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1、CHAPTER 2Strategy and Tactics of Distributive Bargaining CHAPTER 2 The Titles The Distributive Bargaining Situation. Tactical Tasks.Positions Taken during Negotiation .Commitment .Closing the Deal. Hardball Tactics.Distributive Bargaining Skills Applicable to Integrative Negotiation .Chapter Summary

2、. The Titles The Distributiv 1. The Distributive Bargaining SituationFigure 2.1 The buyers view of the house negotiation$130,000$135,000$140,000$145,000$150,000Larrys targetpoint Megans targetpoint Larrys resistancepoint 1. The Distributive BargaiFigure 2.2 The buyers view of the house negotiation (

3、Extended)$130,000$150,000$145,000$140,000$135,000$133,000Megans resistancepoint(inferred)Larrys initialpoint(public)Larrys targetpoint(private)Megans targetpoint(inferred)Megans askingpoint(public)Larrys resistancepoint(inferred)Figure 2.2 The buyers viFigure 2.3 The buyers view of the house negotia

4、tion (Extended with alternatives) 1.1 The Role of Alternatives to a Negotiated AgreementMegans resistancepoint(inferred)Larrys initialoffer(public)Larrys targetpoint(private)Megans alternativebuyer(private)Megans targetpoint(inferred)Megans alternativehouse(private)Megans askingpoint(public)Larrys r

5、esistancepoint(inferred)$130,000$133,000$135,000$134,000$140,000$142,000$145,000$150,000Figure 2.3 The buyers vi1.2 Settlement PointThe objective of both parties is to reach an agreement as close to the other partys resistant point as possible.Both parties must believe that the settlement is the bes

6、t they can get. Another factor will affect the satisfaction with the agreement is whether the parties will see each other again.1.2 Settlement PointThe objec1.3 Bargaining MixThe package of issues for negotiation is bargaining mix. Each item in the mix has its own starting, target, and resistance po

7、int.Negotiators need to understand what is important to them and to the other party, and they need to take these priorities into account during the planning process. 1.3 Bargaining MixThe package1.4 Fundamental StrategiesIn the condo example, the buy has four fundamental strategies available: (1) To

8、 push for a settlement close to the sellers resistance point. (2) To convince the seller to change her resistance point. (3) If a negative settlement range exists, to convince the seller to reduce her resistance point. (4) To convince the seller to believe that this settlement is the best that is po

9、ssible.1.4 Fundamental StrategiesIn 1.5 Discovering the Other Partys Resistance PointThe more you can learn about the other partys target, resistance point, motives, feelings of confidence, and so on, the more able you will be to strike a favorable agreement.To influence the other partys perception,

10、 however, they must establish some points effectively and convincingly.1.5 Discovering the Other Par1.6 Influencing the Other Partys Resistance PointFactors are important in attempting to influence the other partys resistance point: (1) the value the other attaches to a particular outcome; (2) the c

11、ost the other attaches to delay or difficulty in negotiations; (3) the cost the other attaches to having the negotiation aborted.A significant factor in shaping the other persons understanding of what is possible is the others understanding of your own situation. 1.6 Influencing the Other Par To exp

12、lain how these factors can affect the process , we will make four major propositions:1. The higher the other partys estimate of your cost of delay or impasse, the stronger the other partys resistance point will be.2. The higher the other partys estimate of his or her own cost of delay or impasse, th

13、e weaker the other partys resistance point will be.3. The less the other values an issue, the lower their resistance point will be.4. The more the other believes that you value an issue, the lower their resistance point may be. To explain how these facto2. Tactical TasksThere are four important tact

14、ical tasks for a negotiator in a distributive bargaining situation to consider: (1) assess the other partys target, resistance point, and cost of terminating negotiation. (2) manage the other partys impressions of a negotiators target, resistance point, and cost of terminating negotiation. (3) modif

15、y the other partys perceptions of his own target, resistance point, and cost of terminating negotiation. (4) manipulate the other partys actual cost of delaying or terminating negotiation.2. Tactical TasksThere are f2.1 Assess the other partys target, resistance point, and cost of terminating negoti

