The Mind and Heart of the Negotiator, 7th Edition PDF by Leigh L Thompson

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The Mind and Heart of the Negotiator, Seventh Edition

By Leigh L Thompson

The Mind and Heart of the Negotiator, Seventh Edition

Contents

Preface 17

About The Author 20

Part I Negotiation Essentials 21

Chapter 1 Negotiation: The Mind And The Heart 21

The Mind And Heart 22

Relationships Versus Economics 22

Satisficing Versus Optimizing 22

Short- Versus Long-Term Relationships 23

Intra- Versus Inter-Organizational Negotiation 23

Low- Versus High-Stakes Negotiation 23

Win–Win, Win–Lose, And Lose–Lose Negotiation 24

Negotiation As A Core Management Competency 24

Knowledge Economy 24

Specialized Expertise 25

Information Technology 25

Globalization 26

Negotiation Traps 26

Becoming An Effective Negotiator 27

Feedback 28

Strategy 29

Focused Practice 29

Debunking Negotiation Myths 29

Myth 1: Negotiations Are Fixed-Sum 29

Myth 2: You Need To Be Either Tough Or Soft 30

Myth 3: Good Negotiators Are Born 30

Myth 4: Good Negotiators Rely On Intuition 30

Chapter Capstone 31

Chapter 2 Preparation: What To Do Before

Negotiation 32

Self-Assessment 33

Targets And Aspirations 33

Batna 35

Reservation Point 36

Focal Points 36

Sunk Costs 39

Target Point Versus Reservation Point 39

Negotiation Issues 39

Issue Alternatives 39

Multi-Issue Proposals 40

Risk And Uncertainty 40

Endowment Effects 43

Buyer’s Remorse And Seller’s Regret 43

Negotiator Confidence 44

Perspective-Taking 45

Counterparty 45

Are The Parties Monolithic? 45

Counterparties’ Interests And Positions 46

Counterparties’ Batnas 46

Situational Awareness 46

One-Shot Versus Long-Term 46

Transactions Versus Disputes 47

Linkage Effects 47

False Versus Sincere Negotiations 48

Is It Legal To Negotiate? 48

Ratification 49

Time Constraints 49

Formal Versus Handshake Agreement 51

Onsite Versus Offsite Meetings 51

Public Versus Private 51

Scripted Versus Unscripted 52

Single Versus Multiple Offers 52

Chapter Capstone 52

Chapter 3 Distributive Negotiation: Claiming Value 54

The Bargaining Zone 55

Bargaining Surplus 57

Negotiator’s Surplus 57

Value-Claiming Strategies 58

Accurately Assess Your Batna 59

Unpack Alternatives 59

Improve Your Batna 59

Determine Your Reservation Point, But Do Not Reveal It 59

Research The Other Party’s Batna And Estimate Their

Reservation Point 61

Set High Aspirations (Be Realistic But Optimistic) 61

First Offers 63

Anchoring Information Model 64

Anchoring Effect 65

Range Offers 66

Precise Versus Round Numbers 66

Early Versus Late First Offers 67

Re-Anchoring 67

Concessions 68

Reciprocity Versus Aversion 68

Concession Pattern 68

Magnitude Of Concessions 69

Timing Of Concessions 70

Substantiation 70

Power Conversation Tactics 70

Constraints Versus Disparagement 71

“Agreement” Versus “Option” 71

Fairness Arguments 71

Social Comparison 76

Equity Principle 77

Final Offers 80

Face-Saving 80

Chapter Capstone 81

Chapter 4 Integrative Negotiation: Expanding

The Pie 82

Fixed-Sum Versus Variable-Sum Negotiation 82

False Conflict 83

Fixed-Pie Perception 83

Integrative Negotiation 84

Compromise Versus Integrative Negotiation 84

Pareto Optimal Agreements 85

Assessing The Likelihood Of Win–Win Agreement 86

Multiple Issues 86

Add Issues 86

Side Deals 86

Differing Strengths Of Preference 87

Strategies For Expanding The Pie 87

Separate Positions From Interests 87

Perspective Taking 88

Ask Questions About Interests And Priorities 89

Reveal Information About Interests And Priorities 90

Unbundle The Issues 94

Value-Added Trade-Offs (Logrolling) 94

Multi-Issue Offers Versus Single-Issue Offers 95

Mesos: Multiple Equivalent Simultaneous Offers 95

Contingent Contracts 98

Pre-Settlement Settlements (Press) 100

Post-Settlement Settlements 100

Focal Points And Turning Points 101

Decision-Making Model Of Integrative Agreements 102

Resource Assessment 102

Assessment Of Differences 103

Offers And Trade-Offs 103

Acceptance/Rejection Decision 103

Prolonging Negotiation And Renegotiation 103

Chapter Capstone 104

Part Ii Negotiation Skills 105

Chapter 5 Understanding Personality And Motivation 105

Individual Differences 105

Implicit Theories 106

Acoustic And Visual Cues 106

“Big 5” Personality Traits 106

Psychopathic Personality Traits 107

