Sunday, October 17, 2010

CHAPTER: 2 Strategy and Tactics of Distributive Bargaining

In Chaper 2, I am learned about the basic structure of competitive or distributive bargaining situations and some of the strategies and tactics used in distributive bargaining Distributive bargaining  begins with setthing opening, target, and resistance points. One can learn the other party’s starting points and his or her target points direectly or through inference. Usually one won’t know the other party’s resistance points (the points beyond which she or he will not go) until late in negotiation – they are often carefully concealed. All points are the most critical. The spread between the parties’ resistance points defines the bargining range as possible. If negoative, successful negotation may be impossible.
It is rare that a negotiation includes only one item: more typically, a set of items, referred to as a bargaining mix, is negotated. Each item in a bargaining mix can have opening, target , and resistance points. The bargaining mix may provide opportunities for bundling issues together, trading off across issues, or displaying mutually concessionary behavior.
Uder the sructure of distributive bargaining, a negotiator has many options to achieve a successful resolution, most of which fall within two broad efforts: to influence the other party’s belief about what is possible and to learn as much as possivle about the other party’s negotiator’s basic goal is to reach a final settlement as close to the other party’s resistance point as possible: to achieve this goal, negotiators work to gather information about the opposition and its positions. To convince members of the other party to change their minds about their ability to achieve their own goals: and to justify their own objectives as desirable, necessary, or even inevitable.
Distributive bargaining is basically a conflict situation, wherein parties seek their own advantage sometimes through concealing information, attempting to mislead, os using manipulative actions. All these tactics can easily escalate interaction from calm discussion to bitter hostility. Yet negotiation is the attempt to resolve a conflict without force, without fighting. Further, to be successful, both parties to the negotiation must feel at the end that the outcome was the best they could achieve and that it is worth accepting and supporting. Hence, effective distributive bargaining is a process that requires careful planning, strong execution, and constant monitoring of the other party’s reactions. Finally, distributive bargaining skills are important when at the value claiming stage of any negotiation. This is descussed in more detail in the next chapter on integrative negotiation.

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