Subm|tted by aLrlcla Ann C ulnglasan LMC2

Subm|tted to Mr Lugenlo vlllanueva

12]0S]11

Ass|gnment no 2 Modu|e 3
What |s Negot|at|on?
8aslcally negoLlaLlon ls a dlalogue beLween Lwo or more people or parLles lnLended Lo
reach an undersLandlng resolve polnL of dlfference or galn advanLage ln ouLcome of dlalogue
Lo produce an agreemenL upon courses of acLlon Lo bargaln for lndlvldual or collecLlve
advanLage Lo crafL ouLcomes Lo saLlsfy varlous lnLeresLs of Lwo people/parLles lnvolved ln
negoLlaLlon process negoLlaLlon ls a process where each parLy lnvolved ln negoLlaLlng Lrles Lo
galn an advanLage for Lhemselves by Lhe end of Lhe process negoLlaLlon ls lnLended Lo alm
aL compromlse
Neqotlotloos occot fot ooe of two teosoos
a 1o creaLe someLhlng new LhaL nelLher parLy could do on hls or her own
b 1o resolve a problem or dlspuLe beLween Lhe parLles 8ecause people can negoLlaLe
abouL so many dlfferenL Lhlngs undersLandlng Lhe fundamenLal processes of negoLlaLlon ls
essenLlal for anyone who works wlLh oLher people
1 1he Nature of Negot|at|on
negoLlaLlon ls a process ln whlch aL leasL one lndlvldual Lrles Lo persuade anoLher
lndlvldual Lo change hls or her ldeas or behavlor 8uslness negoLlaLlons ofLen lnvolve one
parLy aLLempLlng Lo lnfluence anoLher Lo make a parLlcular declslon of slgn a conLracL 1hus
negoLlaLlng ls a process ln whlch aLleasL parLles wlLh dlfferenL vlew polnLs and needs Lry Lo
reach an agreemenL on maLLers of muLual lnLeresL 1he negoLlaLlon process has been
characLerlzed as occurrlng wlLhln Lhe conLexL of 4C's
O Common lnLeresLs
O ConfllcLlng lnLeresLs
O Compromlse
O CrlLerla for agreemenL Lo hold
2 Character|st|cs of a Negot|at|on S|tuat|on
a 1here are Lwo or more parLles LhaL ls Lwo or more lndlvlduals groups or
organlzaLlons AlLhough people can negoLlaLe wlLh Lhemselves as when someone
debaLes wheLher Lo spend Lhe afLernoon sLudylng playlng Lennls or golng Lo Lhe
fooLball game we wlll dlscuss negoLlaLlon as an lnLerpersonal or lnLergroup process
b 1here ls a confllcL of lnLeresL beLween Lwo or more parLles LhaL ls whaL one wanLs ls noL
necessarlly whaL Lhe oLher one wanLs and Lhe parLles musL Lherefore search for a way
Lo resolve Lhe confllcL
Subm|tted by aLrlcla Ann C ulnglasan LMC2
Subm|tted to Mr Lugenlo vlllanueva
12]0S]11

c 1he parLles negoLlaLe because Lhey Lhlnk Lhey can use some form of lnfluence Lo geL a
beLLer deal LhaL way Lhan by slmply Laklng whaL Lhe oLher slde wlll volunLarlly glve Lhem
or leL Lhem have negoLlaLlon ls largely a volunLary process lL ls a sLraLegy pursued by
cholce seldom are we requlred Lo negoLlaLe
d 1he parLles aL leasL for Lhe momenL prefer Lo search for agreemenL raLher Lhan Lo
flghL openly have one slde caplLulaLe permanenLly break off conLacL or Lake Lhelr
dlspuLe Lo a hlgher auLhorlLy Lo resolve lL
e When we negoLlaLe we expecL glve and Lake We expecL LhaL boLh sldes wlll modlfy or
glve ln somewhaL on Lhelr openlng sLaLemenLs requesLs or demands AlLhough Lhe
parLles may aL flrsL argue sLrenuously for whaL Lhey wanL each pushlng Lhe oLher slde
for concesslons usually boLh sldes wlll modlfy Lhelr poslLlons and each wlll move Loward
Lhe oLher
f Successful negoLlaLlon lnvolves Lhe managemenL of lnLanglbles as well as Lhe resolvlng
of Langlbles (eg Lhe prlce or Lhe Lerms of agreemenL) lnLanglble facLors are Lhe
underlylng psychologlcal moLlvaLlons LhaL may dlrecLly or lndlrecLly lnfluence Lhe parLles
durlng a negoLlaLlon

