This document appears to be a student research project on alternative dispute resolution focusing on competitive negotiation. It includes an introduction to negotiation principles and styles. It discusses collaborative negotiation and its features. It then defines competitive negotiation, describing it as an aggressive, win-lose approach. The document will compare and contrast collaborative and competitive negotiation, ultimately criticizing the latter approach. It includes headings for chapters on negotiation, styles, competitive negotiation, and a comparison of the two approaches.

1. ALTERNATIVE DISPUTE RESOLUTION
PROJECT ON
COMPETITIVE NEGOTIATION-A CRITICAL
ANALYIS
SUBMITTED BY:-
Richa Mandloi
I.D.No:-444
LL.M 1st YEAR {Business Law}
NATIONAL LAW SCHOOL OF INDIA UNIVERSITY,
BANGALORE
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2. TABLE OF CONTENTS
CHAPTER ONE: INTRODUCTION TO NEGOTIATION………………………………..4-6
1.1 Meaning of Negotiation.
1.2 Basic Principles of Negotiation.
1.3 Stages of Negotiation.
CHAPTER TWO: STYLE OF NEGOTIATION…………………………………………..7-10
2.1 COLLABORATIVE NEGOTIATION
2.1.1 Features of Collaborative Negotiation
2.1.2 Assumptions of Collaborative Negotiation
2.1.3 Risk factors of Collaborative Negotiation
2.1.4 Communication Pattern Followed in Collaborative Negotiation
2.1.5 Disadvantages of Collaborative Negotiation
CHAPTER THREE: - COMPETITIVE NEGOTIATION………………………………11-13
3.1 Meaning of Competitive Negotiation
3.2 Characteristics of Competitive Negotiation.
3.3Assumption of Competitive Negotiation
3.4 Criticism of Competitive Negotiation
CHAPTER FOUR: COMPARISON BETWEEN COLLABORATIVE
NEGOTIATION AND COMPETITIVE NEGOTIATION……………….......................14-15
CONCLUSION…………………………………………………………………………………16
BIBLIOGRAPHY………………………………………………………………………….17-18
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3. RESEARCH METHODOLOGY
STATEMENT OF PROBLEM
The paper aims to study concept of negotiation, what are its different approaches and what is
difference between competitive negotiation and collaborative negotiation and why competitive
negotiation is not an advisable approach of negotiation by stating its criticism.
RESEARCH QUESTIONS
 What is Negotiation? What are the different approaches of Negotiation?
 What is difference between Competitive Negotiation and Collaborative Negotiation?
 What are the disadvantages or criticism of Competitive Negotiation?
HYPOTHESIS
Competitive Negotiation is one of the approaches adopted by Negotiator while solving disputes.
But due to its characteristics it is not considered as effective method of negotiation and is not
advisable to adopt this approach in every problem.
MODE OF CITATION
A uniform mode of citation is used in this project.
METHOD:-
The researcher has used Descriptive method of research
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4. CHAPTER:-ONE
NEGOTIATION: - AN INTRODUCTION
Negotiation is among very significant tools of life which is used many times at different stages of
life for the purpose of reaching distinct goals. An individual since the time of his birth, when he
cries for his mother‟s milk start negotiating. In negotiation various areas are involved. It may be
include two or even more than two parties. Negotiations always have a price tag which may or
may not be in terms of money. In case of marital negotiation, social status is price line whereas
in case of interview for job, money is the price line1.
Negotiation is thus may be defined as an attempt which aims to communicate each other‟s view.
For solving a dispute, it is one of the mostly used methods2. Thus, in other words, it is a
communication process, the objective of which is to achieve on mutual agreement by fulfilling
diverse idea and needs. It also implies acceptance between the parties that whatever may be the
decision, it will be implemented between them. It is assemblage of different behavior which
includes psychology, communication, marketing, assertiveness, sociology and resolution of
conflicts. Negotiator can be any person, he may be boss or employee, a civil servant, buyer or
seller, supplier or customer and so on and in case of personal level, it may be between children or
parent, friends of spouse3.
BASIC PRINCIPLE OF NEGOTIATION4:-
There are mainly seven principles which are similar in all kinds of negotiation. They are:-
1
Manas Das, Negotiation Skills - Importance & Techniques Article Source, http://EzineArticles.com/442355 visited
on 1st May 2011.
2
Negotiation, http://www.wageproject.org/files/neg.php visited on 1st May 2011.
3
Ken Shah & Prof. Param J. Shah, negotiating skills, http://www.laynetworks.com/TYPES-OF-NEGOTIATION-
IN-ORGANIZATIONS.html visited on 1st May 2011.
4
Supra, n.3.
4

