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263 flashcardsby Carissa
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1
What is the difference between bargaining and negotiation?
Bargaining is competitive win-lose; negotiation is win-win
2
Define negotiation.
A form of decision making in which two or more parties talk to resolve their opposing interests
3
Name three reasons negotiation occurs.
To share a limited resource; to create something new neither could do alone; to resolve a problem or dispute
4
How many parties are needed for a negotiation situation?
Two or more
5
Why do parties negotiate in a negotiation situation?
By choice, because there is a conflict of needs and desires
6
What must negotiators manage besides tangibles?
Intangibles (underlying motivations), such as reputation, principle, precedent and relationships
7
What are interdependent parties?
Parties who depend on each other to achieve their own outcome, with interlocking goals
8
What is an independent party?
One who can meet their own needs without others’ help
9
What is a dependent party?
One who must rely on others for what they need
10
What is zero-sum (distributive) interdependence?
Only one winner; negative correlation between goal attainments
11
What is mutual-gains (integrative) interdependence?
Positive correlation between goal attainments; one party’s success does not block the other’s
12
What does BATNA stand for?
Best Alternative To a Negotiated Agreement
13
Why can every negotiator walk away?
Every interdependency has an alternative
14
What is a concession?
When one party agrees to make a change to its proposal
15
What happens to the bargaining range when a concession is made?
It becomes further constrained
16
What is the dilemma of honesty?
How much truth to tell the other party (telling all allows exploitation; telling nothing may cause stalemate)
17
What is the dilemma of trust?
How much to believe what the other party tells you
18
What is the purpose of distributive bargaining?
To claim value
19
What is the purpose of integrative negotiation?
To create value
20
Which strategy do people tend to overuse, leaving value on the table?
Distributive strategies
21
Where does the heart of value creation lie?
In exploiting the differences between negotiators
22
Name four differences between negotiators that create value.
Interests; judgments about the future; risk tolerance; time preferences
23
Which type of difference is illustrated by a company with a cash flow problem?
Risk tolerance (it can assume less risk)
24
Define conflict.
A disagreement or opposition, including the belief that the parties’ current needs cannot be achieved simultaneously
25
What are the four levels of conflict?
Intrapersonal; interpersonal; intragroup; between organizations, groups or nations
26
Which level of conflict makes negotiation the most complex?
Conflict between organizations, ethnic groups, warring nations, etc.
27
Name some productive aspects of conflict.
Leads to change; strengthens relationships; promotes awareness of self and others; personal development; can be stimulating
28
Name some destructive aspects of conflict.
Win-lose goals; misconception and bias; decreased communication; magnified differences; escalation
29
In the dual concerns model, what is inaction?
Low concern for own outcomes and low concern for others’ outcomes
30
In the dual concerns model, what is contending?
High concern for own outcomes and low concern for others’ outcomes
31
In the dual concerns model, what is compromising?
Moderate or equal concern for own and others’ outcomes
32
In the dual concerns model, what is yielding?
Low concern for own outcomes and high concern for others’ outcomes
33
In the dual concerns model, what is problem solving?
High concern for own outcomes and high concern for others’ outcomes
34
What percentage of negotiations rely on data, according to the professor?
80%
35
Myth or reality: “It’s about winning.”
Myth; it’s about creating value
36
Myth or reality: “You need to be aggressive.”
Myth; strategy beats aggression
37
Myth or reality: “Some people are natural negotiators.”
Myth; it is a learnable skill
38
Myth or reality: “Negotiation damages relationships.”
Myth; good negotiation strengthens them
39
What do poor negotiators do?
Focus only on price, see it as win-lose, wing it, avoid conflict
40
What do skilled negotiators do?
Explore multiple variables, create mutual value, prepare systematically, address issues directly
41
What is a target point?
A negotiator’s optimal goal
42
What is a resistance point?
A negotiator’s bottom line
43
What is the asking price?
The initial price set by the seller
44
Which points are public, inferred and secret in distributive bargaining?