16、ationsThe negotiator can pursue two general routes to achieve this task: Obtain information indirectly about the background factors behind an issue (indirect assessment). Obtain information directly from the other party about their target and resistance point (direct assessment) .2.1 Assess the othe

17、r partys t2.2 Manage the Other Partys ImpressionsAn important tactical task for negotiators is to control the information sent to the other party about your target and resistance points, while simultaneously guiding him or her to form a preferred impression of them.Negotiators need to screen informa

18、tion about their positions and to represent them as they would like the other to believe them. Screening Activities.Direct Action to Alter Impressions. 2.2 Manage the Other Partys Screening ActivitiesThe simplest way to screen a position is to say and do as little as possible. “Silence is gold.” Ano

19、ther approach, available when group negotiations are conducted through a representative is calculated incompetence.Reduce the number of people who can actively reveal information.Present a great many items for negotiations, only a few of which are truly important to the presenter . Screening Activit

20、iesThe simpleDirect Action to Alter ImpressionsMany actions can be taken to present facts that will that will enhance their position or make it appear stronger to the other party.Negotiators should justify their positions and desired outcomes in order to influence the other partys impressions. Displ

21、aying emotional reaction to facts, proposals, and possible outcomes is another form of direct action.Taking direct action to alter anothers impression raises several potential hazards.Direct Action to Alter Impress2.3 Modify the Other Partys PerceptionsThere are several approaches to modifying the o

22、ther partys perceptions: Interpret for the other party what the outcomes of his or her proposal will be. Another approach to modifying the perceptions is to conceal information.2.3 Modify the Other Partys 2.4 Manipulate the Actual Cost of Delay or TerminationThere are three ways to manipulate the co

23、st of delay in negotiation: (1) Disruptive Action. Increase the cost of not reaching a negotiated agreement. (2) Alliance with Outsiders. Involve the other parties who can somehow influence the outcomes in the process. (3) Schedule Manipulation. The negotiation scheduling process can often put one p

24、arty at a considerable disadvantage.& The opportunities to increase or alter the timing of negotiation vary widely across negotiation domain. 2.4 Manipulate the Actua3. Positions Taken during NegotiationEffective distributive bargainers need to understand the process of making positions during barga

25、ining, including the importance of opening offer, opening stance, and the role of making concessions throughout the negotiation process.Changes in position are usually accompanied by new information concerning the others intentions, the value of outcomes, and likely zones for settlement. 3. Position

26、s Taken during Neg3.1 Opening OffersThe fundamental question is whether the opening offer should be exaggerated or modest.There are at least two reasons that an exaggerated opening offer is advantageous.Two disadvantageous of exaggerated opening offer are: (1) it maybe summarily rejected by the othe

27、r party; (2) it communicates an attitude of toughness that maybe harmful to long-term relationships.3.1 Opening OffersThe fundame3.2 Opening StanceWill you be competitive or moderate? It is important for negotiators to think carefully about the messages that the wish to signal with their opening sta

28、nce and subsequent concessions.To communicate effectively, a negotiator should try to send a consistent messages through both opening offer and stance. 3.2 Opening StanceWill you b3.3 Initial ConcessionsFirst concession conveys a message, frequently a symbolic one to the other party that how you wil

29、l proceed.Firmness may actually shorten negotiations, there is also the very real possibility, however, it will be reciprocated by the other.There are good reasons for adopting a flexible position. 3.3 Initial ConcessionsFirst 3.4 Role of ConcessionsConcessions are central to negotiation.Negotiators

30、 also generally resent a take-it-or-leave-it approach.Parties feel better about a settlement when the negotiation involved a progression of concession.A reciprocal concession cannot be haphazard.To encourage further concession from the other party, negotiators sometimes link their concessions to a p

31、rior concession made by the other party.3.4 Role of ConcessionsConces3.5 Pattern of Concession MakingFigure 2.4 Pattern of Concession Making for Two Negotiators 1532454321Concession NumberSize of Concessions (in dollars)0 =Georges concessions =Marios concessions3.5 Pattern of Concession Maki3.6 Fina

