Negotiation Ch 4 – Flashcards
Unlock all answers in this set
Unlock answersquestion
Negotiations occur for several reasons
answer
- To agree on how to share or divide a limited resource - To create something new that neither party could do on their own - To resolve a problem or dispute between parties
question
Negotiation
answer
A form of decision making in which two or more parties talk with one another in an effort to resolve their opposing issues
question
Bargaining
answer
Competitive, win-lose situations
question
Do factors affecting negotiation occur before or after the negotiation?
answer
Many occur before the parties start to negotiate
question
Successful negotiations involves the management of what?
answer
Tangibles
question
Successful negotiations involves the resolution of what?
answer
Intangibles
question
Interdependence
answer
Parties are able to meet their own needs, without the help and assistance of others; they can be relatively detached, indifferent, and uninvolved
question
Mutual adjustment
answer
Parties can influence each other's outcomes and decisions
question
Two dilemmas in mutual adjustment
answer
- Dilemma of Honest - Dilemma of Trust
question
Dilemma of Honest
answer
Includes concerns of how much of the truth to tell the other party
question
Dilemma of Trust
answer
Includes concerns of how much should negotiators believe that the other party tells them
question
Differences in Negotiators
answer
- Interests - Judgments about the future - Risk tolerance - Time prefrence
question
Intrapersonal or Intrapsychic conflict
answer
Within an individual, ideas, thoughts, emotions are in conflict with each other
question
Interpersonal conflict
answer
Conflict between individuals
question
Intragroup conflict
answer
Group - we analyze conflict as it affects the ability of the group to make decisions, work productivity, resolve its differences, and continue to achieve its goals effectively
question
Intergroup conflict
answer
Conflict within organizations, ethnic groups, etc.
question
MATRIX (The Dual Concerns Model)
answer
Postulates that people in conflict have two interdependent types of concern: - Concern about their own outcomes - Concern about other's outcomes
question
Contending
answer
Actors pursue their own outcomes strongly and show little concern for whether the other party obtains their desired outcomes
question
Yielding
answer
Actors show little interest or concern in whether they attain their own outcomes
question
Inaction
answer
Actors show little interest in whether they attain their own outcomes, as well as little concern about whether the other party obtains their outcomes
question
Problem solving
answer
Actors show high concern for attaining their own outcomes and high concern for whether the other party attains their outcomes
question
Compromising
answer
Moderate effort to pursue one's own outcomes and a moderate effort to help the other party achieve their outcomes
question
Focus that drives a negotiation strategy
answer
1. Determine one's goals 2. Strategy 3. Planning
question
Goals affect negotiation (4)
answer
1. Wishes are not goals 2. One's goals may be, but are not necessarily, linked to the other party's goals 3. There are boundaries or limits to what "realistic" goals can be. 4. Effective goals must be concrete, specific, and measurable
question
Intangible goals
answer
Enhancing reputation / maintaining reputation
question
Procedural goals
answer
Make sure the seller makes at least two concessions
question
Tactics are different than strategy because they are
answer
Short-term, adaptive moves designed to enact or pursue broad/higher-level strategies to provide stability, continuity, and direction
question
The Planning Process
answer
1. Defining the negotiation goal 2. Defining the major issue related to achieving the goal 3. Assembling the issues, ranking their importance, and defining the bargaining mix 4. Defining the interests 5. Knowing your alternatives (BATNAs) 6. Knowing your limits, including a resistance point 7. Analyzing and understanding the other party's goals, issues, and resistance points 8. Setting one's own targets and opening bids 9. Assessing the social context of negotiation 10. Presenting the issues to the other party: substance and process
question
What are the strongest drivers of claiming value for distributive negotiations?
answer
Single-issue negotiations with the absence of a long-term relationship with the other party
question
What are the strongest drivers of claiming value for integrative negotiations?
