niedziela, 23 października 2022

Negotiations

Negotiation is a process by which two or more people (or groups) resolve an issue
or arrive at a better outcome through compromise. Negotiation is a way to avoid
arguing and come to an agreement with which both parties feel satis ed.

————————————————————————————————————

As mentioned, everyone negotiates something every day.  As a result, people

develop di erent negotiation styles [i].  Individuals tend to rely on a preferred
negotiation style because it has worked in the past or because of each person’s
temperament.  People often use the same negotiation style to resolve con ict
instead of adjusting the style to t the speci c situation.  Always relying on the same
style of negotiation can result in an unsuccessful outcome.

In the game of negotiation, you should always think about using various negotiation
styles to t each situation.  There are many di erent ways to negotiate and I will tell
you something about them

Competition (win-lose):

A competitive negotiation style is a classic model of “I win, you lose.”  This style of
negotiation considers winning at all costs even at the expense of the other party. 
Competitive negotiators use hardball tactics to achieve their needs without regard
for the other party’s needs.  A competitive negotiation style is bene cial when the
outcome is important, and the relationship is not.  This style might be useful when
the goals of the party are short-term and incompatible.  The tangible bene ts are
the most important.  The competition style can be an e ective counterbalance when
you expect the other party to be competitive.

The competition negotiation style is, however, very risky.  It can be costly and time-
consuming and often lead to a deadlock.  This style is often used by inexperienced
negotiators who either believe it is the only viable style or who have had success
with its use in the past.

Problem Solvers (win-win):

In contrast to the competitive style, a collaborative negotiation style seeks an “I win,

you win” outcome.  This win-win model focuses on making sure all parties have
their needs met.  With this style, both relationship and outcome are important.  The

1
fi
ff
fi
fi
ff
ff
fi
fi
fl
fi
 purpose is to maximize the outcome and preserve the relationship.  A collaborative
style is appropriate in situations where developing and maintaining a relationship is
important, where both parties are willing to understand the other party’s needs and
objectives, and when nding a long-lasting and creative solution is desired.

A collaborative negotiation style is often the most di cult to employ because it

requires an investment in time and energy in nding innovative solutions.  It is
successful in situations where the party’s goals are compatible such as within an
organizational or family unit.

Compromise (split the di erence):

Unlike the collaborative style, the compromising negotiation style follows an “I win/
lose some, you win/lose some” model.  Compromising is the style most people
think of as negotiation, but it is only bargaining.  Compromisers use this style
instead of nding a solution that fully bene ts everyone.

Often described as splitting the di erence, a compromising style results in an

agreement about halfway between both parties’ opening positions.  Compromising
is an adequate style in many circumstances.  Compromising shows some concern
for the relationship and does achieve gains on the outcome dimension.  It may
result in satisfying some of each party’s needs, but it does not maximize the
situation as collaboration can.  However, it can often bring about an unsatisfactory
feeling that you gave too much and didn’t get enough in return.  Thus, this style is
best used in circumstances where factors, such as time, prevent the players from
achieving a true collaboration but still wish to achieve positive outcomes and
relationships.

Accommodation (lose-win):

This style can be described as the “I lose, you win” model and is the direct opposite
of the competitive style.  For accommodating negotiators, the relationship means
everything and the outcome is not important.  The accommodating style might be
used in situations where one party has caused harm to another party and needs to
repair the relationship.  Additionally, this style might be preferred to increase support
and assistance from the other party, and hope they will be accommodating in the
future.

Accommodation is sometimes the best style to employ because it serves to

strengthen personal factors.  It can build trust, show respect, and enhance
relationships.  The major drawback, however, is that it may appear to be
condescending toward the other party or cause the other party to feel
uncomfortable because of an easy win.

Con ict Avoiders (lose-lose):

2
fl
fi
fi
ff
ff
fi
fi
ffi
This style is the “I lose, you lose” model.  This style is used when both the outcome
and relationship are not important.  Negotiations can be costly in terms of time and
energy.  Do the costs of negotiation outweigh the likely outcome and relationship
returns?  If not, it may be preferable not to negotiate at all. This strategy is
implemented by withdrawing from active negotiations or by avoiding the
negotiations entirely. An avoidance style is used infrequently in negotiating and is
often used when the negotiation concerns a matter that is trivial to both parties.

The following graph illustrates the importance of relationship and outcome, with
high and low priorities represented for each.  The vertical axis represents the degree
of concern for the relationship and the horizontal axis represents the degree of
concern for the outcome.

Experienced negotiators know how and when to use various negotiation styles. 
How do you know the circumstances under which to select a speci c style?  To
choose the right style you need to consider two important factors:

1. The outcome – what you might lose.

2. The relationship – how the negotiation will a ect your relationship with the
other party.

Every time you are set to begin a negotiation, these are the two critical factors to
consider in selecting your style.  How important is the outcome to be gained by the
negotiation?  How important is the past, present, and future relationship with the
other party?  With this model in mind, we can examine the characteristics,
strengths, and weaknesses of the ve styles of negotiation

————————————————————————————

While there are many approaches to negotiation tactics, there are ve common
steps that most e ective negotiations follow to achieve a successful outcome:

• 1. Prepare: Negotiation preparation is easy to ignore, but it’s a vital rst

stage of the negotiating process. To prepare, research both sides of the
discussion, identify any possible trade-o s, and determine your most-desired
and least-desired possible outcomes. Then, make a list of what concessions
you’re willing to put on the bargaining table, understand who in your
organization has the decision-making power, know the relationship that you
want to build or maintain with the other party, and prepare your BATNA (“best
alternative to a negotiated agreement”). Preparation can also include the

3
ff
fi
ff
ff
fi
fi
fi
 de nition of the ground rules: determining where, when, with whom, and under
what time constraints the negotiations will take place.

• 2. Exchange information: This is the part of the negotiation when both

parties exchange their initial positions. Each side should be allowed to share
their underlying interests and concerns uninterrupted, including what they aim
to receive at the end of the negotiation and why they feel the way they do.

• 3. Clarify: During the clari cation step, both sides continue the discussion
that they began when exchanging information by justifying and bolstering their
claims. If one side disagrees with something the other side is saying, they
should discuss that disagreement in calm terms to reach a point of
understanding.

• 4. Bargain and problem-solve: This step is the meat of the process of

negotiation, during which both sides begin a give-and-take. After the initial rst
o er, each negotiating party should propose di erent counter-o ers for the
problem, all the while making and managing their concessions. During the
bargaining process, keep your emotions in check; the best negotiators use
strong verbal communication skills (active listening and calm feedback; in face-
to-face negotiation, this also includes body language). The goal of this step is
to emerge with a win-win outcome—a positive course of action.

• 5. Conclude and implement: Once an acceptable solution has been agreed

upon, both sides should thank each other for the discussion, no matter the
outcome of the negotiation; successful negotiations are all about creating and
maintaining good long-term relationships. Then they should outline the
expectations of each party and ensure that the compromise will be
implemented e ectively. This step often includes a written contract and a
follow-up to con rm the implementation is going smoothly.

• ——————————————————————————————————

4
ff
fi
ff
fi
fi
ff
ff
fi