What Are the Three Reasons Negotiations Occur

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Chapter 2 Strategy and Tactics of Distributive Bargaining Learning Objectives The main purpose of this chapter is to provide an overview of distributive situations and the strategies you can use to negotiate your way through them. After reading the chapter you should be able to: 1. Recognize distributive bargaining situations, 2. Understand the importance of goals and targets, reservation points, and alternatives, 3. Understand the varied tactical approaches used in distributive situations, and 4. Recognize and defend yourself from hardball tactics used by others. What comes to mind when most people think about negotiation? Images probably include arguments over points of view and competitive behaviour intended to beat the other side. While many people are attracted to this type of negotiation and look forward to learning and sharpening an array of hard-bargaining skills, others are repelled by it and would rather walk away than negotiate this way. They argue that competitive bargaining is old-fashioned, needlessly confrontational, and destructive. In many cases this is true, especially when relationships matter a great deal and the potential exists to create value for both sides. Nevertheless, there are many situations negotiators face where resources are limited, one party’s gain is the other party’s loss, and the best approach is to focus on claiming the majority of those limited resources. Distributive bargaining is sometimes called competitive, or win-lose, bargaining. In a distributive bargaining situation, the goals of one party are usually in fundamental and direct conflict with the goals of the other party. Resources are fixed and limited, and both parties want to maximize their share. One important strategy is to guard information carefully—one party tries to give information to the other party only when it provides a strategic advantage. Meanwhile,
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