Essentials Of Negotiation - Solutions Manual For Sixth Edition

Chapter 1 The Nature of Negotiation Overview This chapter is the foundation for the nature of negotiations. Friends, children, businesses, police, nations, everyone negotiates almost daily. Negotiations occur for two reasons: (1) to create something new that neither party could do on his or her own, or (2) to resolve a problem or dispute between the parties. Perspectives used to understand different aspects of negotiations include theory, research from economics, psychology, political science, communication, labor relations, law, sociology, and anthropology. Learning Objectives 1. 2. 3. 4. 5. 6. 7. Authors’ style and approach. Characteristics of a negotiation situation. Interdependence in negotiation. Mutual adjustment throughout negotiations and making and interpreting concessions. Value claiming and value creation. Definition and levels of conflict. Major strategies for conflict management. I. Authors’ Style and Approach A. Use of terminology. 1. Bargaining: describes the competitive win-lose situations (haggling). 2. Negotiation: refers to win-win situations (to find mutually acceptable solutions). B. “Heart of Negotiation” ̶ give-and-take approach. 1. Give-and-take is extremely important, but negotiation is a very complex social process, where many of the most important factors that shape the negotiation occur before the negotiation, or shape the context around the negotiation. C. Insights drawn from three sources. 1. Personal experience. 2. Media – television, radio, newspaper, magazine, and Internet. 3. Social science research. II. Joe and Sue Carter Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 1 An illustrative tale of negotiation. III. Characteristics of a negotiation situation A. Characteristics common to all negotiation situations. 1. There are two or more parties, individuals, groups or organizations. 2. There is a conflict of needs and desires between two or more parties, and the parties must search for a way to resolve the conflict. 3. Parties negotiate because they think they can get a better deal by negotiating than by simply accepting what the other side will voluntarily give them or let them have. 4. When negotiating, a give-and-take is expected. To reach an agreement, both sides will modify their opening statement to find a middle ground; they compromise. 5. The parties prefer to negotiate and search for agreement rather than to fight openly, have one side dominate and the other capitulate, permanently break off contact, or take their dispute to a higher authority to resolve it. 6. Successful negotiation involves the management of tangibles and also the resolution of intangibles. a) Tangible factors: the price or the terms of agreement. b) Intangible factors: The underlying psychological motivations that may directly or indirectly influence the parties during a negotiation. They have an enormous influence on negotiation processes and outcomes, so it is crucial for negotiators to understand how they affect decision making and tangible outcomes. Examples of intangible factors include: (1) The need to “win” or avoid losing. (2) The need to look “good” to those you’re representing. (3) The need to defend an important principle or precedent in a negotiation. (4) The need to appear “fair” or “honorable” or to protect one’s reputation; and (5) The need to maintain a good relationship. IV. Interdependence A. Working interdependently allows parties to achieve a possible outcome that is better than they could achieve by working on their own. B. Most relationships between parties may be characterized in one of three ways: independent, dependent, or interdependent. Copyright © 2016 McGraw-Hill Education. Al