OBNotes.htm Organizational Behavior Notes by Wilf Ratzburg: Bargaining

	THE NEGOTIATION RELATIONSHIP: How to recognize negotiations.
	1. Is there another member involved?	You cannot negotiate by yourself.
	2. Are both COOPERATIVE elements and COMPETITIVE elements present in the situation?	COOPERATION: both parties believe they will gain more by negotiating than by not negotiating COMPETITION: both parties have conflicting preferences among or contending interests in the different possible agreements
	3. OUTCOME DEPENDENCE: Does getting what you want depend upon the agreement of another party?	Because both parties must commit themselves to an agreement, each is dependent upon the other for an outcome Negotiated outcomes are possible only if the other party agrees to them.
	4. GOAL DILEMMA	Are you in the dilemma of wanting to propose an agreement that is highly favorable to yourself but not wanting to risk making the other party so mad that she refuses to negotiate? RESULT: participants must decide on a “reasonable” settlement.
DILEMMA OF TRUST: HOW MUCH CAN THE NEGOTIATOR BELIEVE THE OTHER’S COMMUNICATIONS? to trust is to risk potential exploitation to distrust the other may mean that no settlement is possible	5. INFORMATION DEPENDENCE: Are you dependent upon the other party to give you information about what is a reasonable agreement from her point of view?	negotiators can openly share their preferences negotiators can hide their preferences *COMPLICATION:* negotiator frequently does not know what her own expectations should be until she hears from the other party
NORM OF RECIPROCITY THE NEGOTIATOR SHOULD RETURN THE SAME BENEFIT OR HARM GIVEN TO HER BY THE OTHER PARTY an eye for an eye and a kiss for a kiss NORM OF EQUITY the benefits received or the costs assessed by the negotiators should be equal	6. Are there CONTRACTUAL NORMS on how negotiation should be conducted?	if violations of the norms occur, penalties can be assessed without destroying the possibility of further negotiation
	7. Do negotiations have a beginning, a middle, and an end?	BEGINNING: negotiators acknowledge that a conflict of interest exists negotiators formally or informally make initial moves in the direction of conflict resolution ENDING: agreement or impasse when one or more parties chooses to leave the negotiating relationship