3 Interdependence and Mutua| Ad[ustments
When parLles negoLlaLe Lhey usually expecL glve and Lake Whlle Lhey have lnLerlocklng
goals LhaL Lhey cannoL accompllsh lndependenLly Lhey usually do noL wanL or need exacLly
Lhe same Lhlng 1hls lnLerdependence can be elLher wlnlose or wlnwln ln naLure and Lhe
Lype of negoLlaLlon LhaL ls approprlaLe wlll vary accordlngly 1he dlspuLanLs wlll elLher
aLLempL Lo force Lhe oLher slde Lo comply wlLh Lhelr demands Lo modlfy Lhe opposlng
poslLlon and move Loward compromlse or Lo lnvenL a soluLlon LhaL meeLs Lhe ob[ecLlves of
all sldes 1he naLure of Lhelr lnLerdependence wlll have a ma[or lmpacL on Lhe naLure of
Lhelr relaLlonshlp Lhe way negoLlaLlons are conducLed and Lhe ouLcomes of Lhese
negoLlaLlons
MuLual ad[usLmenL ls one of Lhe key causes of Lhe changes LhaL occur durlng a
negoLlaLlon 8oLh parLles know LhaL Lhey can lnfluence Lhe oLhers ouLcomes and LhaL Lhe
oLher slde can lnfluence Lhelrs 1he effecLlve negoLlaLor aLLempLs Lo undersLand how people
wlll ad[usL and read[usL Lhelr poslLlons durlng negoLlaLlons based on whaL Lhe oLher parLy
does and ls expecLed Lo do 1he parLles have Lo exchange lnformaLlon and make an efforL Lo
lnfluence each oLher As negoLlaLlons evolve each slde proposes changes Lo Lhe oLher
parLys poslLlon and makes changes Lo lLs own 1hls process of glveandLake and maklng
concesslons ls necessary lf a seLLlemenL ls Lo be reached lf one parLy makes several
proposals LhaL are re[ecLed and Lhe oLher parLy makes no alLernaLe proposal Lhe flrsL parLy
may break off negoLlaLlons arLles Lyplcally wlll noL wanL Lo concede Loo much lf Lhey do
noL sense LhaL Lhose wlLh whom Lhey are negoLlaLlng are wllllng Lo compromlse
Ia|ue C|a|m|ng and Ia|ue Creat|on
Subm|tted by aLrlcla Ann C ulnglasan LMC2
Subm|tted to Mr Lugenlo vlllanueva
12]0S]11

ln Lhe valuecreaLlng vlew negoLlaLors work prlmarlly Lo lncrease Lhe avallable
resources Lo flnd [olnL galns or wlnwln soluLlons whereln all Lhe parLles wlll beneflL
negoLlaLors musL acL cooperaLlvely and successful negoLlaLors are open and creaLlve 1hey
share lnformaLlon communlcaLe clearly malnLaln a cooperaLlve aLLlLude and focus on
developlng common lnLeresLs ln Lhe valueclalmlng vlew negoLlaLors work prlmarlly Lo
clalm Lhe largesL share of Lhe dlspuLed goods 1o be successful negoLlaLors musL engage ln
hard bargalnlng Lhey musL sLarL hlgh concede slowly exaggeraLe Lhe value of concesslons
mlnlmlze Lhe beneflLs of Lhe oLhers concesslons conceal lnformaLlon argue forcefully on
behalf of prlnclples LhaL lmply favorable seLLlemenLs make commlLmenLs Lo accepL only
hlghly favorable agreemenLs and be wllllng Lo ouLwalL Lhe oLher fellow
S Conf||ct and Conf||ct Management
1he Lerm confllcL refers Lo percelved lncompaLlblllLles resulLlng Lyplcally from some
form of lnLerference or opposlLlon ConfllcL managemenL Lhen ls Lhe employmenL of
sLraLegles Lo correcL Lhese percelved dlfferences ln a poslLlve manner 1homas and kllmann
ldenLlfled a confllcLhandllng grld comprlsed of flve confllcL managemenL sLyles based on
Lwo dlmenslons asserLlveness and cooperaLlveness AsserLlveness ls Lhe moLlvaLlon of an
lndlvldual Lo achleve hls/her own goals ob[ecLlves and ouLcomes whlle cooperaLlveness
assesses Lhe wllllngness Lo allow or help Lhe oLher parLy Lo achleve lLs goals or ouLcomes
Any of Lhe flve confllcL resoluLlon sLyles mlghL be approprlaLe based on Lhe clrcumsLances of
Lhe slLuaLlon and Lhe personallLles of Lhe lndlvlduals lnvolved 1he resoluLlon sLyles are Lhe
followlng
a Avoldlng ConfllcL 8esoluLlon SLyle
b CompeLlng ConfllcL 8esoluLlon SLyle
c AccommodaLlng ConfllcL 8esoluLlon SLyle
d Compromlslng ConfllcL 8esoluLlon SLyle
e CollaboraLlng ConfllcL 8esoluLlon SLyle