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Managing Negotiation Introduction 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…show more content…
The reason behind this counterintuitive outcome is that close friends or spouses tend to compromise on all issues, rather than outlining exactly what their most important interests are in the negotiation. Another factor, building on the finding of BDR studies, is ego-centrism of negotiators who assign too much importance to views that favor their own side. (Bazerman et al 2000) This common trait is related to “motivated illusions,” or the tendency of people to have an unrealistically positive view of their own abilities. For instance, in 1993 a class of MBA students was asked to predict if their bargaining outcomes would fall in the upper 25% of the class – 68% of the students predicted that they would (Kramer et al 1993). Emotions can also play a significant role in the success of negotiations. The influence of emotion can be difficult to quantify and define, but research has shown that positive moods increase the likelihood of cooperation and that angry negotiators are generally self-centered and less adept at judging the interests of their counterparts (Bazerman et al 2000). Mental Models in Negotiation Mental models can be studied as either individually held cognitive concepts or as shared definitions that develop interactively. Mental models are cognitive representations of the causal relationships within a system that allow people to understand,

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