Disadvantages of Collaborative Negotiations Quiz

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)