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Organizational Behavior Final Lecture Study Guide

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McGill University
Management Core
MGCR 222
Ruthanne Huising

ORGANIZATIONAL BEHAVIOUR FINALLECTURE NOTESNEGOTIATION AND CONFLICT MANAGEMENTNegotiation is a process of communicating back and forth for the purpose of reaching a joint decision It is an interpersonal decisionmaking process necessary whenever we cannot achieve our objectives singlehandedlyNegotiations as MixedMotiveCreating ValueWinWin Integrative Expanding the Pie CooperationCreatively discover and exploit opportunitiesClaiming ValueWinLose Distributed Slicing the Pie CompetitiveClaiming valueIntegrative BargainingLeveraging interests in order to improve the outcomes of both parties Positions what you say you want InterestsMore than one issueWhere parties have different preferences across bargaining issues Prioritize and weight your issues prior to negotiating Unbundle issuesAsk about other partys interestsTry to understand other persons interests and when asked indicate yoursReciprocity effectExploit differences in interests and relative weightsPropose tradeoffs RecruitersVacation days CandidatesSigning bonusDo NOT offer a concessionPropose multiple offers of equivalent value simultaneously Pareto Frontier where one party cannot be better off without the other being worse offDistributive BargainingClaiming valueGetting as much of the pie as possiblePossibility of receiving something greater than your reservation price No Accept BATNA Yes Start slicing Reach negotiators surplusPositive Bargaining Zone when reservation prices overlapNegative Bargaining Zone when reservation prices do not intersectDistributive Bargaining Moves1Assess and improve your BATNA2Calculate your reservation point3Assess the other persons BATNA and associated reservation point4Set highrealistic aspirations Start with outlandish positions If in the end the difference is split youre better off than otherwise5Make the first offer Anchor the negotiations with your high aspirations6Never accept a first offer even when its perfectly acceptable Quickly reanchor7Plan your concessions8Rationally justify your offers9Appeal to norms of fairness10 No even split mentality11 End negotiations quietlyAnchoringInitial offer strongly influences the final outcome of the negotiationBecomes a reference pointAdjustment made in response to that pointBiases outcomeDifficult to reanchor but initial anchor should not be insultingInterests the WhyPositions the WhatPOWER AND INFLUENCEPower is relational You dont have power Your exercise power in relation to another personPower is not an attributething its a process between two partiesA influences the behaviour of B so that B acts in accordance with As wishes Each party has choices and resources But these are not evenly distributedPower Dependency Theory the more B depends on A the more power A may exercise in the relationship ButThe balance of power relationship is in a constant state of production Relationships are rarely staticAll social actors have a role in developing the game and the rulesGenerate more alternativesDecrease your dependenceConsider interdependenciesCollective actionReveal the dependenciesPersuasion the content of the command rather than the source induces complianceAuthority the source of the command rather than the content induces compliance Authority is a form of power When you exercise this form of power you may draw on five sources of powerBasesSources of PowerRelated to the motives for obeying on the part of the power subjectPerception of the source of power is importantPotencyeffectiveness depends on situationApplication requires creativity sophistication judgmentAlways drawing on multiple sources simultaneouslyLegitimate Power because he occupies a particular position he possess an acknowledged right to command and others listen Position in formal organizational structure is a source of power Accompanied by symbols such as office support dress Greatest reliability of anticipated reactions compared to other forms of authority
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