N01: The Nature of Negotiation

 

            Negotiation is not a process reserved only for the skilled diplomat, top salesperson, or ardent advocate for organized labor; it is something that everyone does, almost daily. The structure and processes of negotiation are fundamentally the same at the personal level as they are at the diplomatic and corporate levels.

 

            Negotiation is one of several mechanisms by which people can resolve conflicts. Characteristics:

1. There are two or more parties. Negotiation can be between individuals, within groups, and between groups.

2. There is a conflict of needs and desires between two or more parties

3. The parties negotiate by choice; they think they can get a better deal by negotiating than by simply accepting what the other side will voluntarily give them or let them have.

4. We expect a give and take process; both sides will modify their opening position in order to reach an agreement.

5. The parties prefer to negotiate and search for agreement rather than to fight openly. Usually people can invent their own solutions for resolving a conflict.

6. Successful negotiation involves the management of tangibles and also the resolution of intangibles.

 

Interdependence: In negotiation, both parties need each other. Interdependent relationships are characterized by inter looking goals-the parties need each other in order to accomplish their goals. Interdependent goals are an important aspect of negotiation. The structure of the interdependence between different negotiating parties determines the range of possible outcome of the negotiation and suggests the appropriate strategies and tactics that the negotiators should use.

 

            Conflict: A potential consequence of interdependent relationships is conflict. Conflict can result from the strongly divergent needs of the two parties or form misperceptions and misunderstandings. Conflict can occur when the two parties are working towards the same goal and generally want the same outcome or when both parties wan very different outcomes.

 

            Definitions: Conflict may be defined as a “sharp disagreement or opposition, as of interests, ideas, etc” and includes “the perceived divergence of interest, or a belief that the parties’ current aspirations cannot be achieved simultaneously” Conflict results from “the interaction of interdependent people who perceived incompatible goals and interference from each other in achieving those goals.”

 

Question

1. What is the different between Negotiation and bargaining?

Negotiation- win-win situation- both parties are trying to find a mutually acceptance solution to a complex conflict.

            Bargaining- win - lose situation (haggling over prices).

 

2. What are the Types of interdependence?

1. Zero -sum or distributive - individuals linked together that there is a negative correlation between their goal attainments.            

 

2. Non- zero sum or integrative - positive correlation between the goal attainments of both parties.

 

3. What is the different between Value Claiming and Value Creation?

Value Claiming is to do whatever is necessary to claim the reward, gain the lion's share, or gain the largest piece possible (distributive).

 

Value Creation is to finding a way for all parties to meet their objectives, either by identifying more resourcs or finding unique ways to share and coordinate the use of existing resources (integrative).