The most important step of negotiation is preparation.
Arguably the single most important stage of the negotiating process is preparation.
Negotiation: A process in which two or more interdependent individuals discuss and attempt to reach agreement about their differences.
Two parties are more likely to take on a more integrative approach to negotiations when
- one party has significantly more power.
- they are feeling negative emotions.
- Machiavellian tendencies prevail.
- their power is relatively equal.
- emotional intelligence is low.
When two parties perceive themselves as relatively equal in power, they take a more integrative approach to negotiations.
Negotiation: A process in which two or more interdependent individuals discuss and attempt to reach agreement about their differences.
Erin has just concluded another case in which she lived up to the slogan posted on billboards all over the city: "The number-one choice for women facing divorce!" She followed textbook negotiation strategies and came fully prepared to the meeting with her client's soon-to-be ex-husband and his lawyer. At the meeting, Erin asked a number of questions, maintained a friendly atmosphere, and presented her client's list of demands. In the end, she got everything she wanted for her client-the house, one of the cars, custody of the children-and did so without acceding to a single one of the opposing side's demands. They finished off with a formalized agreement and then Erin and her client went out to celebrate their victory. However, Erin may have missed one thing, which is that she should have
- sought to win over the other side, not simply in legal terms but also in personal terms, so as to maintain a friendly atmosphere.
- taken a different tone from the beginning, dispensing with niceties and letting the other side know that she intended to win.
- let the other side win on some small point, so they would walk away feeling they had won at least something.
- spent more time researching the husband's net worth to see if she could extract more money for her client.
- asked her client if there were any point at which she would rather walk away than give up anything more.
There is no indication that Erin failed to adequately prepare, a stage that would have included analyzing the husband's assets and asking the wife if there were a point at which she would rather walk away than give up anything more (BATNA). She set just the right tone at the meeting, neither too friendly nor too aggressive, and finished off well with a formalized agreement. Yet she slipped up at the heart of the encounter: the bargaining stage, which is the one most people imagine when they hear the term "negotiation." In refusing to give in to a single one of the other side's demands, she seems to have forgotten the fact that the goal is for each party to walk away feeling like it has gained something of value. By refusing to allow them even a small victory, she opened the way for long-term resentments and possible future trouble between the former husband and wife.
Negotiation: A process in which two or more interdependent individuals discuss and attempt to reach agreement about their differences.
BATNA describes each negotiator's
- wish list.
- negatives.
- bottom line.
- bargaining style.
- arbitration technique.
BATNA stands for "best alternative to a negotiated agreement" and is a negotiator's bottom line. It is the point at which a negotiator will walk away rather than give up anything more.
BATNA: A negotiator’s best alternative to a negotiated agreement.
The best alternative to a negotiated agreement (BATNA) is part of the ________ step of negotiation.
- bargaining
- preparation
- goal-setting
- deal-making
- information-exchanging
BATNA is part of the preparation stage, in which each party determines its best alternative to a negotiated agreement.
Preparation: The first stage of the negotiation process, during which each party determines its goals for the negotiation.
________ is a win-lose negotiation over a "fixed pie" of resources.
- Alternative dispute resolution
- Closing and commitment
- Exchanging information
- Distributive bargaining
- Integrative bargaining
Distributive bargaining involves win-lose negotiating over a "fixed pie" of resources. That is, when one person gains, the other person loses (also known as a "zero-sum" condition).
Distributive Bargaining: A negotiation strategy in which one person gains and the other person loses.
The first-and arguably most important-step of the negotiation process is
- adjourning.
- bargaining.
- preparation.
- setting goals.
- exchanging information.
The first stage of the negotiation process is preparation.
Preparation: The first stage of the negotiation process, during which each party determines its goals for the negotiation.
________ is a process in which two or more independent individuals discuss and attempt to come to an agreement about their different preferences.
- Coalition
- Ingratiation
- Negotiation
- Internalization
- Substitutability
Negotiation is a process in which two or more interdependent individuals discuss and attempt to come to an agreement about their different preferences. Negotiations can take place inside the organization or when dealing with organizational outsiders. Negotiations can involve settling a contract dispute between labor and management, determining a purchasing price for products, haggling over a performance review rating, or determining the starting salary for a new employee.
Wendy has developed a reputation in her industry for her key involvement in several high-profile negotiations where she has used a distributive framework. Now, she likely finds that
- she has to use integrative techniques next time.
- she has difficulty negotiating in any other way.
- her level of emotional intelligence has increased.
- it is impossible to use inspirational appeals with colleagues.
- other managers in her company are shunning the same technique.
Research has shown that it is possible for leaders to develop a reputation for how they negotiate over time making it more difficult for them to approach new negotiations in a different way.
In distributive bargaining, when one person gains, the other person loses. This is also known as a ________ condition.
- competing
- negotiated
- substitute
- zero-sum
- win-win
Distributive bargaining involves win-lose negotiating over a "fixed-pie" of resources. That is, when one person gains, the other person loses (also known as a "zero-sum" condition).
Distributive Bargaining: A negotiation strategy in which one person gains and the other person loses.
Involving the use of problem solving and mutual respect to achieve an outcome that's satisfying for both parties, ________ is aimed at accomplishing a win-win scenario.
- exchanging information
- distributive bargaining
- integrative bargaining
- substitutability
- negotiation
Integrative bargaining is aimed at accomplishing a win-win scenario. It involves the use of problem solving and mutual respect to achieve an outcome that is satisfying for both parties.
Integrative Bargaining: A negotiation strategy that achieves an outcome that is satisfying for both parties.
Leaders who thoroughly understand the conflict resolution style of collaboration are likely to thrive in ________ negotiations.
- alternative dispute resolution
- closing and commitment
- distributive bargaining
- integrative bargaining
- substitutability
Leaders who thoroughly understand the conflict resolution style of collaboration are likely to thrive in integrative bargaining negotiations.
Integrative Bargaining: A negotiation strategy that achieves an outcome that is satisfying for both parties.