Negotiations
Definition of Negotiation ( in Organizations)
- Is the process in which two or more parties reach agreement on an issue even though they have different preferences regarding that issue.
- A process in which two or more parties exchange goods and/ or services and attempt to agree on the exchange rate for them
Types of Negotiation
1. Distributive Negotiation
- Sometimes called positional or hard-bargaining negotiation; Also called Fixed-pie or win-lose
- Negotiation that seeks to divide up a fixed amount of resources;
- Often involves people who have never had a previous interactive relationship, nor are they likely to do so again in the near future
2. Integrative Negotiation
- Sometimes called interest-based or principled negotiation
-
Distributive Versus Integrative Bargaining
Goal Get much of the “pie” as possible Expand the “pie” so that both parties are satisfied
Motivation Win-Lose Win-Win
Focus Positions Interest
Interest Opposed Congruent
Information Sharing Low (Sharing of Information will only allow other party to take advantage) High (Sharing of information will allow each party to find ways to satisfy interest of each party)
Duration of Relationship Short-Term Long-Term
Approaches to Negotiation
1. Individual Differences
- An approach which concentrated on the personality variables of the negotiators
- Assumes that the key to successful negotiation is selecting the right person to do the negotiating
1.1 Personality / Traits
1.2 Moods / Emotions
1.3 Culture
1.4 Gender Differences
2. Situational Characteristics
- Are the context within which negotiation takes place
- Include Types of communication between negotiators, Potential outcomes of negotiation, Number of people representing each side etc.
- Many situational characteristics are external to negotiators and beyond their control
3. Game Theory
- Developed by economists using mathematical model to predict the outcome of negotiation situations
- It requires that
- Is the process in which two or more parties reach agreement on an issue even though they have different preferences regarding that issue.
- A process in which two or more parties exchange goods and/ or services and attempt to agree on the exchange rate for them
Types of Negotiation
1. Distributive Negotiation
- Sometimes called positional or hard-bargaining negotiation; Also called Fixed-pie or win-lose
- Negotiation that seeks to divide up a fixed amount of resources;
- Often involves people who have never had a previous interactive relationship, nor are they likely to do so again in the near future
2. Integrative Negotiation
- Sometimes called interest-based or principled negotiation
-
Distributive Versus Integrative Bargaining
Goal Get much of the “pie” as possible Expand the “pie” so that both parties are satisfied
Motivation Win-Lose Win-Win
Focus Positions Interest
Interest Opposed Congruent
Information Sharing Low (Sharing of Information will only allow other party to take advantage) High (Sharing of information will allow each party to find ways to satisfy interest of each party)
Duration of Relationship Short-Term Long-Term
Approaches to Negotiation
1. Individual Differences
- An approach which concentrated on the personality variables of the negotiators
- Assumes that the key to successful negotiation is selecting the right person to do the negotiating
1.1 Personality / Traits
1.2 Moods / Emotions
1.3 Culture
1.4 Gender Differences
2. Situational Characteristics
- Are the context within which negotiation takes place
- Include Types of communication between negotiators, Potential outcomes of negotiation, Number of people representing each side etc.
- Many situational characteristics are external to negotiators and beyond their control
3. Game Theory
- Developed by economists using mathematical model to predict the outcome of negotiation situations
- It requires that