14. NEGOTIATIOIN
1. DEFINITION: A process of potentially opportunistic interaction by which two or more parties, with some apparent conflict, seek to do better … jointly…than they could do otherwise.
2. CONCEPTS:
•Parties- sides in the negotiation
•Issues- factors to resolve in the negotiation
•Options- possibilities for each issue
•Position- stated options desired by negotiator
•Interests- underlying objectives of the negotiator
3. Basics of Negotiation Strategy
•Separate people from problem
•Focus on interests, not positions
•Generate multiple possibilities �(develop your BATNA)
•Invent options for mutual gain
4. Essentials of Negotiation Analysis
•BATNA (Best Alternative to a Negotiated Agreement)
BATNA describes what you will do if you cannot reach agreement. This is your outside option.
•Reservation value
•Aspiration value
•Bargaining Zone
impasse:
5. Bargaining Power: Degree to which you are dependent upon other party
Where does power come from?
-Structural components
---Having good alternatives
---Creating value for others
-Non-Structural components
---Ability to persuade
---Negotiating strategies and tactics
6. dual concerns in negotiation
Distributive negotiations:
-Single issue
-Two parties
-No potential for future relationship
-No previous relationship
Integrative Possibilities:
-Multiple issues
-Differing interests
-Importance of relationship
Advantages of Integrative Agreements:
-Prevent impasses
-Stability
-Strengthen relationship
-Improves outcomes
Asking why shifts them from positions to interests
7. Creating and Claiming Value
