Premium Essay


In: Business and Management

Submitted By cheery7
Words 4096
Pages 17
Managing Negotiation
From reaching an agreement with a large client to bargaining for a higher starting salary, the ability to negotiate effectively is a critical component of success in business. One fundamental aspect of a negotiation is if it will be approached as distributive bargaining or as an integrative negotiation. Distributive bargaining is a competitive, zero-sum negotiation in which there are a limited amount of resources available, while integrative negotiation takes place when “the parties’ goals are not seen as mutually exclusive and in which the focus is on making it possible for both sides to achieve their objectives” (Nelson and Quick 2009). For example, a dispute over land would necessitate distributive bargaining, whereas a partnership between two firms to buy and sell a product could be made through integrative negotiation. The process of two or more parties reaching a joint decision is influenced by a variety of factors. In analyzing business negotiation, we will first give an overview of past scholarly research on the topic, and then explore more current mental models of negotiation. We will also examine the possible hurdles to reaching agreements posed by cross cultural differences, particularly between American and Chinese business people. Finally, we discuss the relative importance of BATNAs (Best Alternative to Negotiated Agreement) and contributions in the bargaining process.
History of Negotiation Research In the 1960’s and 1970’s, the main issues identified by scholars studying negotiation were the personality characteristics of the individuals involved and the situational context of the negotiation. Although many studies investigated the impact of personality differences on the success of a negotiation, the results generally showed that this variable accounts for only a small amount of the difference in…...

Similar Documents

Premium Essay

Microeconomics Tax Report

...Qinelastic Figure 2 - Elasticity and it's effect on Price and Quantity   Issues associated with the ETS The Kerr and Taylor's article(2009a) discussed the plans of the Australian Labor Party, who proposed this idea, and as well as the opponents. There are many opponents for various reasons. The Liberal and National parties suggested a reduction of the effects of the plan or cancel the whole plan and an independent senator, Steve Fielding, is concerned about the level of jobs that are required once this is approved. On the other hand, the Greens party and Nick Xenephon, another independent senator, is concerned about the level of emissions reduction estimated by the governemnt (Taylor & article2009a). At the new round of negoations with senators,   the Australian Labor Party took the comments from the Liberal and National parties, as the government announced to introduce the carbon permits at a very low fixed price on their first year of the implemetnation. Furthermore, the government announced further assistance “for each of the two categories of so-called traded exposed industries” (Kerr & Taylor 2009a).   Thererfore, due to the new legistlation, the cost is $10 per tonned of carbon emitted for a period of 2011-2012 with the transition of a full, tradable market by 1 July 2012. In addition, the emissions intensive trade exposed industries will receive free permits for up to 95 percent of their carbon emits, while other businesses will receive up......

Words: 1421 - Pages: 6