Negotiation

Negotiate to reach the best compromise between two or more parties

At times, we’re all faced with situations that require negotiation. Negotiation occurs in organizations, businesses, non-profits, in sales and legal proceedings, and in relationships and personal situations such as marriage and parenting. People negotiate daily, often without considering it a negotiation.¹ Examples of negotiation include:

• Getting a fair price when purchasing or selling a home or vehicle
• Negotiating a rate with a service provider
• Finding compromise with another party to resolve a dispute
• Balancing workload and determining priorities and deadlines
• Deciding where to go for dinner

Negotiation should be viewed as a compromise that involves parties with different sets of values and objectives, based on their vested interests. Negotiation should also be viewed as a process²:

• Preparation – Prepare your case and prepare for the encounter.
• Opening – Create a positive climate, establish the issues, present your case and listen to theirs.
• Work to achieve agreement – Challenge their case and respond to challenges against your position.
• Closure – Summarize and record the agreement.³

Negotiation requires certain skills, and there are different types of negotiations⁴:

• Soft bargaining – Highly cooperative, conciliatory bargaining focused on reaching an amicable agreement for both sides
• Hard bargaining – Adversarial, competitive bargaining against someone perceived as an opponent
• Principled negotiation – A combination of soft and hard, passive and aggressive, to decide on issues based on merits and consideration of both parties; win-win agreement

Negotiation isn’t always about even compromise. People have different negotiation styles, which may change based on the context of each negotiation⁵:

• Accommodating – Focuses on solving the other’s problems and preserving relationships; maybe at a disadvantage if other party places little emphasis on the relationship
• Avoiding – Dislikes negotiation and doesn’t do it unless warranted; may be perceived as tactful and diplomatic
• Collaborating – Enjoys negotiations that involve solving tough problems in creative ways; good at understanding concerns and interests of other parties, but can transform simple situations into more complex ones
• Competing – Adversarial, wants to win; has strong instincts for all aspects of negotiating and is often strategic with more regard for the outcome than for the relationship
• Compromising – Wants to do what’s fair and equal for all parties; can be useful when time is limited, but may unnecessarily make concessions

Whatever the situation, type of negotiation, or style, if you enter a negotiation, at least a formal one, you should also always be prepared by knowing the minimum you are willing to accept, and the best alternative to the negotiated agreement.

The minimum you are willing to accept is the bottom line. Anything beyond this point is unacceptable and the negotiation breaks down. The best alternative to the negotiated agreement, however, is the course of action taken if an agreement is not met. Since this is an alternative to a negotiated agreement, it offers far more opportunity and can be a much more attractive alternative than a bottom line.⁶ So think about it. Next time you don’t want to go to an expensive restaurant, maybe you can go to the local place and then to a movie. Good luck.

1. https://en.wikipedia.org/wiki/Negotiation
2. https://www.12manage.com/forum.asp?TB=collective_bargaining&S=6; Suku Mathews
3. https://www.12manage.com/forum.asp?TB=collective_bargaining&S=6; Manning and Robertson, 2003
4. https://www.12manage.com/forum.asp?TB=collective_bargaining&S=2; Perthachy
5. https://www.12manage.com/forum.asp?TB=collective_bargaining&S=2; Thomas-Kilmann Conflict Modes
6. https://www.12manage.com/forum.asp?TB=collective_bargaining&S=12; Chloe Xu