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49 Cards in this Set
- Front
- Back
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Value |
whatever people find useful or desirable |
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To negotiate effectively |
getting the best deal for yourself |
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Steps to prepare to negotiate |
1. asses your BATNA 2. Calculate your RV 3. assess your competitor's BATNA 4. calculate their RV 5. evaluate the ZOPA |
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BATNA |
Best Alternative to Negotiated Agreement Reality to what you will face if you reach no deal in the current negotiation |
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Reservation value |
walk away point of indifference point |
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ZOPA |
Zone of possible agreement Set of deals that is acceptable to both parties |
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Negotiation post-mortem: how to evaluate performance |
(1) if you surpassed your RV (2) if the deal was closer to your end of the ZOPA or your counter's *Drawback: evaluate based on what you knew before negotiation |
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Common negotiator mistakes |
o You made thefirst offer when you were not in a strong position to do so o You made a firstoffer that was not sufficiently aggressive o You talked butdid not listen o You tried toinfluence the other party but did not try to learn from her o You did notchallenge your assumptions about the other party o Youmiscalculated the ZOPA and did not revaluate it during the negotiation o You made greaterconcession than the other party did |
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Anchor |
Number that focuses the other negotiator's attention and expectations |
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How should you respond to your counter's initial offer (5 strategies) |
Strategy 1: Ignore the offer Strategy 2: separate information from influence Strategy 3: avoid dwelling on their anchor Strategy 4: make an anchored counter offer then propose moderation Strategy 5: give them time to moderate their offer without losing face |
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How far can i push them? |
Step 1: exhaust all pre negotiation sources of information Step 2: identify your assumptions Step 3: Ask questions that challenge your assumptions Step 4: Ask indirect questions Step 5: protect yourself form contingency contracts |
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Effective Haggling Strategies |
Strategy 1: Focus on other party's BATNA and RV Strategy 2: Avoid making unilateral concessions Strategy 3: Be comfortable with silence Strategy 4: Label your concessions Strategy 5: Define what it means to reciprocate Strategy 6: Make contingent concessions Strategy 7: BeAware of the Effect of Diminishing Rates of Concessions |
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Contingency contract |
agreements that leave certain elements of the deal unresolved until uncertainty is resolved in the future |
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Responding to an off that you love approaches |
- take time to think about it even if you know its a good deal - make a counter even if you are satisfied with the deal - give something back, what you actually think is fair (Einstein) - maybe you made the mistake! |
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anchoringand insufficient adjustment heuristic |
individualsmake estimations by starting with an initial value (the anchor) and adjusting(insufficiently) away from it until a final estimate is reached |
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5 Categories of communication |
1. offers, counteroffers and motives 2. information about alternatives 3. Information about outcomes 4. social accounts 5. communication about process |
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Language operates at 2 levels |
- pragmatic and logical |
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Attending behaviours |
eye contact, body position, nonverbally encourage what others say |
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virtual negotiations |
use of network mediatedinformation technologies in negotiation |
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Social presence |
the ability of a channelto carry and convey subtle social cues from sender to receiver that go beyondthe literal text of the message itself |
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Schmoozing |
off task or relationshipfocused conversations that are present in face to face negotiations |
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Manageable questions |
cause attention or preparethe other person’s thinking for further questions, get information and generatethoughts |
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Unmanageable questions |
cause difficulty, giveinformation, and bring the discussion to a false conclusion |
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Types of listening |
1. passive listening 2. acknowledgment 3. active listening |
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Distributive justice |
the perceived fairness of distributedoutcomes |
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Procedural justice |
the perceived fairness of processes used to determineoutcomes |
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Interactional justice |
the perceived fairness ofthe interpersonal treatment patterns between parties, how parties treat eachother in one to one relationships |
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Systemic justice |
the perceived fairnesspatterns among and between groups, how organizations appear to treat groups ofindividuals and the norms that develop for how they should be treated |
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Procedural justice effect |
parties involved in theprocess of shaping a decisions are more committed to that decision |
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Egocentric bias |
tendency to regard a largershare for oneself as fair even if the obvious fairness rule is an equal split |
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Emotional intelligence |
ability tomonitor one’s own and others’ feelings and emotions to discriminate among themand to use this information to guide one’s thinking and actions |
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People regardthe negotiation experience as inherently stressful for three reasons |
1. Lack of control 2. Unpredictability 3. Absence of feedback |
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Time pressure |
(1) costs sustained by thenegotiating parties in continuing the negotiation (2) time available for thenegotiation or final deadlines *want to reveal final deadlines not time costs |
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Actor-observer effect |
people tend to betterappreciate situational influences on their own behaviour than on the behaviourof others |
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Positional bargaining |
each side takes a position,argues for it, and makes concessions to reach a compromise |
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method of negotiation maybe fairly judged by three criteria |
- produce a wise agreement - should be efficient - should improve or not damage relationship |
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Principled negotiation |
a method of negotiationexplicitly designed to produce wise outcomes efficiently and amicably § People: separate the people from the problem§ Interests: focus on interests, not positions§ Options: generate a variety of possibilities beforedeciding what to do, invent options for mutual gain§ Criteria: insist that the result be based on someobjective standard |
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Soft, Hard, principled |
read chart |
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Negotiating stages |
analysis, planning, discussion |
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Investigative negotiaton |
Principle 1: Don’t just discuss whatyour counterparts want – find out why they want it Principle 2:Seek to understand and mitigate the other side’s constraints Principle3:interpret demands as opportunities Principle 4:Create common ground with adversaries Principle 5: Continueto investigate even after the deal appears to be lost |
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Competitive arousal |
charged decision making driven by anadrenaline-dueled emotional state, it shifts one’s goal from maximizing valueto beating an opponent at almost any cost |
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Three principal drivers ofcompetitive arousal |
rivalry, time pressure, spotlight |
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Managing Competitive Arousal |
(1) Circumventingcompetition (2) Mitigating the risk factors |
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Common cognitive mistakes |
- fixed pie - the framing of negotiator judgment - nonrational escalation of conflict - negotiator overconfidence - egocentrism - anchoring - ignoring cognition of others |
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Incompatibility bias |
the assumption that onesown interests are incompatible with the other party’s |
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Negotiator Egocentrism |
refers to their tendency toregard their own assessments as well as their overall worldview as objectivelyfair |
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Winner’s curse |
where one side has more info than the other side |
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contracts |
- overly detailed - too rigid - signal mistrust |
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In class negotiations |
- art mystique - strike game (union vs. management) - ming vase (fake piece) - pelican landing (8 issues) |
