OB12_15inR - Chapter FIFTEEN Conflict and Negotiation...

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. Conflict and Negotiation Chapter FIFTEEN
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. Negotiation Negotiation A process in which two or more parties exchange  goods or services and attempt to agree on the  exchange rate for them. BATNA The  B est  A lternative  T o a  N egotiated  A greement; the  lowest acceptable value  (outcome) to an individual  for a negotiated agreement.
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. Bargaining Strategies Integrative Bargaining Negotiation that seeks one or more settlements that  can create a win-win solution. Distributive Bargaining Negotiation that seeks to divide up a fixed amount of  resources; a win-lose situation.
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. Distributive Versus Integrative Bargaining E XHIBIT 15-5 Bargaining  Distributive  Integrative Characteristic  Bargaining   Bargaining     Goal  Get as much of pie  Expand the pie  as possible Motivation Win-Lose Win-Win Focus Positions Interests  Information Low High Sharing  Duration of  Short term  Long term relationships  Source: Based on R. J. Lewicki and J. A. Litterer, Negotiation (Homewood, IL: Irwin, 1985), p. 280.
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. WHEN DOES A NEGOTIATION OCCUR? 1. 2 OR MORE PARTIES 2. COMPETING NEEDS 3. EACH ABLE TO BLOCK OTHER'S GOAL ATTAINMENT TO SOME EXTENT 4. RELATIVELY EQUAL POWER
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. WHAT PORTIONS OF OUR LIVES ARE AFFECTED BY NEGOTIATIONS? Superiors Subordinates Peers Spouses Children Neighbors In Autos Entering elevators When was your last negotiation? How many problems are negotiable?
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. OUTCOME OF A SUCCEDSSFUL NEGOTIATION BOTH PARTIES FEEL SATISFIED BOTH PARTIES GAIN, BUT ONE GAINS MORE THAN THE OTHERT LOOK AT THE RESULTS OBJECTIVE OF NEGOTIATOR: Maximize gain to him/herself and his/her client
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. BEHAVIORALLY WHAT DO YOU DO? 1. DISCOVER Opponent's cutoff point 2. MOVE opponent’s cutoff point 3. CONCEAL your own cutoff point
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. NEGOLTIATION PRINCIPLES 1. Diagnose Situation As Negotiable 2. Satisfaction Is Not Related To Success 3. Avoid Mis-perception of Opponent's Goals 4. TARGETS High Targets Get High Rewards High Targets Tend to Deadlock 5. PLAN List Your Alternatives List Opponent's Alternatives Identify Opponent’s Most Likely Response To Each of  Your Opponent’s Alternatives Decide Your Response To Each Of Your Opponent’s  Alternatives 6. Quick Settlements = Extreme Outcomes
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. THREE NEGOTIATION APPROACHES FOCUS "SOFT" RELATIONSHIP "HARD" GOALS "PRINCIPLED" PROBLEM Participants regarded as: Friends Adversaries Problem Solvers Illustrative tactic: Cultivate relationship Make offers Yield to pressure Threaten relationship Make threats Apply pressure Focus on problem Explore interest Yield to principle Approach to: People Problem Soft Soft Hard Hard Soft Hard Style Flexible Intractable Focus on interests Loses/Gains Accept losses Demand gains Look for mutual gains Emphasis Agreement Your position Objectives Criteria Slevin, Dennis P., 1989. The Whole Manage, Innodyne, Inc. p. 258. (Adapted from R. Fisher and W. Ury, Getting to Yes (1981).
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