32、l OffersA negotiator might simply let the absence of any further concessions that convey the message in spite of urging the other party.One way negotiators may convey the message that an offer is the one is to make the last concession more substantial. 3.6 Final OffersA negotiator4. CommitmentA key

33、concept in creating as bargaining position is that of commitment. One definition of commitment is the taking of a bargaining position with some explicit or implicit pledge regarding the future course of action.The purpose of commitment is to remove ambiguity about the actors intended course of actio

34、n.A commitment is often interpreted by the other party as a threat.4. CommitmentA key concept in4.1 Tactical Considerations in Using CommitmentsCommitments exchange the flexibility for certainty for action, but they create difficulties if one wants to move to a new position. When one makes commitmen

35、ts one should also make contingency plans for a graceful exit should it be needed.4.1 Tactical Considerations i4.2 Establishing a CommitmentA commitment statement has three properties: a high degree of finality, a high degree of specificity, and a clear statement of consequences.Several ways to crea

36、te a commitment: public pronouncement linking with an outside base increase the prominence of demands reinforce the threat or promise4.2 Establishing a Commitment4.3 Preventing the Other Party from Committing PrematurelyOne way to prevent the other party from establishing a committed position is to

37、deny his or her the necessary time.Another approach is to ignore or downplay a threat by not acknowledging the other partys commitment, or even by making a joke about it. There are times, however, when it is to a negotiators advantageous for the other party become committed.4.3 Preventing the Other

38、Party4.4 Finding Ways to Abandon a Committed PositionFour avenues for escaping commitment: Play a way out Let it die silently Restate the commitment Minimize the damageA commitment position is a powerful tool in negotiation, it is also a rigid tool and must therefore be used with care. 4.4 Finding W

39、ays to Abandon a5. Closing the DealSeveral tactics are available to negotiators for closing a deal: Provide alternatives Assume the close Split the differences Exploding the offers Sweeteners 5. Closing the DealSeveral ta6. Hardball TacticsSuch tactics are designed to pressure negotiators to do thin

40、gs they would not otherwise do, and their presence usually disguises the users adherence to a decidedly distributive bargaining approach.Dealing with typical hardball tacticsTypical hardball tactics6. Hardball TacticsSuch tacti6.1 Dealing With Typical Hardball Tactics-1How best to respond to a tacti

41、c depends on your goals and the broader context of the negotiation.Four main options that negotiators have for responding to typical hardball tactics: Ignore them Discuss them Respond in kind Co-opt the other party6.1 Dealing With Typical Hard6.2 Typical Hardball Tactics -1Good Cop/Bad Cop Weaknesse

42、s: relatively transparent; much more difficult to enact than to read. Lowball/Highball Theory: the extreme offer will cause the other party to revaluate his or her own opening offer and more closer to or beyond resistance point. Risk: the other party will think negotiating is a waste of time and wil

43、l stop negotiating. The best way to deal with: ask for a more reasonable opening offer from the other party. Good preparation needed. 6.2 Typical Hardball Tactics 6.2 Typical Hardball Tactics -2Bogey Negotiators using the bogey tactic pretend that an issue of little or no importance to them is quite

44、 important. This tactic is fundamentally deceptive, and it can be a difficult to enact. Bogeys occurs more often by omission than commission. The Nibble Negotiators using the bogey tactic ask for a proportionally small concession on a item that hasnt been discussed previously in order to close the d

45、eal. Two ways to combat the nibble.6.2 Typical Hardball Tactics 6.2 Typical Hardball Tactics -3Chicken Negotiators using this tactic combine a large bluff with a threatened action to force the other party to “chicken out” and give them what they want. Weakness: It turns negotiation into a serious ga

46、me in which one or both parties find it difficult to distinguish reality from postured negotiation positions. It is very difficult for negotiators to defend against.6.2 Typical Hardball Tactics 6.2 Typical Hardball Tactics -4Intimidation They all attempt to force the other party to agree by means of an emotional poly, usually anger or fear. Another form of intimidation includes increasing the appearance of legitimacy. Guilt can also be used as a form of intimidation. Two effective strategies for dealing with intimidation: discuss the negotiation process with the

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