory resolution
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Cling
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Mistake: person makes a deal but not a very good one; more focused on reaching agreement; settles on an inferior deal
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Surrender
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Mistake: person switches direction midway; breakdown in talks or settlements making little sense later
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Change
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What phase of negotiation involves implementation
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Closing phase
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6 components of implementation of a negotiation
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Review Write Clarity Shake (hands not booty) exchange celebrate
