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INTRODUCTION TO

NEGOTIATIONS

It is something that we do it daily

INTRODUCTION TO
NEGOTIATIONS
A discussion aimed at reaching an agreement.
Negotiation is a dialogue between two or more people or
parties intended to reach a mutually beneficial agreement,
resolve points of difference.

Characteristics of a Negotiation
situation

It is a process not an event


There are two or more parties
There is a common problem or conflict of needs
Face to face communication
Parties expect give and take process
Parties prefer to negotiate and search for
agreement rather than fight openly

Difference between Bargaining


and Negotiation

What is the difference between


Negotiation and Bargaining?

Reasons
Negotiations occur for several reasons:
To agree on how to share or divide a limited
resource
To create something new that neither party could
attain on his or her own
To resolve a problem or dispute between the
parties

When do we negotiate

When your work is dependent on performance of


others work.

When goal of different parties are not necessarily


mutually exclusive.

When we are likely to need the other parties in the


future and we do not wish to loose a positive
relationship between the different parties.

Negotiation situation

The Dual Concern Model

How much concern do the actors have for


achieving the substantive outcomes at
stake in this negotiation?
(substantive goals)
How much concern do the negotiators
have for the current and future quality of
the relationship with the other party?
(relationship goals)

Negotiation Decision Making


AVOIDANCE STRATEGY
COMPETITIVE STRATEGY
COLLABORATIVE STRATEGY
ACCOMMODATIVE STRATEGY

Avoidance/Non agreement Strategy


Reasons of why negotiators might
choose not to negotiate:

If one is able to meet ones needs


without negotiating at all, it may make
sense to use an avoidance strategy.

It simply may not be worth the time


and effort to negotiate.

Active-Engagement Strategies

Competition
Collaboration
Accommodation

Compettve Strategy

Distributive Bargaining
Win-Lose Bargaining (I win, you lose)
Zero-sum game: whatever extent one
party wins something, the other party
losses

Competitive / Distributive
Negotiation

The essence of Distributive Bargaining is who


gets what share of fixed pie. (A competition
over who is going to get the most of a limited
resources)

Competitive / Distributive
Negotiation

Two parties have different but independent goals


Clear conflict of interests
Win-lose Negotiation
One time Interaction
No element of trust
No desire or expectation of long term relationship
Focusing on own interest
Example price, wage negotiation

Collaborative/ Integrative
Negotiation
The law of win/win says Lets not do it your my
way; let's do it the best way
Integrative Bargaining is about searching for common
solutions to problems that are not exclusively of interest to
only one of the negotiators.

Collaborative Negotiation

Where each party gains without a corresponding


loss for the other party
Win-win Negotiation (Positive sum situation)
Separate people from problem
Focus on mutual interest not on position
Objective criteria for mutual gains
Interaction till mutually acceptable conclusion
Can not work without trust
Expectation of long term relationship
Focusing on commonality between both the parties

Distributive versus
Integrative Bargaining

Accommodative Negotiation

Win-lose strategy (I lose, you win)


The negotiator wants to let the other win, keep
the other happy, or not to endanger the
relationship by pushing hard to achieve some
goal on the substantive issues

Accommodative Negotiation

Accommodative Strategy is often used;


When the primary goal of the exchange is to
build or strengthen the relationship and the
negotiator is willing to sacrifice the outcome.
If the negotiator expects the relationship to
extend past a single negotiation episode.