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StrategyandTacticsof
DistributiveBargaining
Week3
MGMT300
Administrationissues
Thefollowingarenowavailablefordownloadfrom
learn:
MarkingrubricforNegotiationPlan(Due31st
August4pm)
Relevantplanningtoolsyoumaywishtousein
thisweek’stutorial.
MakesureyoudownloadthismaterialASAP!Itis
crucialforyourabilitytoparticipateinthiscourse
Distributivescenario
Goalofonepartyareindirect
conflictwiththeother
Resourcesarefixedand
limited
isingone’sownshareof
resourcesisthegoalforboth
parties
Limitedtime?
Natureoftherelationship?
TheroleofBestAlternativestoa
NegotiatedAgreement(BATNA)
Benefits
Providesalternatives-enablespartyto
leveragepowerduringthenegotiationprocess
Ifalternativesareattractive,negotiatorscan:
settheirgoalshigherandmakefewer
concessions
Noalternatives?muchlessbargainingpower
Howdoesthisknowledgeimpactonyour
approachtodistributivebargaining?
Striveforsettlementnearopponent’sresistancepoint
Attempttoinfluencetheotherpartytochangetheirresistance
point
Pursueanoutcomethatisinapositivebargainingrange.Ifitis
negative,considerhowcanyou:
Gettheothersidetochangetheirresistancepoint?
Doyouneedtomodifyyourown?
Youneedtoconvincetheotherpartythatthesettlementisthe
bestpossibleoption
Factorsinfluencing
resistancepoints
Whatestimatehastheother
partyformedaboutthecostyou
willincurofdelayinga
settlement?
Whatestimateshavetheother
partyformedabouttheirown
costs?
Howvaluableistheissuebeing
negotiated?
Whathaveyousignalledtothe
othersideaboutthevalueofan
issue?
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