MGMT2004 Lecture Notes - Lecture 10: W. M. Keck Observatory, Active Listening
Document Summary
You are unfamiliar with the issues are rules at hard. Time or distance prevents you from doing your best. You have a poor relationship with your negotiating partner. The two parties are collective entities: before you use an agent: Link agent compensation to performance: pros and cons of using an agent, pros: Can provide access to expert knowledge: market conditions, formal and informal norms, risk/opportunities. May have strategic advantages: can use certain tactics: good/bad cop, agent of limited authority. Energy, time, and money spent to ensure that the agent does not exploit the principal (principal agent problem) Complicated the negotiation process increased potential for miscommunication. Incentive contracts: eg. percentage compensation, hourly fees, fixed fees, bonuses or penalties. Other forms include reduction of market surplus compensation, pension, reputational damage and ethical codes of professional associations: interconnected or embedded negotiations. Interconnectedness between agent and principle: agents and principles can use the structure of the interconnectedness for strategic purposes, eg.
