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Encyclopedia > Negotiation (process)

Negotiation is the process where interested parties resolve disputes, agree upon courses of action, bargain for individual or collective advantage, and/or attempt to craft outcomes which serve their mutual interests. Negotiation is usually regarded as a form of alternative dispute resolution.. The first step in negotiation is to determine whether the situation is in fact a negotiation. The essential qualities of negotiation are: the existence of two parties who share an important objective but have some significant difference(s). The purpose of the negotiating conference to seek to compromise the difference(s). The outcome of the negotiating conference may be a compromise satisfactory to both sides, a standoff (failure to reach a satisfactory compromise) or a standoff with an agreement to try again at a later time. Negotiation differs from "influencing" and "group decision making." Image File history File links Information_icon. ... Wikibooks logo Wikibooks, previously called Wikimedia Free Textbook Project and Wikimedia-Textbooks, is a wiki for the creation of books. ... Negotiation is a process of resolving disputes and conflicts via talks and discussions without using force. ... This article is in need of attention from an expert on the subject. ...

Contents

Approaches to negotiation

Given the above definition, negotiation occurs in business, non-profit organizations, government branches, legal proceedings, among nations and in personal situations such as marriage, divorce and parenting. See also negotiation theory. The foundations of negotiation theory are decision analysis, behavioral decision making, game theory, and negotiation analysis. ...


The advocate's approach

In the advocacy approach, a skilled negotiator usually serves as advocate for one party to the negotiation and attempts to obtain the most favorable outcomes possible for that party. In this process the negotiator attempts to determine the minimum outcome(s) the other party is (or parties are) willing to accept, then adjusts their demands accordingly. A "successful" negotiation in the advocacy approach is when the negotiator is able to obtain all or most of the outcomes their party desires, but without driving the other party to permanently break off negotiations, unless the BATNA (see below) is acceptable.


Traditional negotiating is sometimes called win-lose because of the assumption of a fixed "pie", that one person's gain results in another person's loss. This is only true, however, if only a single issue needs to be resolved, such as a price in a simple sales negotiation. If multiple issues are discussed, differences in the parties' preferences make win-win negotiation possible. For example, in a labor negotiation, the union might prefer job security over wage gains. If the employers have opposite preferences, a trade is possible that is beneficial to both parties. Such a negotiation is therefore not an adversial zero-sum game. Zero-sum describes a situation in which a participants gain (or loss) is exactly balanced by the losses (or gains) of the other participant(s). ...


The win/win negotiator's approach

During the early part of the 20th century, academics such as Mary Parker Follett developed ideas suggesting that agreement often can be reached if parties look not at their stated positions but rather at their underlying interests and requirements. During the 1960s, Gerard I. Nierenberg recognized the role of negotiation in resolving disputes in personal, business and international relations. He published The Art of Negotiation, where he states that the philosophies of the negotiators determine the direction a negotiation takes. His Everybody Wins philosophy assures that all parties benefit from the negotiation process which also produces more successful outcomes than the adversarial “winner takes all” approach. Gerard I. Nierenberg is a successful lawyer and author. ...


In the 1970s, practitioners and researchers began to develop win-win approaches to negotiation. Getting to YES was published by Roger Fisher and William Ury as part of the Harvard negotiation project. The book's approach, referred to as Principled Negotiation, is also sometimes called mutual gains bargaining. The mutual gains approach has been effectively applied in environmental situations (see Lawrence Susskind and Adil Najam) as well as labor relations where the parties (e.g. management and a labor union) frame the negotiation as "problem solving". It has been suggested that Win-win strategy be merged into this article or section. ... Getting to YES (ISBN 1-84413-146-7) is the reference book dealing about win-win negotiation. ... Negotiation and conflict resolution expert Roger Fisher is the co-author (along with Bill Ury) of the classic book on win-win negotiation called Getting to YES. Fisher, a professor at Harvard Law School, says he started by asking the question What advice could I give to both parties in... Harvard University is a private university in Cambridge, Massachusetts, USA, and a member of the Ivy League. ... It has been suggested that this article or section be merged with Getting to YES. (Discuss) Principled Negotiation is the approach to negotiation developed by Roger Fisher, Bill Ury, and others, first described in the book Getting to YES. In concept, Principled Negotiation is a win-win approach where the... Mutual gains bargaining (MGB) is an approach to collective bargaining intended to reach win-win outcomes for the negotiating parties. ... A Boeing employee speaks at an industrial relations rally The field of labor relations looks at the relationship between management and workers, particularly groups of workers represented by a labor union. ... Look up Management in Wiktionary, the free dictionary. ... A Trade Union (Labour union) ... is a continuous association of wage-earners for the purpose of maintaining or improving the conditions of their employment. ...


There are a tremendous number of other scholars who have contributed to the field of negotiation, including Sara Cobb at George Mason University, Len Riskin at the University of Missouri, Howard Raiffa at Harvard, Robert McKersie and Lawrence Susskind at MIT, and Adil Najam and Jeswald Salacuse at The Fletcher School of Law and Diplomacy. Howard Raiffa is the Frank P. Ramsey Professor (Emeritus) of Managerial Economics, a joint chair held by the Business School and the Kennedy School of Government at Harvard University. ...


