By Richard A. Luecke
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Phil’s situation is typical. While his two different salary offers were easy to measure and compare, how could Phil measure the value of working the nine-to-five shift at Beta versus the noonto-nine shift at Alpha? He also liked the Alpha people more, and thought his long-term career prospects were rosier at their company. How could those aspects of Alpha’s deal be valued? This isn’t the place to wrestle with those questions. For now, just be aware that placing a value on different alternatives usually involves some subjective judgment.
D) optimization. 3. In which of the following situations would negotiation be a potential 3. (c) means of resolving differences within a group or between individuals? (a) When one party can impose a resolution (b) When neither side has an interest or need to bargain (c) When an imposed settlement is not possible (d) When an imposed settlement is desirable 4. The ability to negotiate effectively becomes more important as a 4. (c) career skill when a person: (a) gains more power and authority over others.
Think About It . . Think about a recent negotiation you were involved in. If price was an important issue—as in the purchase of an automobile or renting an office or apartment—did you have a clear reserve price in mind? How much was that price, and did the other party fail to meet it? Describe this situation below, along with your reserve price and the final outcome. Situation _____________________________________________________________________ Your reserve price (or point)______________________________________________________ Outcome_____________________________________________________________________ ____________________________________________________________________________ AREA OF AGREEMENT Now that you understand reserve price and reserve point, you’re ready for the next negotiating concept: area of agreement.
Best Practice Workplace Negotiations by Richard A. Luecke