NEGOTIATION

NEGOTIATION

A negotiation is a strategic discussion that involves two

or more parties that resolves an issue in a way that
each party finds acceptable.
 BARGAINING
Bargaining is a process of reaching a mutually
acceptable solution among all parties to the conflict at
the end of the negotiation process.
 Types of Bargaining
Strategies in Negotiation

1. Distributive Bargaining

2.Integrative Bargaining
 Distributive Bargaining
Strategy
Distributive bargaining is defined as negotiations that seek to
divide up a fixed amount of resources, a win-lose situation.

The core of distributive bargaining is that each party has a

target point and a resistance point. The target point is what the
parties would like to achieve most.
 Integrative Bargaining
Strategy
The negotiation that seeks one or more settlements than
create a win-win situation is called Integrative Bargaining
Strategy.
It bonds negotiators and allows each to leave the bargaining
table feeling that he/she has achieved a victory. Distributive
bargaining, however, leaves one party a loser.
Need for Proper Negotiation and
Bargaining Strategies
Negotiation definedasa process that occurs when two or more
parties decide how to allocate scarce resources.

The terms ‘negotiation’ and ‘bargaining’ are interchangeable

and used in the same wave. Negotiation permeates the
interactions of almost everyone in groups and organizations.
 Stages of the
Negotiation Process
• Preparation and planning
• Definition of ground rules
• Clarification and Justification
• Barging and Problem solving
• Closure and Implementation
Issues in negotiation.
 Personality Traits in Negotiation
Can you predict an opponent’s negotiating tactics if you
know something about his or her personality? Because
personality and negotiation outcomes are related but
only weakly, the answer is, at best, “sort of.”
Negotiators who are agreeable or extraverted are
not very successful in distributive bargaining.
 Moods/Emotions in Negotiation
Do moods and emotions influence negotiation? They
do, but the way they do appears to depend on the type
of negotiation. In distributive negotiations, it appears that
negotiators in a position of power or equal status who
show anger negotiate better outcomes because their
anger induces concessions from their opponents.
 Cultural Differences
Italians, Germans, and French don’t “soften up” a party in
the negotiation with praise, and hearing another party do
this seems manipulative to them.

The French enjoy conflict, so they tend to be longer in the

negotiation process and aren’t terribly concerned with
whether the other party likes them.
 Gender

Men and women don’t necessarily negotiate differently;

studies show that men negotiate slightly better
outcomes than women do in the same situations, but the
difference is often nominal.
Third-Party Negotiations
A mediator is a neutral third party who facilitates a
negotiated solution by using reasoning and persuasion,
suggesting alternatives, and the like. Mediators are widely
used in labor–management negotiations and in civil court
disputes. Their overall effectiveness is fairly impressive.
An arbitrator is a third party with the authority to dictate
an agreement. Arbitration can be voluntary (requested by
the parties) or compulsory (forced on the parties by law or
contract).
 A conciliator is a trusted third party who provides an
informal communication link between the negotiator and
the opponent. This role was made famous by Robert
Duval in the first Godfather film.