Starting points are public; target points are inferred; resistance points are secret
45
What is the bargaining range?
The spread between the two resistance points (also settlement range or zone of potential agreement)
46
Can a bargaining range be negative?
Yes, it can be positive or negative
47
What does WATNA stand for?
Worst Alternative To a Negotiated Agreement
48
What do attractive alternatives allow negotiators to do?
Set higher goals and make fewer concessions
49
What is the objective of both parties in distributive bargaining?
To obtain as much of the bargaining range as possible
50
What should you try to keep secret in distributive bargaining?
Your resistance point, some targets, weak strategic position and emotional vulnerabilities
51
What establishes the other party’s resistance point?
The value they attach to an outcome; their cost of delay; their cost of halting negotiations
52
How can you weaken the other party’s resistance point?
Reduce their estimate of your cost of delay; increase their own cost of delay; reduce their perceived value of an issue; increase their perception of how much you value it
53
What are the four tactical tasks in distributive bargaining?
Assess the other’s position; manage their impression of yours; modify their perceptions of their own; manipulate actual costs of delay or termination
54
What is indirect assessment?
Indirectly obtaining information about an issue’s factors, e.g. what information was used and how it was interpreted
55
What is direct assessment?
Directly obtaining information from the other party
56
Which are more important early: screening activities or direct action?
Screening activities; direct action is more useful later
57
Name four screening activities.
Concealment; calculated incompetence; using a spokesperson; presenting many items with only a few important
58
Name some direct action techniques.
Selective presentation; explaining known facts; displaying an emotional reaction
59
What is the ultimate weapon in negotiation?
Threatening to terminate negotiations
60
Name three ways to threaten termination or raise pressure.
Disruptive action; alliance with outsiders; schedule manipulation
61
What is the “first offer advantage”?
The negotiator making the first offer gets better outcomes
62
How can negotiators dampen the first offer advantage?
Concentrate on their own target and the other’s resistance point
63
What are two risks of exaggerating an opening offer?
The other party may end negotiations; it may harm the relationship
64
What do the opening offer and counteroffer define?
The initial bargaining range
65
What does the first concession convey?
How you will proceed in the negotiation
66
What is the cost of taking a hard line?
Better economic outcomes but being perceived negatively
67
Why is a flexible position good?
You learn about the other’s targets, and it keeps negotiation moving by signaling settlement is possible
68
How should a reciprocal concession be made?
Not haphazardly; link it to a prior concession from the other party
69
How should a final concession be made to signal no further movement?
Make it more substantial, dramatic but not so large it implies holding back; possibly personalize it
70
Name three ways of closing the deal.
Provide alternative packages; assume the close; split the difference
71
What is an exploding offer?
An offer with a tight deadline that pressures the other party to agree quickly
72
What is a sweetener?
A special concession saved for the close
73
Against whom do hardball tactics work best?
Poorly prepared negotiators
74
Name four ways to deal with hardball tactics.
Discuss them; ignore them; respond in kind; co-opt the other party
75
What is the lowball/highball tactic?
Starting with a ridiculously low (or high) opening offer you know you will never achieve
76
What is the best response to a lowball/highball?
Not making a counteroffer; insist on a reasonable offer from them
77
What is the bogey tactic?
Pretending an issue is unimportant to you when it is actually important
78
How can you defend against a bogey?
Prepare well, ask probing questions, and be wary of sudden reversals in position
79
What is the nibble tactic?
Asking for a proportionally small concession on a new item to close the deal
80
How do you combat a nibble?
Respond with “What else do you want?” and prepare your own nibbles
81
What is the chicken tactic?
Combining a large bluff with a threatened action to force the other party to back down
82
What is intimidation?
Forcing agreement through an emotional ploy, usually anger or fear
83
How can you deal with intimidation?
Don’t feel threatened; discuss the process; ignore it; use a team
84
Name aggressive behaviors in negotiation.
