Negotiation

Process of give and take where both parties exchange their expectations and offers in order to achieve common objectives that satisfies both side of a process.

Integrative negotiation - Also known as win-win negotiation where both sides of negotiations work on increasing total value of final negotiating result. Agreement is reached after taking care of both parties goals, aims. This type of negotiation involves joint problem solving in order to attain result that satisfies parties.

Distributive negotiation - Also known as win-lose or "fixed-pie" type of negotiation where a final result is often an agreement that is not equally satisfactory to both parties. One side win is dependent upon the other side's concession.

Elements of negotiation

1. Prenegotiating stage

• Assessing the other party case, trying to understand other party needs
• Identifying most important issues
• Defining a strategy, plan regarding problems that need to be solved, preferred choices, possible solutions
• Evaluating benefits of entering into the negotiation process
• Planning negotiations

2. Face to face negotiation

• getting and making concessions between parties

3. Post negotiating process

• Formulating an agreement, final offer
• Clarifying the terms of agreement
• Implementing agreement

Negotiating styles

There is five different approaches to negotiate

Collaborating style - The collaborator approach to conflict involves reaching win-win solutions where both parties of negotiation reach their goals. The conflict is solved when interests of both sides are reached.

Compromising style - The solution that is reached satisfies partially both parties. According to a compromising person win-win result is not possible. With respect to party's interest and relationship between them solution that is found involves a little bit of winning and loosing.

Accommodating - This style is used when maintenance of a relationship is more important than achieving personal goals of the party. This "win-lose" approach allows one party to meet their interests and to win.

Controlling - The controller approach to conflict is to ensure that personal goals are reached whatever it means to the future of the relationship.

Avoiding - The avoider approach to conflict is to evade it to all costs. Personal interests are thus very often not met what lead to a high degree of frustration of both participants of a negotiation process. Avoider allows the other party to win and occupies a lose-win position.

Examples of Negotiation

• Business Negotiation: Negotiation between two or more parties in a business context, with the goal of reaching an agreement that is beneficial to all parties involved. This could include negotiating contracts, salaries, and other business arrangements.
• Political Negotiation: Negotiation between different political parties or governments in order to reach a mutually beneficial solution to an issue. This could include negotiations over trade deals, peace talks, and international relations.
• Diplomatic Negotiation: Negotiation between diplomats of different countries in order to resolve issues between the two countries and promote mutual understanding.
• Labor Negotiation: Negotiation between employers and employees in order to determine wages, hours, benefits, and other conditions of employment.
• Family Negotiation: Negotiation between family members in order to resolve conflicts and reach a compromise that is acceptable to everyone involved.

Advantages of Negotiation

Negotiation is an important process in resolving conflicts or achieving mutual gains. It involves two or more parties engaging in a dialogue to come to an agreement. Negotiations can be beneficial in many ways, including:

• Negotiations can help to find creative solutions to problems that satisfy all parties involved. Through negotiation, parties can identify their interests and find ways to address them. This can help to reduce potential conflicts and promote collaboration.
• Negotiation can also promote mutual understanding and trust. Conversations surrounding negotiations can help to identify issues and explore potential solutions. Through this process, parties can gain a better understanding of each other’s positions and interests. This can help to build relationships and foster trust.
• Negotiations can help to build a sense of ownership and commitment. By taking part in negotiations, parties can feel that they have an ownership stake in the outcome. This can help to foster commitment to the final agreement and ensure that all parties are invested in its success.

Limitations of Negotiation

Negotiations can be a very effective way to reach a mutually beneficial agreement. However, there are certain limitations to the process of negotiation that all parties should be aware of. These include:

• Time constraints: Negotiations can be a lengthy process, and if there are tight timeframes, it can be difficult to resolve all issues.
• Limited resources: Negotiations require resources such as money and personnel, and if one party has more resources than the other, it can create an uneven playing field.
• Cultural differences: Negotiations can be complicated by cultural differences, such as different communication styles or values.
• Misunderstandings: Misunderstandings can arise during negotiations due to different interpretations of language, concepts, or facts.
• Lack of trust: If there is a lack of trust between the parties, negotiations can be difficult to reach a mutually beneficial agreement.
• Lack of flexibility: Negotiations can be hindered if one or both parties are not willing to be flexible and consider other options.
• Power imbalances: Negotiations can be affected by power imbalances, such as unequal access to resources or influence.

Other approaches related to Negotiation

Negotiation is a process of give and take where both parties exchange their expectations and offers in order to achieve common objectives that satisfies both sides of the process. Other approaches to negotiation include:

• Mediation: This is a process in which a neutral third party facilitates communication between the parties involved in the negotiation. This is usually done to help the parties reach a mutual agreement.
• Arbitration: This is a process in which an independent third party listens to both sides of the argument and makes a decision based on the evidence presented.
• Collaborative Negotiation: This is a process in which both parties attempt to work together to find a mutually beneficial solution to their dispute.
• Problem-Solving Negotiation: This is a process in which both parties attempt to solve the underlying issues of their dispute, rather than simply negotiating terms.

All of these approaches to negotiation can help parties reach a mutually beneficial agreement. Summary: Negotiation is a process of give and take where both parties exchange their expectations and offers in order to achieve common objectives that satisfy both sides of the process. Other approaches to negotiation include mediation, arbitration, collaborative negotiation and problem-solving negotiation, all of which can help parties reach a mutually beneficial agreement.

Negotiation — recommended articles

Compromise — Negotiation style — Styles of handling conflict — Negotiation techniques — Conflict management style — Sales techniques — Open tender — Principal agent problem — Cross-cultural leadership

References

• The essence of negotiation, Jean M. Hiltrop Sheila Udall Prentice Hall International UK Ltd 1995
• Negotiation Roy J.Lewicki Joseph A. Litterer John W. Minton David M. Saunders Iriwin McGraw * Hill 1984 and 1994.
• Faratin, P., Sierra, C., & Jennings, N. R. (1998). Negotiation decision functions for autonomous agents. Robotics and Autonomous Systems, 24(3), 159-182.

Author: Joanna Kosmyna