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1、NEGOTIATIONS AND CONFLICT MANAGEMENTXUELI WANG SCHOOL OF ECONOMICS AND MANAGEMENTTSINGHUA UNIVERSITYNegotiationvNegotiation:an interpersonal decision-making process by which two or more people agree how to allocate scarce resources.vWhy occurto create something new that neither party could do on his
2、 or her ownto resolve a problem or dispute between the partiesManager is negotiatorvDynamic nature of businessvInterdependencevCompetitionvInformation agevDiversityCharacteristics of negotiationvTwo or more partiesvconflict of interest between two or more partiesvvoluntary process and a strategy pur
3、sued by choicevno fixed or established set of rules or prefer to invent their own vgive and takevboth intangibles and tangibles are concernedNature of Negotiation-Interdependence vMutual dependency(goal)and mutual adjustment(process)vActual structure of interdependence Vs.perceived interdependencevD
4、ilemma in negotiationdilemma of honestydilemma of trustBuilding trust(efforts on the perception of the outcome and efforts on the process)The major sins of negotiationvLeaving money on the tablevSettling for too littlevWalking away from the tablevSettling for terms that are worse than your alternati
5、veMyths about negotiatorsvGood negotiators are bornvExperience is a great teachervGood negotiators take risksvGood negotiators rely on intuitionSome terms used in N&CvBATNA:(Best Alternative to a Negotiated Agreement)determines the point at which a negotiator is prepared to walk away from the negoti
6、ation table or your fall back position.vPosition Vs Interest:a position is what you say you want or must have.While an interest is why you want what you want.Positional bargaining is usually distributive-and may be inefficient in the sense that value may be left on the table at the time of settlemen
7、t because each party did not know what the other really wanted-but it may help one party gain more short-term profit.Interest-based bargaining adds integrative potential.Some terms used in N&CvReservation point:the point at which the BATNA becomes preferable to starting or continuing a negotiation.v
8、Target point:your objectivevAsking offer and counter offer:the start of the negotiationvBargaining Range:the distance between the reservation points of the parties.Preparation worksheet for negotiationvSelf-assessmentvAssessment of the other partyvAssessment of the situationvDetails in the handout w
9、orksheetHow to evaluate the negotiationvRelationship buildingvConstructive communicationvInterest satisfied(including the other party and the third party)vSolutionsvReasonablevBANTA(benchmark)vCOMMITMENT(understanding and feasible)Distributive BargainingvWhen a negotiator wants to maximize the value
10、 obtained in a single deal and when the relationship with the other party is not important.vTarget point and resistance point;asking price and initial offer;alternative outcomeTwo tasks in distributive bargainingvDiscover the other partys resistance pointvinfluencing the other partys resistance poin
11、twill vary directly with his estimate of your cost of delay or aborting negotiationswill vary inversely with his cost of delay or abortingwill vary directly with the value the other party attaches to that outcomewill vary inversely with the perceived value the first party attaches to an outcomeTacti
12、cal tasksvTo assess the other partys outcome values and the costs of terminating negotiationvto manage the other partys impression of the negotiators outcome valuesvto modify the other partys perception of his own outcome valuesvto manipulate the actual costs of delaying or aborting negotiationsplan
13、 disruptive actionalliance with outsidersschedule manipulationPositions during negotiationvOpening offervopening stancevinitial concessionsvrole of concessionsvpattern of concession makingvfinal offerCommitmentvEstablishing a commitmentpublic pronouncementlink with an outside allyincrease the promin
14、ence of demandsreinforce the threat or promiseCommitmentvAbandon a commitmentto indicate the conditions under which it applied have changedto let the matter die silentlyto restate the commitment in more general termsto minimize any possible damage to his self-esteem or to constituent relationshipsCl
15、osing the dealvProvide alternativesvassume the closevsplit the differencevexploding offersvsweetenersPie-slicing strategiesvKnow your BATNAvResearch the other partys BATNAvset high aspirationsvmake the first offervcounteroffer immediatelyvavoid stating rangesvmake bilateral concessionsvuse an object
16、ive-appearing rationale to support your offersvappeal to norms of fairnessvdo not fall for the“even split”ployTactics to use in distributive bargainingvDelayvSilence and BracketingvLimited AuthorityvThe bottom linevNovNibblingvExpectation and controlvAuctionvConcessionsvRationalevMessage-sendingvDeadlinesHardball tacticsvGood guy/bad guyvhighball/lowballvbogeyvthe nibblevchickenvintimidationvaggressive behaviorvsnow jobHow to deal with hardballvIgnore themvDiscuss themvRespond in kindvCo-opt the other party