negotiation strategies and tactics. mgmt. 489 – Flashcards

is a bargaining process between two or more parties, each with its own aims, needs, and viewpoints seeking to discover a common ground and reach an agreement to settle a matter of mutual concern or resolve a conflict. is also about finding which agreement, of the ones available to you, is most acceptable to both parties.

is also sometimes called positional or hard-bargaining negotiation. It tends to approach negotiation on the model of haggling in a market. In a distributive negotiation, each side often adopts an extreme position, knowing that it will not be accepted, and then employs a combination of guile, bluffing, and brinkmanship in order to cede as little as possible before reaching a deal. Distributive bargainers conceive of negotiation as a process of distributing a fixed amount of value. Known as a Fixed-Pie, or Zero-Sum Game

One-off transactions, i.e. buying a car, selling a house etc.

is also sometimes called interest-based or principled negotiation. It is a set of techniques that attempts to improve the quality and likelihood of negotiated agreement by providing an alternative to traditional distributive negotiation techniques. While distributive negotiation assumes there is a fixed amount of value (a "fixed pie") to be divided between the parties, integrative negotiation often attempts to create value in the course of the negotiation ("expand the pie"). It focuses on the underlying interests of the parties rather than their arbitrary starting positions, approaches negotiation as a shared problem rather than a personalized battle, and insists upon adherence to objective, principled criteria as the basis for agreement.

when there are multiple rounds of negotiation, or complex issues at hand

-Best Alternative to a Negotiated Agreement (BATNA) -Reservation Price -Bargaining Zone -Aspiration Level

Even if it's something you desperately want, always know when you are negotiating a very bad deal for yourself. You have to have an alternative if this negotiation fails. Not knowing this bottom line will make you end up in a worse position than before you started! Learn to know when to walk away.

is your absolute Bottom Line. Beyond the reservation point, you would prefer no agreement at all with your partner. is equal to your BATNA Define your reservation point before negotiating Learn your partner's reservation point if possible

is the space between the Buyers Reservation Point and the Sellers Reservation Point; that is the zone of possible agreement

Seek to attain your highest outcome possible, Not focus solely on your BATNA. You may be surprised with how much you can get when you work to find an integrative solution!

is the method you use to achieve your goals and objectives in the process

Quick, decisive action is vital (e.g. in emergencies). An important issue requires unpopular action. You know you are right. The other party would take advantage of co-operative behavior

The issues are too important to be compromised. The objective is to integrate different points of view. You need commitment to make the solution work. You wish to build or maintain an important relationship

The issues are not important. There are more pressing issues to tackle. There is no chance of achieving your objectives. The potential 'aggravation' of negotiating outweighs the benefits. People need to cool down and regain their perspective. You need time to collect more information.

You find out that you are wrong. You wish to be seen as reasonable. You wish to build 'credits' for later issues. The issues are more important to the other party. You wish to minimize loss when you are in a weak position, Harmony and stability are more important than outcome.

Issues are important but you cannot afford to be too controlling. The relationship is important but you cannot afford to accommodate. Opponents of equal power are committed to mutually exclusive goals. You need to achieve temporary settlements to complex issues. You need to find an expedient solution under time pressure. It is the only alternative to no solution.

You Can Negotiate Anything Keep a Poker Face Don't Make the First Offer Disregard No. 3! Make the First Offer and Set the Anchor . Bundling Use Silence and Time Never Negotiate with Yourself

The first thing you should know about negotiating is that everything is fair game, not just cars and houses. At stores, we tend to look at price tags and presume that the offer is final. It rarely ever is. At the very minimum, you should always ask the clerk if they have any coupons available or if any other discounts apply

If you know what your objectives are, state them calmly and don't display any exuberant emotion if you get it. Always keep your cool and don't display any unusual interest either way.

Why? Because the other party may offer something that is a much better deal than what you initially had in mind. Use when you have no information

In some negotiations, a person can set the advantage by expressing his position FIRST, thereby setting an ANCHOR for negotiations to proceed. Use when you have sufficient information

A great way to augment your negotiation is to include other items. When you reach an impasse in your negotiations, an offer to include multiple, smaller items might trigger flexibility on the part of the seller.

Never respond too quickly to an offer. Pausing or even suspending negotiations can convey that you're not desperate to close the deal and that you have other options. Silence can force a surprising amount of pressure on the other party as well.

Once you have offered your terms, wait until the other person counters before you offer a secondary offer. Do not negotiate with yourself!!