Relentless push for concessions; asking for the best offer early; asking you to justify proposals
85
What is an excellent response to aggressive behavior?
Halt the negotiation to discuss the process itself
86
What is a snow job?
Overwhelming the other party with information or technical language so they can’t tell what matters
87
How do you counter a snow job?
Ask questions until you understand; bring in experts; listen for consistency; prepare
88
What are the three common negotiation mistakes?
Failing to negotiate when you should; negotiating when you should not; using the wrong strategy
89
Name five qualities that support win-win solutions.
Honesty and integrity; abundance mentality; maturity; systems orientation; superior listening skills
90
Name the four key contextual factors for integrative negotiation.
Free flow of information; understanding real needs; emphasizing commonalities; searching for solutions meeting both sides’ goals
91
What are the four steps of integrative negotiation?
Identify and define the problem; surface interests and needs; generate alternative solutions; evaluate and select alternatives
92
Which integrative steps create value and which claims it?
The first three create value; the fourth involves claiming value
93
Why must value creation precede value claiming?
It is important that creating value comes first
94
What is a common cause of failing to reach integrative agreements?
Failure to exchange enough information
95
In integrative negotiation, what should you share information about?
Your priorities, not necessarily your positions
96
How should integrative negotiators treat their interests and the means of meeting them?
Firm about interests and needs, flexible about how they are met
97
Step 1 of integrative negotiation: how should the problem be defined?
Mutually acceptable, practical and comprehensive, as a goal with obstacles, depersonalized, separate from the search for solutions
98
What are interests?
Underlying concerns, needs, desires or fears that motivate a position
99
What is the difference between intrinsic and instrumental interests?
Intrinsic are valued for themselves; instrumental are valued for helping achieve other outcomes
100
Name the four types of interests.
Substantive; process; relationship; interests in principle
101
What are substantive interests?
The issues under negotiation
102
What are process interests?
Interests in how the negotiation unfolds
103
What are relationship interests?
Interests in the ongoing relationship and its future
104
What are interests in principle?
Deeply held principles that dominate guidance of action
105
What is the objective of generating alternative solutions?
To create a variety of options or possible solutions
106
What is a logroll?
Parties trade off outcomes on different issues
107
What does “expand the pie” mean?
Both sides achieve their objectives by increasing resources
108
What is nonspecific compensation?
One side wins and the other is compensated in another way
109
What does “cut the costs for compliance” mean?
One side wins and the other has their costs minimized
110
What is superordination?
Differences are replaced by other, higher-level interests
111
For which parties is compromise used?
Entrenched parties
112
Name three techniques for generating options for the problem as given.
Brainstorming; surveys; electronic brainstorming
113
What are the rules of brainstorming?
Avoid judging solutions; separate people from the problem; be exhaustive; ask outsiders
114
What is electronic brainstorming?
A facilitator asks questions and participants anonymously type responses, which are aggregated and displayed to the group
115
What is a drawback of surveys?
Parties lose the benefit of seeing and hearing each other’s ideas
116
When should evaluation criteria be agreed upon?
In advance of evaluating options
117
How should decisions be kept during evaluation?
Tentative and conditional until final
118
Name the seven factors facilitating integrative negotiation.
Common goal; faith in problem-solving ability; belief in validity of positions; motivation and commitment; trust; clear communication; understanding of integrative dynamics
119
What is a common goal?
One all parties share equally, each benefiting in a way impossible without working together
120
What is a shared goal?
One both parties work toward but that benefits each differently
121
What is a joint goal?
One where individuals with different personal goals combine them in a collective effort
122
What is the key element of integrative negotiation?
Belief that all sides can benefit and are better off cooperating
123
What must negotiators accept about perspectives in integrative negotiation?
Both their own and the other’s perspective are valid
124
What is an umbrella agreement?
A framework for future discussions that enhances commitment to work together
125
Ways to elicit information from a mistrustful negotiator?
