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Negotiation and Exam Preparation Guide

May 10, 2025

Recap and Exam Preparation

Module Overview

  • Course Title: Negotiation and Dispute Resolution
  • Lecturer: Dr. Valentina Paolucci

Lecture Components

  • Module Survey: Initial feedback and understanding
  • Lecturer Announcements: Updates and important information
  • T&L Curriculum Review: Overview of current teaching and learning methods

Exam Information

  • Format:
    • Duration: 90 mins
    • Answer 2 out of 3 questions
    • Equal marks for each question (30 marks each)
    • Includes a short case application of theory
  • Preparation Tips:
    • Review lecture notes and course materials
    • Study relevant book chapters
    • Practice potential questions for self-assessment

Negotiation Essentials

Definition of Negotiation

  • Interpersonal decision-making process
  • Necessary when objectives can't be achieved single-handedly
  • Involves multiple levels, contexts, and timeframes
  • Focus on relationships and trust alongside monetary aspects

Preparing for Negotiation

  • 80-20 Rule: Most impact from focusing on vital actions
  • Fixed-pie Perceptions: Often inaccurate; strategies include:
    • Avoid resignation (soft bargaining)
    • Avoid attack (hard bargaining)
    • Avoid mere compromise

Becoming an Effective Negotiator

  • Preparation, strategy, and post-negotiation behaviors
  • To maximize the likelihood of a good agreement:
    • Agreement that fulfills its purpose
    • Agreement that lasts
    • Agreement leading to future negotiations

Effective Negotiation Preparation

  • Self-Assessment:
    • Key questions: "What do I want?" "What are my alternatives?"
    • Targets and aspirations: Ideal outcomes and common pitfalls
    • BATNA: Best Alternative to a Negotiated Agreement
      • Accept terms better than BATNA, reject worse ones
      • Time-sensitive and should be improved constantly
  • Reservation Point:
    • Quantification of BATNA
    • Direct influence on negotiation outcomes

Other Assessment: Perspective-Taking

  • Counterparty perspective and hidden tables
  • Monolithic parties and research on counterparty interests

Situational Awareness

  • Distinctions between one-shot vs long-term, formal vs informal, etc.

Key Terms

  • BATNA: Best Alternative To a Negotiated Agreement
  • Fixed-pie perception: Belief that interests are completely opposed
  • Reservation Point: Indifference point between settlement and walking away
  • Target Point: Ideal outcome or upper limit

Self-Assessment Exercises

  • Potential exam scenarios to apply negotiation theory

Distributive and Integrative Negotiations

Distributive Negotiations

  • Objective: Efficient compromise and outcome distribution
  • Tactics: Competitive, direct, and assertive
  • Power Components:
    • Value brought to negotiation
    • Opponent's BATNA

Integrative Negotiations

  • Objective: Creating win-win agreements
  • Focus on integrating interests rather than distributing resources
  • Strategies for Expanding the Pie:
    • Identify multiple differences
    • Add additional issues
    • Make side deals
    • Leverage differing preferences

Establishing Trust & Building Relationships

Nature of Relationships

  • Importance in negotiation success
  • Not at the expense of maximizing gains

Types of Trust

  • Deterrence-based: Management-employee relationships
  • Knowledge-based: Customer-supplier relationships
  • Identification-based: Personal relationships

Building Trust

  • Cognitive Route: Rationale and shared goals
  • Affective Route: Intuition and emotional connection
  • Psychological strategies: Similarity, reciprocity, etc.

Cross-Cultural Negotiation

Cultural Frameworks

  • Individualism vs Collectivism: Personal goals vs group goals
  • Egalitarian vs Hierarchical: Power dynamics in negotiation
  • Direct vs Indirect Communication: Style differences

Challenges

  • Different bargaining styles
  • Sacred values vs secular trade-offs
  • Cultural Intelligence (CQ): Predicts negotiation success

Potential Exam Questions

  • Real-world scenarios applying negotiation theories and strategies

This summary encompasses the key points and themes discussed in the lecture on negotiation and dispute resolution, focusing on exam preparation and essential negotiation strategies.