Dyadic Interaction 107

Attachment Style 107

Motivational Orientation 108

Cooperative Negotiator 108

Competitive Negotiator 111

Individualistic Negotiator 111

Strategic Issues Concerning Motivational Style 112

Gender And Negotiation 114

Economic Outcomes 114

Opening Offers 115

Initiating Negotiations 116

The Backlash Effect 117

The Costs Of “Leaning In” 117

Lying And Misrepresentation 118

Discrimination 118

Gender And Third-Party Dispute Resolution 119

Leveling The Playing Field 119

Chapter Capstone 121

Chapter 6 Managing Emotions And Contentious

Negotiations 123

Emotions 123

Genuine Versus Strategic Emotion 124

Anger 127

Disappointment 129

Sadness 129

Ambivalence 130

Positive Emotion 130

Happiness 132

Emotional Consistency 132

Emotional Intelligence 132

Managing Emotions At The Table 134

Disputes 136

Interests, Rights, And Power Model 137

Time Course Of Interests, Rights, And Power 139

Strategic Issues Concerning Interests, Rights, And Power 140

Refocusing 141

High Costs Associated With Power And Rights 144

When To Use Rights And Power 144

How To Use Rights And Power 145

Social Dilemmas 146

Social Dilemmas In Business 146

Prisoner’s Dilemma 146

Actual Behavior In Dilemmas 148

Tit-For-Tat 148

Inducing Trust And Cooperation In Social Dilemmas 148

Restoring Broken Trust 151

How To Encourage Cooperation In Social Dilemmas When Parties

Should Not Collude 152

Chapter Capstone 152

Chapter 7 Establishing Trust And Building

Relationships 154

Money Versus Relationships 154

Subjective Value 155

Rapport 155

Sequential Negotiations And Bargaining History 157

Trust And Temptation 157

Trust Propensity 158

Three Types Of Trust In Relationships 158

Building Trust: Rational And Deliberate Mechanisms 161

Building Trust: Psychological Strategies 164

Distrust And Suspicion 168

Repairing Broken Trust 169

Relationships In Negotiation 170

Negotiating With Friends 173

Negotiating In Exchange Relationships 176

Multiplex Relationships 178

Chapter Capstone 180

Chapter 8 Power, Ethics, And Reputation 181

Power 182

Sources Of Power 182

Batnas As Power 182

Symmetric Versus Asymmetric Power 184

Perspective-Taking 184

Powerlessness 184

Status 185

Status And Negotiation Performance 185

Primary Status Characteristics 186

Secondary Status Characteristics 186

Negotiation Ethics 186

Seven-Factor Model Of Ethically Questionable Behavior 187

Lying 190

Bad-Faith Bargaining 194

Good-Faith Bargaining 194

Sins Of Omission And Commission 194

Bidding Wars 195

Detecting Deception In Negotiation 196

Making Ethical Decisions 196

Responding To Unethical Behavior 198

Reputation 199

Halos And Forked-Tails 199

Reputations In Negotiation Communities 200

Distributive Versus Integrative Reputation 201

Batnas And Reputations 201

Reputations And Self-Serving Views 201

Chapter Capstone 201

Chapter 9 Creativity, Problem Solving, And Learning In

Negotiation 202

Creativity In Negotiation 202

Test Your Own Creativity 203

Mental Models Of Negotiation 207

Haggling 207

Cost-Benefit Analysis 207

Game Playing 208

Partnership 208

Problem Solving 208

Creative Negotiation Agreements 209

Fractionating Single-Issue Negotiations Into Multiple Issues 209

Pattern-Finding 209

Expanding The Pie 210

Bridging 210

Cost Cutting 210

Nonspecific Compensation 211

Structuring Contingencies 211

Improving Negotiation Skills 215

Relationships, Contracts, And Learning 215

Negotiation Skills Training 215

Bilateral Versus Unilateral Training 216

Feedback 216

Learning Versus Performance Goals 217

Prevention Versus Promotion Goals 218

Easy Versus Difficult To Learn 219

Analogical Training 219

Counterfactual Reflection 220

Incubation 220

Rational Problem-Solving Model 221

Brainstorming 222

Negotiation Engineering 222

Chapter Capstone 223

Part Iii Complex Negotiations 227

Chapter 10 Multiple Parties, Coalitions, And Teams 227

Multiparty Negotiations 228

Key Challenges Of Multiparty Negotiations 229

Strategies For Successful Multiparty Negotiations 233

Coalitions 235

Challenges Of Coalitions 235

Maximizing Coalitional Effectiveness 240

Principal–Agent Negotiations 241

Disadvantages Of Agents 242

Working Effectively With Agents 244

Constituent Relationships 245

Challenges For Constituent Relationships 246

Improving Constituent Relationships 249

Team Negotiation 249

