The Distributive Bargaining Situation: • Goals of one party are in fundamental, direct Define duel concern model with

del with example: The Dual Concern Model (DCM) is a model

conflict to another party • Resources are fixed and limited • Maximizing one's own
share of resources is the goal for both parties • Target point, aspiration point - where
the negotiator wants the negotiations to end • Walk away, resistance point - The point
the negotiator will not accept • Asking price, initial offer – first price mentioned • When
involving yourself in distributive bargaining, it create a situation where you refuse to see
the commonalities and ignore the other parties needs and wants (BATNA) The role of
alternative to negotiated agreement: A BATNA, or Best Alternative to Negotiated
Agreement, is the best option in the view of one party in a negotiation if the talks break
down. The value of knowing your best alternative to a negotiated agreement is that: • It
provides an alternative if negotiations fall through.• It provides negotiating power.• It
determines your reservation point (the worst price you are willing to accept). Example
of BATNA Colin needs a car and is negotiating with Tom to purchase his car. Tom offers
to sell his car to Colin for $10,000.
used to understand and analyze how individuals approach negotiation situations. The
model proposes that negotiators have two primary concerns: Competition: High
interest in self, low interest in others. In this approach, negotiators focus on
maximizing their own results at the expense of their opponents. This approach is
often referred to as a "win- lose" strategy. Hotel: Low interest in self, high interest in
others. In this approach, negotiators focus on meeting the other's needs at the
expense of their own results. This approach is often referred to as the "losing the
battle" strategy. Cooperation: High self-interest and strong interest in others. In this
approach, negotiators work together to find mutually beneficial solutions. This
approach is often called a "win-win" strategy. Avoid: Little interest in self, little
interest in others. In this approach, negotiators try to avoid conflict entirely by
withdrawing from negotiations or deferring negotiations to a later date

Unilateral Vs Bilateral: Unilateral : A unilateral contract is a contract in which one party

