❖ Dilemma in negotiation
dilemma of honesty dilemma of trust Building trust (efforts on the perception of the outcome
and efforts on the process)
The major sins of negotiation
❖ Position Vs Interest: a position is what you say you want or must have. While an interest is why you want what you want.Positional bargaining is usually distributive-----and may be inefficient in the sense that value may be left on the table at the time of settlement because each party did not know what the other really wanted---but it may help one party gain more short-term profit. Interestbased bargaining adds integrative potential.
negotiation ❖ Bargaining Range:the distance between the
reservation points of the parties.
Preparation worksheet for negotiation
❖ Self-assessment ❖ Assessment of the other party ❖ Assessment of the situation ❖ Details in the handout worksheet
Nature of Negotiation--Interdependence
❖ Mutual dependency(goal) and mutual adjustment(process)
❖ Actual structure of interdependence Vs. perceived interdependence
❖ voluntary process and a strategy pursued by choice
❖ no fixed or established set of rules or prefer to invent their own
❖ give and take
❖ both intangibles and tangibles are concerned
NEGOTIATIONS AND CONFLICT MANAGEMENT
XUELI WANG SCHOOL OF ECONOMICS AND MANAGEMENT TSINGHUA UNIVERSITY
Negotiation
❖ Negotiation: an interpersonal decisionmaking process by which two or more people agree how to allocate scarce resources.
❖ Dynamic nature of business ❖ Interdependence ❖ Competition ❖ Information age ❖ Diversity
Characteristics of negotiation
❖ Two or more parties
❖ conflict of interest between two or more parties
How to evaluate the negotiation
Some terms used in N&C
❖ Reservation point:the point at which the BATNA becomes preferable to starting or continuing a negotiation.
❖ Target point: your objective ❖ Asking offer and counter offer: the start of the
❖ Why occur
to create something new that neither party could do on his or her own
to resolve a problem or dispute between the parties
Manager is negotiator
❖ Leaving money on the table ❖ Settling for too little ❖ Walking away from the table ❖ Settling for terms that are worse than your
alternative
Myths about negotiators
❖ Good negotiators are teacher ❖ Good negotiators take risks ❖ Good negotiators rely on intuition
Some terms used in N&C
❖ BATNA: (Best Alternative to a Negotiated Agreement) determines the point at which a negotiator is prepared to walk away from the negotiation table or your fall back position.