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Negotiations
Terms and Concepts of my negotiations class
68
Other
Graduate
04/13/2013

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Term
Team Integrative Strategies
Definition
Packaged deals, MESOs, loyal to interests open to options, post-settlement settlements, Ask questions
Term
How to build on Differences?
Definition
fractionate/add issues, trade issues with different priorities, contingency contracts.
Term
When working with teams beware 3 things:
Definition
1. common-knowledge effect 2. false consensus effect, failing to present a common front, "monolithic"
Term
Pros and cons of rights/power based disputes
Definition
Pros: est. position of strength from which to negotiate
con: hard to see interests, hard to make concessions, bad when you have low power.
Term
When to use rights or power?
Definition
when party won't come to table
when you cannot focus on interests
when parties are positioning themselves, social significance precedent
Term
How to make wise threats?
Definition
Willingness-be willing to follow through
Motivate-threaten to motivate not punish
Save Face- make it easy for the other side to meet your demands, no revenge
Be exact-when and what
Term
How can you defuse threats?
Definition
-ignore
-don't reward with concessions
-label the tactic
-combine rights and interests in your response
Term
How to approach a dispute?
Definition
open with rights and quickly segue into interests
-apologize when needed
focus on interests
-act the way you want them to act
Term
Distributive Negotiation strategies
Definition
1. Know your BATNA
2. Define and commit to your RP
3. Focus on strengths-realistic
4. Research other party's BATNA & RP
5. Aggressive first offer
6. Strategic concessions
7. Focus on goal during negotiation &RP:)
Term
Why do impasse's occur?
Definition
1. Assume other part wants the opposite of you
2. Emotions
3. Behavioral committment
4. Unrealistic aspirations, fixed on positions
5. fear of sharing info
6. lack of preparation
Term
Distributive vs. Integrative
Definition
Distributive: win/lose, conceal info, positions, single issue, competitive, short-term relationshio

Integrative: win/win, share info, interests, focus on multiple issues, cooperative problem solving, long term relationship
Term
Strategies to creating Value
Definition
-Cooperative approach: treat as joint problem, brainstorm
-focus on interests not positions
-search for differences
-Make and ask for proposals
Term
Pros and Cons of Agents
Definition
Pros: special expertise, confidentiality, detached, increased tactical flexibility

Cons: may not have aligned interests, bluffing, cost $, more to manage, communication errors
Term
How can you tell if someone is bluffing?
Definition
Ask the same question in multiple ways, watch body language
Term
How to Mediate?
Definition
1. Intro
2. Reframe each parties desires
3. list of issues-agenda
4. exploration and prioritization of issues
5. brainstorm solutions
6. caucus-reality check
7. agreement-include contingencies
Term
When/Why call a mediator?
Definition
1. parties unable to communicate
2. mistrust
3. reactive devaluation
4. Over-confidence bias
5. strong positional claims
6. past/blame focus-emotions run high
7. might go to litigation ($$)
8. recurring disputes
Term
Reactive Devaluation?
Definition
not valuing what a specific person says
Term
Facilitative mediation vs. Evaluative mediation
Definition
Facilitative: does not present own views, clarifies issues, enhances communication, the parties decide what to do.

Evaluative: assesses the strengths and weaknesses of claims, proposes solutions, predicts court outcomes
Term
Pros of Contingency contracts?
Definition
Establish incentives for performance, risk sharing, solve problems of trust, managing decision making biases, diagnosing disingenuousness
Term
When should you use a contingency contract and when not?
Definition
Yes-continued interaction, enforce ability, clarity and measurability

No- you can't afford to lose, other party has more info, no objective measure of outcome.
Term
What is negotiation?
Definition
a decision making process which 2+ people agree how to allocate scare resources
--getting what you want for their reasons.
Term
Negotiation mistakes
Definition
fail to ask, leave money on the table, settling to too little, walking away from the table (emotion), settling for worse terms than current situation
Term
Bargaining Zone
Definition
Zone of possible agreement(overlap. Space between buyer's RP and seller's RP
Term
Things that lead to feeling you must always make a deal (getting to yes)
Definition
commitment bias, deception, confirmation bias (deception of self), unwilling to forgo sunk costs.
Term
To lie is to do 2 things:
Definition
1. make an untrue statement with intent to deceive
2. create a false or misleading impression
Term
Strategic Alliances
Definition
Coalitions of individuals, groups, corporations, or nations
Term
2 important aspects of forming alliances
Definition
1. trust
2. rapport

