Chapter 1

Negotiation
Framework
 Learning outcomes
By the end of this chapter, you should be
able to:
• Define what is meant by negotiation and apply that to
a number of different contexts
• Identify factors that can determine the outcome of a
negotiation
• Plan a strategy for successful negotiation
• Understand the principle of ‘win-win’ negotiations.
• Understand General principles of negotiation.
• Identify Characteristics of Negotiation.
 Chapter Outline
- Introduction.

1. Define Negotiation.
2. When shouldn't you negotiate?
3. The Characteristics of Negotiation.
4. General principles of negotiation.
5. Mediation and arbitration in negotiation.
6. Negotiation or Bargaining?.
7. Determinants of success in Negotiation.
What is negotiation?
The negotiation process includes
different forms of human behaviour,
the dialogue comes first, but it also
includes manifestations such as signals
or actions affecting the conduct of
negotiations, the equipment leading to
or accompanying the negotiating
session, or the effects that can be used
directly or indirectly.
What is negotiation?
Negotiation takes place when two
or more people, with differing
views, come together to attempt to
reach agreement on an issue. It is
persuasive communication or
bargaining.

“Negotiation is about getting the best

possible deal in the best possible way.”
 What is negotiation?
People negotiate practically every day
and all the time of their daily lives.

Kennedy and others define negotiation as

"that process of resolving the dispute
between two or more parties, through
which the parties (or all parties)
amend their requests, with a view to
reaching an acceptable settlement in
their respective interests
 What is negotiation?
People negotiate practically every day
and all the time of their daily lives.

Evans believes that there are in fact

many concepts of negotiation that
reflect the multiple views of the
practitioners of negotiation
What is negotiation?
Afifi's believe that negotiation is "a kind of
dialogue and exchange of proposals between two
or more parties with a view to reaching an
agreement that will lead to the resolution of a
contentious issue or issues between them or them,
while at the same time achieving or maintaining
their common interests."
Negotiation is based on the existence
of two main pillars between the
negotiating parties:
- Having one or more common interests.
- The existence of one or more contentious
cases.
• It is self-evident that unless there is
a contentious issue, there is nothing to
negotiate and if there is no common
interest, there is no incentive for
individuals to negotiate or continue.
Types of negotiation
• Distributive (win-lose)
• Integrative (win-win)
• Benefits of win-win
What have you negotiated?
• What have you successfully
negotiated ?

• What factors helped enable

your success?
Planning to negotiate
• Establish your objectives
• Establish other party’s objectives
• Frame negotiation as a joint search for a
solution
• Identify areas of agreement
• Trouble shoot disagreements: bargain &
seek alternative solutions, introduce
trade offs
• Agreement and close: summarise and
ensure acceptance
When shouldn't you negotiate?
• When you feel you're in a position
with him you can lose everything.
• When you feel like you've done
everything you can.
• When you feel that there are
immoral requests.
• when you have no interest in the
outcome that may be reached you
should not negotiate.
• When the other party acts
without sincerity or distrust of
you.
• When you feel that waiting or
delaying can improve your
situation.
• When you feel unprepared.
 Negotiation Skills

How to influence others

• The three ‘Ps’:
• Position (power?)
• Perspective (empathy)
• Problems (solutions)
The Characteristics of Negotiation
• Two or more parties are in the negotiating
position.
• There is a difference or conflict of interest
between two or more parties.
• Negotiation is a voluntary process.
• Negotiating parties prefer to seek an
agreement .
• Each party negotiates because it believes that
it can use some forms of influence on the
other party to obtain a better agreement than
it might voluntarily receive from the other
The Characteristics of Negotiation
• Negotiation is aimed at resolving the dispute,
resolving differences.
• Negotiation is an ongoing process and not an
emergency event.
• Negotiation is an integrated process and not
fragmented activities .
• Negotiation is a complex probability process
and is influenced by the structure of social
relations.
• Negotiation is a complex psychological
process .
General principles of negotiation
General principles of negotiation
• Principle of self-capacity.
• Principle of benefit.
• The principle of commitment.
• Principle of mutual relations.
• The principle of negotiating
ethics.
Mediation and arbitration in
negotiation
 Mediation and arbitration in
negotiation
The arbitrator (a particular
individual or entity) requires:
- To be known to the opposing parties.
- To have a high degree of trust and
credibility on the part of all parties.
- Approval of the disputed parties.
 Mediation and arbitration in negotiation

The arbitrator (a particular

individual or entity) requires:
- Its provisions are obeyed and complied with by all
parties.
- Arbitration based on objective information.
- The right to all kinds of data necessary for the
arbitration process and from the parties in dispute
themselves.
Negotiation or Bargaining?
 Negotiation or Bargaining?
- Bargaining is a winner/loser, and
negotiation is a winner/winner.
- Bargaining involves conflicting concerns,
while negotiation involves public and
common concerns.
- Bargaining is a competitive process, while
negotiation is a cooperative process.
 Negotiation or Bargaining?
- Bargaining is based on power, while negotiation is
based on trust and information.
- Impulsiveness or irrationality and emotions often
help bargaining succeed, while casual factors are
factors in negotiation.
- Distorted and confused communications can help
achieve bargaining but prevent the solution of
common negotiating problems.
 Determinants of success in
Negotiation

- Exchange of benefits.
- Initiative
- Respect (R.E.S.P.E.C.T)
Respect (R.E.S.P.E.C.T)
- Responsiveness .
- Emotional (Empathy) Participation.
- Service.
- Perspectives Intellectual Vision.
- Self-Esteem.
- Courage . -Truth-Telling
Professor Dr. Siddiq Afifi points out
that success in negotiating depends on
the following limitations:
- Good preparation for negotiation.
- Strategy used and accompanying
tactics.
- Smart use of timing.
- Employing questions to serve effective negotiation.
- Consultation, mediation and arbitration.
- Relations between the negotiating parties.
- Take care of the formulation of conclusions and
contracts.
- Adherence to the principles of effective negotiation
and achieving its conditions.
- Relative strength centers and their employment to
serve the completion of negotiations.
Tips
• Aim high to begin with – easier to lose ground
than gain
• Give concessions ‘reluctantly’
• Break down complex deals
• Language:
• Make proposals with open questions such as:
• “what would happen if we…?”
• “suppose we were to…”
• “what would be the result of?”
• Dealing with stone-walls: “what would need to happen
for you to be willing to negotiate over this?”
• Always get agreement in writing