G groups composed of members w diff interests tend to

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e.g. groups composed of members w/ diff. interests tend to produce higher quality solutions e.g. scientists most productive when there’s certain amnt of intellectual conflict NEGOTIATION negotiation = process in which 2 or more parties exchange goods/services and try to agree upon the exchange rate for them - within negotiation, there’s many issues (items specifically placed on bargaining table for discussion) positions (individual’s stand on issue) interests (underlying concerns affected by negotiation resolution) - negotiators who recognize underlying interests of themselves and the other party → have more flexibility in achieving resolution e.g. employer offers u mortgage @ lower rate than bank (addresses your underlying interests)
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P ART 3: I NTERACTING E FFECTIVELY BARGAINING STRATEGIES DISTRIBUTIVE VS. INTEGRATIVE BARGAINING Bargaining Characteristic Distributive Integrative Available resources Fixed amnt of resources to be divided Variable amnt of resources to be divided Primary motivations I win, you lose I win, you win Primary interests Opposed to each other Convergent / congruent w/ each other Focus of relationships Short-term Long-term Distributive Bargaining = negotiation that seeks to divide up fixed amnt of resources ( win-lose solution) - zero-sum conditions (any gain I make is @ ur expense, vice versa) - e.g. labour-management negotiations over wages - party focuses on trying to get opponent to agree to a specific target point (or as close to it as possible) “leave one party as loser!” e.g. persuade opponent, advise accepting settlement near urs, argue ur target is fair, get opponent to feel emotionally generous toward u (thus accept outcome close to ur target point) Integrative Bargaining = negotiation that seeks 1 or more settlements that can create win-win solution - preferred - builds long-term relationships (makes working together in future easier) - bonds negotiators, make both sides feel they have achieved victory HOW TO NEGOTIATE 1. Developing a Strategy - when you anticipate opponent’s position, you’re better equipped to counter his arguments w/ facts, figures that support your position (“do your hw”) - to determine goals, best to consider their “target & resistance ” points (defines what he would like to achieve) (marks the lowest outcome acceptable; would rather break off if even lower) AND, their b est a lternative t o a n egotiated a greement ( BATNA = the outcome an individual faces if negotiations fail) *good idea to also have opponent’s BATNA e.g. buyer & seller, each has a target point & resistance point; area btwn these 2 points is each negotiator’s aspiration ranges if there’s overlap btwn their ranges → exists bargaining zone (zone btwn each party’s resistance point, assuming there’s overlap in this range) , where each side’s aspirations can be met $400 $475 $525 $600 Buyer’s aspiration range
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P ART 3: I NTERACTING E FFECTIVELY Seller’s aspiration range Bargaining zone Buyer’s Target point Seller’s Buyer’s Seller’s Target point Resistance point Resistance point 2.
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