Definition of Negotiation

Negotiation is a method by which people settle differences. It is a process by which compromise

or agreement is reached while avoiding argument and dispute.

In any disagreement, individuals understandably aim to achieve the best possible outcome for
their position (or perhaps an organization they represent). However, the principles of fairness,
seeking mutual benefit and maintaining a relationship are the keys to a successful outcome.

Why Negotiate?

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.

Stages of Negotiation?

In order to achieve a desirable outcome, it may be useful to follow a structured approach to

negotiation. For example, in a work situation a meeting may need to be arranged in which all
parties involved can come together.

The process of negotiation includes the following stages:

Preparation
Discussion
Clarification of goals
Negotiate towards a Win-Win outcome
Agreement
Implementation of a course of action

1. Preparation

Before any negotiation takes place, a decision needs to be taken as to when and where a
meeting will take place to discuss the problem and who will attend. Setting a limited time-
scale can also be helpful to prevent the disagreement continuing.

This stage involves ensuring all the pertinent facts of the situation are known in order to clarify
your own position. In the work example above, this would include knowing the rules of your
organisation, to whom help is given, when help is not felt appropriate and the grounds for such
refusals. Your organisation may well have policies to which you can refer in preparation for the
negotiation.

Undertaking preparation before discussing the disagreement will help to avoid further conflict
and unnecessarily wasting time during the meeting.

2. Discussion

During this stage, individuals or members of each side put forward the case as they see it,
i.e. their understanding of the situation.

Key skills during this stage include questioning, listening and clarifying.

Sometimes it is helpful to take notes during the discussion stage to record all points put forward
in case there is need for further clarification. It is extremely important to listen, as when
disagreement takes place it is easy to make the mistake of saying too much and listening too
little. Each side should have an equal opportunity to present their case.

3. Clarifying Goals

From the discussion, the goals, interests and viewpoints of both sides of the disagreement
need to be clarified.

It is helpful to list these factors in order of priority. Through this clarification it is often possible
to identify or establish some common ground. Clarification is an essential part of the negotiation
process, without it misunderstandings are likely to occur which may cause problems and barriers
to reaching a beneficial outcome.

4. Negotiate Towards a Win-Win Outcome

This stage focuses on what is termed a 'win-win' outcome where both sides feel they have
gained something positive through the process of negotiation and both sides feel their point
of view has been taken into consideration.

A win-win outcome is usually the best result. Although this may not always be possible, through
negotiation, it should be the ultimate goal.
Suggestions of alternative strategies and compromises need to be considered at this point.
Compromises are often positive alternatives which can often achieve greater benefit for all
concerned compared to holding to the original positions.

5. Agreement

Agreement can be achieved once understanding of both sides viewpoints and interests have
been considered.

It is essential to for everybody involved to keep an open mind in order to achieve an acceptable
solution. Any agreement needs to be made perfectly clear so that both sides know what has been
decided.

6. Implementing a Course of Action

From the agreement, a course of action has to be implemented to carry through the
decision.

Failure to Agree
If the process of negotiation breaks down and agreement cannot be reached, then re-
scheduling a further meeting is called for. This avoids all parties becoming embroiled in
heated discussion or argument, which not only wastes time but can also damage future
relationships.
At the subsequent meeting, the stages of negotiation should be repeated. Any new ideas or
interests should be taken into account and the situation looked at afresh. At this stage it may also
be helpful to look at other alternative solutions and/or bring in another person to mediate.

Informal Negotiation
There are times when there is a need to negotiate more informally. At such times, when a
difference of opinion arises, it might not be possible or appropriate to go through the stages set
out above in a formal manner.

Nevertheless, remembering the key points in the stages of formal negotiation may be very
helpful in a variety of informal situations.
In any negotiation, the following three elements are important and likely to affect the ultimate
outcome of the negotiation:

1. Attitudes

2. Knowledge

3. Interpersonal Skills

Attitudes

All negotiation is strongly influenced by underlying attitudes to the process itself, for example
attitudes to the issues and personalities involved in the particular case or attitudes linked to
personal needs for recognition.

Knowledge

The more knowledge you possess of the issues in question, the greater your participation in the
process of negotiation. In other words, good preparation is essential.

Do your homework and gather as much information about the issues as you can.

Furthermore, the way issues are negotiated must be understood as negotiating will require
different methods in different situations.

