Contract Negotiation

1060 Words May 7th, 2013 5 Pages
Contract Negotiation

ACM 397

Contract Negotiation
The section of the book that I found most informative and took the most out of was Part 1, Chapters 1-5. Part 1 covers the nature of negotiation, preparation of negotiations, distributive bargaining, integrative negotiation, and closing deals.
Negotiation is a process in which individuals with differing viewpoints work together to come up with a solution that can work for both parties. Negotiation is a huge part of our everyday live. It is also one of the most effective means of decision making. Conflicts arise constantly and people deal with them in all sorts of ways from legal actions to going to war. These conflicts can be anything from what’s for breakfast to a custody battle.
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Distributive bargaining is one of the more competitive strategies of negotiating used to win. Distributive bargaining is often used when goals are in the fundamental conflict, relationships are not priority, resources are fixed or limited, and trust and cooperation are lacking. Position is one of the most important factors in distributive bargaining, sometimes called positional bargaining. Position is used as a strategy to try to persuade the other party to settle at or near their reservation price. Knowing your BATNA and making it the best possible is important in this strategy to use as bargaining power over the other party. Hardball tactics such as good cop-bad cop and intimidation are used to persuade the other party. Distributive bargaining strategy is one of the many reasons why it is important to research and know the other party as well as yourself.
Integrative negotiation is another less competitive strategy used in the negotiation process. This way allows both parties to work together and contribute to the negotiation to decide the best possible outcome so both parties are winning. Integrative negotiation is used when goals are not the fundamental conflict, relationships are high priority, resources are not limited, and trust and cooperation does exist. Two main tactics used in this type of negotiation is removing the person from the problem and to focus on interest. Interests include the tangible and intangible
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