Ploychompu Apisirimongkhonkun 5671023
MS 6526 Negotiation
1. What is irrational escalation of commitment bias? Provide an example to support your answer.
It is one of cognitive biases. Irrational escalation of commitment bias is related to individual perception and judgment. It is a situation when individuals pursue a course of action, even if it is failing. Individuals seek an evidence to confirm that the cause of action is the correct choice. Sometimes individuals continue on a failing course of action after information shows that this may not be the right way to follow or do.
For example, gamblers continue to gamble after they have lost a lot of money. Continuing to gamble after heavy losses may not be the right decision to gain back the money because some people may think that if they bet higher at once or continue a game will help them to get back their money, but if they lose, they will lose more money. Although they may win a game in this round, but nothing can confirm that they will continuously win in the next round. So the result will be losing a bigger amount of money.
2. Why might it be beneficial for parties in an integrative negotiation to know and share BATNAs?
It is because sharing and knowing BATNAs helps avoiding both parties from accepting terms that are too unfavorable and from rejecting terms it would be accepting by one party. Moreover, it also helps us in decision-making whether the proposed agreement is better than our BATNA, should we accept it and should we withdraw or reopening negotiation. BATNA helps to increase our negotiating power. In the case that we have a good alternative, we will have a power to push the other party harder.
3. “A competitive strategy would be appropriate when the relationship o...
... middle of paper ...
...ayer in the healthcare industry and a public hospital wanted computers system to increase efficiency and help to reduce a cost of operation. Both parties agreed on a management system. After the system was installed, they argued over the customized software if it was included in the deal because a public hospital will be forced into bankruptcy if they do not have the customized software and a computer company does not have any responsibility about it. Thus, a public hospital made a threat to a computer company by suggesting that if they are forced into bankruptcy, a computer company will not make progress in this attractive market, because if they can reach an agreement, you will be seen as our rescuer and could become a market leader. By using the threat on the benefits of agreement, a public hospital increased the possibility of getting an integrative agreement.
Lewicki, J. R., Barry, B., & Saunders, M. D. (2010). Negotiation: Readings, exercises and cases
Bargaining and negotiation are part of everyday lives and in the case of Smith and Fischer an initial bargain agreement was established. BATNA or Best alternative to a negotiated agreement is defined as the best method that can be used to convince...
Data and information gathering: The management and negotiation team should engage the senior management team, line supervisors, and operating managers in an endeavour to obtain information or data that will equip them in the negotiation process. By doing this, it enhances their ability to engage the other party because they are equipped with the necessary information to expedite the negotiation process. Further, this will enable the management to assess the levels of support among employees and thereby enable the management to come up with the appropriate strategies to counter this (Carrell, & Heavrin,
The reluctance to teach the distributive bargaining tactic may be due to the fact that most teachings on negotiation skills are centered around the notion of all parties coming out of a deal with something they want. Negotiations are supposed to begin in a positive way in which the negotiators consider the needs and wants of the others involved and their...
Lewicki et, al. 2011, identifies ten best practices for improving negotiation skills. The best practices include practical, action oriented solutions such as preparation, identifying negotiation structure, recognizing the best alternative to a negotiated agreement (BATNA) and learning negotiation paradoxes. They are also comprised of less tangible practices including being aware of intangibles and willing to walk away, as well as actively managing alliances, recognizing that fair and rationality are relative, the criticality of reputation and finally, continuing to learn (Lewicki et, al.
Negotiations styles are scholastically recognized as being broken down into two general categories and those are distributive bargaining styles and integrative negotiation styles. Distributive bargaining styles of negotiation are understood to be a competitive type of negotiation. “Distributive bargaining, also known as positional bargaining, negotiating zero-sum, competitive negotiation, or win-lose negotiation, is a type or style of negotiation in which the parties compete for the distribution of a fixed amount of value” (Business Blog Reviews, 2011). This type of negotiation skill or style approach might be best represented in professional areas such as the stock market where there is a fixed goal in mind or even in a garage sale negotiation where the owner would have a specific value of which he/she would not go below. In contrast, an integrative negotiation approach/style is that of cooperative bargaining, or win-win types ...
