Bargaining: describes the competitive, win-lose situationsNegotiation: refers to win-win situations such as those that occur when parties try to find a mutually acceptable solution to a complex conflictPreparationsElements of Preparation-Information gathering -Analysis-Plannings Downsides of preparation-Resource limit-Informational limit -Cognitive limits-Mistaken assumptions -Selective PerceptionReason for Negotiatiations- -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 partiesSuccessful negotiation involves:-Management of tangibles (e.g., the price or the terms of agreement)-Resolution of intangibles (the underlying psychological motivations) such as winning, losing, saving faceFlow of Negotiations: Stages and Phases-Beginning phase (initiation)-Middle phase (problem solving)-Ending phase (resolution)Possitive Bargaining Zone - The Common Price range between the reservation points of both buyer and seller.Bargaining Surplus - The gap between the reservation points of both buyer and seller.Basic Rules of Negotiation - -Remain Focussed-Know the other party-Be reasonable-Use your words carefully-Compliment-Sense of Humor-Use creativityStrategy and Tactics of Distributive BargainingBargaining Situations-Goals of one party are in fundamental,direct conflict to another party-Resources are fixed and limited-Maximizing ones own share of resources is the goalPreparationset a-Target point, aspiration point-Walkaway, resistance point-Asking price, initial offerFundamental Strategies-Push for settlement near opponents resistance point-Get the other party to change their resistance point-If settlement range is negative, either:Get the other side to change their resistance pointModify your own resistance point-Convince the other party that the settlement is the best possible alternative-Discovering the other partys resistance point *-Influencing the other partys resistance point*Assessing the other partys resistance point *--Indirect Assessment find information used by the opponent to determine (unions fund position, manufacturers inventory position, property on sale for the duration etc)-Direct Assessment Opponent reveals so that it is not considered as a bargaining ploy (show wallet). Provoking the other party into an angry outburst hoping slip of tongue.Influencing the other partys resistance point*--Highlight the cost of delay-Show little interest in the thing your opponent perceives valuable-Highlight the value of the thing that you offerTactical Tasks of Negotiators-Assess outcome values and the costs of termination for the other party-Manage the other partys impressions-Modify the other partys perceptions-Manipulate the actual costs of delay or terminationTactics for distributive negotiations-Do not disclose any significant information about your circumstances. -Learn as much as possible about the other side-Establish an anchor-Divert the discussion away from unacceptable anchors-Make cautious concessionary moves-Use time as a negotiation tool-Offer multiple proposals, and consider packaging options-Signal your interest in closing the dealStrategy And Tactics of Integrative Negotiation-Inquire about the other side's interests-Provide significant information about your circumstances-Look for differences to create value-Take your timeWhat Makes IntegrativeNegotiation Different?-Focus on commonalties rather than differences-Address needs and interests, not positions *-Commit to meeting the needs of all involved parties-Exchange information and ideas-Invent options for mutual gain-Use objective criteria for standards of performanceKey Steps in the Integrative Negotiation Process-Identify and define the problem-Understand the problem fullyidentify interests and needs on both sides-Generate alternative solutions-Evaluate and select among alternativesFactors That Facilitate Successful Integrative Negotiation-Some common objective or goal-Faith in ones own problem-solving ability-A belief in the validity of ones own position and the others perspective-The motivation and commitment to work together-Trust-Clear and accurate communication-An understanding of the dynamics of integrative negotiationWhy Integrative Negotiation Is Difficult to Achieve-The history of the relationship between the parties-The belief that an issue can only be resolved distributive-The mixed-motive nature of most negotiating situationsMajor aspects for consideration (Cross Culture)-GreetingsDegree of formalityGift givingTouchingEye contactEmotionsSilenceEatingBody languagePunctualityPower Moves-Strengthening your BATNA-Weakening other partys BATNA-Changing the other partys perception of your BATNA-Changing the other partys perception of their own BATNA-Using credible threats-Engaging in a war of attrition-Using brinkmanship