Share information and encourage reciprocity; negotiate multiple issues at once; make multiple offers at once
126
How is using distributive tactics related to joint outcomes?
Negatively related
127
What are ethics?
Broadly applied social standards in a situation, or a process for setting them
128
How do ethics differ from morals?
Morals are personal beliefs
129
What is end-result ethics?
Rightness is judged by the pros and cons of consequences
130
What is duty ethics?
Rightness is determined by obligation to principles, laws and social standards
131
What is social contract ethics?
Rightness is based on the customs and norms of a community
132
What is personalistic ethics?
Rightness is based on one’s own conscience and moral standards
133
Which ethical view might justify lying to get the best outcome?
End-result ethics
134
Which ethical view leads one to reject an outright lie as an obligation?
Duty ethics
135
Define ethical, prudent, practical and legal.
Ethical: meets moral standards; prudent: wise given efficiency and relationship consequences; practical: what can actually happen; legal: what the law allows
136
Why do negotiators often judge others’ unethical tactics more harshly than their own?
They attribute others’ behavior to personality and their own to the situation
137
Name six ethically ambiguous tactics.
Traditional competitive bargaining; emotional manipulation; misrepresentation; misrepresentation to opponent’s networks; inappropriate information gathering; bluffing
138
What is misrepresentation by omission?
Failing to disclose information that would benefit the other
139
What is misrepresentation by commission?
Actually lying about the issue
140
Which kind of untruth is generally seen as outside the rules of negotiation?
Outright deception
141
Why do negotiators use ethically ambiguous tactics?
To increase power, achieve goals, or avoid being exploited
142
What are the consequences of unethical conduct for the target?
Anger and mistrust; damaged relationship
143
Name common justifications for deceptive tactics.
Unavoidable; harmless; avoids negative consequences; good consequences; they deserved it; they would do it anyway; they started it; fair for the situation
144
Name ways to deal with another’s deception.
Ask probing questions; rephrase questions; test with a known answer; call the tactic; ignore minor ones; help shift to honesty
145
Why does responding to deception in kind be a problem?
It escalates the conflict
146
What is the model sequence of strategy and planning?
Goals → Strategy → Planning
147
Name three types of goals.
Substantive (money); intangible (winning); procedural (shaping the agenda)
148
What are the four requirements of effective preparation?
List all goals; prioritize them; identify multi-goal packages; evaluate trade-offs
149
What makes an effective goal?
Concrete, specific and measurable
150
Are wishes goals?
No, wishes are not goals
151
What kind of strategy do relational goals support?
Collaborative or integrative strategy
152
How do tactics relate to strategy?
Tactics are short-term adaptive moves that enact strategy and are subordinated to it
153
What is accommodation?
A win-lose strategy where I lose and you win, used to build a relationship
154
What is a drawback of accommodative strategies?
They set a precedent of avoiding conflict that is hard to break
155
What is a drawback of distributive strategies?
They create “we-they” patterns that distort judgment
156
What is the “negotiator’s dilemma”?
Whether to claim value or create value
157
Do single issues or multiple issues lend themselves to integrative negotiation?
Multiple issues; single issues dictate distributive negotiation
158
What is the bargaining mix?
The combined list of all issues from both sides
159
What are positions versus interests?
Positions are what a negotiator wants; interests are why they want it
160
How do you surface interests?
Ask “why” questions
161
What does a strong BATNA do for a negotiator?
Gives power to walk away and still meet needs
162
What is a seller’s resistance point?
The least they will take
163
What is a buyer’s resistance point?
The most they will pay
164
What do clear resistance points prevent?
Agreeing to deals later realized to be unwise
165
What key information about the other party is most important?
Overall goals; issues and bargaining mix; interests and needs; resistance point and alternatives
166
What should targets be?
Specific, difficult but achievable, and verifiable
167
What is a risk of overconfident opening bids?
The other party may laugh, get angry or walk away
168
What is a field analysis?
A soccer-field model assessing the social context of a negotiation
169
What do A and B represent in a field analysis?
