Flashcards
CHAPTER 13 – NEGOTIATION AND CONFLICT RESOLUTION
Cards in this deck (16)
- 1• A process of formal communication, either face-to-face or via electronic means, where two or more people, groups, or organizations come together to seek mutual agreement about issue or issues o Involves management of time, information, and power between individuals and organizations who are interdependent • Relationships between people, not just organizations • Role of persuasion • Negotiation skills can be learned and enhanced • Supports implementation of supply management strategies and plansWHAT IS NEGOTIATION?
- 2• That point where it is advantageous to walk away from the negotiation o Best Alternative to a Negotiated Agreement o Bottom line or reservation point • Should never be revealed to other party • All settlements must be judged in light of all other viable alternatives existing at the time of the agreementBATNA
- 3o Fact finding and information sharing o Clarify or confirm informationPHASE 1 OF THE NEGOTIATION
- 4o Recess to assess new information and findings o Assess relative strengths and weaknesses o Review and revise objectives and positions, if necessary o Organize agendaPHASE 2 OF THE NEGOTIATION
- 5o Meet face-to-face or electronically o Narrow differences on issues o Offer proposals and counterproposals o Exchange concessionsPHASE 3 OF THE NEGOTIATION
- 6o Seek agreement o Conclude negotiation o Agree to follow-on activitiesPHASE 4 OF THE NEGOTIATION
- 7• Strategy o Overall approach used to reach mutually beneficial agreement • Tactic o Art or skill of employing available means to accomplish an end, objective, or strategy o Includes supporting action plan and activitiesDEVELOP THE NEGOTIATION STRATEGY AND ACCOMPANYING TACTICS
- 8• Power o Ability to influence another person or organization to do something • Power by itself is neither good nor bad o It is actual application or use of power that makes it good or bad • Sources of negotiating powerPOWER IN NEGOTIATION
- 9• Informational power • Reward power • Coercive power • Legitimate power • Expert power • Referent powerSOURCES OF NEGOTIATING POWER
- 10• Ready access to relevant and useful information • Presentation of facts, data, and persuasive arguments o Need for selective disclosure o Can be manipulated by withholding information or by providing false informationINFORMATIONAL POWER
- 11• One party is able to offer something of perceived value to other • Direct attempt to exert active control • Individuals respond and behave accordingly when valued rewards are availableREWARD IS POWER
- 12• Taking away or withholding something of value to other party • Ability to punish • Financially, physically, or mentally • Can have damaging effects on long-term relationships • Promotes retaliation or getting evenCOERCIVE POWER
- 13• Power based on official position held o The higher the job position or title, the greater the power inferred • May be separate from reward power or coercive power • Buyer has legitimate power due to his/her ability to award contractLEGITIMATE POWER
- 14• Special form of informational power o Development and retention of body of knowledge • Often represented by verifiable credentials and stature • Reduces likelihood of refuting position o Other party must value expertise in order to be effectiveEXPERT POWER
- 15• Comes from attraction based on socially acceptable personal qualities and attributes o Personality or attractiveness characteristics such as … Honesty Charisma Friendliness Empathy SensitivityREFERENT POWER
- 16• Used to support one’s advantage • Need to be careful not to abuse power o Damaged relationships o Invited retaliation o Diminished value of that power • Some types of power interact synergistically with others o Example – expert and referent powerAPPLICATON OF POWER
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- Purchasing and Supply Mgmt Flashcards on CHAPTER 13 – NEGOTIATION AND CONFLICT RESOLUTION, created by Hanna Widgren on 08/04/2019.
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- Hanna Widgren
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