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1、NEGOTIATIONS AND CONFLICT MANAGEMENTXUELI WANG SCHOOL OF ECONOMICS AND MANAGEMENTTSINGHUA UNIVERSITYNegotiationNegotiation: an interpersonal decision-making process by which two or more people agree how to allocate scarce resources.Why occurto create something new that neither party could do on his
2、or her ownto resolve a problem or dispute between the partiesManager is negotiatorDynamic nature of businessInterdependenceCompetitionInformation ageDiversityCharacteristics of negotiationTwo or more partiesconflict of interest between two or more partiesvoluntary process and a strategy pursued by c
3、hoiceno fixed or established set of rules or prefer to invent their own give and takeboth intangibles and tangibles are concernedNature of Negotiation-Interdependence Mutual dependency(goal) and mutual adjustment(process)Actual structure of interdependence Vs. perceived interdependenceDilemma in neg
4、otiationdilemma of honestydilemma of trustBuilding trust (efforts on the perception of the outcome and efforts on the process)The major sins of negotiationLeaving money on the tableSettling for too littleWalking away from the tableSettling for terms that are worse than your alternativeMyths about ne
5、gotiatorsGood negotiators are bornExperience is a great teacherGood negotiators take risksGood negotiators rely on intuitionSome terms used in N&CBATNA: (Best Alternative to a Negotiated Agreement) determines the point at which a negotiator is prepared to walk away from the negotiation table or your
6、 fall back position.Position Vs Interest: a position is what you say you want or must have. While an interest is why you want what you want.Positional bargaining is usually distributive-and may be inefficient in the sense that value may be left on the table at the time of settlement because each par
7、ty did not know what the other really wanted-but it may help one party gain more short-term profit. Interest-based bargaining adds integrative potential.Some terms used in N&CReservation point:the point at which the BATNA becomes preferable to starting or continuing a negotiation.Target point: your
8、objectiveAsking offer and counter offer: the start of the negotiationBargaining Range:the distance between the reservation points of the parties.Preparation worksheet for negotiationSelf-assessmentAssessment of the other partyAssessment of the situationDetails in the handout worksheetHow to evaluate
9、 the negotiationRelationship buildingConstructive communicationInterest satisfied( including the other party and the third party)SolutionsReasonableBANTA (benchmark)COMMITMENT (understanding and feasible) Distributive BargainingWhen a negotiator wants to maximize the value obtained in a single deal
10、and when the relationship with the other party is not important.Target point and resistance point; asking price and initial offer; alternative outcomeTwo tasks in distributive bargainingDiscover the other partys resistance pointinfluencing the other partys resistance pointwill vary directly with his
11、 estimate of your cost of delay or aborting negotiationswill vary inversely with his cost of delay or abortingwill vary directly with the value the other party attaches to that outcomewill vary inversely with the perceived value the first party attaches to an outcomeTactical tasksTo assess the other
12、 partys outcome values and the costs of terminating negotiationto manage the other partys impression of the negotiators outcome valuesto modify the other partys perception of his own outcome valuesto manipulate the actual costs of delaying or aborting negotiationsplan disruptive actionalliance with
13、outsidersschedule manipulationPositions during negotiationOpening offeropening stanceinitial concessionsrole of concessionspattern of concession makingfinal offerCommitmentEstablishing a commitmentpublic pronouncementlink with an outside allyincrease the prominence of demandsreinforce the threat or
14、promiseCommitmentAbandon a commitmentto indicate the conditions under which it applied have changedto let the matter die silentlyto restate the commitment in more general termsto minimize any possible damage to his self-esteem or to constituent relationshipsClosing the dealProvide alternativesassume
15、 the closesplit the differenceexploding offerssweetenersPie-slicing strategiesKnow your BATNAResearch the other partys BATNAset high aspirationsmake the first offercounteroffer immediatelyavoid stating rangesmake bilateral concessionsuse an objective-appearing rationale to support your offersappeal to norms of fairnessdo not fall for the “even split ployTactics to use in distributive bargainingDelaySilence and BracketingLimited AuthorityThe bottom lineNoNibblingExpectation and contro
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