answer
Multiple-issue negotiations and the importance of a long-term relationship with the other party
question
Substantive interests
answer
Directly related to the focus issues under negotiation
question
Process-based interests
answer
Related to how the negotiators behave as they negotiate
question
Relationship-based interests
answer
Tied to the current or desired future relationship between the parties
question
Distributive bargaining
answer
(Win-lose) The goals of the party are usually in fundamental and direct conflict with the goals of the other party. BOTH parties want to maximize their share
question
Zone of potential agreement (ZOPA)
answer
The range between resistance points of both parties
question
Positive bargaining range
answer
When the buyer's resistance point is above the sellers resistance point
question
Negative bargaining range
answer
When the seller's resistance point is above the buyer's resistance point
question
The higher the other party's estimate of your cost delay or impasse the _______________ the other party's resistance point will be
answer
Stronger
question
The higher the other party's estimate of his or her own cost of delay of impasse, the ________________ the other party's resistance point will be
answer
Weaker
question
The less the other party values an issue, the _________________ their resistance point will be
answer
Lower
question
The more the other party believes you value an issue, the _________________ their resistance point may be
answer
Lower
question
Four important tactical tasks
answer
1. Assess the other party's target, resistance point, and cost of terminating negotiations 2. Manage the other party's impression of the negotiator's target, resistance point, and cost of terminating negotiations 3. Modify the other party's perception of his or her own target, resistance point, and cost of terminating negotiations 4. Manipulate the actual costs of delaying or terminating negotiations
question
Indirect assessment
answer
Determining what information an individual likely used to set target and resistance points and how he or she interpreted this information
question
Direct assessment
answer
The party revealing the information believes that the proposed agreement is within the settlement range and that the other party will accept the offered information as true rather than see it as a bargaining ploy
question
Calculated incompetence
answer
Constituents do not give the negotiating agent all the necessary information, making it impossible for him/her to leak information. The negotiator is sent with the task of gathering facts and bringing them back to the group.
question
Selective presentation
answer
Negotiators only reveal the facts necessary to support their case. Can also use this to lead the other party to form the desired impression of their resistance point or to create new possibilities for agreement that are more favorable than those that currently exist
question
Emotional reaction
answer
Another form of direct action negotiators can take to provide information about what is important to them (disappointment or enthusiasm usually suggests that an issue is important)
question
Value characteristics
answer
How much the issues and options of different issues are worth to a negotiator
question
Content characteristics
answer
Involve the way negotiation is constructed
question
Who generally makes the first offer?
answer
The negotiator with the better BATNA
question
Logrolling
answer
To encourage further concessions from the other side, negotiators sometimes link their concessions to a prior concession made by the other side
question
Fait accompli
answer
An offer that may have been accepted had it emerged as a result of concession making may be rejected when it is thrown on the table
question
What is the most popular negotiation tactic?
answer
Split the difference
question
Hardball tactic
answer
A negotiator who starts with an exaggerated opening offer and then suggests a split-the-difference close
question
When do hardball tactics work best?
answer
Against poorly prepared negotiators
question
Good cop/bad cop tactic
answer
First interrogator presents a tough opening position, then the other interrogator tries to reach a quick agreement before the bad cop returns and makes things difficult again
question
Lowball/highball theory
answer
The extreme offer will cause the other party to reevaluate his or her opening offer and move closer to or beyond their resistance point
question
Bogey
answer
Pretend that an issue of little or no importance to them is quite important
question
The nibble
answer
Asking for a proportionally small concession
question
Chicken
answer
Negotiators who use this tactic combine a large bluff with a threatened action to force the other party to "chicken out" and give them what they want
question
Intimidation
answer
Attempt to force the other party to agree by means of an emotional ploy, usually anger or fear
question
Snow job
answer
When negotiators overwhelm the other party with so much info that he/she has trouble determining which facts are real or important and which are distractions
question
Even well-intentioned negotiators can make these mistakes
answer
- Failing to negotiate when they should - Negotiating when they should not - Negotiating when they should but choosing an inappropriate strategy
question
Key factors in a successful negotation
answer
- Free flow of information - Attempting to understand the other negotiator's real needs and objectives - Emphasizing commonalities between parties - Searching for solutions that meet the goals and objectives of both parties
question
Key steps in integrative negotiation process
answer
1. Identify and define the problem 2. Surface interests and needs 3. Generate alternative solutions to the problem 4. Evaluate those alternatives and select among them
question
Interests in principal
answer
What is fair, what is right, etc. (Intangible factors)
question
Expand the pie
answer
Add resources so that both sides can achieve their objectives
question
Modifying the resource pie
answer
Environment might not plentiful enough when expanding the pie
question
Find a bridge solution
answer
When the parties are able to invent new options that meet all their respective needs
question
Nonspecific compensation
answer
Party who receives it views it as adequate for agreeing to the other party's preferences although it may be unrelated to the substantive negotiation
question
Cut the costs compliance
answer
One party achieves their objectives and the other's costs are minimized if they agree to go along
question
Superordination
answer
The differences in interest that gave rise to the conflict are suspended or replaced by other interests
question
Common goal
answer
All parties share equally, each benefiting in a way that would not be possible if they did not work together
question
Shared goal
answer
Both parties work toward but that benefits each party different
question
Joint goal
answer
