Class notes
COMMERCE 2NG3 In Class Notes
- Course
- COMMERCE 2NG3 (COMMERCE2NG3)
- Institution
- McMaster University (mcmasteru)
Lecture notes of 59 pages for the course COMMERCE 2NG3 at mcmasteru (Full slide notes)
[Show more]
Seller
Follow
Content preview
Negotiations - 2NG3,Chapter 1 - Nature of Negotiation
Negotiations
,Defined as: decision making situations in which 2+ interdependent parties attempt to reach an
agreement.
- Negotiate whenever we cannot achieve our objectives single handedly
Characteristics of a Negotiation Situation
- 2+ parties
- Conflict of needs & desires
- Negotiation to get a better deal
- “Give & take” process
Parties look for an agreement rather than:
- Fight openly
- One side dominating
- Break off contact permanently
- Take dispute to a higher authority
Successful negotiation involves:
- Management of tangibles (eg. price or terms)
- Resolution of intangibles:
- Need to win or avoid losing
- Need to look good, competent, tough
- Need to defend important principles
- Need to appear fair or honorable
Interdependence
Relationships between parties may be classified in 3 ways:
- Interdependent
- Independent
- Dependent
Interdependence being when both parties need each other to achieve their preferred outcome
- Characterized by interlocking goals
- Does not mean everyone needs the same thing
- Usually a conflicting goal
Types of Interdependence Affect Outcomes
Interdependence & the structure of the situation shapes the processes & outcomes
- Zero-Sum - 1 winner only
- Non-Zero-Sum - Mutual gain
, Alternatives Shape Interdependence
- Evaluating interdependence depends on alternatives
- Desirability to work together is better for outcomes
BATNA: Best Alternative to a Negotiated Agreement
- Whether you should or shouldn’t agree in a negotiation depends upon the attractiveness
of your BATNA
Making Concessions
Both parties engage in mutual adjustment as each attempts to have an influence on the other
- Negotiation transforms over time by mutual adjustment
- Effective negotiators understand how people will adjust & readjust
Concessions occur when one party alters their position based on the other parties suggestion to
do so thus reducing expected benefits
- Eg. Opponent suggests I should throw in rims on the car they want to buy, I oblige an
make the concession to throw in rims
2 Dilemmas in Mutual Adjustment
Dilemma of Honesty
- Concern about how much truth to tell other party
Dilemma of Trust
- Concern about how much negotiators should believe of the other party
Creating Trust in Negotiations
Outcome of Perception
- Perception of results may make or break trust
Process of Perception
- Process had an effect on trust in negotiations
Satisfaction with negotiations is both outcome & process dependent
Value Claiming & Value Creating
Distributive Bargaining
- Purpose to claim value
- Obtain biggest piece of pie
Interactive Bargaining
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller dilldylanhilton. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for CA$7.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
53249 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now