Challenges That Face Negotiating Teams 251

Improving Team Negotiation 252

Intergroup Negotiation 254

Challenges Of Intergroup Negotiations 254

Optimizing Intergroup Negotiations 256

Chapter Capstone 259

Chapter 11 Cross-Cultural Negotiation 260

Learning About Culture 261

Defining Culture 261

Prototypes Versus Stereotypes 261

Iceberg Model 262

Cultural Frameworks 262

Hofstede Model 262

Implications For Negotiation 269

Tripartite Model Of Culture 270

Tight Versus Loose Cultures 276

Challenges Of Intercultural Negotiation 277

Creating Value 277

Claiming Value 277

Sacred Values And Taboo Trade-Offs 277

Biased Punctuation Of Conflict 280

Ethnocentrism 281

Affiliation Bias 281

Faulty Perceptions Of Conciliation And Coercion 281

Naïve Realism 282

Cultural Intelligence 283

Cq Model 283

Advice For Cross-Cultural Negotiations 284

Anticipate Differences In Strategy And Tactics 285

Perspective Taking 285

Perceptions Of Power 286

Attribution Errors 286

Respect 288

Emotion 289

Perceptions Of Time 290

Acculturation Framework 290

Chapter Capstone 292

Chapter 12 Negotiating In A Virtual World 293

Place-Time Model Of Social Interaction 293

Face-To-Face Communication 294

Same Time, Different Place 296

Different Time, Same Place 299

Different Place, Different Time 299

Information Technology And Effects On Social Behavior 303

Trust 303

Deception 303

Status And Power: The “Weak Get Strong” Effect 304

Social Networks 305

Risk Taking 306

Relationships And Rapport 307

Mentalizing 308

Intergenerational Negotiation 308

Enhancing Technology-Mediated Negotiations 311

Initial Face-To-Face Experience 311

One-Day Videoconference/Teleconference 312

Schmoozing 312

Proactive Medium Management 313

Humor 313

Chapter Capstone 314

Appendix 1 Negotiating A Job Offer 315

Preparation 315

Focus On Your Interests 316

Research The Company And The Industry 317

Determine Your Batna And Your Reservation Point 317

Research The Employer’s Batna 317

Determine Your Target Point And Plan Your Opening Offer 318

Prepare Several Scenarios 318

Consider Getting A “Coach” 319

Rehearse And Practice 319

In Vivo: During The Negotiation 319

Think About The Best Way To Position And Present Your

Opening Offer 319

Assume Their Offer Is Negotiable 320

Put The Focus On How You Can Solve Their Problems Versus

Making Demands 321

Don’t Reveal Your Batna Or Your Reservation Point 322

Imagine Negotiating On Behalf Of Someone Else

(Not Just Yourself) 322

Post-Offer: You Have The Offer, Now What? 322

Think Before Posting Anything On Social Media 322

Do Not Immediately Agree To The Offer 323

Get The Offer In Writing 323

Be Enthusiastic And Gracious 323

Assess The Interviewer’s Power To Negotiate With You 323

Do Not Negotiate If You Are Not Or Could Not Be Interested 323

Exploding Offers 324

Do Not Try To Create A Bidding War 324

Know When To Stop Pushing 324

Use A Rational Strategy For Choosing Among Job Offers 324

State Exactly What Needs To Be Done For You To Agree 325

Appendix 2 Third-Party Intervention 326

Third-Party Dispute Resolution 326

Mediation 326

Arbitration 327

Mediation–Arbitration 328

Arbitration–Mediation 329

Choices In Third-Party Intervention 329

Outcome Versus Process Control 330

Formal Versus Informal 330

Invited Versus Uninvited 330

Identifiable Versus Anonymous 330

Interpersonal Versus Intergroup 330

Content Versus Process Orientation 331

Facilitation, Formulation, Or Manipulation 331

Third-Party Effectiveness 331

Hostile Mediators 331

Mediation And Gender 332

Mediation And Culture 332

Mediation And Mimicry 332

Challenges Facing Third Parties 332

Meeting Disputants’ Expectations 332

Reaching Settlement (If A Positive Bargaining Zone Exists) 333

Promoting A Pareto-Efficient Outcome 333

Promoting Outcomes Perceived As Fair (In The Eyes

Of Disputants) 333

Consistency 334

Simplicity 334

Justifiability 334

Generalizability 334

Satisfaction 334

Empowering Parties In The Negotiation Process 334

Debiasing Negotiators 335

Maintaining Neutrality 336

Enhancing The Effectiveness Of Third-Party Intervention 337

Accept Your Share Of Responsibility 337

Test Your Own Position 337

Role-Play A Third Party In Your Own Dispute 337

Training In Win–Win Negotiation 337

Name Index 338

Subject Index 355

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