Involves individuals with different personal goals agreeing to combine them in a collective effort
question
Cognition
answer
How negotiators use information to make decisions about tactics and strategy
question
Halo effect
answer
Occur when people generalize about a variety of attributes based on the knowledge of one attribute
question
Selective perception
answer
Occurs when the perceiver singles out certain information that supports or reinforces a prior belief and filters out information that does not conform to that belief
question
Projection
answer
Occurs when people assign to others the characteristics or feelings that they possess themselves
question
Substantive frame
answer
What the conflict is about
question
Outcome frame
answer
A party's predisposition to achieving a specific result or outcome from the negotiation
question
Aspiration frame
answer
A predisposition toward satisfying a broader set of interests or needs in negotiation
question
Process frame
answer
How the parties will go about resolving their dispute
question
Identity frame
answer
How the parties define who they are
question
Characterization frame
answer
How the parties define the other parties
question
Loss-gain frame
answer
How the parties define the risk or reward associated wit particular outcomes
question
Naming
answer
Occurs when parties in a dispute label or identify a problem and characterize what it is about
question
Blaming
answer
This occurs next as the parties try to determine who or what caused the problem
question
Claiming
answer
Occurs when the individual who has the problem decides to confront, file changes, or take some other action against the individual or organization that caused the problem
question
Winner's curse
answer
The tendency to settle quickly on something and then feel discomfort about a negotiation that comes too easily
question
Law of Small Numbers
answer
The tendency of people to draw conclusions from small sample sizes. Negotiators learn from their own experiences.
question
Endowment Effect
answer
The tendency to overvalue something you own or believe you possess
question
5 Categories of Communication
answer
1. Offers, Counteroffers, and Motives 2. Information about Alternatives 3. Information about Outcomes 4. Social Accounts 5. Communication about Process
question
Social accounts
answer
Explanations made to the other party, especially when bad news needs to be justified
question
3 Types of Important Explanations
answer
1. Mitigating circumstances 2. Exonerating circumstances 3. Reframing
question
Mitigating circumstances
answer
Negotiators had no choice in taking the positions they did
question
Exonerating circumstances
answer
Explained from a broader perspective - while current position may look negative, it derives from positive motives
question
Reframing
answer
Outcomes can be explained by changing the context
question
Information-is-weakness effect
answer
Receiving too much information causing a detrimental effect
question
Rapport
answer
A state of mutual positivity and interest that arises through the convergence of nonverbal expressive behavior in an interaction
question
Social bandwidth
answer
The ability of a channel to carry and convey subtle social and relational cues from sender to receiver that go beyond the literal text
question
Techniques for improving communication in negotiation
answer
1. The use of questions 2. Listening 3. Role reversal
question
Key elements of achieving closure
answer
1. Framing 2. Gathering intelligence 3. Coming to conclusions 4. Learning from feedback
question
Distributive justice
answer
Parties may be concerned that one party is receiving more than he or she deserves, that outcomes should be distributed equally, or that outcomes should be distributed based on needs
question
Procedural justice
answer
Parties may be concerned that they were not treated fairly during the negotiation, that they were not given a chance to offer their point of view or side of the story, or that they were not treated with respect
question
Interactional justice
answer
How parties treat each other in one-to-one relationships
question
Systemic justice
answer
How organizations appear to treat groups of individuals and the norms that develop for how they should be treated
question
Expert power
answer
Derived from having unique, in-depth information about a subject
question
Reward power
answer
Derived by being able to reward others for doing what needs to be done
question
Coercive power
answer
Derived by being able to punish others for not doing what needs to be done
question
Legitimate power
answer
Derived from holding an office or formal title in some organization and using the powers that are associated with that office
question
Referent power
answer
Derived from the respect or admiration one commands because of attributes
question
Unitary frame
answer
Characterized by beliefs that society is an integrated whole and that the interests of individuals and society are one ("communal" societies and cultures)
question
Radical frame
answer
Characterized by beliefs that society is in a continual clash of social, political, and class interests, and that power is imbalanced (Marxist)
question
Pluralist frame
answer
Characterized by beliefs that power is distributed relatively equally across various groups, which compete and bargain for a share of the continually evolving balance of power (liberal democracies)
question
Task roles
answer
Move the group along toward a decision or conclusion
question
Relationship roles
answer
Manage and sustain good relationships between group members
question
Self-oriented roles
answer
Serve to bring attention to the group member, often at the expense group effectiveness
question
The Delphi Technique
answer
The moderator structures an initial questionnaire and sends it out to all parties, asking for input
question
Brainstorming
answer
Parties are instructed to define a problem and generate as many solutions as possible
question
Six environmental factors
answer
- Political and legal pluralism - International economics - Foreign governments and bureaucracies - Instability - Ideology - Culture - External stakeholders
question
External stakeholders
answer
The various people and organizations that have an interest or stake in the outcome of the negotiations
question
Immediate context
answer
Factors over which negotiators influence the negotiation
question
End result ethics
answer
Rightness of an action is determined by evaluating the pros and cons of its consequences
question
Duty ethics
answer
Rightness of an action determined by one's obligation to adhere to consistent principles, laws, and social standards that define what is right or wrong and where the line is drawn
question
Social contract ethics
answer
Rightness of an action is determined by the customers and norms of a particular community
question
Personalistic ethics
answer
Rightness of action is based on one's own conscience and moral standards
question
Negotiators usually set clear objectives that can serve as standards for evaluating offers and packages.