Bargaining Mix: • The package of issues for negotiation is bargaining mix. Each item in
makes a promise to another party, but the other party does not make a promise in
the mix has its own starting, target, and resistance point.• Negotiators need to
return. A bilateral contract is a contract in which both parties make promises to each
understand what is important to them and to the other party, and they need to take
other. A unilateral contract is typically used in situations where the party making the
these priorities into account during the planning process. For example, in the condo
promise does not need the other party's promise in order to carry out the contract. For
negotiation, a secondary issue important to both parties is the closing date of the sale-
example : A unilateral contract might be used to hire someone to do a job. The person
the date when the ownership will actually be transferred. Discovering the Other Party's
hiring does not need the other person's promise to do the job in order to hire them, but
Resistance Point: information is the life force of negotiation. The more you can learn
the person being hired might need the job in order to make money. Bilateral :A bilateral
about the other party's target, resistance point, motives, feelings of confidence, and so
contract is typically used in situations where the parties need each other's promises in
on, the more able you will be to strike a favorable agreement • The more you can learn
order to carry out the contract. For example : a bilateral contract might be used to buy a
about the other party's target, resistance point, motives, feelings of confidence, and so
car. The person buying the car needs the car dealer's promise to sell them the car, and
on, the more able you will be to strike a favorable agreement.• To influence the other
the car dealer needs the person's promise to pay for the car.
party's perception, however, they must establish some points effectively and
convincingly.
Strategy versus Tactics: Tactics are short-term, adaptive moves designed to enact or
pursue broad (or higher-level) strategies, which in turn provide stability, continuity, and
Influencing the Other Party's Resistance Point: • Factors are important in attempting to
direction for tactical behaviors. Strategy: The overall plan to achieve one's goals in a
influence the other party's resistance point: (1) the value the other attaches to a
negotiation Tactics: Short-term, adaptive moves designed to enact or pursue broad
particular outcome (2) the cost the other attaches to delay or difficulty in negotiations
strategies • Tactics are subordinate to strategy • Tactics are driven by strategy Planning:
(3) the cost the other attaches to having the negotiation aborted. •A significant factor in
The "action" component of the strategy process. how will I implement the strategy For
shaping the other person's understanding of what is possible is the other's
example, your negotiation strategy might be integrative, designed to build and maintain
understanding of your own situation. To explain how these factors can affect the
a productive relationship with the other party while using a joint problem-solving
process, we will make four major propositions: (1) The higher the other party's estimate
approach to the issues. The Direct and Indirect Effects of Goals on Strategy: Direct
of your cost of delay or impasse, the stronger the other party's resistance point will be.
effects: • Wishes are not goals • Goals are often linked to the other party's goals •There
(2) The less the other values an issue, the lower their resistance point will be. (3) The
are limits to what goals can be • Effective goals must be concrete/specific Indirect
more the other believes that you value an issue, the lower their resistance point may be
effects: • Forging an ongoing relationship Getting Ready to Implement the Strategy:
following points: • Define the negotiating goal.• Defining the major issues related to
Modify the Other Party's Perceptions: A negotiator can alter the other party's achieving the goal.• Assembling the issues, ranking their importance, and defining the
impressions of his or her own objectives by making outcomes appear less attractive or bargaining mix.• Defining the interests.• Knowing your alternatives (BATNAs).• Knowing
by making the cost of obtaining them appear higher. There are several approaches to your limits, including a resistance point.• Analyzing and understanding the other party's
modifying the other party's perceptions. • To Interpret for the other party what the goals, issues, and resistance points.
outcomes of his or her proposal will be.• To conceal information. (Again, concealment
strategies may carry with them the ethical hazards).For example, in union-management Difference Between Tactics and Strategy: Strategy: •Strategy is the intent • Determines
negotiations, management may demonstrate that a union request for a six-hour what needs to be done and why •Involves intentional and focused high-level thinking
workday would, on the one hand, not increase the number of employees because it that defines the direction to take •Aligned with the goals, objectives• Requires focus on
would not be worthwhile to hire people for two hours a day to make up for the hours defining the future •It is difficult to change, though entirely possible •Needs outward
taken from the standard eight-hour day perspective• Typically formed by leaders within the organization Tactics : • Tactics is
putting intent to action •Determines how it must be done • Aligned with the strategy •
Requires day-to-day execution • It is very easy to change • Tactics are tangible Phases of
Hardball tactics in negotiations by example: Hardball tactics are measures used in a negotiation: There are around seven recognised phases of negotiation, these are
negotiation to set a competitive tone. It generally involves using some form or power, Planning and fact-finding phase: Planning and fact-finding phase: This initial phase
leverage, or persuasion to coerce the other party into changing their objectives, includes finding of facts and information related to the other party and fact. Opening
expectations, or position in the negotiation. There are three types of tactics :-Bogey phase: An opportunity is provided in this phase to give a direction to the process of
Tactics : This tactic is most effective when negotiations identify an issue that is quite discussion which helps in gaining control over the discussion. Discussion phase: In this
important to the other side but of little value (low priority) to themselves. one way to phase both the parties are allowed to present their case with no interruption. Proposal
use bogey tactics is to set a goal that is slightly out of reach. For Example : If someone phase: This phase involves making of offers and proposals for a conclusion. Bargaining
wants to lose 10 pounds, they may set a goal to lose only 8 pounds. This will make the phase: The proposals and offers made by the other part must be perused and see if it is
individual work harder to achieve their goal. Nibble Tactics : Negotiator using the nibble compatible. After decision phase: Steps to strengthen the relationship must be taken.
tactic ask for a proportionally small concession on an item that hasn’t been discussed And efforts must be made to make the relationship better and respectful.
previously to close the deal or while reaching agreement .nibble tactics can be used
when you are negotiating a price for a product or service. For Example : if you are
negotiating to buy a car, you may start by offering $10,000. If the seller declines, you
may then offer $9,000. If the seller declines again, you may offer $8,000. This process of
offering lower prices until the seller agrees is known as nibbling. Snow job Tactics :The
snow job tactic occurs when negotiators overwhelm the other party with so much
information that he or she can handle. snow job tactics are used to persuade someone
to agree with a certain point of view. For Example : A person might try to convince their
friend that they should vote for a certain candidate by using snow job tactics.

Define the issues with diagrams and examples: Issues can greatly influence the choice
between distributive and integral bargaining strategies. Quota negotiation is a type of
negotiation in which parties compete for a set amount of resources, with each party
trying to maximize its share of resources. In this type of negotiation, the parties tend to
be hard-line and there is little room for compromise. The choice between distributive
and integral bargaining strategies can be influenced by the nature of the issue at hand.
For example, if the transaction is as simple as selling a commodity such as oil or wheat,
a distribution strategy may be more appropriate. In this case, the parties may only be
competing for a fixed amount of resources, leaving little room for creative problem-
solving or collaboration.