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