Negotiation Skills Chapter 1 PDF

# Negotiation Skills ## F.Y.B.Com. : Semester - I As Per NEP 2020 (w.e.f. the Academic Year 2024-25) ### Authors: * **Michael Vaz** - Ex. Vice Principal, Mithibai College of Arts, Science & Commerce, Vile-Parle (W), Mumbai - 400 056. * **Aurora Vaz** - Dept. of Commerce, SVKM's Mithibai College...

# Negotiation Skills ## F.Y.B.Com. : Semester - I As Per NEP 2020 (w.e.f. the Academic Year 2024-25) ### Authors: * **Michael Vaz** - Ex. Vice Principal, Mithibai College of Arts, Science & Commerce, Vile-Parle (W), Mumbai - 400 056. * **Aurora Vaz** - Dept. of Commerce, SVKM's Mithibai College (Autonomous) of Arts, Science & Commerce, Vile-Parle (W), Mumbai - 400 056. ## Syllabus ### Unit 1: Negotiation and Types of Negotiations (15 Hours) * **Negotiation**: Concept, Key Negotiation Concepts, Perception and Cognition in Negotiation, Negotiation Process, Conflict and Negotiation Strategy. * **Types**: Distributive Negotiation, Integrative Negotiation, Multiple Phases and Multiple Parties, Preparation for a Deal, Table Tactics, Frequently asked Tactical Questions, Barriers to Agreement, Mental Errors in Reaching an agreement. * **Pedagogical Approach**: Lecture Method, Case Study and Assignments ### Unit 2: Negotiation Skills (15 Hours) * **Negotiation Skills**: Negotiating as an Organizational Capability, Skills of an Effective Negotiator, Negotiation and IT, Ethics in Negotiation; Cultural Differences in Negotiation Styles, Gender in Negotiations, Context of Mediation, Negotiation as Persuasion * **Developing Power, Decision Trees, Psychological Tools.** Practical Practice of Negotiation * **Pedagogical Approach**: Lecture Method, Case Study and Role Play ## Question Paper Pattern * **Total 50 Marks:** With 2 Credits * **30 Marks** External and **20** Marks Internal ### 30 Marks External * **Duration:** 1 Hour * **Marks:** 30 **Any 2 Out of 3** * **Q.1** Answer the following (15 Marks) * a. * b. * **Q.2** Answer the following (15 Marks) * a. * b. * **Q.3** Answer the following (15 Marks) * a. * b. ### 20 Marks Internal * **Any 4 Out of 6** 1. Class Test (05 Marks) 2. Assignment (05 Marks) 3. Presentation (05 Marks) 4. Group Discussion (05 Marks) 5. Quiz (05 Marks) 6. Case Study (05 Marks) **Notes:** 1. Any Four out of the above can be taken for the Internal Assessment 2. The Internal Assessment shall be conducted throughout the Semester ## Contents | Unit | Description | Page | |---|---|---| | Unit 1: Negotiation and Types of Negotiations | Negotiation | 1 | | Unit 1: Negotiation and Types of Negotiations | Types of Negotiations | 23 | | Unit 2: Negotiation Skills | Negotiation Skills - I | 67 | | Unit 2: Negotiation Skills | Negotiation Skills - II | 106 | | | Hints for Internal Assessment | 134 | | | Model Question Papers | 151 | ## 1. Negotiation ### Syllabus: * Concept - Key Negotiation Concepts * Perception and Cognition in Negotiation * Negotiation Process * Conflict and Negotiation Strategy ### Concept of Negotiation Negotiation is a fundamental process in which two or more parties with differing interests and goals work together to reach a mutually acceptable agreement. It is a dynamic and interactive communication process where parties seek to find common ground, resolve conflicts, and make decisions that satisfy their respective interests. ### Definitions: 1. **Roger Fisher and William Ury:** Fisher and Ury are known for their seminal work "Getting to Yes: Negotiating Agreement Without Giving In" and define negotiation as: * "Negotiation is a basic means of getting what you want from others. It is back-and-forth communication designed to reach an agreement when you and the other side have some interests that are shared and others that are opposed." 2. **Harvard Program on Negotiation:** The Harvard Program on Negotiation (PON) provides a comprehensive definition: * "Negotiation is a process in which two or more parties exchange goods or services and attempt to agree upon the exchange rate for them." 3. **Chester L. Karrass:** Chester Karrass, known for his negotiation training programs, defines negotiation as: * "Negotiation is the process of reaching agreements by resolving differences through creativity" 4. **Roy J. Lewicki, David M. Saunders, and Bruce Barry:** Authors of "Essentials of Negotiation," define negotiation as: * "Negotiation is a process in which two or more interdependent individuals or groups, who perceive that they have both common and conflicting interests, seek to reach an agreement on points of difference." 5. **Howard Raiffa:** Howard Raiffa, a pioneer in decision analysis and negotiation, defines negotiation as: * "Negotiation is a field of knowledge and endeavor that focuses on gaining the favor of people from whom we want things." ### Key Elements of Negotiation 1. **Parties with Interests:** Negotiation involves two or more parties, each with their own interests, preferences, and goals. These parties may have overlapping or conflicting interests that need to be addressed during the negotiation process. 