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Understanding Negotiation Dynamics

1. Negotiation is a process where two or more parties attempt to resolve conflicting interests. It occurs in many occupations and situations like buying a car, resolving disputes, or collaborating to create something new. 2. There are two main types of negotiation - distributive bargaining which is competitive with win-lose outcomes, and integrative negotiation which is cooperative with win-win outcomes such as a music collaboration. 3. A negotiation situation involves two or more interdependent parties with conflicting needs who believe negotiating can get a better outcome than their first offers. Successful negotiations involve managing tangible terms and resolving intangible psychological factors.

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65 views2 pages

Understanding Negotiation Dynamics

1. Negotiation is a process where two or more parties attempt to resolve conflicting interests. It occurs in many occupations and situations like buying a car, resolving disputes, or collaborating to create something new. 2. There are two main types of negotiation - distributive bargaining which is competitive with win-lose outcomes, and integrative negotiation which is cooperative with win-win outcomes such as a music collaboration. 3. A negotiation situation involves two or more interdependent parties with conflicting needs who believe negotiating can get a better outcome than their first offers. Successful negotiations involve managing tangible terms and resolving intangible psychological factors.

Uploaded by

michelle
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Chapter 1 notes:

1. Examples of occupations that use negotiations: Attorney, pawn brokers, real estate agent, car
salesman, contractor
 Every occupation use negotations
2. Child/parent, couples, flea market, buying a car are example of when you use negotiations
3. Negotiation is a “process by which 2 or more parties attempt to resolve opposing interest.”
a. Negotiations occur:
i. To agreeon how to share or divide a limited resource
1. Ex). Property, land, or time
ii. To create something new that neither party could attain on his or her own
1. Ex). Yahoo and microsofts collab on bing
iii. To resolve a problem or dispute b/w parties
1. Ex). Landlord and tenant argue terms of a lease
4. Dynamic nature of business
a. People will change careers several times across their lives
i. Integral part of everyday business operations
b. Interdependence:
i. Realizing full potential often requires collaboration
c. Competition
i. Business regularly filing BK
d. Information age
i. Technology has changed how negotiations are conducted
e. Globalization
i. Negotiations occur across borders
5. Distributive bargaining
a. Competitive, win-lose situations (zero-sum)
i. Ex. Purchasing a car, haggling at the flea market
6. Integrative negotiation
a. Cooperative, win-win situations (non-zero sum)
i. Ex. A talented lyric writer and a talented composer working together to make an
album, corporate merger
7. Characteristics of negotiation situation
a. 2 or more parties are involved
b. Conflict of needs and desires exists b/w parties
i. Parties may want the same thing but disagree on how to achieve it
c. Parties believe they can obtain a better deal through negotiation rather than accepting
the 1st offer made
d. Parties expect a “give and take” process
e. Parties search agreement rather than:
i. Argue openely or give into the other side
ii. Take their dispute to a third party
1. Ex. Arbitration or mediation
f. Successful negotiations involve:
i. Management of tabgibles
1. Specific conditions such as price or terms of agreement
ii. Resolution of intangibles
1. The underlying psychological motivations such as winning, losing, or
saving face
g. Interdependence
i. Parties need each other to achieve their preferred outcomes
ii. Characterized by “interlocking goals”
a. Ex. Car buyer goals: buy at lowest price
b. Ex: car deal goals: sell at highest price
h. BATNA: best alternative to a negotiation agreement
i. You are negotiating your compensations and benefits package with a
perspective empoloyer
ii. What if you have 3 job offers besides this 1?
iii. What if you have no other offers besides this 1?

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