Negotiation as a process

A negotiation process can be divided into six steps in three phases:

  • Phase 1: Before the Negotiation
    • Step 1: Preparing and Planning: In this step, first determine what you must have and what you are willing to give (bargaining chips). Gather facts about the other party, learn about the other party’s negotiating style and anticipate other side's position and prioritize issues. To ensure smooth negotiation, one should also prepare alternatives proposals and establish BATNA (the Best Alternative To a Negotiated Agreement). Estimate the other party's needs, bargaining chips and BATNA. The most ideal case is to get as much as you can. You may advocate "win-win" though don't count on your opponent to be so helpful. Your opponent may try to intimidate you by creating time limits, shouting and raising doubt on your motives.
  • Phase 2: During the Negotiation
    • Step 2: Setting the Tone:
    • Step 3: Exploring Underlying Needs: Also important is to actively listen for facts and reasons behind other party’s position and explore underlying needs of the other party. If conflict exists, try to develop creative alternatives. In a difficult situation, don't say anything. Take time out. When we say nothing we give nothing away.
    • Step 4: Selecting, Refining, and Crafting an Agreement: It is a step in which both parties present the starting proposal. They should listen for new ideas, think creatively to handle conflict and gain power and create cooperative environment.
    • Step 5: Reviewing and Recapping the Agreement: This is the step in which both parties formalize agreement in a written contract or letter of intent.
  • Phase 3: After the Negotiation
    • Step 6: Reviewing the Negotiation: Reviewing the negotiation helps one to learn the lessons on how to achieve a better outcome. Therefore, one should take the time to review each element and ask oneself, "what went well?" and "what could be improved next time"
    • Step 7: Capturing Deal and Relationship Learnings: Where a negotiation has taken several meetings and spanned weeks, months or even years, it becomes important to add a longer range review for learning to incorporate the entire deal. Various aspects are typically reviewed, these include: the team, the relationship with the counterparty, stakeholders interests and relationships, skill and competency levels. Some Global Organisations write negotiation case studies, create negotiation profiles for their team members, reward team members based on their contributions and success and change their company processes to facilitate future negotiation success.

Batna (also Bâtnah) is the main city of Batna Province, Algeria. ...

Tactics

Skilled negotiators use many tactics including: A tactic is a method employed to help achieve a certain goal. ...

  • Analyzing the negotiation and conflict management style of their counterpart
  • Setting pre-conditions before the meeting
  • Declining to speak first
  • Changing the location at the LAST minute
  • Sitting back and whispering creates a sense of power and dominance
  • Volunteering to keep the minutes of the meeting
  • Presenting demands
  • Time targets, i.e. Deadlines.
  • Time manipulation: Delay
  • Good guy/bad guy
  • Limited authority/Mandated Authority
  • Caucusing
  • Walking out
  • Concession patterns
  • High-ball/low-ball
  • Intimidation
  • Getting it in your hands
  • Fait accompli (what's done is done)
  • Take it or leave it
  • Rejecting an offer
  • Planted Information
  • Decoy
  • Extreme Offers
  • Plan discussions to avoid opponent becoming aware of alternatives to your offer
  • Cherry picking
  • Salami tactics

A conflict management style is the pattern of behaviour an individual develops in response to conflict with others such as differences of opinion. ... Here are some examples of French words and phrases used by English speakers. ... Cherry picking, literally meaning harvesting cherries, is used metaphorically to accuse someone of pointing at individual cases which seem to confirm his or her position, while ignoring a significant portion of related cases that may contradict it. ... Mátyás Rákosi coined the phrase salami tactics Salami tactics, also known as the salami-slice strategy, is a process of threats and alliances used to overcome opposition. ...

See also

Arbitration is a legal technique for the resolution of disputes outside the courts, wherein the parties to a dispute refer it to one or more persons (the arbitrators or arbitral tribunal), by whose decision (the award) they agree to be bound. ... In negotiation theory, the best alternative to a negotiated agreement or BATNA is the course of action that will be taken by a party if the current negotiations fail and an agreement cannot be reached. ... A collective agreement is a labor contract between an employer and one or more unions. ... The economic theory of collective action is concerned with the provision of public goods (and other collective consumption) through the collaboration of two or more individuals, and the impact of externalities on group behavior. ... Conciliation is an alternative dispute resolution process whereby the parties to a dispute (including future interest disputes) agree to utilize the services of a conciliator, who then meets with the parties separately in an attempt to resolve their differences. ... Conflict resolution is any reduction in the severity of a conflict. ... In negotiation, consistency, or the consistency principle, refers to a negotiators strong psychological need to be consistent with prior acts and statements. ... A contract is a legally binding exchange of promises or agreement between parties that the law will enforce. ... It has been suggested that Adjudication be merged into this article or section. ... Expert determination is a historically accepted form of dispute resolution invoked when there isnt a formulated dispute in which the parties have defined positions that need to be subjected to arbitration, but rather both parties are in agreement that there is a need for an evaluation, e. ... Game theory is often described as a branch of applied mathematics and economics that studies situations where players choose different actions in an attempt to maximize their returns. ... Bargaining impasse occurs when the two sides negotiating an agreement are unable to reach agreement and become deadlocked. ... Mediation, a form of alternative dispute resolution (ADR), aims to assist two (or more) disputants in reaching an agreement. ... In game theory, the Nash equilibrium (named after John Forbes Nash, who proposed it) is a kind of solution concept of a game involving two or more players, where no player has anything to gain by changing only his or her own strategy unilaterally. ... The foundations of negotiation theory are decision analysis, behavioral decision making, game theory, and negotiation analysis. ... Will the two prisoners cooperate to minimize total loss of liberty or will one of them, trusting the other to cooperate, betray him so as to go free? In game theory, the prisoners dilemma is a type of non-zero-sum game in which two players can cooperate with... It has been suggested that Win-win strategy be merged into this article or section. ...