2. **Mutual Agreement:** The primary objective of negotiation is to reach a mutually acceptable agreement or outcome that satisfies the interests and needs of all parties involved. This agreement is often achieved through compromise and trade-offs. 3. **Communication:** Effective communication is essential in negotiation. Parties share information, express their viewpoints, and engage in dialogue to understand each other's perspectives and find areas of agreement. 4. **Conflict Resolution:** Negotiation helps in managing and resolving conflicts that may arise due to differences in interests, priorities, or opinions. Through negotiation, parties seek to find solutions that reconcile these differences. 5. **Decision Making:** Negotiation involves making decisions on various issues, such as terms of agreement, resource allocation, or future actions. These decisions are based on discussions, compromises, and consensus-building among the parties. ### Importance of Negotiation 1. **Conflict Resolution:** Negotiation helps in resolving conflicts and disagreements in a constructive manner, reducing tension and improving relationships. 2. **Achieving Goals:** It enables parties to achieve their individual or collective goals by finding solutions that meet their interests and needs. 3. **Building Relationships:** Effective negotiation fosters trust, collaboration, and cooperation among parties, strengthening relationships and partnerships. 4. **Enhancing Decision Making:** Negotiation allows for informed decision making by considering diverse perspectives and exploring alternatives before making commitments. ### Key Negotiation Concepts Negotiation involves a variety of key concepts that are fundamental to understanding and effectively engaging in the process. These concepts encompass principles, strategies, and dynamics that influence how negotiations unfold and the outcomes that are achieved. Here are some key negotiation concepts: 1. **Interests vs. Positions:** * **Interests:** These are the underlying needs, desires, concerns, and motivations that drive each party. Focusing on interests rather than rigid positions allows negotiators to find creative solutions that meet mutual needs. * **Positions:** Positions are specific demands or offers made by parties during negotiations. They represent initial proposals but may not align fully with underlying interests. 2. **BATNA (Best Alternative to a Negotiated Agreement):** BATNA refers to the alternative course of action a party can take if negotiations fail and no agreement is reached. Knowing your BATNA provides leverage and helps assess the value of agreements proposed during negotiations. A strong BATNA increases negotiation power and provides a safety net if negotiations do not succeed. 3. **Reservation Point:** The reservation point is the minimum acceptable outcome or the point at which a negotiator is indifferent between reaching an agreement or walking away. It represents the bottom line or the least favorable terms a negotiator is willing to accept. 4. **Negotiation Styles:** Negotiators often exhibit different styles or approaches, such as competitive (assertive, focused on winning), collaborative (cooperative, seeking win-win outcomes), accommodating (yielding to the other party), avoiding (sidestepping conflict), or compromising (seeking middle ground). 5. **Distributive vs. Integrative Negotiation:** * **Distributive Negotiation:** Also known as win-lose negotiation, focuses on dividing a fixed resource (e.g., price, salary) between parties where what one gains, the other loses. * **Integrative Negotiation:** Also known as win-win negotiation, seeks to create value by expanding the resources available to both parties and finding solutions that satisfy mutual interests. 6. **ZOPA (Zone of Possible Agreement):** The ZOPA is the range or overlap between the highest price a buyer is willing to pay and the lowest price a seller is willing to accept. Finding and expanding the ZOPA is critical for reaching agreements that benefit both parties. 7. **Negotiation Tactics:** Tactics are specific techniques or methods used to influence the negotiation process and outcomes. Examples include anchoring (setting the initial offer), framing (presenting information in a certain context), probing (asking questions to gather information), and making concessions strategically. 8. **Emotional Intelligence (EI) in Negotiation:** EI involves the ability to recognize, understand, and manage emotions in oneself and others. It plays a crucial role in negotiation by influencing communication, empathy, decision-making, and relationship management during negotiations. 9. **Culture and Negotiation:** Cultural factors such as communication styles, values, norms, and perceptions of trust and conflict impact negotiation dynamics. Understanding and adapting each other's cultural differences can enhance effectiveness in cross-cultural negotiations. 10. **Power Dynamics:** Power refers to the ability of one party to influence the behavior, decisions, or outcomes of another party. Power dynamics, whether based on expertise , authority and other factors, significantly influence negotiation strategies, outcomes, and the balance of concessions made. ### Conclusion The above key concepts provide a framework for understanding the complexities of negotiation and navigating the dynamics involved in reaching agreements. Mastery of these concepts allows negotiators to approach negotiations strategically, adapt to different situations, and achieve outcomes that meet their objectives while maintaining positive relationships with counterparts. ## Perception and Cognition in Negotiation Negotiation is a complex interaction where parties with different interests and perspectives engage in dialogue and bargaining to reach agreements. * **Perception** refers to how individuals interpret and make sense of information, while **cognition** involves mental processes such as reasoning, judgment, and decision-making. In negotiation, perceptions and cognitive biases shape how parties assess situations, evaluate options, and interact with each other. ### I. Perception in Negotiation 1. **Selective Perception:** Selective perception refers to the tendency to perceive and focus on information that confirms existing beliefs or expectations while ignoring or minimizing contradictory information. In negotiation, parties may selectively interpret messages, emphasizing evidence that supports their position or preferences. 2. **Attribution:** Attribution involves assigning causes or explanations for behaviors, outcomes, or events. Negotiators often make attributions to understand the motives, intentions, and capabilities of the other party. * Attribution biases, such as **fundamental attribution error** (attributing others' behavior to internal factors while ignoring situational factors) and **self-serving bias** (attributing successes to internal factors and failures to external factors), can impact perceptions and influence negotiation outcomes. 3. **Stereotyping and Halo Effect:** Stereotyping involves applying generalized beliefs or assumptions about a group to individuals within the group. In negotiation, stereotypes can lead to biased perceptions and unfair judgments based on characteristics such as gender, ethnicity, or organizational affiliation. * The **halo effect** occurs when positive or negative perceptions of a person or organization influence overall impressions and evaluations, affecting negotiation dynamics and outcomes. 4. **Perception of Power and Status:** Perceptions of power and status influence negotiation dynamics and behaviors. High-power negotiators may be perceived as more influential, assertive, and persuasive, impacting their ability to achieve favorable outcomes. Negotiators' perceptions of their own power and status as well as their assessments of the other party's power, affect negotiation strategies, concessions, and decision-making. ### II. Cognition in Negotiation 1. **Decision-Making:** Decision-making in negotiation involves evaluating alternatives, assessing risks, and choosing actions that maximize outcomes aligned with personal or organizational goals. * Cognitive biases, such as **anchoring** (fixating on initial information), **confirmation bias** (seeking information that confirms preconceptions), and **overconfidence bias** (overestimating one's abilities or knowledge), can influence decision-making processes and lead to suboptimal outcomes. 2. **Risk Perception and Risk Preferences:** Negotiators' perceptions of risk and their risk preferences influence decision-making strategies and willingness to take or avoid risks. Risk perception biases, such as **availability heuristic** (overestimating the likelihood of events based on vivid or recent examples) and **framing effects** (responding differently to information depending on how it is presented), shape negotiators' assessments of potential gains and losses, affecting negotiation strategies and outcomes. 3. **Cognitive Dissonance:** Cognitive dissonance occurs when individuals experience psychological discomfort due to conflicting beliefs, attitudes, or behaviours. In negotiation, cognitive dissonance may arise when parties encounter information that challenges their initial positions or decisions. * Negotiators may resolve cognitive dissonance by rationalizing their choices, seeking additional information, or adjusting their negotiation strategies to align with their beliefs and preferences. 4. **Information Processing and Memory:** Information processing in negotiation involves encoding, interpreting, and recalling information relevant to negotiation goals and outcomes. Negotiators' ability to process information effectively, recall key details, and integrate new information into decision-making processes influences negotiation effectiveness. * Memory biases, such as **hindsight bias** (overestimating one's ability to predict outcomes after they have occurred) and **recency bias** (giving undue weight to recent events or information), impact how negotiators interpret past experiences and make future decisions. ### Impact of Perception and Cognition on Negotiation Dynamics 1. **Communication and Interpretation:** Perceptions and cognitive biases influence how negotiators communicate, interpret messages, and respond to verbal and non-verbal cues during negotiations. Misinterpretations, misunderstandings, or biases impede progress toward effective communication and impede progress toward reaching mutually beneficial agreements. 2. **Negotiation Strategies and Tactics:** Negotiation strategies and tactics are shaped by negotiators' perceptions of the situation, their cognitive assessments of risks and opportunities, and interpretations of the other party's behavior and intentions. Awareness of biases and strategic use of tactics, such as framing arguments persuasively, addressing concerns proactively, and adapting communication styles to align with the other party's preferences, can enhance negotiation outcomes. 3. **Conflict Resolution and Relationship Management:** Perceptions of fairness, trustworthiness, and respect influence conflict resolution efforts and relationship management in negotiation. Biased perceptions of motives can escalate conflicts or undermine trust, while accurate perceptions and empathetic understanding promote constructive dialogue, collaboration, and long-term relationship building. ### Strategies for Managing Perception and Cognition 1. **Awareness and Reflection:** Negotiators can enhance awareness of their own perceptions and cognitive biases through reflection, self-assessment, and feedback from peers or mentors. Recognizing how biases influence interpretations and decisions enables negotiators to adopt more objective, evidence-based approaches to negotiation. 2. **Information Gathering and Analysis:** Systematic information gathering, including collecting diverse perspectives, verifying facts, and conducting thorough analysis, reduces reliance on biased assumptions and enhances negotiators' ability to make informed decisions based on reliable information. 3. **Perspective-Taking and Empathy:** Practicing perspective-taking and empathy allows negotiators to understand the other party's interests, concerns, and motivations more accurately. By empathizing with the perspectives of others, negotiators can build rapport, establish trust, and collaboratively explore solutions that address mutual needs and priorities. 4. **Collaborative Problem-Solving:** Encouraging collaborative problem-solving approaches, such as brainstorming options, exploring trade-offs, and integrating diverse viewpoints, promotes creative solutions and expands the value available to both parties. * Collaborative negotiation strategies foster win-win outcomes that enhance satisfaction and strengthen relationships. ### Ethical Considerations in Perception and Cognition Negotiators must uphold ethical standards, including fairness, honesty, and respect for others' perspectives, when managing perception and cognition in negotiation. Ethical behavior fosters trust, promotes transparency, and contributes to sustainable agreements that benefit all parties involved. ### Application of Perception and Cognition in Negotiation Perception and cognition concepts are applied in various negotiation contexts, including business negotiations, conflict resolution, labor relations, international diplomacy, and personal interactions. By understanding how perception and cognition influence negotiation dynamics, negotiators can leverage insights to improve communication, mitigate biases, and achieve successful outcomes that meet diverse interests and objectives. ### Conclusion Perception and cognition are integral to negotiation, shaping how parties interpret information, make decisions, and interact during the negotiation process. By recognizing and managing biases, enhancing communication effectiveness, and promoting collaborative problem-solving, negotiators can navigate complexities, build trust, and achieve mutually beneficial agreements. ## Negotiation Process Negotiation is a complex process that involves discussions between two or more parties to reach a mutually acceptable agreement. Effective negotiation requires careful planning, communication, and strategy. ### 1. Preparation Preparation is the foundation of successful negotiation. It involves gathering information, defining objectives, and understanding both your own and the other party's interests, priorities, and constraints. Key aspects of preparation include: a. **Setting Objectives:** Clarify your goals and desired outcomes for the negotiation. Determine your ideal scenario (aspiration point) and your minimum acceptable outcome (reservation point). b. **Research and Information Gathering:** Collect relevant data about the other party, their needs, preferences, market conditions, and any relevant legal or regulatory factors. c. **BATNA Assessment:** Identify your Best Alternative to a Negotiated Agreement (BATNA), which is your fallback option if negotiation fails. Understanding your BATNA provides leverage and helps evaluate proposed agreements. ### 2. Building Rapport and Establishing Trust Before diving into substantive issues, establishing rapport and trust with the other party is crucial. Building a positive relationship fosters open communication and reduces potential conflicts. Key actions in this stage include: a. **Introductions and Small Talk:** Begin with introductions and engage in casual conversation to establish a comfortable atmosphere. b. **Active Listening:** Demonstrate attentiveness and show genuine interest in the other party's perspectives and concerns. c. **Finding Common Ground:** Identify shared interests or values that can serve as a foundation for mutual understanding and cooperation. ### 3. Setting the Agenda Once rapport is established, clarify purpose and scope of the negotiation by setting a clear agenda. Outline the topics to be discussed, prioritize issues based on importance, and agree on the sequence of discussions. This step helps maintain focus and efficiency during the negotiation process. a. **Agenda Setting:** Outline key topics and objectives for discussion. Ensure both parties have input into the agenda to promote transparency and fairness. b. **Prioritization:** Identify critical issues that require immediate attention and allocate sufficient time for each agenda item. ### 4. Exchanging Information and Proposals With the agenda set, parties begin exchanging information, proposals, and initial offers. This stage involves presenting positions, interests, and potential solutions while seeking clarification and understanding of the other party's perspective. a. **Presenting Positions:** State your initial proposals or demands clearly and substantiate them with supporting arguments or data. b. **Exploring Interests:** Shift focus from positions to underlying interests and needs. Ask probing questions to uncover the motivations behind the other party's demands. c. **Making Concessions:** Demonstrate flexibility by making strategic concessions that acknowledge the other party's concerns while advancing your own interests. ### 5. Bargaining and Negotiation Negotiation progresses through a series of exchanges, offers, counteroffers, and concessions aimed at bridging differences and narrowing gaps between parties' positions. This stage requires effective communication, negotiation skills, and a willingness to explore trade-offs. a. **Trade-offs and Concessions:** Negotiate terms and conditions, making concessions on less critical issues to gain advantages on more significant ones. b. **Creative Problem-Solving:** Brainstorm alternative solutions and explore creative options that meet both parties' interests. c. **Maintaining Flexibility:** Remain adaptable and responsive to new information or changes in the negotiation dynamics. ### 6. Reaching Agreement As negotiations advance, parties work towards reaching a mutually acceptable agreement that satisfies their respective interests and objectives. Agreement may be reached on all or specific aspects of the negotiation. a. **Finalizing Terms:** Summarize agreed-upon terms and document them clearly to avoid misunderstandings. b. **Ensuring Clarity:** Ensure all parties understand and agree to the terms, including any contingencies or conditions. c. **Committing to Action:** Outline next steps and responsibilities for implementing the agreement, including timelines and review mechanisms. ### 7. Closure and Implementation After reaching an agreement, finalize any remaining details, address outstanding concerns, and prepare for implementation. This stage focuses on formalizing commitments and transitioning from negotiation to execution. a. **Formalizing Agreements:** Draft a formal contract or agreement document that outlines the terms, conditions, and obligations of both parties. b. **Reviewing Performance:** Establish checkpoints or review periods to monitor progress and address any issues that may arise. c. **Celebrating Success:** Acknowledge the achievement of reaching a mutually beneficial agreement and reinforce positive relationships. ### 8. Post-Negotiation Evaluation Evaluation is crucial to learning and improving future negotiation processes. Reflect on the negotiation experience, analyze outcomes, and identify lessons learned for continuous improvement. a. **Assessing Outcomes:** Evaluate whether the agreement achieved the desired outcomes and met the initial objectives set during preparation. b. **Identifying Improvements:** Identify strengths and areas for improvement in negotiation strategy, communication, and relationship management. c. **Feedback:** Seek feedback from stakeholders and participants to gather diverse perspectives and insights for future negotiations. ### Conclusion Negotiation is a dynamic process that requires careful planning, strategic thinking, and effective communication to achieve mutually beneficial outcomes. By following these structured steps and considering key considerations, negotiators can navigate complexities, manage differences, and build sustainable agreements that satisfy diverse interests and objectives. ## Conflict and Negotiation Strategy Conflict and negotiation strategy involve a variety of elements that are essential for effectively managing disputes and reaching mutually beneficial agreements. ### Elements of Negotiation Strategy 1. **Preparation:** * **Setting Objectives:** Clarifying goals, priorities, and desired outcomes for negotiation. * **Research and Information Gathering:** Collecting data, understanding stakeholders' interests, and assessing alternatives (BATNA - Best Alternative to a Negotiated Agreement). 2. **Communication:** * **Effective Communication:** Clear, open, and respectful communication to convey interests, understand perspectives, and build rapport. * **Active Listening:** Paying attention, seeking clarification, and demonstrating empathy to understand underlying concerns. 3. **Negotiation Styles:** * **Collaborative (Win-Win):** Focusing on mutual gains, problem-solving, and fostering long-term relationships. * **Competitive (Win-Lose):** Assertively pursuing own interests, using leverage or power to achieve favorable outcomes. 4. **Strategic Planning:** * **Tactics and Techniques:** Selecting approaches such as proposing options, making concessions, or framing issues strategically. * **Managing Concessions:** Balancing flexibility and maintaining negotiation leverage while making concessions. 5. **Building Agreements:** * **Creative Problem-Solving:** Generating multiple options, exploring alternatives, and finding innovative solutions. * **Formalizing Agreements:** Documenting terms, clarifying responsibilities, and establishing mechanisms for implementation and review. 6. **Ethical Considerations:** * **Integrity and Fairness:** Upholding ethical standards, transparency, and honesty throughout the negotiation process. * **Respect and Trust:** Building trust, respecting diverse perspectives, and maintaining integrity in interactions. 7. **Post-Negotiation Evaluation:** * **Assessing Outcomes:** Evaluating the effectiveness of negotiated agreements in meeting objectives and addressing underlying issues. * **Learning and Improvement:** Reflecting on negotiation experiences, identifying lessons learned, and adapting strategies for future negotiations. ### Integrating Conflict and Negotiation Strategies Effective conflict management often involves employing negotiation strategies to resolve differences constructively. Integrating these elements helps in addressing conflicting dynamics, leveraging negotiation tactics, and achieving sustainable resolutions that benefit all parties involved. By understanding the complexities of conflict and mastering negotiation strategies, individuals and organizations can navigate challenges, foster positive relationships, and promote organizational success. ## Review Questions: 1. Discuss the various negotiation concepts. 2. Explain perception and cognition in negotiation. 3. Describe the process of negotiation. 4. Discuss the various elements of conflict and negotiation strategy. ## Objective Questions **A. Multiple Choice Questions:** 1. The primary objective of negotiation is to reach a _______ acceptable outcome. *(a) mutually* *(c) socially* *(b) coercively* 2. Negotiation helps in building _______ among the different parties to an agreement. *(a) relationship* *(c) arguments* *(b) disagreement* 3. BATNA stands for Best _______ to a Negotiated Agreement. *(a) Alternative* *(c) Answer* *(b) Assessment* 4. _______ is one of the negotiation styles that seeks win-win outcome in negotiation. *(a) Collaborative* *(c) Competitive* *(b) Compromising* 5. _______ negotiation is also known as win-lose negotiation. *(a) Distributive* *(c) Selective* *(b) Integrative* 6. Full form of ZOPA stands for Zone of _______ Agreement. *(a) Possible* *(c) Predictive* *(b) Potential* 7. Negotiation progresses through a series of exchanges and concessions aimed at _______ differences among parties. *(a) bridging* *(c) enhancing* *(b) creating* 8. _______ is crucial to learning and improving future negotiation process. *(a) Evaluation* *(c) Discussion* *(b) Celebration* 9. Active _______ is one of the important elements of communication in negotiation. *(a) listening* *(c) soliciting* *(b) arguing* 10. Negotiators must identify _______ issues that require immediate attention. *(a) critical* *(c) latest* *(b) casual* **B. State whether the following statements are true or false:** 1. Negotiation always involve only two parties. 2. Effective communication is not essential in negotiation. 3. Focusing on rigid positions allows negotiators to find creative solutions. 4. Collaborating is one of the negotiation styles that seeks to focus on middle ground. 5. Integrative negotiation is also known as win-lose negotiation. 6. Adapting to cultural differences can reduce effectiveness in cross-cultural negotiations. 7. Selective perception tends to ignore information that confirms to existing beliefs. 8. Negotiators' perception of risk do not influence decision-making strategies. 9. Cognitive dissonance occurs when individuals experience psychological comfort due to conflicting beliefs. 10. Negotiators must not uphold ethical standards during negotiation.