Lewicki, R. J., Saunders, D. M., & Barry, B. (2011). Essentials of Negotiation (5th ed.). New York, NY, US: McGraw-Hill.
The first common theme is the importance of clear strategic intent and big picture thinking in negotiations. Before taking the Negotiation Behaviour unit, I always perceived negotiation as a fixed-pie, a zero-sum gain situation, where one party wins and the other party loses. This belief has often led me to a competitive behaviour in negotiation by trading the big picture thinking with the need to win, getting too detailed too quickly, leading to a positional approach instead of having a broad goal and explore for ways around problems to create value and get the best outcome.
Because the government choices not to closely regulate the food citizens of the United States of America, people are making poor eating decisions, leaving sixty-seven percent of Americans either overweight or obese [2005-2006}. (Is Obesity a Disease?) But what if it wasn’t really obese people’s fault for being overweight, but instead the fault of food companies that provide cheaply priced and processed food that is full of perseverates, trans fats, and salt? Scientist and author of “A Big Fat Crisis”, Debora A. Cohen writes about people’s obesity problem, “We are hard – wired to enjoy eating, which stands to reason from an evolutionary point of view. If we didn’t have the drive to obtain food coupled with the pleasure of eating it, the human species would not survive.”(Calhan) If people have no option but to purchase food intoxicated with trans fats, then it is the governments job to protect its citizens from further harm. Therefore government should closely monitor processed and fast foods to protect people from unhealthy food choices, better inform the public about nutritional information, and closely regulate American food consumption to reduce obesity related health risk.
Good preparation allows you to strategize with the ability to think quickly in the negotiation room. There are several different formats and styles of negotiations. The use of a certain style depends on elements such as the strength of the relationship, the urgency of the situation, the intricacy of the issues, and the content of the negotiation. Each format and style has its own strengths and weaknesses and can be strategically used in various types of situations. As mentioned, the preparation of a successful negation is necessary, especially concerning your BATNA. We have been able to explore such preparation and methods by participating and conducting negotiations with our peers. The following negotiation studies proved to have their own dynamic, thus accounting for a different preparation and negotiation tactic for each.
The government should regulate what people eat and drink.Why? because of obesity ,diseases , future heath and to be able to live longer .For the sake of people they should at least control what they should eat and what they shouldn't . Not everyone knows what is right and wrong to eat.
The topic for my real world negotiation is to come to an agreement with my supervisor for a promotion as well as an increased salary. I currently work as a student assistant at the student services Planning, Enrollment Management, and Student Affairs (PEMSA) department. My goal is to increase my hourly pay from $10.15 to $12.70, a 25% increase. Having worked in this department for three years, I have taken on tasks not part of my job description such as processing return mail, data entry, and supervision.
Negotiation has been used as a vital communication tool not only in business but also in social intercourse. It helps people make common agreement and avoid conflict. So we need to use the tactics which we learned from this course and books to do more practice, only in this way we can gain advantages in negotiation.
To survive in life we need to consume food whether it is for nutritional value or for the pure enjoyment of its savory taste. Individuals, not the government, have the right to choose what and when to eat; but good nutrition is important to maintain health and live a long and happy life. People need to make choices everyday about what they put into their bodies. Without proper nutrition, our bodies may not be able to function correctly. Most adults know what is good and bad for the body. We all know that diets rich in fruits and vegetables fuel the body in a healthy way and that protein gives us energy. Although we know what food is best for our bodies, each individual has a personal choice of what they put into their bodies and that should not be dictated by the government, even though
Negotiation approaches are generally described as either distributive or integrative. At the heart of each strategy is a measurement of conflict between each party’s desired outcomes. Consider the following situation. Chris, an entrepreneur, is starting a new business that will occupy most of his free time for the near future. Living in a fancy new development, Chris is concerned that his new business will prevent him from taking care of his lawn, which has strict requirements under neighborhood rules. Not wanted to upset his neighbors, Chris decides to hire Matt to cut his grass.