5. 1) Minimum two parties are present in the process of negotiation. In respect of subject matter or
in context of negotiation, there must be some common interest which keeps contact between the
parties.
2) Degree of interest of parties is similar; even then they have different objectives and opinions
which obstruct solution of problem.
3) For solving the disputes, negotiation is considered as a better way for solving the disputes in
the beginning.
5) Initially each party thinks to maintain its position as it is and try to modify the position of
other party.
6) Each party is under an influence may be real or assumed that it has influence over the other
party.
7) It is that interaction whether direct or verbal between the parties which amount to process of
negotiation.
Process of negotiation may be lengthy and cumbersome sometimes. If there is invitation for
negotiation, the best way sometimes is to point out that requesting party has no standing in that
matter. One of the principle governing negotiations is that, it should be done only when you are
able to obtain certain direct and indirect benefit from it.
For successful negotiation focus must be on certain things which are under your control like
emotions, actions and decisions. Clarity about your goal, discipline and correct decision helps in
making negotiation, a success‟5.
CHAPTER TWO:-
STYLE OF NEGOTIATION:-
5
Effective Negotiation, http://www.negotiationtraining.com.au/questions/effective-negotiation/ accessed on 1st May
2011.
5

6. Business people and attorneys do negotiation constantly. Negotiation can be done by them with
their present and future customers and clients, within organization and also with other parties6.
The result of negotiation largely depends upon the approach adopted by negotiator 7. Negotiators
broadly apply two styles which are as follows8:-
Problem Solving or Collaborative Approach:-
“This approach is often called as „enlightened self-interest‟. This approach concentrates on
solving the problem jointly rather than solving at opposite party expense 9”. Behavior of
cooperative negotiator is more pleasant and they try to achieve to agreement which is beneficial
to both of them. They look for positive and beneficial solutions together with their cooperative
opponents10.
Assumptions in the Collaborative Negotiation :-
„There are several opinions about this approach of negotiation. Following are the primary
assumption for the collaborative approach:-
1) There is existence of common interest between the parties.
2) There is detail discussion upon the interest and perspectives of each participant.
3) By way of creativity and intelligence, every complex problem can be resolved11‟.
4) In this process of negotiation, both parties gain something in the end12.
6
Charles B. Craver, The George Washington University Law School Public Law and Legal Theory Working Paper
No. 328 Legal Studies Research Paper No. 328 Negotiation Styles: The Impact on Bargaining Transactions, Journal
of Dispute Resolution 48(April 2003).
7
Supra, n.4.
8
Supra, n.10.
9
Competitive and Integrative Approaches, http://www.to-agree.com/medres/pg25.cfm visited on 1st May 2011.
10
Supra, n.10.
11
Supra, n.13.
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7. 5) Independence of parties is not only enhanced but also recognized13.
Collaborative Negotiation -Risk:-
„In collaborative negotiation, risk is that it depends upon the general understanding between
parties and requires both parties to cooperate with each other. If any party is not interested in
participating in negotiation, then it may prove harmful in following ways:-
1) The feeling of failure comes within the negotiator if they feel to reach any agreement.
2) Information is disclosed by the negotiator but the same is not reciprocated‟.14
CHAPTER: THREE
COMPETITIVE NEGOTIATION AND ITS CRITICAL ANALYSIS:-
In this negotiation, process is considered as competition and which can either be won or lost15.
In competitive negotiation, among other things, bargaining session, stating the issues to be
formulated are dominated by negotiator. An aggressive attack is made on the position of an
opponent and claims of its client are forcefully defended. They believe in leave it or take it
phenomenon. This strategy often goes through a competitive and tensed atmosphere16. From the
result of competitive negotiation, one may feel happy but the other party may feel cheated. This
method doesn‟t care about rules and adopt aggressive approach. Sometimes even methods of
physical persuasion are also used17‟.
12
Rex Mitchell, Core Negotiation Concepts, www.csun.edu/~hfmgt001/negot-core.doc, visited on 1st May 2011.
13
Id,n.17.
14
Supra, n.13.
15
Competitive Negotiation, http://changingminds.org/disciplines/negotiation/styles/competitive_negotiation.htm,
visited on 1th May 2011.
16
Robert M,Bastress Joseph D. Harbaugh, Interviewing, Counselling and Negotiating, Little, Brown and Company
Limited, U.S.A, April 1990, p.p389-397.
17
Supra, n.23.
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8. „Strategy of competitive negotiation is basically a manipulative approach which is done in such a
way so that the opposite parties lose confidence in its own case and ready to fulfill all demands
of competitor. The following are the characteristics of this case:-
1) Tension, Pressure and Threats,
2) Facts stretching.
3) Clear victory wanted.
4) High demand..
5) Generally used when there is imbalance of Power..
6) Usually take place during the period of price negotiation.
ASSUMPTIONS OF COMPETITIVE NEGOTIATION18:-
There are certain assumptions which universally accepted as reasons behind this approach of
negotiation. It includes following views:-
1) Negotiation is considered as distribution of limited resources.
2) If one party wins, other parties have to lose.
3) Today‟s deal doesn‟t affect options of tomorrow.
CRITICISM OF COMPETITIVE NEGOTIATION:-
In claiming existing settled values, competitive negotiation is often very effective but many
disadvantages are attached with this kind of negotiation19.Competitive strategy often results into
much failure in many respects. Thus, it is highly criticized; following results may occur if
competitive strategy of negotiation is followed:-
18
Id, n.26.
19
Supra, n.26.
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9. 1) It hurt relationships between parties, along with anger, distortion of communication, mistrust
and breakdowns.20 It is one of the biggest disadvantages of competitive negotiation, that it spoil
the future relationship of parties as one party always end up with great dissatisfaction.
2) Expansion of creativity and chances of gain to both the parties are blocked.21 As in
competitive negotiation parties are strict with one opinion they don‟t even think to think beyond
that solution and thus it restrict their creativity.
3) Implementation may get undermined. There is possibility of compliance v. commitment.22
4) Result of confrontation often results into rigidity23. As party is sticked to its position and is not
ready to consider view of other party which ultimately causes rigidity in the behavior of that
party.
CONCLUSION:-
In today‟s world, conflict arises frequently at different facets of life. Due to delays in litigation
and to resolve dispute amicably, parties often go for negotiation. It can be done by either
adopting collaborative method of negotiation which believes in problem solving or by adopting
Competitive strategy of negotiation.
Competitive Strategy of Negotiation is often proof beneficial when there is imbalance of
power. Due to use of pressure technique, credibility is low and it is often not fair because there is
feeling of competition. Thus, settlement reached by this strategy is often not honored and make
relationship very strainful. As pressure technique is used, it subsequently make person unhappy
and today its success rate is also very low that is only 22-25% and it is successful only when one
party is weaker and desperate to make settlement. Competitive strategy as above mentioned is
often end up by spoiling the relationship between parties and as a result they don‟t enter in any
relationship in future. It lacks fairness. This strategy is not advisable because of above mentioned
20
Supra, n.17.
21
Id.
22
Id.
23
Supra, n.26.
9

