Chapter 1 Goals and Objectives
1. Understanding the Definition of Negotiation, Key Elements of a Negotiation Process, and
the Distinct Types of Negotiation
Definition of Negotiation:
Negotiation is defined as a form of decision-making where two or more parties talk with one
another in an effort to resolve their opposing interests. It is a process aimed at reaching a
mutually acceptable agreement.
Key Elements of a Negotiation Process:
- Parties Involved: There are typically two or more parties involved in negotiation, each
with their own interests and goals.
- Conflict of Needs and Desires: There is usually a conflict of needs and desires
between the parties, where what one party wants is not necessarily what the other
party wants.
- Choice to Negotiate: Parties negotiate by choice, believing that they can achieve a
better outcome through negotiation than by accepting what the other side will
voluntarily offer.
- Give-and-Take Process: Negotiation involves a give-and-take process where parties
make concessions and adjustments to reach an agreement.
- Preference for Negotiation: Parties prefer to negotiate rather than resort to fighting,
dominating, capitulating, breaking off contact, or appealing to a higher authority.
- Management of Tangibles and Intangibles: Negotiation involves managing tangible
elements (e.g., price, terms) and intangible factors (e.g., the need to win, appear fair,
or maintain a good relationship).
Distinct Types of Negotiation:
- Distributive Negotiation (Win-Lose): This type of negotiation involves a competitive
approach where parties aim to divide a fixed amount of resources, often resulting in a
win-lose outcome.
- Integrative Negotiation (Win-Win): This type focuses on collaborative efforts to create
value and find solutions that satisfy the needs of all parties involved, leading to a win-
win outcome.
2. Exploring How People Use Negotiation to Manage Different Situations of Interdependence
Interdependence in Negotiation:
- Dependent Parties: These parties rely on others to meet their needs. For example, an
employee may depend on their employer for a job and salary.
- Independent Parties: These parties can meet their own needs without relying on others.
They are relatively detached and uninvolved with others.
- Interdependent Parties: These parties have interlocking goals and need each other to
achieve their objectives. Their goals are interconnected, requiring coordination and
cooperation.
Managing Interdependence:
- Mutual Adjustment: Negotiators must adjust to each other's actions and reactions
throughout the negotiation process. This involves anticipating the other's responses
and making strategic moves to influence the outcome.
, - BATNA (Best Alternative to a Negotiated Agreement): Understanding one's own
BATNA and the other party's BATNA is crucial in negotiation. It helps negotiators
assess their options and make informed decisions on whether to proceed with the
negotiation or pursue alternatives.
- Collaborative vs. Competitive Approaches: Depending on the type of interdependence,
negotiators may adopt either a collaborative approach (seeking mutual gains) or a
competitive approach (seeking to maximize individual gains).
3. Considering How Negotiation Fits Within the Broader Perspective of Processes for
Managing Conflict
Negotiation as a Conflict Management Tool:
- Conflict Definition: Conflict is defined as a situation where parties have opposing
interests, needs, or desires. It can occur at various levels, from intrapersonal to
international.
- Functions of Conflict: Conflict can have both positive and negative functions. It can
stimulate innovation and change but can also lead to destructive outcomes if not
managed effectively.
- Negotiation's Role in Conflict Management: Negotiation is one of several mechanisms
for managing and resolving conflicts. It allows parties to communicate, make
concessions, and reach mutually acceptable agreements.
- Alternative Conflict Management Processes: Other processes include mediation,
arbitration, and adjudication. Negotiation differs from these as it involves direct
interaction and voluntary agreement between the parties.
Effective Conflict Management:
- Communication and Negotiation Skills: Effective conflict management requires strong
communication and negotiation skills. Negotiators must be able to articulate their
interests, understand the other party's perspective, and find common ground.
- Managing Tangibles and Intangibles: Successful conflict management involves
addressing both tangible and intangible aspects of the conflict, ensuring that both the
practical and emotional needs of the parties are considered.
- Long-Term Relationship Building: Effective negotiation aims to preserve and build
relationships, recognizing the importance of trust and cooperation for future
interactions.
, Goals and Objectives of Chapter 2: Strategy and Tactics of Distributive Bargaining
1. Understand the Basic Elements of a Distributive Bargaining Situation as well as the
Strategy and Tactics of Distributive Bargaining:
- Basic Elements: Distributive bargaining involves parties with conflicting interests
trying to divide a fixed amount of resources. It is inherently competitive and often
results in a win-lose situation.
- Strategy and Tactics: The chapter covers various strategies, such as assessing the other
party’s resistance point, managing impressions, modifying perceptions, and
manipulating the actual costs of delay or termination. Key tactics include making
opening offers, using concessions strategically, and adopting certain negotiation
stances.
2. Consider the Strategic Impact of Positions Taken During a Negotiation and the Role of
Concessions:
- Strategic Impact of Positions: The initial positions taken by negotiators, including
opening offers and stances, significantly influence the negotiation’s direction and
outcome. Opening offers set the stage and anchor the negotiation, while initial stances
(competitive or cooperative) determine the negotiation’s tone.
- Role of Concessions: Concessions are critical in shaping the negotiation process. They
signal flexibility and willingness to reach an agreement, helping to build momentum
towards a mutually acceptable settlement.
3. Appreciate the Role of Concessions in Distributive Bargaining:
- Significance: Concessions are essential in distributive bargaining as they facilitate
movement from initial positions towards a settlement point. The pattern and timing of
concessions can influence the other party's perceptions and responses.
- Strategy: Effective concession-making involves pacing and strategically signaling
limits. It is important to appear flexible without undermining one’s own position, and
to use concessions to test the other party’s resistance point and willingness to negotiate
further.
4. Identify Hardball Tactics and Learn How to Counter Them:
- Hardball Tactics: These are aggressive strategies used to pressure the other party into
making concessions or agreeing to terms. Examples include good cop/bad cop,
lowballing, highballing, bogey, the nibble, chicken, intimidation, aggressive behavior,
and snow job.
- Countering Hardball Tactics: Effective responses to hardball tactics include
recognizing and ignoring the tactic, responding in kind to signal that such tactics
won’t work, negotiating around the tactic, or calling out the tactic to neutralize its
impact. The chapter emphasizes the importance of maintaining composure and using
strategic counter-tactics to manage and mitigate the effects of hardball tactics.