Creativity and Problem Solving in Negotiations

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Creativity and Problem Solving in Negotiations CHAPTER 8 Creativity and Problem Solving in Negotiations

What is Your Mental Model of Negotiation? CHAPTER 8 What is Your Mental Model of Negotiation? Haggling model Cost-benefit analysis (Decision-making model) Game-playing model Partnership model Problem-solving model Instructor’s Manual with Overheads to accompany Copyright ©2012 Pearson Education, The Mind and Heart of the Negotiator 5/e (Thompson)  Inc. publishing as Prentice Hall

Creative Negotiation Agreements CHAPTER 8 Creative Negotiation Agreements Fractionating problems into solvable parts Finding differences: Issue alignment and realignment Expanding the pie Bridging Cost cutting Nonspecific compensation Structuring contingencies Instructor’s Manual with Overheads to accompany Copyright ©2012 Pearson Education, The Mind and Heart of the Negotiator 5/e (Thompson)  Inc. publishing as Prentice Hall

Exhibit 8-2: The Six Benefits of Contingency Contracts CHAPTER 8 Exhibit 8-2: The Six Benefits of Contingency Contracts Contingency contracts allow negotiators to build on their differences manage decision-making biases solve problems of trust, when one side has information that the other side lacks diagnose the honesty of the other side reduce risk through risk sharing increase the incentive of the parties to perform at or above contractually specified levels Source: Bazerman, M. H., & Gillespie, J. J. (1999). Betting on the future: The virtues of contingent contracts. Harvard Business Review, 77(4), 155–160. Instructor’s Manual with Overheads to accompany Copyright ©2012 Pearson Education, The Mind and Heart of the Negotiator 5/e (Thompson)  Inc. publishing as Prentice Hall

Threats to Effective Problem Solving and Creativity (I) CHAPTER 8 Threats to Effective Problem Solving and Creativity (I) The inert knowledge problem Availability heuristic Representativeness Anchoring and adjustment Unwarranted causation Belief perseverance Illusory correlation Instructor’s Manual with Overheads to accompany Copyright ©2012 Pearson Education, The Mind and Heart of the Negotiator 5/e (Thompson)  Inc. publishing as Prentice Hall

Threats to Effective Problem Solving and Creativity (II) CHAPTER 8 Threats to Effective Problem Solving and Creativity (II) Just world Hindsight bias Functional fixedness Set effect (negative transfer) Selective attention Overconfidence effect The limits of short-term memory Instructor’s Manual with Overheads to accompany Copyright ©2012 Pearson Education, The Mind and Heart of the Negotiator 5/e (Thompson)  Inc. publishing as Prentice Hall

Creative Negotiation Strategies CHAPTER 8 Creative Negotiation Strategies Developing “expert” understanding Feedback Incubation Rational problem-solving model Fluency, flexibility, and originality Brainstorming Convergent versus divergent thinking Deductive reasoning Inductive reasoning Flow Instructor’s Manual with Overheads to accompany Copyright ©2012 Pearson Education, The Mind and Heart of the Negotiator 5/e (Thompson)  Inc. publishing as Prentice Hall

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall CHAPTER 8 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright ©2012 Pearson Education, Inc.  publishing as Prentice Hall