V The word "negotiation" is from the Latin

expression, "negotiatus³, which means "to

carry on business".
V ñ
 is a dialogue intended to resolve
disputes, to produce an agreement upon
courses of action, to bargain for individual or
collective advantage, or to craft outcomes to
satisfy various interests.
V 6t is the primary method of alternative dispute
resolution.
V ñegotiation involves three basic elements:
M

© 
 and
3   .

 The à   refers to how the parties negotiate: the

context of the negotiations, the parties to the
negotiations, the tactics used by the parties, and the
sequence and stages in which all of these play out.
 À 
 refers to the relationships among these
parties, the communication between them and the
styles they adopt.

 The  refers to what the parties

negotiate over: the agenda, the issues, the
options, and the agreement(s reached at the end.
M

  àà  
 6n 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.
 Traditional negotiating is sometimes called w
because of the assumption of a fixed "pie", that one
person's gain results in another person's loss.
 This is only true, if only a single issue needs to be
resolved.
 For eg.: a price in a simple sales negotiation.
©
   
àà  
 6t is the Japanese approach to negotiations.
 The ten new rules for global negotiations advocated by
Ô      
V ccept only creative outcomes
V Understand cultures, especially your own.
V Don¶t just adjust to cultural differences, exploit them.
V Gather intelligence and reconnoiter the terrain.
V Design the information flow and process of meetings.
V 6nvest in personal relationships.
V Persuade with questions. Seek information and
understanding.
V Make no concessions until the end.
V Use techniques of creativity
V Continue creativity after negotiations.
V Àoeing buys composite plastic wings for its new 787
Dreamliner designed and manufactured by Japanese
suppliers, and then sells the completed 787s back to
Japanese airlines, all with a nice subsidy from the
Japanese government. This is what is meant by
creativity in negotiations.
V î  identified five styles/responses to
negotiation:
V 
: 6ndividuals who enjoy solving the
other party¶s problems and preserving personal
relationships. ccommodators are sensitive to the
emotional states, body language, and verbal signals
of the other parties. They can, however, feel taken
advantage of in situations when the other party
places little emphasis on the relationship.

V 

: 6ndividuals who do not like to negotiate
and don¶t do it unless warranted. When negotiating,
avoiders tend to defer and dodge the confrontational
aspects of negotiating; however, they may be
perceived as tactful and diplomatic.
V £ 
: 6ndividuals who enjoy
negotiations that involve solving tough
problems in creative ways. Collaborators are
good at using negotiations to understand the
concerns and interests of the other parties. They
can, however, create problems by transforming
simple situations into more complex ones.

V £à 
: 6ndividuals who enjoy

negotiations because they present an
opportunity to win something. Competitive
negotiators have strong instincts for all aspects
of negotiating and are often strategic. Àecause
their style can dominate the bargaining process,
competitive negotiators often neglect the
importance of relationships.
V £à 
: 6ndividuals who are eager to
close the deal by doing what is fair and equal for
all parties involved in the negotiation.
Compromisers can be useful when there is
limited time to complete the deal; however,
compromisers often unnecessarily rush the
negotiation process and make concessions too
quickly.
V
 

Due to globalization and growing business trends,
negotiation in the form of teams is becoming widely
adopted. Teams can effectively collaborate to break
down a complex negotiation. There is more
knowledge and wisdom dispersed in a team than in a
single mind. Writing, listening, and talking, are
specific roles team members must satisfy. The
capacity base of a team reduces the amount of
blunder, and increases familiarity in a negotiation.
 
  


 
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V ñegotiation, at times can be a lengthy and
cumbersome process. Ày asking whether it is
necessary, time may sometimes be saved and
unnecessary compromise avoided. On occasions, a
request to negotiate may best be met by pointing out
that the party making the request has no standing in
the matter. 6f a manager has the undoubted authority
to act, making a decision rather than negotiating
about it may be the best tactic.
V ñegotiating outcomes are the types of results that
can happen at the end of a negotiation.
V ll negotiations end up with one out of four possible
outcomes.
V „ „ 
Àoth sides dig into their positions and are unwilling to
compromise with each other. 6n the end, both parties end
up losing in the deal. Resentment exists between both
parties as a result of the outcome.

V è„ 
6n this type of outcome, one side wins and the other side
loses. There is no compromise with a win-lose outcome.
6t's a one-side takes all battle with one side getting all
their needs satisfied and the other side getting nothing.
While the side that wins may be very happy about the
outcome; the losing side has a high level of resentment
over the deal because they did not have any of their
needs met.
V î  
6n this type of outcome, neither side wins or loses
and after a long negotiating session, both sides are at
the exact same place that they started off at. This is a
result of not being able to deal with interests and
only positions.

V èè
This is the type outcome that you strive to achieve
when you Street ñegotiate. 6n this type of outcome,
both sides walk away with their interests and needs
being met. Àoth sides leave the negotiating table
satisfied because they came out of the negotiation
with more than they had started with. Relationships
are preserved .

Ôñ