M2 - Principles of Negotiations

In your own words, what is a negotiation, what are the sides of a negotiation, and what is the importance of planning and preparation?

Answer explanation

Negotiation is an interaction between two or more interdependent parties who perceive incompatible goals. Sides of Negotiation: Addresser, Addressee, and Target. If a negotiator does not have enough understanding of the topic on hand, he or she will be bound to lose confidence in discussing ideas and fail to address critical points.

What is the difference between a Distributive Negotiation and an Integrative Negotiation?

Answer explanation

Distributive Negotiation is a negotiation style where one side presumes and claims all the value for him or herself. On the other hand, the objective of an Integrative Negotiation is that both parties involved in the negotiation strive to create a “win-win” situation.

Explain mediation and arbitration.

Answer explanation

Mediation is usually carried out confidentially, it requires the consent of both parties in terms of initiating the process. While Arbitration is made by the third party is legally binding.

Refers to having an alternative that could replace an ongoing negotiation if both sides could not reach an agreement:

• BATNA

• ZOPA

• Value creation

• Mediation

Refers to the idea that all involved parties’ potential agreement to a desirable solution

• BATNA

• ZOPA

• Value creation

• Mediation

It is grounded in their title, duties that they carry, and responsibilities of a job description as well as their “level” within an organization's hierarchy:

• Low and high balling

• Framing

• Resource-Based Power/Fame

• Legitimate/Hierarchical Power