Disadvantages of Collaborative Negotiation Quiz and Flashcards

Study Notes

Disadvantages of Competitive Negotiations

Blocks creative exploration and potential joint gains
Overestimates payoffs of competitive actions
Encourages brinkmanship (impasses) and may undermine implementation (commitment vs. compliance)

Disadvantages of Collaborative Negotiations

May pressure an individual to compromise and accommodate in ways not in their best interests
Avoids confrontational strategies (which can be helpful at times)
Increases vulnerability to deception and manipulation by a competitive opponent
Makes it hard to establish definite aspiration levels and bottom lines
Requires substantial skill and knowledge of the process
Requires strong confidence on one's perceptions regarding the interests and needs of the other side

Criteria for a Negotiation Method

Produces a "wise" agreement, if agreement is possible
Is efficient
Improves or at least does not damage the relationship

Principled Negotiations

Particularly oriented to collaborative negotiations, but can be used in competitive negotiations
Method centered around four considerations (PIOC):
- People: Separate people from the problem
- Interests: Focus on interests, not positions
- Options: Generate a variety of possibilities before deciding what to do
- Criteria: Insist that the result be based on objective standards

Principles of Negotiation Learning Outcomes

Define negotiation
Explain approaches to negotiations
Identify common traits of successful negotiators

Definition of Negotiation

A process of securing an agreement between parties with different needs and goals, but each having something to offer to the other, and each benefitting from establishing an agreement
Alternative definition: Negotiation is a basic means of getting what you want from others through back-and-forth communication designed to reach an agreement when you and the other side have some interests that are opposed

Approaches to Negotiations

Two main approaches: competitive and collaborative
Competitive:
- Parties compete over distribution of a fixed sum of value
- Most often, the only issue at stake is financial and aim is to claim as much as possible
- Also known as zero-sum negotiation
Collaborative:
- Parties cooperate to achieve maximum benefits by integrating their interests into an agreement
- Involves both financial and non-financial terms
- Also known as win-win negotiation

Fundamental Framework

Any successful negotiation must have a fundamental framework based on knowledge of three things:
- The best alternative to negotiation (BATNA)
- The minimum threshold for a negotiated deal (Reservation Price)
- How flexible a party is willing to be and what trade-off it is willing to make

Key Concepts

BATNA (Best Alternative To a Negotiated Agreement)
Reservation Price: The least favourable point at which you'll accept a negotiated deal
ZOPA (Zone Of Possible Agreement): The range in which a potential deal can take place
Value creation through trades: The trading of goods or services that have only modest value to their holders but exceptional value to the other party

Common Traits of Successful Negotiators

Self-confidence
Patience
Information and knowledge
Knowledge of all options (BATNA)

Description

Explore the potential disadvantages of collaborative negotiations in this quiz. Learn about how collaborative negotiations can block creative exploration, lead to overestimation of payoffs, encourage brinkmanship, and undermine implementation.