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CHAPTERONETheNatureofNegotiationMcGraw-Hill/IrwinCopyright?2011byTheMcGraw-HillCompanies,Inc.Allrightsreserved.1-2IntroductionNegotiationissomethingthateveryonedoes,almostdaily1-3NegotiationsNegotiationsoccurforseveralreasons:ToagreeonhowtoshareordividealimitedresourceTocreatesomethingnewthatneitherpartycouldattainonhisorherownToresolveaproblemordisputebetweentheparties1-4ApproachtotheSubjectMostpeoplethinkbargainingandnegotiationmeanthesamething;however,wewillbedistinctiveaboutthewayweusethesetwowords:Bargaining:describesthecompetitive,win-losesituationNegotiation:referstowin-winsituationssuchasthosethatoccurwhenpartiestrytofindamutuallyacceptablesolutiontoacomplexconflict1-5ThreeImportantThemes

ThedefinitionofnegotiationandthebasiccharacteristicsofnegotiationsituationsInterdependence,therelationshipbetweenpeopleandgroupsthatmostoftenleadsthemtonegotiateUnderstandingthedynamicsofconflictandconflictmanagementprocesseswhichserveasabackdropfordifferentwaysthatpeopleapproachandmanagenegotiations1-6Characteristicsofa

NegotiationSituationTherearetwoormorepartiesThereisaconflictofneedsanddesiresbetweentwoormorepartiesPartiesnegotiatebecausetheythinktheycangetabetterdealthanbysimplyacceptingwhattheothersideoffersthemPartiesexpecta“give-and-take”process1-7Characteristicsofa

NegotiationSituationPartiessearchforagreementratherthan:FightopenlyCapitulateBreakoffcontactpermanentlyTaketheirdisputetoathirdpartySuccessfulnegotiationinvolves:Managementoftangibles(e.g.,thepriceorthetermsofagreement)Resolutionofintangibles(theunderlyingpsychologicalmotivations)suchaswinning,losing,savingface1-8InterdependenceInnegotiation,partiesneedeachothertoachievetheirpreferredesorobjectivesThismutualdependencyiscalledinterdependenceInterdependentgoalsareanimportantaspectofnegotiationWin-lose:Iwin,youloseWin-win:Opportunitiesforbothpartiestogain1-9InterdependenceInterdependentpartiesarecharacterizedbyinterlockinggoalsHavinginterdependentgoalsdoesnotmeanthateveryonewantsorneedsexactlythesamethingAmixofconvergentandconflictinggoalscharacterizesmanyinterdependentrelationships1-10TypesofInterdependence

AffectesInterdependenceandthestructureofthesituationshapeprocessesandesZero-sumordistributive–onewinnerNon-zero-sumorintegrative–amutualgainssituation1-11AlternativesShapeInterdependenceEvaluatinginterdependencedependsheavilyonthealternativestoworkingtogetherThedesirabilitytoworktogetherisbetterforesBestavailablealternative:BATNA(acronymforBestAlternativetoaNegotiatedAgreement)1-12MutualAdjustmentContinuesthroughoutthenegotiationasbothpartiesacttoinfluencetheotherOneofthekeycausesofthechangesthatoccurduringanegotiationTheeffectivenegotiatorneedstounderstandhowpeoplewilladjustandreadjustandhowthenegotiationsmighttwistandturn,basedonone’sownmovesandtheother’sresponses1-13MutualAdjustmentandConcessionMakingWhenonepartyagreestomakeachangeinhis/herposition,aconcessionhasbeenmadeConcessionsrestricttherangeofoptionsWhenaconcessionismade,thebargainingrangeisfurtherconstrained

1-14TwoDilemmasin

MutualAdjustmentDilemmaofhonestyConcernabouthowmuchofthetruthtotelltheotherpartyDilemmaoftrustConcernabouthowmuchshouldnegotiatorsbelievewhattheotherpartytellsthem1-15ValueClaimingandValueCreationOpportunitiesto“win”orshareresourcesClaimingvalue:resultofzero-sumordistributivesituationswheretheobjectistogainlargestpieceofresourceCreatingvalue:resultofnon-zero-sumorintegrativesituationwheretheobjectistohavebothpartiesdowell1-16ValueClaimingandValueCreationMostactualnegotiationsareacombinationofclaimingandcreatingvalueprocessesNegotiatorsmustbeabletorecognizesituationsthatrequiremoreofoneapproachthantheotherNegotiatorsmustbeversatileintheircomfortanduseofbothmajorstrategicapproachesNegotiatorperceptionsofsituationstendtobebiasedtowardseeingproblemsasmorepetitivethantheyreallyare1-17ValueClaimingandValueCreationValuedifferencesthatexistbetweennegotiatorsinclude:DifferencesininterestDifferencesinjudgmentsaboutthefutureDifferencesinrisktoleranceDifferencesintimepreferences1-18ConflictConflictmaybedefinedasa: "sharpdisagreementoropposition"andincludes"theperceiveddivergenceofinterest,orabeliefthattheparties'currentaspirationscannotbeachievedsimultaneously"1-19LevelsofConflictIntrapersonalorintrapsychicconflict

ConflictthatoccurswithinanindividualWewantanicecreamconebadly,butweknowthaticecreamisveryfatteningInterpersonalconflict

ConflictisbetweenindividualsConflictbetweenbossesandsubordinates,spouses,siblings,roommates,etc.1-20LevelsofConflictIntragroupConflict

ConflictiswithinagroupAmongteamandcommitteemembers,withinfamilies,classesetc.IntergroupConflict

Conflictcanoccurbetweenorganizations,warringnations,feudingfamilies,orwithinsplintered,fragmentedcommunitiesThesenegotiationsarethemostcomplex1-21DysfunctionsofConflictCompetitive,win-losegoalsMisperceptionandbiasEmotionalityDecreasedcommunicationBlurredissuesRigidcommitmentsMagnifieddifferences,minimizedsimilaritiesEscalationofconflict1-22FunctionsandBenefitsofConflictMakesorganizationalmembersmoreawareandabletocopewithproblemsthroughdiscussion.Promisesorganizationalchangeandadaptation.Strengthensrelationshipsandheightensmorale.Promotesawarenessofselfandothers.Enhancespersonaldevelopment.Encouragespsychologicaldevelopment—ithelpspeopleemoreaccurateandrealisticintheirself-appraisals.Canbestimulatingandfun.1-23TheDualConcernsModel1-24StylesofConflictManag

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