McGraw-Hill/Irwin 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.CHAPTER 1CHAPTER 1The Nature of NegotiationThe Nature of NegotiationMcGraw-Hill/Irwin 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.The Titles A Few Words about Our Style many of the most important factors that shape a negotiation result. Our insights into negotiation draw from three sources. (experience, media, the wealth of social science research)McGraw-Hill/Irwin 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.2. Joe and Sue Carter A story about a husband and wife. In this day ,they faced the challenges of many major and minor negotiations. We use the story to highlight something important (definition ,characteristics of a negotiation, and so on).McGraw-Hill/Irwin 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.3. Characteristics of a Negotiation Situation(1) There are two or more parties. (2) There is a conflict of needs and desires between two or more parties. (3) The parties negotiate by choice. (4) When we negotiate we expect a “give and take ” process. (5) The parties prefer to negotiate and search for agreement. (6) Successful negotiation involves the management of tangibles when a party makes a concession, the bargaining range is further constrained. Two dilemmas in mutual adjustment.First, the dilemma of honesty, concerns how much of the truth to tell?Second, the dilemma of trust, how much should the negotiators believe what the other party tells them?McGraw-Hill/Irwin 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.6. Value Claiming and Value Creation -1 Identify two types of interdependent situations zero-sum and non-zero-sum. The structure of interdependence shapes the strategies and tactics that negotiators employ. In distributive situations negotiators are motivated to win the competition and beat the other party to gain the largest piece of the fixed resource that they can. In integrative situations the negotiators should employ win-win strategies and tactics. McGraw-Hill/Irwin 2004 The McGraw-Hill Companies, Inc., All Rights Reserved. Unfortunately, most actual negotiations are combination of claiming and creating value processes. The implications for this are significant:(1) Negotiators must be able to recognize situations that require more of one approach than the other.(2) Negotiators must be versatile in their comfort and use of both major strategic approaches.(3) Negotiator perceptions of situations tend to be biased toward seeing problems as more distributive/competitive than they really are.6. Value Claiming and Value Creation -2McGraw-Hill/Irwin 2004 The McGraw-Hill Companies, Inc., All Rights Reserved. Value may be created in numerous ways , and the heart of process lies in exploiting the differences that exist between the negotiators. The key differences among negotiators include these:(1) Differences in interests.(2) Differences in judgments about the future. (3) Differences in risk tolerance.(4) Differences in time preference.6. Value Claiming and Value Creation -3McGraw-Hill/Irwin 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.7. Conflict A potential consequence of interdependent relationships is conflict. Conflict can result from the strongly divergent needs of the two parties of from misperception and misunderstanding. Conflict can occur when two parties are working toward the same goal and generally want the same outcome or when both parties want very different outcomes. Regardless of the cause of the conflict, negotiation can play an important role in resolving it effectively.McGraw-Hill/Irwin 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.7.1 Definitions Conflict may be defined as a “sharp disagreement or opposition, as of interest, ideas, etc”, and includes “the perceived divergence of interest, or belief that the parties current aspirations cannot be achieved simultaneously”. Conflict results from “the interaction of interdependent people who perceived incompatible goals and interference from each other in achieving those goals.”McGraw-Hill/Irwin 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.7.2 Levels of Conflict Four levels of conflict are commonly identified: Intrapersonal or intrapsychic conflict. Interpersonal conflict. Intragroup conflict. Intergroup conflict.McGraw-Hill/Irwin 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.7.3 Function and Dysfunctions of Conflict Elements that contribute to conflicts destructive image: (1)Competitive , win-lose goals. (2)Misperception and bias. (3)Emotionality. (4)Decreased communication. (5)Blurred issues. (6)Rigid commitments. (7)Magnified differences and minimized similarities. (8)Escalation of conflict.McGraw-Hill/Irwin 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.7.4 Factors that Make Conflict Easy o