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Brief Contents PART I: ESSENTIALS OF NEGOTIATION Chapter 1 Negotiation: The Mind and the Heart Chapter 2 Preparation: What to Do Before Negotiation Chapter 3 Distributive Negotiation: Slicing the Pie Chapter 4 Win-Win Negotiation: Expanding the Pie PART II: ADVANCED NEGOTIATION SKILLS Chapter 5 Developing a Negotiating Style Chapter 6 Establishing Trust and Building a Relationship Chapter 7 Power, Persuasion, and Ethics Chapter 8 Creativity and Problem Solving in Negotiations PART III: APPLICATIONS AND SPECIAL SCENARIOS Chapter 9 Multiple Parties, Coalitions, and Teams Chapter 10 Cross-Cultural Negotiation Chapter 11 Tacit Negotiations and Social Dilemmas Chapter 12 Negotiating via Information Technology APPENDICES Appendix 1 Are You a Rational Person? Check Yourself Appendix 2 Nonverbal Communication and Lie Detection Appendix 3 Third-Party Intervention Appendix 4 Negotiating a Job Offer Contents Preface PART I: ESSENTIALS OF NEGOTIATION CHAPTER 1 Negotiation: The Mind and the Heart Negotiation: Definition and Scope Negotiation as a Core Management Competency Dynamic Nature of Business Interdependence Competition Information Age Globalization Most People are Ineffective Negotiators Negotiation Sandtraps Why are People Ineffective Negotiators? Egocentrism Confirmation Bias Satisficing Self-Reinforcing Incompetence Debunking Negotiation Myths Myth 1: Negotiations Are Fixed-Sum Myth 2: You Need to Be Either Tough or Soft Myth 3: Good Negotiators Are Born Myth 4: Experience Is a Great Teacher Myth 5: Good Negotiators Take Risks Myth 6: Good Negotiators Rely on Intuition Learning Objectives The Mind and Heart CHAPTER 2 Preparation: What to Do Before Negotiation Self-Assessment What Do I Want? What Is My Alternative to Reaching Agreement in This Situation? Determine Your Reservation Point Be Aware of Focal Points Beware of Sunk Costs Do Not Confuse Your Target Point with Your Reservation Point Identify the Issues in the Negotiation Identify the Alternatives for Each Issue Identify Equivalent Packages of Offers Assess Your Risk Propensity Endowment Effects Am I Going to Regret This? Violations of the Sure Thing Principle Do I Have an Appropriate Level of Confidence? Sizing up the Other Party Who Are the Other Parties? Are the Parties Monolithic? Issue Mix Others¿ Interests and Position Other Negotiators¿ BATNAs Situation Assessment Is the Negotiation One Shot, Long Term, or Repetitive? Do the Negotiations Involve Scarce Resources, Ideologies, or Both? Is the Negotiation One of Necessity or Opportunity? Is the Negotiation an Exchange or Dispute Situation? Are Linkage Effects Present? Is Agreement Required? Is It Legal to Negotiate? Is Ratification Required? Are Time Constraints or Other Time-Related Costs Involved? Are Contracts Official or Unofficial? Where Do the Negotiations Take Place? Are Negotiations Public or Private? Is Third-Party Intervention a Possibility? What Conventions Guide the Process of Negotiation (Such as Who Makes the First Offer)? Do Negotiations Involve More Than One Offer? Do Negotiators Communicate Explicitly or Tacitly? Is a Power Differential a Factor Between Parties? Is Precedent Important? Conclusion CHAPTER 3 Distributive Negotiation: Slicing the Pie The Bargaining Zone and the Negotiation Dance Bargaining Surplus Negotiator¿s Surplus Pie-Slicing Strategies Strategy 1: Assess Your BATNA and Improve It Strategy 2: Determine Your Reservation Point, But Do Not Reveal It Strategy 3: Research the Other Party¿s BATNA and Estimate Their Reservation Point Strategy 4: Set High Aspirations (Be Realistic, But Optimistic) Strategy 5: Make the First Offer (If You Are Prepared) Strategy 6: Immediately Reanchor if the Other Party Opens First Strategy 7: Plan Your Concessions Pattern of Concessions Magnitude of Concessions Timing of Concessions Strategy 8: Support Your Offers with Facts Strategy 9: Appeal to Norms of Fairness Strategy 10: Do Not Fall for the ¿Even Split¿ Ploy The Most Commonly Asked Questions Should I Reveal My Reservation Point? Should I Lie About My Reservation Point? Should I Try to Manipulate the Other Party¿s Reservation Point? Should I Make a ¿Final Offer¿ or Commit to a Position? Saving Face The Power of Fairness Multiple Methods of Fair Division Situation-Specific Rules of Fairness Social Comparison The Equity Principle Restoring Equity Procedural Justice Fairness in Relationships Egocentrism Wise Pie Slicing Consistency Simplicity Effectiveness Justifiability Consensus Generalizability Satisfaction Conclusion CHAPTER 4 Win-Win Negotiation: Expanding the Pie What is Win-Win Negotiation Anyway? Telltale Signs of Win-Win Potential Does the Negotiation Contain More Than One Issue? Can Other Issues Be Brought In? Can Side Deals Be Made? Do Parties Have Different Preferences Across Negotiation Issues? A Pyramid Model Most Common Pie-Expanding Errors False Conflict Fixed-Pie Perception Strategies That Do Not Really Work Commitment to Reaching a Win-Win Deal Compromise Focusing on a Long-Term Relationship Adopting a Cooperative Orientation Taking Extra Time to Negotiate Strategies That Work Perspective-Taking Ask Questions about Interests and Priorities Reservation Price Target BATNA Provide Information about your interests and priorities Unbundle the Issues Be Aggressive in Anchoring Gain Better Information About the Other Party Be More Persistent and More Persuasive Regarding the Value of an Offer Overcome Concession Aversion Structure Contingency Contracts by Capitalizing on Differences Differences in Valuation Differences in Expectations Differences in Risk Attitudes Differences in Time Preferences Differences in Capabilities Cautionary Note Presettlement Settlements (PreSS) Search for Postsettlement Settlements A Strategic Framework for Reaching Integrative Agreements Resource Assessment Assessment of Differences Offers and Trade-Offs Acceptance/Rejection Decision Prolonging Negotiation and Renegotiation Do Not Forget About Claiming CONCLUSION PART II: ADVANCED NEGOTIATION SKILLS CHAPTER 5 Developing a Negotiating Style Part II: Advanced Negotiation Skills Tough Versus Soft Negotiators Motivational Orientation Assessing Your Motivational Style Strategic Issues Concerning Motivational Style Interests, Rights, and Power Model of Disputing Assessing Your Approach Interests Rights Power Strategic Issues Concerning Approaches The Principle of Reciprocity Interests Are Effective for Pie Expansion How to Refocus Your Opponent on Interests (and Move Them from Rights and Power) High Costs Associated with Power and Rights Know When to Use Rights and Power Know How to Use Rights and Power Emotions and Emotional Knowledge Emotions and Moods Expressed versus Felt Emotion Genuine versus Strategic Emotion Positive Emotion Negative Emotion Emotional Intelligence Positive Emotion Emotional Intelligence and Negotiated Outcomes Accuracy Empathy Self-efficacy Strategic Advice for Dealing with Emotions at the Table Conclusion CHAPTER 6 Establishing Trust and Building a Relationship The People Side of Win-Win Trust as the Bedrock of Relationships Three Types of Trust in Relationships Deterrence-Based Trust Knowledge-Based Trust Identification-Based Trust Building Trust: Rational and Deliberate Mechanisms Transform Personal Conflict into Task Conflict Agree on a Common Goal or Shared Vision Capitalize on Network Connections Find a Shared Problem or a Shared Enemy Focus on the Future Building Trust: Psychological Strategies Similarity Mere Exposure Physical Presence Reciprocity Schmoozing Flattery Self-Disclosure What Leads to Mistrust? Miscommunication Poor Pie Expansion Dispositional Attributions Focusing on the ¿Bad Apple¿ Repairing Broken Trust Step 1: Suggest a Personal Meeting Step 2: Put the Focus on the Relationship Step 3: Apologize Step 4: Let Them Vent Step 5: Do Not Get Defensive Step 6: Ask for Clarifying Information Step 7: Test Your Understanding Step 8: Formulate a Plan Step 