also, relationship and process influence it
Term
In strategic alliances power derives from 2 things
Definition
1. control of resources
2. process
Term
Psychological effects of holding power
Definition
-self-serving
-in-group bias (you're in if you are one of us)
- system justification (rules are fair)
Term
behavioral effects of holding power
Definition
disinhibition and risk taking (I'm invincible)
Creation of systems, rules, and ideologies that favor the self and the group
Term
How can powerlessness corrupt?
Definition
-blind obedience
-disengagement and neglect
-rebellion
Term
Barriers to effective group negotiation
Definition
social loafing effect (disengaged)
In-group bias-us vs. them.
Term
Problems with coalitions
Definition
inherently unstable--want as little of a group as possible, if trust is broken stability is almost impossible.
Term
How to stop the bad spiral of coalitions?
Definition
procedural rules
costs of not joining
select coalition members who have a good commitment and reputation
establish interpersonal ties, form coalitions that span multiple issues
Term
Strategies to influence
Definition
Names, photos, emotional appeal , principles and values, order of presentation, negative advertising. (Its' always good to be last.
Term
Advocacy Effect
Definition
tendency for more positive attitudes toward what/who one advocates than to what/who others advocate.
Term
Values driven
Definition
1. identify decision alternatives
2. Evaluate alternatives in terms of value systems and frameworks
3. Make decision
4. Action
Term
Values Justification
Definition
1. Identify decision alternatives
2. Make decision
3. Choose value system to justify chosen alternative
4. Rationalization
Term
Rawls Justice
Definition
concerns the actual distribution of resources. Goals is to maximize the well being of the worse-off individual
Term
Nozick and Justice
Definition
Concerns the procedures used to distribute resources. Goal is to create justice in acquisition and transfer.
Term
Types of justice
Definition
1. Distributive justice: how much each person gets?
2. Procedural Justice: how was this distribution determined?
Term
What helps with fairness?
Definition
transparency & Consistency
Term
Turn moral outrage into simple displeasure through:
Definition
transparent and consistent procedures
Term
Cognitive Bias
Definition
Escalation of commitment, concession aversion, reactive devaluation
Term
•Looking for and focusing on .............in a negotiation helps to facilitate integrative solutions
Definition
compatible issues
Term
•Coalitions bring people together behind a common interest to gain more ......as a collective entity
Definition
power
Term
•Fundamental attribution error
Definition
o Tendency to over value dispositional or personality based explanations for the behavior of others while undervaluing situational explanations
Term
Kathy Aaronson’s tactic, ‘Auction’ from “winning at the sport of negotiation
Definition
o A person who claims they can get the product cheaper, better, or faster somewhere else
Term
•A term used to describe concessions that have been effectively packaged together
Definition
o Logrolling, only giving a concession when you are asking for one in return. (Issues packaged together are MESOS)
Term
•According to Sebenius and Lax, there are two broad strategies to effect agreements
Definition
o To worsen your counterpart’s BATNA.
To highlight and enhance cooperative potential
Term
• Establishing credibility before exerting influence is part of Cialdini’s principle of.........
Definition
Authority
Term
• Aligning incentive to help motivate parties to perform, is essential in order for a .......... ..........to be effective
Definition
contingency contract
Term
• The biggest reason coalitions are inherently unstable
Definition
o They are structured to be competitive, not cooperative
Term
• Usually, you want to beat the counterparty in .........., in a justifiable manner
Definition
anchoring high
Term
• A Pareto efficient agreement
Definition
o An agreement that cannot make any party better off without decreasing the outcomes of any party involved
Term
• After countering a ‘dirty’ negotiation tactic, this/these may be used to refocus on interests (Ethics in negotiation, page 180)
Definition
o Asking questions, pausing, then offering more info
o Expressing gratitude with an apology
o Separate the people from the problem
o Ignore the tactic
o Call the tactic out
o Respond in kind (last resort)
Term
Ways to make concessions strategically
Definition
o Exchange concessions (don’t make unilateral concessions)
o Develop a rational for each concession
o Make your concessions smaller as a goal approaches
Term
Post-settlement settlements
Definition
If you settled on something that isen't entirly agreeable, you can agree to meet at a later date to re-negotiate
Term
Scoring Systems
Definition
Represent every item on your planning document. Have a scoring system for you opponent too. weight issues, make sure that it's very editable. Package-level BATNAs and RPs.
Term
Fractionate
Definition
unbundling issues
Term
o Power can create
Definition
1. Illusions of transparency
2. Moral hypocrisy, and
3. Prevent perspective-taking
Term
WISE threats
Definition
Willingness, focus on Interests, Save face, Exact
Term
• Three situations in which threats can be a necessary and effective tactic:
Definition
o As negotiators attempt to push past a heated deadlock, threats might be required to get the other party to come to the bargaining table
o Threats can be a weapon against recalcitrance, steering a negotiation from impasse toward settlement
o Well-crafted threats may ensure that an agreement will survive the negotiation and secure implementation as well as follow-through
Term
What are the four standards of evaluating strategies and tactics
Definition
PERS--personal ethics, End Result Ethics, Rule Ethics, Social Contract ethics

End-Result Ethics.-make the decision based on expected results, or what give us the biggest return on investment.
Rule Ethics.- The rightness of an action is rule by existent laws
Social Contract Ethics.- The decisions are taken based in the strategy and values of the organization. The same concept applies for communities and societies.
Term
5 deception tactics
(False.BS.MD)
Definition
Misrepresentation
Bluffin
Falsification
Deception
Selective disclosure
Term
When negotiating long distance what should you do? (MEDIA)
Definition
1.Manage the effects of Communication characteristics
2.Enrich technology and relations
3.DIAgnose the other party's comfort zone in relation to your goals.
Term
Negotiators can create 2 kinds of value:
Definition
1. Private Value
2. Common Value
Term
3 types of experts/agents that you might want to use
Definition
1.Substantive-tax person, auditor (someone with a specific skill)
2. Process-mediator, or negotiator
3. someone with special precedence-lobbyist, government official
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