Negotiation: Theories and

Approaches
 • A verbal interactive process
involving two or more parties:
– Who are seeking to reach
agreement
Definition – Over a problem or conflict
of interest between them;
of and
– In which they seek as far as
Negotiation possible to preserve their
interests, but to adjust their
views and positions in the
joint effort to achieve
agreement.
 Adversarial
Approaches
negotiation
to
Negotiation
Principled
negotiation
Adversarial negotiation
Parties seeking to maximise victory (one party gaining something, the
other party losing something)

Often termed as ‘zero-sum’ negotiation, ‘positional negotiation’,

‘competitive negotiation’, ‘distributive negotiation’, ‘game theory of
negotiation’.

More effective when parties may not have an interest to continue future
relationship.

Example: negotiation between a buyer and a seller.

 Principled Negotiation
Internationally renowned
model and explained in
Developed by Harvard the landmark book Objective is to identify the
Negotiation Project entitled Getting to Yes interests of the other party
(Roger Fisher, William Ury
and Bruce Patton)

Argument on positions
Position: ‘what you have Interest: ‘why you decided
rather than interests when
decided’ the way you did’
they attempt to negotiate

Objective is to determine
Position: an outward
the interest of the other
manifestation of interest;
party and arrive at a win-
but that is not always true
win solution
 Different approaches to negotiation
Adversarial, distributive or win-lose
• Appropriate where
– No ongoing relationship
– Quick, simple solution to
disagreement needed
• Strategy based on secrecy
• True goals unclear
• Unpredictable behaviour,
negotiating ploys, threats,
bluffs, fixed positions’
• ‘Us’ against ‘them’
Collaborative, integrative or win-win
• Appropriate when
– Long-term relationship
– Creative solution to mutual
problem required
• Strategy based on openness
• Goals disclosed
• Predictable behaviour,
negotiating ploys avoided,
flexible
• ‘We’re in this together’
 Planning and analysis

Stages of Exchanging information

the
negotiation
Concession and
process compromise

Reaching agreement
 Issues to be considered for
better negotiation
Best Alternative to Negotiated Agreement (BATNA)

Worst Alternative to Negotiated Agreement (WATNA)

The role of ‘emotion’ in negotiation

The role of ‘culture’ in negotiation [individualistic culture v. collective culture;

egalitarian culture v. hierarchical culture; low-context culture v high-context culture]

Ethical consideration and protection of confidentiality

Legal aspects of negotiation

Gender and negotiation
 Theories of gender role in
negotiation
Gender-role-
Situational
socialization
power theory
theory

Gender-plus- Expectation
power theory states theory