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NEGOTIATIONS AND CONFLICT MANAGEMENT XUELI WANG SCHOOL OF ECONOMICS AND MANAGEMENT TSINGHUA UNIVERSITY Negotiation Negotiation: an interpersonal decision-making process by which two or more people agree how to allocate scarce resources. Why occur to create something new that neither party could do on his or her own to resolve a problem or dispute between the parties Manager is negotiator Dynamic nature of business Interdependence Competition Information age Diversity Characteristics of negotiation Two or more parties conflict of interest between two or more parties voluntary process and a strategy pursued by choice no fixed or established set of rules or prefer to invent their own give and take both intangibles and tangibles are concerned Nature of Negotiation---Interdependence Mutual dependency(goal) and mutual adjustment(process) Actual structure of interdependence Vs. perceived interdependence Dilemma in negotiation dilemma of honesty dilemma of trust Building trust (efforts on the perception of the outcome and efforts on the process) The major sins of negotiation Leaving money on the table Settling for too little Walking away from the table Settling for terms that are worse than your alternative Myths about negotiators Good negotiators are born Experience is a great teacher Good negotiators take risks Good negotiators rely on intuition Some terms used in NC BATNA: (Best Alternative to a Negotiated Agreement) determines the point at which a negotiator is prepared to walk away from the negotiation table or your fall back position. Position 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 settlement 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 poten
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