MGMT2100 Lecture Notes - Lecture 7: Best Alternative To A Negotiated Agreement, Negotiation, Problem Solving
L7 NEGOTIATION AND CONFLICT MANAGEMENT
Negotiation
- To agree on how to share or divide a limited resource
- To create something new that neither party could attain on his or her own
- To resolve a problem or dispute between the parties
- Negotiatio is a proess i hih to or ore parties ehage goods or series ad attept to
agree upo the ehage rate for the.
Distributive and Integrative Bargaining
Negotiation Process
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Characteristics of Distributive Bargaining
Situation includes:
- Starting points (initial offer should allow for concession making)
- Target points
- Resistance point (reservation point/walkaway point)
- Alternative options (BATNA)
BATNA – Best Alternative To a Negotiated Agreement
The Role of Alternatives to a Negotiated Agreement (BATNA)
- Alternatives give the negotiator power to walk away from the negotiation
- If alternatives are attractive, negotiators can:
o Set their goals higher
o Make fewer concessions
- If there are no attractive alternatives:
o Negotiators have much less bargaining power
Keys to the Distributive Bargaining Strategies
- Push for settleet ear oppoet’s 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 other’s BATNAs leads to less etree resistae poits, ore
concessions and a bigger resource pie).
- Integrative negotiation is NOT wrapping a competitive strategy in a friendly package.
- When using an integrative strategy, both the relationship and the outcome are important to both
parties.
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
To agree on how to share or divide a limited resource. To create something new that neither party could attain on his or her own. To resolve a problem or dispute between the parties. Negotiatio(cid:374) is a (cid:862)pro(cid:272)ess i(cid:374) (cid:449)hi(cid:272)h t(cid:449)o or (cid:373)ore parties e(cid:454)(cid:272)ha(cid:374)ge goods or ser(cid:448)i(cid:272)es a(cid:374)d atte(cid:373)pt to agree upo(cid:374) the e(cid:454)(cid:272)ha(cid:374)ge rate for the(cid:373). (cid:863) Starting points (initial offer should allow for concession making) Batna best alternative to a negotiated agreement. The role of alternatives 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, make fewer concessions. If there are no attractive alternatives: negotiators have much less bargaining power. Push for settle(cid:373)e(cid:374)t (cid:374)ear oppo(cid:374)e(cid:374)t"s resista(cid:374)(cid:272)e poi(cid:374)t. Get the other party to change their resistance point. If settlement range is negative, either: get the other side to change their resistance point, modify your own resistance point.
