Negotiation

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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

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.

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