A: direct actors on our side; B: opposition actors
170
What does C represent in a field analysis?
Indirect actors on the sidelines
171
What does D represent in a field analysis?
Interested observers in the stands
172
What does E represent in a field analysis?
Environmental factors outside the stadium
173
What process questions should be planned in Step 10?
Agenda; location; time period; what if negotiation fails; tracking agreements; mechanism for modifying the deal
174
What is perception?
A sensemaking process where people interpret their environment to respond appropriately
175
What is the perception sequence?
Stimulus → Attention → Recognition → Translation → Behavior
176
What is stereotyping?
Assigning attributes solely on a person’s social or demographic category
177
What is the halo effect?
Generalizing about many attributes based on one attribute
178
What is selective perception?
Using supporting information and filtering out contrary information
179
What is projection?
Assigning to others characteristics or feelings one possesses, to protect self-concept
180
What are frames?
Ways of defining a person, event or process, separating it from the complex world around it
181
Are frames intentional?
No, they are inevitable and occur without real intention
182
Name the seven types of frames.
Substantive; outcome; aspiration; process; identity; characterization; loss or gain
183
What is a substantive frame?
What the conflict is about
184
What is an identity frame?
How parties define who they are
185
What is a characterization frame?
How parties define the other parties
186
What do mismatches in frames cause?
Conflict
187
What are the three frames of interests, rights and power?
Interests: needs and wants; rights: who is right or fair; power: imposing costs or using authority
188
What is reframing?
Redefining the situation; dynamic and can occur many times
189
What is the availability bias and its remedy?
Vivid, easily recalled information gets undue weight; check accuracy of every piece of information
190
What is escalation of commitment?
Sticking with a failing course of action even when irrational
191
What is the remedy for escalation of commitment?
Use an advisor as a reality check
192
What is the mythical fixed-pie belief?
Assuming all negotiations are zero-sum
193
What is the remedy for fixed-pie beliefs?
Focus on underlying interests and hold negotiators accountable
194
What is anchoring and adjustment?
Treating an initial standard as a benchmark against which adjustments are made
195
What are remedies for anchoring?
Thorough preparation; devil’s advocate; reality check
196
According to prospect theory, when are people risk-averse?
When a problem is framed as a possible gain
197
According to prospect theory, when are people risk-seeking?
When a problem is framed as a loss
198
What is the winner’s curse feeling in negotiation?
Discomfort about a win that came too easily, suspecting the other had an advantage
199
What is the double-edged effect of overconfidence?
It solidifies support for incorrect options and discounts others’ judgments
200
What is the law of small numbers bias?
Projecting limited past experience onto future negotiations, creating self-fulfilling prophecies
201
What are self-serving biases?
Attributing own behavior to situations but others’ behavior to personal traits
202
What is the false-consensus effect?
Overestimating support for your own position, opinions or behaviors
203
What is the endowment effect?
Overvaluing something you own or believe you possess
204
What is perspective taking?
Considering the other party’s viewpoint; makes impasse unlikely and integrative outcomes likely
205
What is reactive devaluation?
Minimizing the value of a concession made by a disliked other
206
What is the first level of managing cognitive biases?
Being aware they can occur
207
Does simply knowing about biases counteract them?
No, it does little on its own
208
How do mood and emotion differ?
Moods are diffuse, less intense and more enduring; emotions are intense and targeted
209
What are the three characteristics distinguishing mood from emotion?
Specificity; intensity; duration
210
Why may positive mood be risky in negotiation?
Negotiators in a positive mood may be susceptible to deceptive tactics
211
When can anger work in your favor?
When it is seen as appropriate; it can backfire with deceivers or those with little at stake
212
Who benefits from negative emotion in negotiation?
Powerful negotiators; low-power negotiators get poorer outcomes
213
When does displaying sadness work for extracting concessions?
Only when displayed by those with low power
214
What is emotional intelligence in negotiation?