Interpersonal Skills

Good interpersonal skills are essential for effective negotiations, both in formal situations and in
less formal or one-to-one negotiations.

Who is the Negotiator?

A negotiator is someone who specializes in mediating agreements between two or more parties.
Most negotiators represent a particular party involved, rather than acting as purely neutral
mediators. Negotiators work in a number of fields, including the financial services industry, law
enforcement, and the legal community. Some negotiators go to school to acquire job skills which
will assist them in their work, while others pursue training seminars and on the job training to
learn to be a negotiator.

The goal of a negotiator is to reach an agreement which will be mutually agreeable and
satisfactory for all parties. Although he or she may represent a specific party in a dispute, this
does not mean that the negotiator is only interested in achieving this party's interests and goals,
as a good negotiator recognizes that a mutual agreement will be beneficial in the long term by
preventing acrimony. He or she can use a variety of techniques, relying heavily on a knowledge
of psychology, human nature, and industry standards.

In the financial world, negotiators can work out sale agreements for major companies, help
people make contract and salary negotiations, mediate disputes between companies, and
negotiate benefits on behalf of unions or other groups. These negotiators balance the needs and
desires of their clients with the reasonable expectations of the other side. They have a number of
tools in their arsenal, ranging from the threat of a union strike to offers from other companies
which can be used for bargaining chips.

In law enforcement, negotiators deal with difficult situations, attempting to reach a resolution in
which no one is injured or killed. Hostage negotiators specifically work to extract hostages, but
negotiators can also be involved in armed standoffs, handovers of stolen goods, and other types
of situations. Law enforcement negotiators usually work in law enforcement first, receiving
negotiation training when they express an interest in it.

A negotiator may work on behalf on an individual, helping to reduce debts, achieve a better
salary, or to make a deal; a real estate agent, for example, is a type of negotiator who helps
buyers and sellers reach an agreement. Negotiators can also represent organizations or
institutions, or mediate disputes within organizations and governments.

To work as a negotiator, someone needs excellent communication skills, the ability to think
quickly, the ability to emphasize, and the skill to view all sides of a situation, not just one. A
good negotiator is ahead of both sides of a dispute, thinking about possible next steps, outcomes,
and surprises which could influence the direction the negotiation takes.

The psychological basis of negotiation

Negotiation is the communication between two or more individuals or groups who meet with the
intent of producing a cooperative agreement. Each group has conflicting interests and must shift
position or change the threshold of acceptance to reach a mutually beneficial agreement

Potential clients are crying out for the one thing so many businesses fail to provide: They want to
be understood! When you approach prospects, ask them: Do you have any situations in your
company that our combined expertise can solve?

Psychologically, by substituting the word situations for problems, you are more likely to get a
positive response. Also, by using the term combined or mutual expertise you are telling them
you respect their valuable knowledge. Remember Stephen Coveys advice from his ground-
breaking book: The 7 Habits of Highly Successful People - Seek first to understand, then to be
understood.

So tell your clients you want to really understand their needs above everything else, and youll
be so far ahead of your competition, theyll be left scrambling in the dust.

A long forgotten response secret

Philippa Davies, psychologist and expert in communication skills to heads of state and business
leaders, says: People respond more to what they are going to lose than to what they are going to
gain.She adds: Its very powerful when you explain to prospects they will probably lose
market share to their main competitors if they dont adopt your ideas. Ask yourself:

What will my customers stand to lose if they do not buy my service or product?

Powerful scientific discovery

Science discovered the human brain finds lists of features boring we switch off. So be creative
and turn your service or product into a picture! This secret technique is used in memory retention
strategies.

For example, do you sell hotel rooms at $100 a night? Or do you sell Romantic Vacations with 4-
Poster Beds and Champagne on Ice! Never sell a generic product or service. Create your own
appealing picture, sit back, and watch your sales soar.

Pretty picture

Did you know youll increase your sales by using appealing photographs of typical users on your
packaging?
Why is this? Well, it humanizes your product or service and prospects perceive you to be more
professional and trustworthy.

You can also take advantage of this powerful tip for your promotional brochures and website.
For one-person home-based businesses, always include your photo on your letterhead and other
sales literature.

Priceless pricing secrets

Lets take a closer look at pricing for success. Psychologists tell us that prices ending in 7 sell
more than prices ending in 9, for example, $1.97 will probably be more powerful than $1.99.
Do you use this technique? Test it and see.