9: Think About Ways to Prevent a Future Problem Step 10: Do a Relationship Checkup Reputation Relationships in Negotiation Negotiating with Friends Why People Are Uncomfortable Negotiating with Friends Friends Are Less Competitive with Each Other Friends May Not Reach Level 3 Integrative Agreements Friendship and the Mismanagement of Agreement If We Have to Negotiate, We Should Divide It Down the Middle Negotiating with Businesspeople We Choose Our Friends, but Not Our Coworkers Business Relationships Often Have Status and Rank Issues Associated with Them The Need for Swift Trust No Such Thing as a One-Shot Business Situation When in Business with Friends and Family The Emotional Potential Is Higher Internal Value Conflict Myopia Bottom Line on Relationships Conclusion CHAPTER 7 Power, Persuasion, and Ethics Your BATNA is your Most Important Source of Power in Negotiation Sources of Power Analyzing Your Power Persuasion Tactics Two Routes to Persuasion Central Route Persuasion Tactics Peripheral Route Persuasion Tactics Status GENDER Social Networks Physical Appearance The Effects of Power on Those Who Hold Power The Effects of Power on Those with Less Power Ethical Negotiation Lying Other Questionable Negotiation Strategies Sins of Omission and Commission Costs of Lying Under What Conditions Do People Engage in Deception? Psychological Bias and Unethical Behavior Conclusion CHAPTER 8 Creativity and Problem Solving in Negotiations Creativity in Negotiation Test Your Own Creativity What Is Your Mental Model of Negotiation? Haggling Cost-Benefit Analysis Game Playing Partnership Problem Solving Creative Negotiation Agreements Fractionating Problems into Solvable Parts Finding Differences: Issue Alignment and Realignment Expanding the Pie Bridging Cost Cutting Nonspecific Compensation Structuring Contingencies Threats to Effective Problem Solving and Creativity The Inert Knowledge Problem Availability Heuristic Representativeness Anchoring and Adjustment Unwarranted Causation Belief Perseverance Illusory Correlation Just World Functional Fixedness Set Effect Selective Attention Overconfidence The Limits of Short-Term Memory Creative Negotiation Strategies Multiple Roads Lead to Rome (and an Expert Understanding) Feedback Creativity Templates Incubation Rational Problem-Solving Model Fluency, Flexibility, and Originality Brainstorming Convergent Versus Divergent Thinking Deductive Reasoning Inductive Reasoning Flow Conclusion PART III: Applications and Special Scenarios CHAPTER 9 Multiple Parties, Coalitions, and Teams Analyzing Multiparty Negotiations Multiparty Negotiations Key Challenges of Multiparty Negotiations Dealing with Coalitions Formulating Trade-Offs Voting and Majority Rule Communication Breakdowns Key Strategies for Multiparty Negotiations Know Who Will Be at the Table Manage the Information and Systematize Proposal Making Use Brainstorming Wisely Develop and Assign Process Roles Stay at the Table Strive for Equal Participation Allow for Some Points of Agreement, Even If Only on Process Avoid the ¿Equal Shares¿ Bias Avoid the Agreement Bias Avoid Sequential Bargaining Coalitions Key Challenges of Coalitions Optimal Coalition Size Trust and Temptation in Coalitions Dividing the Pie Strategies for Maximizing Coalitional Effectiveness Make Your Contacts Early Seek Verbal Commitments Use Unbiased-Appearing Rationale to Divide the Pie Principal-Agent Negotiations Disadvantages of Agents Shrinking ZOPA Incompatible Incentive Structure Communication Distortion Loss of Control Agreement at Any Cost Strategies for Working Effectively with Agents Shop Around Know Your BATNA Before Meeting with Your Agent Communicate Your Interests to Your Agent Without Giving Away Your BATNA Capitalize on the Agent¿s Expertise Tap into Your Agent¿s Sources of Information Discuss Ratification Use Your Agent to Help Save Face Use Your Agent to Buffer Emotions Constituent Relationships Challenges for Constituent Relationships Identification