Preparation is the key to successful in negotiation. The work done after the negotiation pays off substantially. The Pareto rule (80-20) applies to negotiation: about 80% of the effort should be done during preparation, while 20% should be actual work involved in the negotiation.
The most important aspect of negotiation occurs before sitting at the negotiating table. Most people realize the importance of preparation, yet they do not prepare well in an effective fashion. Often faulty preparation is occurs due to the "Fixed Pie" perception.
SELF ASSESSMENT:
It is important to be prepared well for a negotiation. Properly prepared means that knowing how you intend to conduct the negotiation situation. It does not mean having a fixed, detailed …show more content…
a) Underaspiring negotiator
Set the target too low and opens the negotiation by requesting something that is immediately granted. As a result, regrettable state of affairs known as the winner’s curse. It occurs when the offer is immediately accepted by the other party. Underaspiring negotiator is settling for too less
b) Overaspiring negotiator
Overaspiring negotiator style is asking for too much and taking a strong position & refusing to make concessions. Overaspiring also known as positional negotiator. Positional bargaining reinforces egocentrism; people quickly develop ownership of the positions they make, and these positions become part of people's self-concept, making any opposition an ego threat
c) Grass is greener negotiator
The negotiator believes that whatever is being offered is not good enough. This type of negotiation is also known as Reactive Devaluation. These negotiators really don't know what they want actually. They only want what the other party does not want to give and do not want what the other party is willing to offer.
2) What is my alternative to reaching agreement in this …show more content…
Focal points are arbitrary in nature and has no real consequence on the negotiation. For example, Salary of your neighbor is a focal point, if the neighbor makes RM 120K a year, then that has not relevance with the student’s negotiations with company B. People often confuse focal points with BATNA
3) Determine your reservation point
Reservation point is not determined by what are the negotiator wishes and hopes rather than by what the BATNA represents. The reservation point is basically a quantification of a negotiators BATNA with respect to other alternatives the monetization of the BATNA. The reservation point has the greater impact on final the final outcome.
Developing a reservation point
Brainstorm your alternatives. Alternatives must be realistic, so research is required Evaluate each alternative. Rank the alternatives identified in step 1 in terms of their relative attractiveness/value to you. If an alternative is uncertain, you must assess a probability based on research Attempt to improve your BATNA. The bargaining position can be strengthened substantially by improving the available BATNA Determine your reservation point. Once the BATNA is defined, it must be translated into a reservation price, based on research
4) Be aware of focal
The most important aspect of negotiation occurs before sitting at the negotiating table. Most people realize the importance of preparation, yet they do not prepare well in an effective fashion. Often faulty preparation is occurs due to the "Fixed Pie" perception.
SELF ASSESSMENT:
It is important to be prepared well for a negotiation. Properly prepared means that knowing how you intend to conduct the negotiation situation. It does not mean having a fixed, detailed …show more content…
a) Underaspiring negotiator
Set the target too low and opens the negotiation by requesting something that is immediately granted. As a result, regrettable state of affairs known as the winner’s curse. It occurs when the offer is immediately accepted by the other party. Underaspiring negotiator is settling for too less
b) Overaspiring negotiator
Overaspiring negotiator style is asking for too much and taking a strong position & refusing to make concessions. Overaspiring also known as positional negotiator. Positional bargaining reinforces egocentrism; people quickly develop ownership of the positions they make, and these positions become part of people's self-concept, making any opposition an ego threat
c) Grass is greener negotiator
The negotiator believes that whatever is being offered is not good enough. This type of negotiation is also known as Reactive Devaluation. These negotiators really don't know what they want actually. They only want what the other party does not want to give and do not want what the other party is willing to offer.
2) What is my alternative to reaching agreement in this …show more content…
Focal points are arbitrary in nature and has no real consequence on the negotiation. For example, Salary of your neighbor is a focal point, if the neighbor makes RM 120K a year, then that has not relevance with the student’s negotiations with company B. People often confuse focal points with BATNA
3) Determine your reservation point
Reservation point is not determined by what are the negotiator wishes and hopes rather than by what the BATNA represents. The reservation point is basically a quantification of a negotiators BATNA with respect to other alternatives the monetization of the BATNA. The reservation point has the greater impact on final the final outcome.
Developing a reservation point
Brainstorm your alternatives. Alternatives must be realistic, so research is required Evaluate each alternative. Rank the alternatives identified in step 1 in terms of their relative attractiveness/value to you. If an alternative is uncertain, you must assess a probability based on research Attempt to improve your BATNA. The bargaining position can be strengthened substantially by improving the available BATNA Determine your reservation point. Once the BATNA is defined, it must be translated into a reservation price, based on research
4) Be aware of focal