Do be aware that if you sell a prestigious product or service, this will cheapen its image, so
avoid this strategy for expensive products.

You can also lower your price if customers buy larger quantities. For instance, $40 for one or $97
for 3.

Yet another powerful psychological pricing strategy is using a technique that appears to lower the
value of your product.

For example, if you charge $500 per year for your service, you can offer this for less than $10
per week. Its the same price eventually; however, can you see why this is more appealing? $10
will attract more immediate attention than a whopping $500.

21st century impostors

Evolutionary Psychology tells us our hunter-gatherer instincts make us take risks only when we
encounter danger. Interestingly, the maximum size of these hunger-gatherer groups was a
maximum of 150 people. Therefore, larger businesses need to break down their workforce into
smaller groups of people. To quote Richard Koch, we are 21st century impostors driven by
Neolithic genes. Business units of less than 50 people have proved to be very effective.

People are also charmed by status and responsibility. So create special positions for your staff,
for example, Leader of Team A, and acknowledge special achievements with regular awards.

And dont forget to address that risk aversion factor in us all.

Make sure you have the best guarantees of satisfaction around. When you take away the risk of
buying your product or service, youll encourage more people to become your customers.
Soviet research

Wallace D. Wattles, in his 1910 classic text, The Science of Getting Richalso emphasizes the
point of becoming rich by being creative and not competitive. This is supported by business
guru, Richard Koch, who quotes Soviet Scientist, G F Gause and his interesting experiments on
small organisms.

The results show the business world that it cannot expect to prosper if it competes in the same
market place as a competitor. If your competitor can invade you, and you cant reciprocate, then
you are in deep trouble. Therefore, dont start a business where you cant enter some of your
competitors markets but it can enter all of yours.

The big secret for any small business is to specialize in an area where you are substantially
different from your rivals and put all your energy and resources into those areas.

The greatest secret finally revealed

It doesnt matter if you have a world-beating product or service and innovative marketing, if you
dont carry out the following four procedures every day, youre guaranteed to become just
another business failure.

Wallace D. Wattles, in his 1910 classic text, The Science of Getting Rich, and Robert Collier,
in his amazing book, Secret of the Ages, give away the following secrets:

1. Form a precise image in your mind of what you want to achieve.

2. Then comes the big secret: Believe, really believe, that youll reap the rewards you are
asking for.

3. Practice gratitude daily for all the great new ideas and successes that are coming your
way.

4. Finally, set about putting into place the vehicle to achieve what you are thinking about. If
this is your business, then do all you can each day, effectively, so you are putting yourself
in a position to receive what you are asking?

And thats it! You really do become what you think about!

A future of growth
When you start to apply these ground-breaking principles in your business, youll experience
unprecedented levels of growth. So get started right now, and look forward to a rosy future.

Negotiator: Roles & Responsibilities

The Negotiating Team shall consist of six (6) members and the President of the Executive Board,
who have been nominated from and elected by the General Membership from each area, and any
labor consultant(s) currently under contract with ACE whose services include assisting with
negotiations. Negotiators shall have no greater rights than any other member of ACE.
a. The structure of the Negotiating Team shall be subject to the collective bargaining agreement.
The Negotiating Team shall consist of at least one member from each location, meaning one (1)
member from Foothill, one (1) member from De Anza, and one (1) from Central Services. The
remaining three positions may be fulfilled by members elected from any of the three locations.
b. The Executive Board will designate sites within the ACE structure from which representatives
shall be chosen in accordance with Section 5.6a above.
c. The President shall serve as a member of the Negotiating Team. However, in an effort to allow
for a broader share of authority within the Unit, the President shall not be considered eligible to
be elected as the Negotiations Chair.
d. Negotiating Team members must attend all of the planning and negotiating meetings, unless
the absence is excused by the Chair of the team or the majority of the team. Immediately upon
the second unexcused absence they may be removed from the team.
e. The Chair of Negotiations must serve on the District Benefits Committee pertinent to
negotiations.
f. The negotiators choose a Negotiations Chair by secret ballot after a new team is elected.
Serving as a Negotiating Team Member requires subordination of personal interests to those that
represent the highest good of the members. Negotiators shall have no greater rights than any
other member of ACE.