MGMT2100 Study Guide - Final Guide: Best Alternative To A Negotiated Agreement, Negotiation, Problem Solving
Negotiation and Conflict Management
• Negotiation - a process in which two or more parties exchange goods or services and attempt to agree
upon the exchange rate for them.
• Negotiation occurs for several reasons:
o To agree on how to share or divide a limited resource.
o To create something new that neither party could attain on his or her own.
o To resolve a problem or dispute between the parties.
Bargaining
Characteristic
Distributive Bargaining
Integrative Bargaining
Goal
Get as much as possible
Expand the pie so that both parties are
satisfied
Motivation
Win-lose
Win-win
Focus
Positio I at go eod this poit o
this issue
Iterests Ca ou eplai h this issue is
so iportat to ou?
Information
Sharing
Low – will only allow the other party to
take advantage
High – will allow each party to find ways to
satisfy interests of each party
Duration of
Relationship
Short-term
Long-term
Negotiation Process
• Positive bargaining range – when there is overlap between the aspiration ranges of the two parties.
• Negative bargaining range – when there is no overlap between the aspiration ranges of the two
parties.
Characteristics of Distributive Bargaining
• Situation includes:
o Starting points – initial offer should allow for concession making.
o Target points
o Resistance point - reservation point/walkaway point
o Alternative options - BATNA – Best Alternative To a Negotiated Agreement
The Role of Alternative to a Negotiated Agreement (BATNA)
• Alternatives give the negotiator power to walk away from the negotiation.
• If alternatives are attractive, negotiators can: set their goals higher and make fewer concessions.
• If there are no attractive alternatives: negotiators have much less bargaining power.
Keys to the Distributive Bargaining Strategies
• Push for settleet ear oppoets resistae poit.
• Get the other party to change their resistance point.
• If settlement range is negative, either:
o Get the other side to change their resistance point
o Modify your own resistance point
• Convince the other party that the settlement is the best possible solution.
• Guard information carefully – only give information to the other party when it provides a strategic
advantage.
• When engaged in distributive bargaining, research consistently shows one of the best things you can
do is make the first offer, and make it an aggressive one.
• Another distributive bargaining tactic is revealing a deadline.
Integrative Bargaining
• Integrative strategy is an open, sharing, and a creative process.
o It is fie to share eah others BATNAs leads to less extreme resistance points, more
concessions and a bigger resource pie).
• Integrative negotiation is NOT wrapping a competitive strategy in a friendly package.
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Document Summary
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