Negotiation

Primary considerations of negotiation, When is Negotiation appropriate

dispute resolution?, Principled Negotiation (Harvard seven principles),
Advantages and Disadvantages
Negotiation
• Negotiation is self counselling to resolve disputes; the aim of negotiation is the settlement of
disputes by exchange of views and issues concerning the parties.
• It is Voluntary method of ADR, and no party is forced to participate in a negotiation.
• Negotiation occurs in business, non-profit organizations, and government branches, legal
proceedings, among nations and in personal situations such as marriage, divorce, parenting, and
everyday life.
• There is no need for recourse to a third-party neutral. This is important when none of the parties
wants to involve outside parties in the process
• Negotiation involve two, three or dozens of parties. They can range from two individuals seeking
to agree on the sale of a house to negotiations involving diplomats from dozens of States (e.g.,
World Trade Organization (WTO)).
• Opting for negotiation instead of litigation may be less expensive for the parties and may reduce
delays.
• Negotiation means discussion to bring amicable settlement to a
dispute or process we use to satisfy our needs when someone else
controls what we want. We participate in negotiation almost
everyday.
• There is a very popular maxim underlying the concept of Negotiation
as a mode of ADR. ‘It is a part of wisdom to exhaust negotitation
before resorting to arms.’
• Following are the key terms to understand the concept of
Negotiation:
• 1- Non-binding procedure
• 2- Less intervention of 3rd party
• 3- a communication based process
• 4- process of managing relationships
Pre-requisite Conditions/Essentials
• There must be 2 or more parties that are prepared to interact on an
interpersonal level or intergroup process.
• There must be a conflict of interest
• There shall be an expectation of a better deal via the process of
negotiation
• Parties involved in the dispute must be seeking for an agreement and
non argument or fight
• There must be mutual expectations of ‘give and take’
Pre-requisite Conditions/Essentials
• Negotiation tends to be a voluntary exercise, i., can be resorted to
only upon mutual consent of the parties
• The resolution arrived by means of Negotiation is non-binding in
nature, i.e, it doesn’t legally blind the concerned parties to any
decision.
• The parties carrying out the process always retain control over result
and procedure.
• There is a significant possibility of wide-ranging solutions.
The 4 important C’s in Negotiation
• Common Interest
• Conflict of Interest
• Compromise
• Criteria
Elements of Negotiation
• Interests (of the parties) (what do people really want)
• Legitimacy (criteria to use to pursue that parties are not getting
ripped off)
• Relationships (ego aside- good working relationship)
• Alternatives (BATNA & WATNA) (on non agreement)
• Options (possible agreements or bits)
• Commitments (completion and timeframe)
• Communication (basic + to gather information)
Phases of Negotiation
• The negotiation process can essentially be understood as a four-stage
process.
• These four steps are:

Discussion,
Preparation Opening Proposal &
Bargaining

Closure Phase
Theories of Negotiation
• There are four theories of Negotiation:
• 1- Lose-Lose
• 2- Win- Lose
• 3- Win-Win
• 4- No Outcome
Types of Negotiation
• There are two types of Negotiation
• Fixed Pie (Competitive or Distributive Negotiation)- Negotiator is
solely concerned with achieving his own goals without considering
impact on other side
• Cooperative or collaborative Negotiation- Usually in this everyone
wins as parties join to achieve something together.
Qualities of Negotiator
• A negotiation is a situation of give and take one of choosing the best
alternative that will sit both parties. Therefore, unless negotiator is
able to quickly assess the various consequences, he will be a failure in
the negotiations. Mere analytical skills will be of no use, unless the
negotiator possesses inter personal and communication skills as well.
The most important thing in a negotiation is that your case is well
appreciated by the other party.
Qualities of Negotiator
• The failure to reach a negotiated settlement often reflects the
negotiator’s inability to recognize the basis of the disagreement and
alternate routes that will lead ultimately to settlement. The approach
of the deadline, the introduction of new information, shifting
economic conditions or a change in the negotiating team, all affect
negotiations. The basic job of a negotiator is to bring diverse interests
to a single point of view.
The basic qualities which a negotiator should
possess are:
• Ability to analyse
• Knowledge
• Strategies employed by negotiator
• Persistence and persuasiveness
• Right place and Right atmosphere
• Batna and Watna
International Negotiations
• International negotiation is as it says: inter-national. It is about
negotiation between countries. International negotiation occurs all the
time between governments and is the main subject of this page. It also
happens between individuals and companies, where the traps and tricks
of cross-border negotiation can ensnare even the most experienced
home-country negotiators
• As conflict rises, international negotiation also rises, but there are
several issues effecting this.
• The most attracting issue is influence of culture
• Apart from this other issues are war & destruction, water, international
trade & finance, human rights etc
Advantages of Negotiation
• Time saving
• Cost effective
• Party oriented
• Confidentiality
• Preservation of Relationship
• Non Binding
• Greater control over procedure
• Swift, Economical
Disadvantages of Arbitration
• Impasse (deadlock)
• Strained relations
• All issues not negotiable
• Power tactics