answer
F
question
If what we want exceeds what the other party is capable of or willing to give, we must either change our goals or end the negotiation.
answer
T
question
The pursuit of only a singular, substantive goal often tends to support the choice of a competitive strategy.
answer
T
question
If both substance and relationship outcomes are important, the negotiator should pursue a competitive strategy.
answer
F
question
A competitive strategy would be appropriate when the relationship outcome is relatively more important to the strategizer than the substantive outcome.
answer
F
question
Distributive strategies may generate a pattern of constantly giving in to keep the other happy or to avoid a fight.
answer
F
question
The objective of "closing the deal" is to build commitment to the agreement.
answer
T
question
The dominant force for success in negotiation is in the dialogue that takes place prior to the planning.
answer
F
question
A single planning process can be followed for both a distributive and an integrative process.
answer
T
question
All negotiations consist of multiple issues.
answer
F
question
Single-issue negotiations can often be made integrative by working to decrease the number of issues.
answer
F
question
Single-issue negotiations and the absence of a long-term relationship with the other party are the strongest drivers of claiming value strategies.
answer
T
question
Large bargaining mixes allow many possible components and arrangements for settlement.
answer
T
question
It is important to set priorities and possibly assign points for both tangible and intangible issues.
answer
T
question
Interests may be process-based and relationship-based.
answer
T
question
Interests are what a negotiator wants.
answer
F
question
Alternatives are very important in both distributive and integrative processes because they define whether the current outcome is better than any other possibility.
answer
T
question
It is not possible to evaluate packages the same way as evaluating individual issues.
answer
F
question
If intangibles are a key point of the bargaining mix, negotiators must know the point at which they are willing to abandon the pursuit of an intangible in favor of substantial gains on tangibles.
answer
T
question
Context issues (e.g., history of the relationship) can affect negotiation.
answer
T
question
Gathering information about the other party is a critical step in preparing for negotiation.
answer
T
question
It is sufficient to learn about the other party's interests and resources.
answer
F
question
In a distributive negotiation, the other party may be less likely to disclose information about their limits and alternatives.
answer
T
question
Drawing up a firm list of issues before the initial negotiation meeting is a valuable process because it forces negotiators to think through their positions and decide on objectives.
answer
T
question
In new bargaining relationships, discussions about procedural issues should occur after the major substantive issues are raised.
answer
F
question
What are the most critical precursors for achieving negotiation objectives? Effective strategizing, planning and preparation
answer
Effective strategizing, planning and preparation
question
Which of the following is not a reason that negotiations fail? Understanding the strengths and weaknesses of their and the other party's positions
answer
Understanding the strengths and weaknesses of their and the other party's positions
question
A negotiator's goals: must be reasonably attainable
answer
must be reasonably attainable
question
The less concrete and measurable goals are: the harder it is to communicate to the other party what we want
answer
the harder it is to communicate to the other party what we want
question
Which is not a difference between strategy and tactics? Goals
answer
Goals
question
A strong interest in achieving only substantive outcomes tends to support which of the following strategies? competitive
answer
competitive
question
A strong interest in achieving only the relationship outcomes suggests one, if any, of the following strategies. Which one? accommodation
answer
accommodation
question
Avoidance could best be used when: the available alternatives are very strong
answer
the available alternatives are very strong
question
Which one of the following is as much a win-lose strategy as competition, although it has a decidedly different image? accommodation
answer
accommodation
question
In an accommodative negotiation, the relationships have: may be either short term or long term
answer
may be either short term or long term
question
Accommodative strategies emphasize: Subordinating one's own goals in favor of those of others.
