LO 1

What is the difference between Bargaining and Negotiations?

 LO 1

Negotiations: The process through which two or more parties come to an agreement on an action
to be carried out.
Bargaining: Discussions between people in order to reach agreement on something such as prices,
wages, working conditions, etc.:
 LO 1
The negotiator’s
conundrum – be nice or
be tough?

What is the difference between Bargaining and Negotiations in terms of:

• Self Interest
• Tactics - selective information sharing
• Adversarial
• Short term vs. longer term
 LO 1

What is the difference between Bargaining and Negotiations:

Skillful negotiators are tough negotiators. They do not get bullied, and they do not give in
when they come across a problem. But they are not aggressive or deceptive and neither do
they play win–lose because they have found that ultimately this simply does not produce as
good a result as the win–win approach. It is important to distinguish between strong and
macho – strong is smart, macho is not.
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Economic Dimension: Tangible outcomes-translated into savings and profits

Social-psychological Dimension: Quality of
relationship/satisfaction/fairness/impressions/judgement
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Context of Negotiations:
1. Structure
2. Norms and values
 LO 1

Context of Negotiations:
3. Relationship
4. Communication
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Context of Negotiations:
5. Interdependence
6. Power
 LO 1

Integrative vs Distributive negotiations

LO 1
Integrative Negotiations:
 Open sharing of Information
 Interest based discussion
 Mutual Goals
 Problem Solving
 Explanation
 Relationship Building
 Focus on Problem
 Trade of Valued interests
LO 1
Distributive Negotiations:
 Demand of interests
 Positional Discussion
 Self Goals
 Forcing
 Argument
 Relationship Sacrificing
 Hard on People
 Hidden information
LO 1 Skills
Empathy----Put yourself in the other person’s
situation
Planner and detail preparation
Relationship Builder
Problem Solver
LO 1 Skills
Brain----Persuasion/problem solving/concern for
self interest/strategic planning
Heart----Relationship building/concern for
interests of others/fair process
Courage-Creativity/sharing information/mutual
gains