Conditions for Using Negotiation

1
Conditions for Using Negotiation

• Two or more parties
• Conflict of interest such that what one party
  wants is not what the other party wants
• Both willing to negotiate for a good outcome
• Preference to work together rather than fight,
  give in, break off contact, or take the dispute
  to a higher authority

2
Choose the Best Conflict- Handling Style

• Collaborate if issues are important to both
  parties power is fairly equal and candor is
  possible there is potential for mutual
  benefits you have adequate time to fully
  discuss the details most likely to maximize
  everyones outcomes
• Accommodate or Compromise if you lack time
  or ability to collaborate can have positive
  or negative consequences
• Force/Compete or Avoid if
• other options arent feasible
• can create negative feelings

3
The Two Types ofBargaining Strategies
Integrative Bargaining
Distributive Bargaining
Bargaining Characteristics

• Available Resources
• Primary Motivations
• Primary Interests
• Focus of Relationships

• Fixed Amount
• I Win, You Lose
• Opposed
• Short-Term

• Variable Amount
• I Win, You Win
• Congruent
• Long-Term

4
Preconditions for Integrative Negotiation

• Common goal
• Faith in ones own problem-solving ability
• Belief in validity of other partys position
• Motivation to work together
• Mutual trust
• Clear communication

5
Decision-Making Biases That Impede Negotiations

• Escalation of commitment
• The mythical fixed pie
• Anchoring and adjustments
• Framing negotiations
• Availability of information
• The winners curse
• Overconfidence

6
Ugli Oranges

1. What will you do?
2. What price will you offer?
3. To whom and how will the oranges be delivered?

7
Ugli Oranges

• Info sharing
• Assess orange options
• Guarantee trust