28-04-2020

Negotiations

Nature, Contents, Dimensions, and Characteristics

Different Expressions for the Same Objective

 “Negotiation is a process in which at least two partners with different

needs and viewpoints try to reach agreement on matters of mutual
interest.” (Adler & Graham, 1987)

 “Negotiation is a process in which two or more interdependent parties

perceive incompatible goals and engage in social interaction to reach a
mutually satisfying outcome.” (Putnam & Roloff, 1992)

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Definition

 “Negotiation is a process in which two or more

interdependent parties with different needs and
viewpoints engage in social interaction to reach a
mutually satisfying outcome on matters of mutual
interest.”

Communication and Negotiations

 In a society with complex layers of values, interests and needs, negotiation has
needed to become more than strategic influence or manipulation disguised as
negotiation.

 Negotiation serves as a special type of communication in which parties-

 a. engage in reasoned discussion and problem solving processes, and
 b. develop shared understanding that serves as the basis for agreements.

 Thus, negotiation becomes a means to facilitate relationships based on

dialogue and agreements based on understandings.

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Role of Communication in Negotiations

 Communication is at the core of any negotiation. It

emphasizes:
 Intentions of the negotiation process
 Importance of resolving differences
 Necessity of overcoming conflicting interests.

 Negotiation is a transactional form of communication in

which parties send and receive messages that trigger
mutual cycles of influence that affect future interaction.

Resistance in Negotiations

 When friendship, authority, reciprocity, or

requests fail to influence others to give us what
we want, negotiation becomes a more prominent
choice.

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Factors for Resistance in Negotiations

 Loss of Comfortable status quo

 Challenge to one’s sense of competence
 Threats to self-defining values
 Potential loss of security due to uncertain outcomes
 Negative consequence to allies

Contents of Negotiations

 Perceptions (attributions, assumptions, and bias with which we view problems)

 Information (the relevance, meaning, and importance we assign to facts or data)
 Issues (what we believe the problem to be)
 Relationship (the respect, communication, or power we want from the other party)
 Process (the way we resolve differences)
 Outcomes (the solutions we are willing to accept)

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Dimensions in Negotiations

 Economic Dimensions
 The economic dimension refers to the tangible outcomes of
negotiation- that is, substantive interests and goals achieved.
These goals are easily identified in business negotiations as
profits, favorable courses of action, long term business gains
etc.
 Social-Psychological Dimensions
 The social-psychological dimension involves issues such as
identity, interdependence, power, control, limitations, and
relationships etc.

Types of Approaches in Negotiations

 Distributive
 Negotiation in which strategic influence and guarding
information have priority over dialogue and relationship is
described as Distributive Negotiation. (Win-Lose Situation)
 Forcing, Positioning, and Manipulation describe Distributive
Negotiation.
 Integrative
 Negotiation based on co-creation of understanding about the
issue and integration of parties’ needs is described as
Integrative Negotiation. (Win-Win Situation)
 Listening, Understanding, and Sharing reasons describe
Integrative Negotiation.

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Characteristics of Distributive Negotiation

 Hidden Information
 Demand of interests
 Positional Discussion
 One-sided Goals
 Forcing
 Argument
 Sacrificing Relationship
 Hard on other Party

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Characteristics of Integrative Negotiation

 Sharing of Information
 Trade of Valued Interests
 Interest-based Discussion
 Mutual Goals
 Problem Solving
 Explanation
 Relationship Building
 Hard on Problem

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