Negotiation subprocess

Negotiation subprocess

1. Negotiation is a decision-making process among interdependent parties

2. Framing has a important implication for negotiator tactics

   • Rationality refers to making the decision that maximizes the negotiator´s interest
     • Escalation of commitment: Persistence and determination alone are omnipotent
       • May affect abroad array of business decisions
   • Source dependence is based on the observation
     • Overconfidence: Overestimate our abilities and perceived chances of success
       • Influence managers at many different levels on the organization

3. The decisions managers make vary in risk and uncertainty

   • A decision implies that an individual has access to two or more alternatives
   • Managers make various types of decisions
     • Decisions tactical or operational in nature
   • Risk Seeking
     • Lottery jackpot events
     • Other side of loss aversion
     • Preferences tend to be nonlinear
       • People make decisions different

4. Emotions can obstruct a negotiated agreement

   • Emotions may divert our attention from substantive matters
     • Revelation of emotions can open us up to being manipulated
       • Supressing emotions can make things worse
         • Emotions can help you reach your negotiation goals
           • You can communicate with emotions
   • Negotiators can be personally affected in many different ways
     • Negative emotions
       • Are not completely useless in a negotiation