Accountability Conflicts of Interest Strategies for Improving Constituent Relationships Communicate with Your Constituents Do Not Expect Homogeneity of Constituent Views Educate Your Constituents on Your Role and Your Limitations Help Your Constituents Do Horizon Thinking Team Negotiation Challenges That Face Negotiating Teams Picking Your Teammates How Many on the Team? Communication on the Team Team Cohesion Information Processing Strategies for Improving Team Negotiations Prepare Together Plan Scheduled Breaks Assess Accountability Intergroup Negotiation Challenges of Intergroup Negotiations Stereotyping Changing Identities In-Group Bias Extremism Strategies for Optimizing Intergroup Negotiations Separate Conflict of Interest from Symbolic Conflict Search for Common Identity Avoid the Out-Group Homogeneity Bias Contact The GRIT Strategy Conclusion CHAPTER 10 Cross-Cultural Negotiation Learning About Cultures Defining Culture Culture as an Iceberg Cultural Values and Negotiation Norms Individualism Versus Collectivism Individualism Collectivism Implications for Negotiation Egalitarianism Versus Hierarchy Egalitarian Power Relationships Hierarchical Power Relationships Implications for Negotiation Direct Versus Indirect Communications Direct Communication Indirect Communication Implications for Negotiation Key Challenges of Intercultural Negotiation Expanding the Pie Dividing the Pie Sacred Values and Taboo Trade-Offs Biased Punctuation of Conflict Ethnocentrism Affiliation Bias Faulty Perceptions of Conciliation and Coercion Naïve Realism Predictors of success in Intercultural Interactions Advice for Cross-Cultural Negotiations Anticipate Differences in Strategy and Tactics That May Cause Misunderstandings Analyze Cultural Differences to Identify Differences in Values That Expand the Pie Recognize That the Other Party May Not Share Your View of What Constitutes Power Avoid Attribution Errors Find Out How to Show Respect in the Other Culture Find out about how Time is perceived in the culture Know Your Options for Change Conclusion CHAPTER 11 Tacit Negotiations and Social Dilemmas Business as a Social Dilemma The Prisoner¿s Dilemma Cooperation and Defection as Unilateral Choices Rational Analysis Case 1: One-Shot Decision Case 2: Repeated Interaction over a Fixed Number of Trials Case 3: Repeated Interaction for an Infinite or Indefinite Amount of Time The Tournament of Champions The Winner Is a Loser Psychological Analysis of Why Tit-for-Tat Is Effective Recovering from Defection Social Dilemmas The Tragedy of the Commons Types of Social Dilemmas How to Build Cooperation in Social Dilemmas Structural Strategies Psychological Strategies How to Encourage Cooperation in Social Dilemmas When Parties Should Not Collude Escalation of Commitment Avoiding the Escalation of Commitment in Negotiations Set Limits Avoid Decision Myopia Recognize Sunk Costs Diversify Responsibility and Authority Redefine the Situation Conclusion CHAPTER 12 Negotiating via Information Technology Place-Time Model of Social Interaction Face-to-Face Communication Same Time, Different Place Loss of Informal Communication Lost Opportunity Separation of Feedback Negotiation Timing Different Time, Same Place Different Place, Different Time Temporal Synchrony Bias Burned Bridge Bias Squeaky Wheel Bias Sinister Attribution Bias Information Technology and its Effects on Social Behavior Trust Status and Power: The ¿Weak Get Strong¿ Effect Social Networks Risk Taking Rapport and Social Norms Paranoia Strategies for Enhancing Technology-Mediated Negotiations Initial Face-to-Face Experience One-Day Videoconference/Teleconference Schmoozing CONCLUSION Appendix 1 Are You a Rational Person? Check Yourself Appendix 2 Nonverbal Communication and Lie Detection Appendix 3 Third-Party Intervention Appendix 4 Negotiating a Job Offer Academic References Popular Press References Subject Index Author Index
Library of Congress Subject Headings for this publication:
Negotiation in business.