Essay About Structure Of Negotiation Congruent Aspect And Problem Focus

Organisational Behaviour Notes
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Structure of Negotiation Congruent Aspect: Identical preferences Bring strategic advantage if you know which issues are congruent but your counterpart does not. Ie: benefit by offering to concede on the congruent issues in exchange for preferable terms on another non-congruent issues Distributive Aspect: (Positional bargaining) Two parties have opposing preferences (equal intensity) Ie: Monetary (Buyer want less) Zero sum approach require one party to lose in order for the other party to benefitInvolves back and forth offers and counter offers To maximise their gains by focusing on a specific idea & arguing for it irrespective of the underlying interests/ needs  Shell (2006): Preparing, exchanging info, bargaining, committing and concluding Integrative Aspect: (Principled negotiation) Parties engage in creative problem-solving that aims to have a mutually beneficial outcome Place relationship at the higher degree of importance → TRUST Seeking win-win outcomes Involve research & gather info Aware of their Best Alternative to a Negotiated Agreement (BATNA) & WATNA (solution evaluation and measurement of success) BATNA: Know minimum you are willing to accept & your walk away point Benefit: Stronger BATNA provides you with a basis to persuade them to accept a specific agreement Fisher, Ury & Patton (1991): Emphasis the need for clear communication regarding the needs of both partiesBATNA’s 4 Principles Separate people from the problem Focus on problem solving Listen actively, suspend judgement and acknowledge substance Ask relevant questions & build relationship Focus on interests, not positions Focus on what they need (interest), instead of what they want Be specific and use examples Better understand the problemsInvent options for mutual gain Being tough on the problem & create space for collaboration Brainstorm together and make a long list of possible solutions No criticism & no judgementUse objective criteria Jointly agree on which objective criteria will be used Include news, precedents, professional standards/ knowledge Claiming Value: Lax & Sebenius (1986): Doing what is necessary to claim the largest piece possible; self-interest (Distributive approach)Tactic: Raiffa (1982): Establish a reservation price (min acceptable value & smallest pie you’re willing to accept)Leant other people RP & push them Anchoring When initial offer made become a mental reference point against which other possible solutions are judged Being the first to make offerCreating Value: