Negotiation:

 Negotiation is a process in which conflicting parties engage in discussions to reach a

mutually acceptable agreement. It involves communication, compromise, and finding
common ground for a solution. Negotiation occurs in business, diplomacy, legal
proceedings, and personal relationships.

Always 4 outcomes:
 2 agree
 2 disagree
 1 agree and 1 disagree
 1 disagree and 1 agree

Two types of Negotiations:

 Direct negotiation is when people talk to each other to figure things out and make a
deal without anyone else helping.
 Indirect negotiation is when someone else helps talk to people and make a deal,
making it a bit more complicated.

Distributive (competitive):
 Description: Parties compete for a fixed resource. It's a win-lose scenario common in
situations with limited resources.

Integrative (cooperative):
 Description: Focuses on creating value for all parties. A win-win approach identifies
common interests and seeks mutually beneficial solutions.

Compromise:
 Description: Parties find a middle ground by making concessions for mutual
agreement. It aims to satisfy all parties, albeit with compromises.

Concession:
 Description: Involves voluntary giving to promote goodwill, build trust, or encourage
reciprocity during negotiations.

Arbitration:
 Description: A neutral third party makes a binding decision in legal or contractual
disputes.

Mediation:
 Description: A neutral third party facilitates communication to help disputing parties
reach a voluntary agreement.

Intercultural:
 Description: Navigating negotiations with parties from different cultural backgrounds,
requiring an understanding of cultural nuances.
Labor:
 Description: Occurs between employers and unions, determining terms of
employment such as wages and benefits.

Business:
 Description: Involves negotiating deals, contracts, partnerships, and sales that
contribute to business success.

BATNA: Best Alternative to A Negotiated Agreement

 Explanation: The Best Alternative to a Negotiated Agreement. The BATNA represents
the alternative that a party will consider if negotiations do not result in an acceptable
outcome.

ZOPA: Zone of Possible Agreement

 Explanation: The zone of possible agreement within which the negotiating parties can
reach an agreement. It is the area between the reserve (the minimum a party would
accept) and the maximum offer.

Nature of Negotiation: Declare vs. Create Value

 Description: Explores the structure of negotiation, contrasting declarative (clear
demands) with value creation (mutual benefit). Emphasizes that successful
negotiations prioritize value creation.

Elements of negotiation: Goals, Interests, Scope, BATNA

 Description: Covers the fundamentals of negotiation - goals, interests, scope and
BATNA. A skilled negotiator knows goals, understands interests, defines scope, and is
aware of the BATNA.

Negotiation Strategies: Dual Concern Model

 Explanation: Dual Concern Model classifies strategies based on assertiveness and
cooperation. Includes quadrants of competition, avoidance, accommodation, and
cooperation. Negotiators choose strategies based on situation and goals.

Negotiation Strategies: Distributive and Pressure Tactics

 Explanation: Discusses distributive (allocating resources) and pressure tactics (using
pressure to gain concessions). Both are competitive and can lead to a zero-sum
outcome.

Negotiation Strategies: Integrative and Value Creation

 Explanation:
In contrast to distributive strategies, integrative strategies aim to create shared gains
and maximize value for all parties. The focus is on collaboration and value creation
where both parties benefit from the agreement. This requires open sharing of
information, identification of common interests, and creative solutions. Integrative
negotiation can lead to win-win situations where both sides achieve their goals.
Effective Negotiation Steps: Preparation and Planning
 Explanation:
Preparation and planning are critical steps to successful negotiation. This includes a
comprehensive analysis of one's own goals and interests, knowledge of the other
side, definition of objectives, and development of a clear negotiation strategy. Careful
preparation allows the negotiator to react flexibly to different scenarios and to enter
the actual negotiation better prepared.

Perception and Emotion

 Explanation:
Perception and emotion play a critical role in negotiations. Perceptual biases can
influence the way information is interpreted, and emotions can strongly influence
decision making. Awareness of one's own perceptions and emotions, and the ability
to recognize and manage the emotions of the other party, are critical to successful
negotiation.

Performance
 Explanation:
Power is a key element in negotiations. It can come from a variety of sources,
including expertise, social networks, control of resources, and others. The effective
use of power in negotiations requires an understanding of one's own power base and
the other party's sources of power. A balanced distribution of power can lead to a
win-win situation, while an unbalanced distribution can lead to conflict.

Coalition (Multi-Party Negotiation)

 Explanation:
In multi-party negotiations, coalitions may be formed to achieve common goals or
defend particular interests. This requires the ability to form and manage alliances.
The negotiator needs to be aware of the different dynamics that can occur in a multi-
party negotiation and develop strategies for dealing effectively with coalitions.

Ethos:
 Description: Ethos refers to the credibility and persuasiveness of the speaker or
writer. It involves creating a positive impression of one's integrity, authority, and
morality.

Pathos:
 Description: Pathos aims to evoke emotional responses and feelings in the audience.
It is about arousing emotion, creating sympathy, or appealing to the emotional side of
the audience.

Logos:
 Description: Logos refers to rational argumentation and the use of clear, logical
reasoning. It focuses on facts, evidence, and the structure of the argument to
persuade the audience.
Sources of power:
 Several sources of power can play a role in negotiations, including expert power
(based on knowledge or skill), legitimizing power (through position or title), reward
power (control over rewards), and punishment power (control over punishments).

Hierarchy and authority:

 Position in an organizational hierarchy can affect a person's authority in negotiations.
Managers or people with higher positions often have more decision-making power
and may have important resources at their disposal.

Negotiation tactics:
 In a power hierarchy, different negotiation tactics may be used depending on who is
where in the hierarchy. These can range from persuasion and influence to more direct
use of power.

Access to information:
 People at higher levels in the hierarchy often have better access to information. In
negotiations, this can mean that they are better informed and their arguments are
based on more solid facts.

Balance of power:
 Some negotiations attempt to balance power imbalances in order to reach a fair
agreement. This can be done by using negotiation tactics that target weaknesses in
the other party's power position or by seeking compromises.

Win-Win vs. Win-Lose:

 The type of negotiation (cooperative or competitive) can be influenced by the power
hierarchy. In some cases, a win-win situation may be sought, while in other cases, one
side may seek to maximize benefits at the expense of the other.

Emotions and Power:

 Emotions play a role in negotiations, and hierarchy can affect the emotional dynamic.
Inferior parties may be less confident in expressing their opinions openly, while
superior parties may be less willing to make concessions.

Value Creation:
 Description: Value creation is the process of increasing or creating value for oneself or
others. In business, it often refers to activities that increase the overall value of a
product or service by meeting or exceeding customer expectations.

Value Claim:
 Description: A value claim is a statement or explanation of the value you believe you
have created or earned. It involves communicating and justifying the benefits,
contributions, or advantages you bring to a situation, negotiation, or relationship.

 Value that has been created must be claimed