Negotiation

Negotiation refers to the dialogue which takes place between two or more parties to a contract and it is intended to reach an understanding or mutual consensus and gain advantage in the outcome of dialogue, to produce an agreement upon courses of action, to bargain for individual or collective advantage to design the results to satisfy the varying interests of the parties involved in the process. Negotiation is a process wherein all the parties that have a part in the process try to gain maximum advantage at the conclusion of the process. This very process is intended to bring about a compromise between the concerned parties.

Approaches to Negotiation:

There are numerous approaches to categorize negotiation, in order to have better understanding of the essential parts. One view of negotiation consists of three base elements which include

• Process
• Behavior
• Substance

There is yet another outlook of negotiation which comprises of 4 elements namely

• Strategy
• Process
• Tools
• Tactics

In the above approach, strategy encompasses the top level goals, which includes the relationship and the final outcome. Whereas,processes and tools refer to the measures that will be adopted and the roles taken in the preparation and negotiation between the parties.

Another well renowned and effectively practiced approach is the bad guy/good guy. Bad guy/good guy tactic can be best adopted in circumstance where one negotiator acts as a bad guy by displaying intensity of emotions such as wrath and also resorting to threats. On the contrary, the other negotiator acts as a good guy by empathetic with the other party involved in the process and showing considerations to his needs as well. The good guy accuses the bad guy for all the shortcomings or hassles being encountered by him, while trying to bring about a state of mutual consensus and agreement with his opponent.

Advocates Approach:

This approach seeks the service of a skilled negotiator, who usually serves as an advocate for one of the party and strives to gain the most propitious outcomes possible. During the process, the negotiator makes an effort to determine the minimum outcome, the other party is willing to accept and the demands are crafted accordingly.

Questions:

• What characteristics do all types of negotiation have in common?
• What is meant by the terms ‘negotiating style’ and ‘negotiating strategy’?