Semester reflection (bonus blog)

The most valuable concept I've learned from this class was the Negotiation Fundamentals.  The three approaches to resolving disputes is something I will definitely take away with me and apply in my future endeavors.  Before any negotiation, I must stand back any recognize the interests of the other parties, be able to determine who is right, and know who is more powerful.  These are the three basic elements to any dispute.  For example, the story in our textbook about a miner that claims his work boots were stolen and he didn't feel that he should lose the cost of his boots and a day's pay because the company can't protect his boots for him.  The shift boss maybe should not have focused on who was right according to the regulations, but instead could have focused on both parties interests and realized that both sides wanted to work.  Realizing this would help with things not escalating and both parties being happy with the outcome.  When you fight with power, things can get ugly pretty quickly.  This should have been a joint problem that both sides could have helped solve.  Besides, being a shift boss or supervisor, your interests should also be accommodating your workers and making them happy and feeling good about working for you.  Focusing on interests rather than rights or power tends to have higher satisfaction with outcomes and better working relationships.  Also reconciling interest is less costly than determining who is right or who is more powerful.  After graduation, if I ever become a manager of people, because of this class I will always remember to take a step back and recognize all interests involved before making any hast decisions or showing power.  This also helps with being a more charismatic leader and building strong relationships with others.  I feel that this type of attitude creates a more positive work environment which is better for everyone involved. 

Two things I've learned about the negotiation process...

     Negotiation is a decision making process among interdependent parties who do not share identical preferences.  I have learned that the greatest opportunity to improve negotiator performance lies in the negotiator's ability to make effective use of the information available about the issues in dispute as well as the likely behavior of an opponent to reach more rational agreements and make more rational decision within the context of negotiation.  A negotiator must understand the framing of negotiations and the psychological forces that limit a negotiator's effectiveness.  Negotiation framing is an important negotiation technique.  The framer defines the issue at stake in a certain way to close a deal, reach consensus or win an argument.  A good opponent will reframe the issue and move the focus from the negotiator's main concern is to what the opponent's interest is.  This is where rational takes place.  Rationality refers to making the decision that maximizes the negotiator's interests.  The goal of negotiations is to reach a good agreement.  For example, we frame the options in terms of the percentage discount when the main focus is cost.  Negotiator's are willing to pay almost a dollar more because of the way in which they frame the purchase. 
     Secondly, I've learned that common biases in decision making involves framing.  When making business decisions, one needs to frame the outcomes of decisions differently relative to status quo.  When it comes to decision making, good decision are those which link decision makers' utilities with decision outcomes.  In the business world, managers make relatively minor decision that are primarily operational or tactical.  A decision implies that one has access to two or more alternatives.  There are two cognitive systems that influence decision making.  System 1 refers o a process that is described as fast, automatic effortless, and often emotional.  This system is more difficult to break and is less developed.  System 2 is slow, controlled, effortful, rule governed and flexible.  System 2 is a more rational decision making process and has evolved over time.  System 2 monitors system 1, therefore both systems are processes that are important to managerial decision making, and one is not inherently preferred over the other because they work together.