Tuesday, October 19, 2010

Chapter 3 Negotiation Strategy and tactics of integrative Negotiation


This chapter talked about the basic element of a distributive bargaining situation which can be explained into 3 points; Opening, Target, and Resistance point. The spread between the resistance points called Bargaining range, Settlement range, or zone of potential agreement. Each party’s goal is to obtain the settlement as much as possible. An alternative outcome is an important factor to give the negotiator power to walk away from any negotiation when the deal is not very good. There is rarely a negotiation with only one item. The set of item refers to as a bargaining mix. The most two effective strategies are to discover the other party’s resistance point, and to influence the other party’s resistance point. The tactical tasks of the bargaining are to assess outcome values and the costs of termination, to manage the other party’s impression, to modify the other party’s perception, and to manipulate the actual costs of delay or termination. The effective distributive bargainers need to understand the process of taking a position during bargaining and the role of making concession during the negotiation process. Commitment, which is a key concept in creating a bargaining position, is the taking of a bargaining position with some explicit or implicit pledge regarding the future course of action. After negotiation for a period of time, the next step is to close the agreement.

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