Negotiation Ch 4 – Flashcards

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