Page 210 - DMGT519_Conflict Management and Negotiation Skills

Conflict Management and Negotiation Skills

Notes 9.11 Summary

 For sellers, the BATNA or s is the price at which they will simply continue to seek another
buyer, and for buyers the BATNA or b is the price at which they will look for another car
to buy.
 One critical piece of information that can provide a distinct advantage is the reservation
price of the other side, or how eager the other party is to reach an agreement.
 A third important factor is the skill of the negotiator.
 Negotiators who prepare in advance and successfully utilize commonly practiced
negotiation tactics will reach agreements that are more favorable to them.
 Facts, beliefs, and feelings about the relationships between the parties.
 Open discussion of the negotiation process that helps understand and manage the process.

 The single-issue negotiation situation is the most common, and the one issue to be
negotiated is usually price
 Once the opening offers are made the real haggling process, often called bracketing,
occurs.
 In a negotiation situation the parties may be involved in a strictly win-lose relationship
 The reciprocity norm, or the human tendency to respond to the actions of others with
equal or similar actions, is a third major type of norm.
 Good faith bargaining is a fourth major type of norm, and in a negotiation situation
generally means that people expect certain behaviors from the other negotiators
 At some point in the negotiation process, the parties involved believe they are close to a
settlement.

9.12 Keywords

Contingency Contract: A contingency contract is an agreement that specifies how a future event
will change specific issues contained in the contract. If such a future issue cannot be foreseen, a
contingency contract can allow the parties to reach agreement on all other issues, and then
provide for exactly how the terms will be finalized once the future event is known.
Fairness Norm: According to Richard Shell, professor of legal studies and management and
academic director of the Wharton Executive Negotiation Workshop, the negotiation process
involves one of human nature's most basic psychological drives: the need to maintain an
appearance of consistency and fairness in both words and deeds.
Good faith bargaining: It is a fourth major type of norm, and in a negotiation situation generally
means that people expect certain behaviors from the other negotiators.

Reciprocity Norm: The reciprocity norm, or the human tendency to respond to the actions of
others with equal or similar actions, is a third major type of norm. Someone who believes that
"an eye for an eye" is the most reasonable response to another party is applying the reciprocity
norm.

Reframing Personal Attacks: Making personal attacks has, unfortunately, become a common
tactic in negotiations. The other party may simply get caught up in the "heat of battle," or may
actually plan on using personal attacks as a means of getting the other party emotionally
involved and thus possibly less focused on their objectives.

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