N1 The Nature of Negotiation

Chapter 1 The Nature of Negotiation

Negotiations purposes 􏰁

·      To agree on how to share or divide a limited resource

·      To create something new that neither party could attain on his or her own

·    To resolve a problem or dispute between the parties

Bargaining and negotiation do not have the same meaning:

􏰀􏰀 Bargaining: refers to competitive, win-lose (fixed-pie, fixed-sum) situations

􏰀􏰀 Negotiation: refers to situations with win-win potential (as when parties try to find a mutually acceptable solution to a complex conflict)

Characteristics of a Negotiation Situation

·      􏰀􏰀 Two or more parties

·      􏰀􏰀 A conflict of needs and desires between the parties, who 􏰁             - negotiate because they think they can get a better deal      than by simply accepting what the other side offers them or by other means (which?)

- expect a “give and take” process

·           Parties search for agreement rather than:

􏰁                         - Fight openly 􏰁

                        - Capitulate 􏰁

                        - Break off contact permanently 􏰁

                        - Take their dispute to a third party for judgment

·           Successful negotiation involves: 􏰀Management of tangibles (e.g., the price or the terms of agreement)

·      􏰀Resolution of intangibles (the underlying psychological motivations) such as winning, losing, saving face

Incentives structure:

·      􏰀One issue (payoff or dimension)􏰂 Win-lose, zero-sum, or distributive: I win, you necessarily lose

·      􏰀Several issues (payoffs or dimensions) 􏰂 Win-win, non-zero-sum, or integrative: Opportunities for both parties to gain

Interdependence 􏰀

·        Parties need each other to achieve their preferred outcomes or objectives

·      􏰀 Interdependent parties have interlocking goals (interests), but not everyone wants or needs exactly the same things

         􏰁      - interdependent relationships have mix of convergent and conflicting interests (mixed motive)

Conflict is a:

"sharp disagreement or opposition" and includes "the perceived divergence of interest, or a belief that the parties' current aspirations cannot be achieved simultaneously"

Conflict is dependent on

􏰁             - its context

􏰁             - people: 􏰀

                        Do people behave the same/differently in different context?

􏰀                        Does it matter who is involved, how much they know, etc.?

􏰀                Does culture matter?

What can be done about conflict?

􏰀              It cannot be eliminated, but can be managed: 

-       obtain the best under the circumstances,

-       avoid the bad parts

􏰀             It involves decision making 􏰁

-       Unilaterally (fight, use power, sue) 􏰁

-       Jointly (negotiations)