Negotiation Subprocess

Negotiation Subprocess

1. The power and impact of the negotiator´s frame

   • NEGOTIATION
     • is a common mechanism for resolving differences
     • between
       • Buyer
       • Seller
     • Decisions- Making
       • Controllable
       • evaluating behavior of the opponent
     • GOAL
       • GOOD AGREEMENT
   • Rationality
     • making the decision that maximizes the negotiator’s interests.
     • Decisions Making
       • 2 parites
         • do not have
           • same preferences, goals, etc.

2. THE FRAMING OF NEGOTIATIONS

   • people react in different ways
   • Framing, Negotiator Bias, and Strategic Behavior
   • The way in which information is framed

3. The Endowment Effect

4. Managers and Their Not-So Rational Decisions

   • Managerial Decision Making
   • How Managers Make Decisions
   • Decision-Making Processes
   • Decision-Making Biases
     • Framing and Loss Aversion
   • Risk Seeking
     • Source Dependence
     • Escalation of Commitment
   • Overconfidence
   • Closing Observations

5. When Your Thoughts Work Against You

   • MISTAKE No. 1
     • Viewing Negotiation as a Fixed Pie
     • Solution
       • Share Information
   • MISTAKE No. 2
     • Solution
       • Reject Anchors
     • Anchoring on the First Offer
   • MISTAKE No. 3
     • Escalating Commitment
     • SOLUTION
       • Don’t Dwell on the Past
   • Mistake No. 5
     • Focusing Too Narrowly on the Issues
       • FOCUS ON A PERSON OR TAKS
         • issues at stake can be a detriment, according to Bazerman and Moore
       • invaluable in many areas of life,.
         • artistic pursuits,
         • relationships
         • test taking
     • SOLUTION
       • Ask Questions and Make Multiple Offers
   • MISTAKE No. 4
     • Feeling Too Confident
       • overconfidence in his ability to eventually meet his goal.
     • SOLUTION
       • Consider the Opposite

6. 6 channels of persuasion

   • INTEREST-BASED PERSUASION
   • AUTHORITY
   • POLITICS
   • INSPIRATION AND EMOTION
   • RATIONALLITY
   • RELATIONSHIP