MLHR802: Managerial Negotiations, taught by Professor Dumas has provided me with a wealth of negotiating knowledge. A majority of the class is taught through simulations of negotiations. We started with very simple distributive negotiations with only one issue and have since advanced onto very complex integrative negotiations with multiple parties.
A distributive negotiation is known as a win/ lose scenario in which there is a fixed amount of value and when one side gains, the other side loses. An integrative negotiation is one in which more value can be created in the negotiation through a variety of techniques.
Last night was our midterm exam, which included everything we have learned so far. One of the key points was the importance of planning for a negotiation. This includes setting a target point (the point at which you would prefer to conclude negotiations), a resistance point (the lowest you will accept as a seller and the highest you will pay as a buyer), determining an opening strategy, determining what your BATNA is (Best alternative to a negotiated agreement… essentially your back-up plan), determining your opponent’s BATNA, and what your sources of power are (what leverage you have in the negotiations).
Thus far I have really enjoyed the class and am looking forward to acquiring more negotiating skills in the 2nd half of the quarter.