10. reasons as it has bad impact in future and spoils the relation of parties. It is the result of rigid
behavior. As in today‟s world along with other things relations are also needed to be maintained,
and thus, competitive strategy cannot be considered as solution of problem rather may due to its
feature cause further problem between the parties.
BIBLIOGRAPHY:-
BOOKS:-
1) Bastress M Robert Harbaugh. D. Joseph, Interviewing, Counselling and Negotiating,
Little, Brown and Company Limited, U.S.A, April 1990.
2) Hanasi .S. , A critical study of Alternative Dispute Resolution System, Karnataka
Institute of Law and Parliamentary Reform, Bangalore, 1st Edition, 2008.
ARTICLES:-
1) Competitive and Integrative Approaches, http://www.to-agree.com/medres/pg25.cfm
accessed on 1st May 2011.
2) Competitive,Negotiation, http://changingminds.org/disciplines/negotiation/styles/competi
tive_negotiation.htm, accessed on 1th May 2011.
3) Craver B. Charles , The George Washington University Law School Public Law and
Legal Theory Working Paper No. 328 Legal Studies Research Paper No. 328 Negotiation
10

11. Styles: The Impact on Bargaining Transactions, Journal of Dispute Resolution 48(April
2003) accessed on 1st May 2011.
4) Das Manas , Negotiation Skills - Importance & Techniques Article Source,
http://EzineArticles.com/442355 accessed on 1st May 2011.
5) Effective Negotiation, http://www.negotiationtraining.com.au/questions/effective-
negotiation/ accessed on 1st May 2011.
6) Everyone Could Use Some Help with Negotiation,
http://www.lawyertopeacemaker.com/neg_consult.html accessed on 1st May 2011.
7) Mitchell Rex, Core Negotiation Concepts, www.csun.edu/~hfmgt001/negot-core.doc,
accessed on 1st May 2011.
8) Negotiation, http://www.indiastudychannel.com/resources/58354-Importance-
Negotiation.aspx accessed on 1st May 2011.
9) Negotiation, http://www.unescap.org/esid/hds/pubs/2286/s5.pdf accessed on 1st May
2011.
10) Negotiation, http://www.wageproject.org/files/neg.php accessed on 1st May 2011.
11) Shah Ken & Prof. Shah J Param., negotiating skills, http://www.laynetworks.com/Types-
of-Negotiation-in-Organizations.html accessed on 1st May 2011.
12) The Competitive Approach, http://www.to-agree.com/medres/pg25.cfm accessed on 1st
May 2011.
11