Negotiation is.. correct answers - your key communication and influence tool
-An interpersonal decision-making process necessary whenever we cannot achieve our objectives single-handedly
-not just about resources - it is equally about relationships and trust
Key reasons effective negotiation s...
MGMT 353 || with Complete Solutions.
Negotiation is.. correct answers - your key communication and influence tool
-An interpersonal decision-making process necessary whenever we cannot achieve our objectives
single-handedly
-not just about resources - it is equally about relationships and trust
Key reasons effective negotiation skills are important: correct answers - dynamic nature of
business
- interdependence
- Economic forces
- information technology
- globalization
People are poor at negotiation because of the influence of 4 fundamental biases: correct answers
-Egocentrism
-Confirmation bias
-Satisficing
-Self-reinforcing incompetence
Common Myths about Negotiation correct answers -they are fixed sum
-good negotiators take risks: because if you prepared correctly you don't need to take risks
-you need to be either tough or soft
-life experience is a great teacher
-good negotiators are born with the skill
-good negotiators rely on thier intuition
The learning objectives of this book are: correct answers -to improve your ability to negotiate
successfully
-to form your general strategies for successful negotiations
-to pursue negotiations from an enlightened model, which assumes that the other person you are
negotiating with is every bit as motivated, intelligent, and prepared as you
Godfather movie correct answers Do want to be hard for the godfather because you need him, he
does not need you
Chapter 2: Preparation: What to do Before Negotiation correct answers Preparation for a
negotiation is the key to success
People with this fixed-pie perception take one of three mindsets when preparing for a
negotiation: correct answers -resign themselves to capitulating to the counterpart
-prepare for hard bargaining with the counterpart
-compromise in an attempt to reach a midpoint between opposing demands
The fixed-pie perception correct answers -There is only so much to go around, but the proportion
to be distributed is limited but also variable.
,-The outcome is often conceptualized as a pie - one is a winner and one is the loser
-Fix-pie I have to be hard, surrender or agree
-It is commonly assumed that concessions are necessary by one or both parties to reach an
agreement.
-is almost always wrong and often leads to an ineffective approach to negotiations.
-EFFECTIVE APPROACH TO NEGOTIATIONS.
Mixed-Motive Decision-Making: correct answers a more effective and accurate model
-a more accurate model of negotiation is to approach it as a mixed-motive decision-making
enterprise involving both cooperation and competition.
-effective preparation for a negotiation encompasses three general abilities
-its based on the motives - cant do it if your not prepared
-Have to think about the bigger picture - the entire situation
-Lottery pick you get the same salary there is not negotiating that
Effective preparation for a negotiation encompasses three general abilities: correct answers -Self-
assessment
-Assessment of the counterpart
-assessment of the situation
Self-Assessment: What do I want?
Identify what you want may sounds straightforward, but three major problems often arise:
correct answers -under-aspiring negotiator (the winner;s curse)
-Over-aspiring or positional negotiator
-The grass-is-greener negotiator
Winner's curse: correct answers happens when a negotiator makes an offer that is immediately
accepted by the other party
Self-Assessment: What is my BATNA?
what is my Best Alternative To a Negotiated Agreement in this situation? correct answers -
BATNAs are not wishful, they are factual
-your BATNA is time sensitive
-Do not let the other party manipulate your BATNA
-negotiators should be willing to accept any set of terms superior to their BATNA
Self-Assessment: What is My Reservation Point?
You can determine you reservation point or the quantification of your BATNA, with respect to
other alternatives by the following steps: correct answers -brainstorm your alternatives
-evaluate and order each alternative's value
-attempt to improve your BATNA
-Determine your reservation price based on facts
reservation point correct answers -is a quantification of a negotiator's BANTA with respect to
other alternatives - lowest point you will go
-Most direct influence in the final outcome
, -IT SHOULD BE BASED ON FACTS
-Can lead to 2 bad outcomes if failure to assess reservation point - Agree to outcome that is
worse than BATNA-Reject an offer that is better than their BATNA
Self-Assessment: Setting up the Negotiation
When determining your reservation point, be aware and knowledgeable of the following: correct
answers -be aware of focal points
-beware of sunk costs
-do not confuse your target point with your reservation point
-identify the issues in the negotiation
-identify the alternatives for each issue
-Identify multi-issue proposals of equivalent value
Focal points - correct answers are salient numbers, figures, or values that appear to be valid but
have no basis in fact
Sunk costs correct answers - money you have invested that is gone- get you in trouble all the
time
-Should think about future costs and benefits for a decision
-Can influence your own behavior and the behavior of the counterparty
Risk aversion - correct answers a strong preference of one thing over another reflects a
fundamental principle of negotiator behavior
Reference Point correct answers defines what a person considers to be a gain or a loss
- Going to be based on different people
premature concessions correct answers Discourage starting a range - this gives the opportunity to
let the opposite part move closer to their BATNA
Self-Assessment: Assess your risk propensity correct answers -most people are risk-seeking
when it comes to losses, and risk-averse when it comes to gains
-reference points define what people consider to be a gain or a loss
In any negotiation, negotiators should consider the differential impact of three sources of risk:
correct answers Strategic risk
BATNA risk
Contractual risk
Strategic risk correct answers refers to the riskiness of the tactics that negotiators use at the
bargaining table
-- riskiness of the tactics that negotiators use at the bargaining table
-Choose between extremely cooperative tactics and competitive tactics
- Those who experience a string of failures are more likely to adopt a "loss frame" and feel less
"in control" whereas those who experience a string of successes feel greater in control.
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 FullyFocus. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.29. You're not tied to anything after your purchase.
