2. Negotiation: Definition
The process of making joint decisions when the parties
involved have different preferences.
A process in which two or more parties exchange goods or
services and attempt to agree on the exchange rate for
them.
3. Why Negotiate?
Negotiation becomes important bcz of factors like:
Interdependence
Sustaining Stability & Peace
Self satisfaction
Emotional stability
Profitability
Development
ETCETRA….
It is inevitable that, from time-to-time, conflict and disagreement will arise as the differing needs, wants,
aims and beliefs of people are brought together. Without negotiation, such conflicts may lead to
argument and resentment resulting in one or all of the parties feeling dissatisfied. The point of
negotiation is to try to reach agreements without causing future barriers to communications.
4. Stages of Negotiation:
Negotiation includes the following stages:
> Preparation: This stage involves ensuring all the pertinent facts
of the situation are known in order to clarify your own position
>> Discussion: Questioning, Listening and Clarifying
>>>Clarification of goals: Goals, Interests,view points.
“Helps Establishing Common Grounds”
.
14–4
5. Negotiation process continued..
>>>>Negotiation (win-win): . A WIN-WIN outcome is usually
the best outcome, however it may not always be possible but through
negotiation it should be the ultimate goal.
“The Mirage Of Perfection”
>>>> Agreement:
Choose a Solution and make the agreement clear.
>>>>> Implementation of
course of action:
From the agreement, a course of action has to be
implemented, to carry through the decision.
7. Bargaining Strategies
Distributive Bargaining
Negotiation that seeks to divide up a fixed amount
of resources; a win-lose situation.
Integrative Bargaining
Negotiation that seeks one or more settlements that
can create a win-win solution.
8. Distributive Versus Integrative Bargaining
Bargaining
Characteristic
Distributive
Characteristic
Integrative
Characteristic
Available resources
Fixed amount of
resources to be divided
Variable amount of
resources to be divided
Primary motivations I win, you lose
I win, you win
Primary interests
Convergent or congruent
Opposed to each other
with each other
Focus of relationships Short term
Long term