Adjusting messages to the other party’s perceived emotional state
215
What percentage of verbal tactics in negotiation are integrative?
70 percent
216
What happens to the behavior of buyers and sellers?
They tend to behave reciprocally
217
How do attractive BATNAs affect reservation prices?
Those with attractive BATNAs set higher reservation prices
218
What happens when both parties know one party’s attractive BATNA?
That negotiator gets a more positive outcome
219
What happens when winners and losers learn how the other did?
They feel less positive about their own outcomes
220
What are social accounts?
Explanations made to the other party during negotiation
221
Name three types of social accounts.
Mitigating circumstances; exonerating circumstances; reframing
222
Do negotiators who use multiple explanations do better?
Yes, they are more likely to have better outcomes
223
How should negotiators handle contentious communication?
Call attention to it, label it counterproductive and resist reciprocating
224
Are negotiators more consistent or adaptive in strategy?
More consistent than varied
225
Which stage of negotiation influences joint gains most?
Early stages
226
Name three aspects of how people communicate in negotiation.
Language characteristics; nonverbal communication; choice of channel
227
What are attending behaviors?
Cues like eye contact and posture showing you are listening
228
What key variable distinguishes communication channels?
Social bandwidth
229
Why can email lead to more aggressive behavior?
Lack of social cues lowers communicator inhibition
230
What does email do to power differences?
Masks or reduces them
231
Which is slow-tempo, email or texting?
Email
232
Which medium do sellers do better in with complex arguments?
The quick medium (texting)
233
What are the three techniques for improving communication?
Questions; listening; role reversal
234
What are the three forms of listening?
Passive listening; acknowledgement; active listening
235
What is active listening?
Restating the sender’s message in your own words
236
When is role reversal most useful?
During preparation or a team caucus
237
What is a risk of role reversal?
It may sharpen perceptions of differences if positions are fundamentally incompatible
238
What is power over versus power with?
Power over controls the situation; power with works together
239
Name the five sources of power.
Expert; reward; coercive; legitimate; referent
240
What is the most important source of power in negotiation?
Information power
241
What is referent power?
Power derived from respect
242
What are the three cognitive orientations toward power?
Unity; radical; pluralist
243
What does the radical frame believe?
Society is a clash of interests
244
What does the unity frame believe?
Society is an integrated whole
245
What are the two approaches to structural power?
Organizational hierarchy and network position
246
What is legitimate power derived from?
Position, via birth, election, appointment or authority
247
Name four network features affecting power.
Tie strength; tie content; network structure and centrality; coalitions
248
What is social capital?
A strong network of people agreeing to common goals and principles
249
Name benefits of a strong BATNA as a power source.
Raises likelihood of first offer; improves outcomes; gives leverage and confidence; higher aspirations
250
What distinguishes national cultures regarding power?
Power distance
251
How should you deal with others who have more power?
Avoid all-or-nothing deals; make them smaller and yourself bigger; do deals in sequence; use competition; get good information
252
What is influence?
Strategies and messages used to bring about desired attitudinal or behavioral change
253
What are the two routes to influence?
Central route and peripheral route
254
What is the central route to influence?
Conscious, integrating the message into existing cognitive structures
255
What is the peripheral route to influence?
Subtle cues and context with less active thought
256
Name three issues in constructing a message.
Content; structure; delivery style
257
What is a one-sided message versus a two-sided message?
One-sided ignores opposing arguments; two-sided describes the opposing view then shows why it is less desirable
258
What does fractionating an argument mean?
Breaking it down into smaller pieces
259
Are actual or implied threats more effective at extracting concessions?
Actual threats
260
Name three aspects of peripheral influence.
Message characteristics; persuader attributes; influence context
261
Name four contextual peripheral influence factors.
Reciprocity; commitment; social proof; scarcity
262
How do you resist another’s influence?
Have and use a BATNA; make a public commitment; inoculate against arguments
263
What is the best inoculation against arguments?
Develop arguments for and against your position and counterarguments to refute both
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