answer
Subordinating one's own goals in favor of those of others.
question
Getting to know the other party and understanding similarities and differences represents what key step in the negotiation process: relationship building
answer
relationship building
question
The general structure of a phase model of negotiations involves: Three phases: initiation; problem-solving; resolution
answer
Three phases: initiation; problem-solving; resolution
question
Which is not a key step to an ideal negotiation process? All of the above are key steps
answer
All of the above are key steps
question
What is the dominant force for success in negotiation? the planning that takes place prior to the dialogue
answer
the planning that takes place prior to the dialogue
question
Effective planning requires hard work on the following points: All of the above
answer
All of the above
question
Interests can be: all of the above
answer
all of the above
question
Which is not true of limits? They should be ignored in a bidding war
answer
They should be ignored in a bidding war
question
Does any of the following represent the point at which we realistically expect to achieve a settlement? specific target point
answer
specific target point
question
Which represents the best deal we can possibly hope to achieve? asking price
answer
asking price
question
Reactive strategies: can make negotiators feel threatened and defensive
answer
can make negotiators feel threatened and defensive
question
If the other party has a strong and viable alternative, he/she will set and push for high objectives
answer
set and push for high objectives
question
A negotiator should ask which of the following questions when presenting issues to the other party to assemble information. All of the above questions should be asked.
answer
All of the above questions should be asked.
question
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? How will we keep track of what is agreed to?
answer
How will we keep track of what is agreed to?
question
What are the most critical precursors for achieving negotiation objectives? Effective strategizing, planning and preparation
answer
Effective strategizing, planning and preparation
question
Which of the following is not a reason that negotiations fail? Understanding the strengths and weaknesses of their and the other party's positions
answer
Understanding the strengths and weaknesses of their and the other party's positions
question
A negotiator's goals: must be reasonably attainable
answer
must be reasonably attainable
question
The less concrete and measurable goals are: the harder it is to communicate to the other party what we want
answer
the harder it is to communicate to the other party what we want
question
Which is not a difference between strategy and tactics? Goals
answer
Goals
question
A strong interest in achieving only substantive outcomes tends to support which of the following strategies? competitive
answer
competitive
question
A strong interest in achieving only the relationship outcomes suggests one, if any, of the following strategies. Which one? accommodation
answer
accommodation
question
Avoidance could best be used when: the available alternatives are very strong
answer
the available alternatives are very strong
question
Which one of the following is as much a win-lose strategy as competition, although it has a decidedly different image? accommodation
answer
accommodation
question
Characteristics of collaborative strategies include: all of the above
answer
all of the above
question
In an accommodative negotiation, the relationships have: may be either short term or long term
answer
may be either short term or long term
question
Accommodative strategies emphasize: Subordinating one's own goals in favor of those of others.
answer
Subordinating one's own goals in favor of those of others.
question
Getting to know the other party and understanding similarities and differences represents what key step in the negotiation process: relationship building
answer
relationship building
question
The general structure of a phase model of negotiations involves: Three phases: initiation; problem-solving; resolution
answer
Three phases: initiation; problem-solving; resolution
question
Which is not a key step to an ideal negotiation process? All of the above are key steps
answer
All of the above are key steps
question
What is the dominant force for success in negotiation? the planning that takes place prior to the dialogue
answer
the planning that takes place prior to the dialogue
question
Effective planning requires hard work on the following points: All of the above
answer
All of the above
question
Interests can be: all of the above
answer
all of the above
question
Which is not true of limits? They should be ignored in a bidding war
answer
They should be ignored in a bidding war
question
Does any of the following represent the point at which we realistically expect to achieve a settlement? specific target point
answer
specific target point
question
Which represents the best deal we can possibly hope to achieve? asking price
answer
asking price
question
Reactive strategies: can make negotiators feel threatened and defensive
answer
can make negotiators feel threatened and defensive
question
If the other party has a strong and viable alternative, he/she will set and push for high objectives
answer
set and push for high objectives
question
A negotiator should ask which of the following questions when presenting issues to the other party to assemble information. All of the above questions should be asked.
answer
All of the above questions should be asked.
question
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? How will we keep track of what is agreed to?
answer
How will we keep track of what is agreed to?