MGMT 102 Lecture Notes - Lecture 7: Emotional Blackmail, Bargaining, The Possession
1. Negotiation defined
2. Winning and losing
3. BATNA and WATNA
4. Distributive vs integrated negotiation (positions vs interests)
5. Power and influence - personal style
6. Psychological barriers
Negotiation: What is it?
Formally:
• To confer with another or others in order to come to terms or reach an agreement
• Mutual discussion and arrangement of the terms of a transaction or agreement
• To settle by discussion and bargaining
More colloquially:
• Haggling, bargaining, making deals, transacting, higgling, dickering, and horse trading.
Dwyer's definition:
An interactive process in which two or more parties seek to find common ground on an issue of
mutual interest or dispute and to reach a mutually acceptable agreement that will be honoured by all
parties concerned.
Win-win outcomes?
Win-win:
Lose-lose:
Win-lose: one party satisfied and one is dissatisfied with the negotiation.
Lose-win: one party withdraws or makes too many concessions, while the other party wins.
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• Not just an over used phrase
• A win-win or positive sum outcome is the goal
• No one likes to lose
• Losers may have little incentive to meet their agreements
• What if there were a way to have both parties win
Win-win outcomes or compromise?
• Process
• Concessions may be made
• Both give and take are features
• Agreement is reached to the satisfaction of both parties
• Both parties own the agreement; both have won
Positions and concessions:
Bottom line
• The minimum point beyond which negotiating parties will not go.
• Need to find the range where negotiation can take place.
• Usually involves trading off assets or activities.
Concessions
• Activities and assets that you can trade:
• You can go to the movies if you do the dishes for a week.
BATNAs and WATNAs
• Best alternative to a negotiated agreement (best possible out come if you can not negotiate an
agreement)
• Worst alternative to a negotiated agreement
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Negotiation defined, winning and losing, batna and watna, distributive vs integrated negotiation (positions vs interests, power and influence - personal style, psychological barriers. Formally: to confer with another or others in order to come to terms or reach an agreement, mutual discussion and arrangement of the terms of a transaction or agreement, to settle by discussion and bargaining. More colloquially: haggling, bargaining, making deals, transacting, higgling, dickering, and horse trading. An interactive process in which two or more parties seek to find common ground on an issue of mutual interest or dispute and to reach a mutually acceptable agreement that will be honoured by all parties concerned. Win-lose: one party satisfied and one is dissatisfied with the negotiation. Win-win outcomes or compromise: process, concessions may be made, both give and take are features, agreement is reached to the satisfaction of both parties, both parties own the agreement; both have won.