References and further reading

  • Roger Fisher and Daniel Shapiro, Beyond Reason: Using Emotions as You Negotiate, Viking/Penguin, 2005.
  • Catherine Morris, ed. Negotiation in Conflict Transformation and Peacebuilding: A Selected Bibliography. Victoria, Canada: Peacemakers Trust.
  • Howard Raiffa, The Art and Science of Negotiation, Belknap Press 1982, ISBN 0-674-04812-1
  • William Ury, Getting Past No: Negotiating Your Way from Confrontation to Cooperation, revised second edition, Bantam, January 1, 1993, trade paperback, ISBN 0-553-37131-2; 1st edition under the title, Getting Past No: Negotiating with Difficult People, Bantam, September, 1991, hardcover, 161 pages, ISBN 0-553-07274-9
  • William Ury, Roger Fisher and Bruce Patton, Getting to Yes: Negotiating Agreement Without Giving in, Revised 2nd edition, Penguin USA, 1991, trade paperback, ISBN 0-14-015735-2; Houghton Mifflin, April, 1992, hardcover, 200 pages, ISBN 0-395-63124-6. The first edition, unrevised, Houghton Mifflin, 1981, hardcover, ISBN 0-395-31757-6
  • Gerard I. Nierenberg, The Art of Negotiating: Psychological Strategies for Gaining Advantageous Bargains, Barnes and Noble, (1995), hardcover, 195 pages, ISBN 1-56619-816-X
  • The political philosopher Charles Blattberg has advanced a distinction between negotiation and conversation and criticized those methods of conflict-resolution which give too much weight to the former. See his From Pluralist to Patriotic Politics: Putting Practice First, Oxford and New York: Oxford University Press, 2000, ISBN 0-19-829688-6, a work of political philosophy; and his Shall We Dance? A Patriotic Politics for Canada, Montreal and Kingston: McGill Queen's University Press, 2003, ISBN 0-7735-2596-3, which applies that philosophy to the Canadian case.
  • Leigh L. Thompson, The Mind and Heart of the Negotiator, Prentice Hall 0ct.2000, ISBN 0-13-017964-7
  • Nicolas Iynedjian, Négociation - Guide pratique, CEDIDAC 62, Lausanne 2005, ISBN 2-88197-061-3

Getting past NO Negotiating Your Way from Confrontation to Cooperation (ISBN 0-553-37131-2 ) is the reference book dealing about Win/Win in difficult negotiation. ... Getting to YES (ISBN 1-84413-146-7) is the reference book dealing about win-win negotiation. ... Charles Blattberg Charles Blattberg (born 1967 in Toronto, Canada) is a professor of political philosophy at the Université de Montréal. ... For the movie from Francis Ford Coppola, see The Conversation. ...

Film

  • The 1985 documentary film: 'Final Offer' by Sturla Gunnarsson & Robert Collision shows the 1984 union contract negotiations with General Motors. It's an interesting look at the hard world of business negotiations and union politics. It's from the 1980s but the content is still relevant today.

Final Offer is a Canadian film documenting the 1984 contract negotiations between the United Auto Workers Union (UAW) and GM. Ultimately, it provided a historical record of the birth of the Canadian Auto Workers Union (CAW) as Bob White, then head of the Canadian sector of the UAW, led his... This article is 150 kilobytes or more in size. ... The Negotiator is a drama/thriller film that takes place in Chicago and was released on July 29, 1998. ...

External links

  • Negotiation Institute A negotiation consultancy.
  • Negotiation Institute A non-profit organization.
  • Negotiation Training Promotes a commercial enterprise.
  • Parley Negotiation Software A software to model, simulate and analyze negotiations.
  • Harvard Program on Negotiation (PON) Harvard Program on Negotiation
  • Smartsettle eNegotiation System An online system that uses multivariate blind bidding and optimization to quickly produce fair and efficient outcomes for any number of negotiators.
  • Negotiator Magazine Republishes a collection of contributed negotiation articles.
  • Negotiation/Conflict Resolution Describes a tested, easy to follow process. No fee, no advertising.


 

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