Anonymous
more than 1 week ago
Critically discuss the theories of negotiation with example for each point?
1 view
1 view
1 answer
Sort By
Google Gemini AI
more than 1 week ago
1. Distributive Bargaining Theory
- Assumes a zero-sum game: One party's gain is the other's loss.
- Aims for maximum advantage: Both parties focus on claiming as much value as possible.
- Example: Salary negotiation where there is a fixed budget and a goal to maximize individual pay.
2. Integrative Bargaining Theory
- Assumes a win-win potential: Both parties can achieve their goals through cooperation and value creation.
- Focuses on mutual benefit: Negotiators explore different options that meet the needs of both parties.
- Example: Joint venture negotiation where both companies aim to create a new enterprise that benefits both.
3. Positional Bargaining Theory
- Negotiators take rigid positions: They prepare a "best-case scenario" and make initial demands.
- Concessions are made gradually: Negotiators move their positions closer to a compromise.
- Example: House purchase negotiation where the buyer and seller initially state their ideal prices and gradually adjust until an agreement is reached.
4. Interest-Based Bargaining Theory
- Focuses on underlying interests: Negotiators identify and address the needs and concerns of both parties.
- Creative solutions are sought: Negotiators explore options that satisfy multiple interests.
- Example: Peace negotiation where parties aim to find a solution that addresses the security concerns of all involved.
5. Best Alternative to a Negotiated Agreement (BATNA)
- Considered by each party: The value of their alternative options outside of the negotiation.
- Affects negotiation power: A strong BATNA gives a party more leverage.
- Example: Job negotiation where a candidate has multiple job offers and can use them to negotiate better terms.
6. Zone of Possible Agreement (ZOPA)
- Range of potential outcomes: The area where both parties' interests overlap.
- Negotiators aim to reach within the ZOPA: A settlement outside of the ZOPA is unlikely to satisfy both parties.
- Example: Salary negotiation where the ZOPA is between the employer's budget and the employee's desired salary.
7. Communication
- Key element in all theories: Negotiators must communicate effectively to understand each other's interests and explore potential solutions.
- Verbal and nonverbal cues: Body language, tone of voice, and active listening contribute to effective communication.
- Example: Mediation session where a neutral party facilitates discussions and ensures open communication between disputing parties.
- Assumes a zero-sum game: One party's gain is the other's loss.
- Aims for maximum advantage: Both parties focus on claiming as much value as possible.
- Example: Salary negotiation where there is a fixed budget and a goal to maximize individual pay.
2. Integrative Bargaining Theory
- Assumes a win-win potential: Both parties can achieve their goals through cooperation and value creation.
- Focuses on mutual benefit: Negotiators explore different options that meet the needs of both parties.
- Example: Joint venture negotiation where both companies aim to create a new enterprise that benefits both.
3. Positional Bargaining Theory
- Negotiators take rigid positions: They prepare a "best-case scenario" and make initial demands.
- Concessions are made gradually: Negotiators move their positions closer to a compromise.
- Example: House purchase negotiation where the buyer and seller initially state their ideal prices and gradually adjust until an agreement is reached.
4. Interest-Based Bargaining Theory
- Focuses on underlying interests: Negotiators identify and address the needs and concerns of both parties.
- Creative solutions are sought: Negotiators explore options that satisfy multiple interests.
- Example: Peace negotiation where parties aim to find a solution that addresses the security concerns of all involved.
5. Best Alternative to a Negotiated Agreement (BATNA)
- Considered by each party: The value of their alternative options outside of the negotiation.
- Affects negotiation power: A strong BATNA gives a party more leverage.
- Example: Job negotiation where a candidate has multiple job offers and can use them to negotiate better terms.
6. Zone of Possible Agreement (ZOPA)
- Range of potential outcomes: The area where both parties' interests overlap.
- Negotiators aim to reach within the ZOPA: A settlement outside of the ZOPA is unlikely to satisfy both parties.
- Example: Salary negotiation where the ZOPA is between the employer's budget and the employee's desired salary.
7. Communication
- Key element in all theories: Negotiators must communicate effectively to understand each other's interests and explore potential solutions.
- Verbal and nonverbal cues: Body language, tone of voice, and active listening contribute to effective communication.
- Example: Mediation session where a neutral party facilitates discussions and ensures open communication between disputing parties.
0
