Introduction

Negotiation is a method by which people resolve differences. It is said to be a

process by which a compromise is reached, avoiding arguments and
controversies. However, the principle of fairness, mutual benefit and
maintaining relationships is the key to success.
Negotiation is said to be a non-binding process in which the discussions
between the parties are reached without any intervention of the third party.
So, negotiation is a process of managing relationships. It is a basic human
activity that exists between social animals. As social animals, we negotiate and
hence it is an important part of our day to day lives.
Negotiation is not confined to formal settings rather, it is an integral part of our
daily interactions
Essentials of negotiation

1. It is a communication process
2. It resolves conflicts
3. It is a voluntary exercise
4. Parties retain control over the outcome and the procedure
5. It is said to be a non-binding process
6. There is a possibility of achieving the wide-ranging solutions, and
maximising joint gains beneficial to the parties.
7. No third party

Types of negotiation

A. Distributive negotiation

Distribution negotiations, sometimes called situational or hard bargaining,

attempts to distribute the “fixed pie” of some benefits. Distributive negotiations
are the negotiations that are going on under zero-sum terms this means that any
profit made by one party is at expense of the other. Due to this reason,
distributive interactions are sometimes called win-lose because it is believed
that one person’s gain is the other person’s loss.

In distributive negotiations, the primary objective is to secure the largest

possible share, which leads the parties to adopt more competitive and
adversarial positions against each other.
B. Integrative negotiation

Integrated negotiation is also called interest-based or principled negotiation. It is

called a set of techniques that attempt to improve the quality and the probability
of interaction by taking the advantage of fact that different parties often value
different outcomes differently. By creating or redefining conflict issues in such
a way that both sides benefit (“win-win” negotiations).
Instead of viewing the negotiation table as a battlefield for dividing a fixed pie,
integrative bargaining seeks to enlarge the pie, creating opportunities for all
parties to achieve their objectives and mutual gains.

C. Team negotiation

Team negotiation involves negotiations between two or more teams, often

representing distinct interests, seeking to collaboratively address complex
issues. It’s like a chess match where teams from different organizations or
stakeholders come together to find common ground, share information, and
jointly craft innovative solutions.

D. Multiparty negotiation

Multiparty negotiation is a complex interplay among multiple parties, each

pursuing their unique interests and objectives. These negotiations often involve
each party advocating for its share. It involves resolving a complex business
dispute involving multiple companies or addressing community concerns in an
environmental dispute.

Development
The development of negotiation within Alternative Dispute Resolution has been
a pivotal and dynamic process, influenced by legal precedents and changing
societal needs.
One notable legislative development is the enactment of the Arbitration and
Conciliation Act, 1996, which provided a comprehensive framework for the
resolution of disputes through negotiation and other ADR mechanisms. This
statute aligns with international standards and promotes the use of negotiation
and conciliation to settle disputes in India.
Another notable development is the increasing recognition of negotiation in
various legal systems and international treaties. For instance, the United Nations
Commission on International Trade Law (UNCITRAL) has established model
laws and rules promoting the use of negotiation in resolving cross-border
disputes.
Indian courts have played a pivotal role in shaping the development of
negotiation in ADR. Judicial decisions have emphasized the importance of
negotiation and other methods for dispute resolution. The Supreme Court of
India’s landmark judgment in the case of Afcons Infrastructure Ltd. v. Cherian
Varkey Construction Co. (P) Ltd. (2010), focuses on significance of mediation
in ADR and encouraged parties to engage in good faith negotiations with the
assistance of a mediation. Furthermore, the Indian legal system has witnessed
the growth of negotiation in resolving a wide range of disputes, including
commercial, family, and labour matters.
India has seen the emergence of various ADR institutions, such as the Indian
Council of Arbitration (ICA), the Indian Institute of Arbitration and Mediation
(IIAM). These institutions provide infrastructure and support for effective
negotiation processes. India is positioning itself as a preferred destination for
international arbitration, hosting institutions like the Mumbai Centre for
International Arbitration (MCIA) and the Singapore International Arbitration
Centre (SIAC), which further emphasize the importance of negotiation and
ADR.
Phases

1. Preparation: Before any interaction decide the meeting’s location,

timing, and participants. Set a time frame to prevent prolonged
disagreements. Gather all relevant facts to clarify the issue, including
organizational rules and policies that may guide the negotiation.
2. Discussion: In this phase, each party presents its perspective on the issue.
Effective communication skills like questioning, listening, and clarifying
is essential. Taking notes can help record crucial points for further clarity.
Listening is crucial to avoid misunderstandings.
3. Clarifying Goals: Through discussion, clarify the goals, interests, and
priorities of both sides. Identifying common ground often emerges during
this process, helping align objectives and reduce misunderstandings.
4. Negotiating a Win-Win Outcome: Strive for a “win-win” outcome where
both parties feel their concerns are addressed positively. A win-win result
is usually said to be the best result. Although not always possible, it
should be the goal.
5. Agreement: Once both parties’ views and interests are considered, reach
an agreement. Ensure that everyone involved should fully understands the
terms of the agreement.
 6. Implementation: After reaching an agreement, implement the course of
action to carry out the decision. Open-mindedness is crucial to achieving
an acceptable solution.

Who is a negotiator

A negotiator is someone who either gets to an agreement with someone or

assists others in reaching an accord. When two people cannot agree, it is time to
bring in a mediator. In other words, a person who is involved in formal
discussions in order to try to reach an agreement.
When two businesses merge, they can use the assistance of a negotiator to set
out the terms of the deal. When a married couple divorces, attorneys or
mediators act as negotiators, ensuring that the deal works for all parties.
Qualities of a Negotiator
A negotiator must have high level of qualities in order to be effective and
efficient in his work. A good skilful and efficient negotiator can negotiate better
but without the ability to reach a mutually decision will be challenging. Each
party should try to negotiate the best deal feasible.
We will now discuss the qualities of a negotiator and they are as follows –

 Efficient speaking –
Clear understanding of facts and stating personal views as well as stating the
wants and the necessary terms in front of party is a prime quality that a
negotiator must possess. There should be effective, fluent and understandable
communication.

 Efficient listening –
Effective listening help in better communication and negotiation in the best
possible way. Being attentive and noting parties point and listening to the party
to know what they want is of extreme importance. It is further importance in
order to avoid misunderstanding between the parties.

 Positive attitude –
Positive attitude is the attitude to deal and to do everything possible to negotiate
and get the deal in favour. It makes the view that the individual is interested in
the deal and will work efficiently.

 Respect for other parties –

One must show respect for the opposing side while also keeping in view that
they are in the business of making a profit and will only bargain when they
stand to gain something. A negotiator must be ethical and respectful in his
work.

 Sense of humour –
It’s important for the negotiator to possess traits of humour so that both parties
are comfortable with one another, when things deviate in the wrong direction,
the negotiator must inject his sense of humour and think from both parties’
perspective.

 Effective Planning and Knowledge of the fact –

These two factors are pivotal because they enable the moderator to make
informed opinions and make offers of mutual gain in a given situation.

 Tolerance –
Every aspect should be precisely examined with great care, and one needs to
give the other party time to make a decision as we want to seize the deal and
also desire deals in the future. It’s also important to make a common
understanding so that no party loses out.
Stages of Negotiation Process

 Preparation –

Know as much as you can know about the opposing party and their most likely
point of view can also be considered. Also, gather any other information that
can support your case.

 Discussion –

Discussion is another important process which helps in understanding the

parties. It is an exchange of ideas between the parties so they may decide
whether they’re interested in the agreement or not, it also saves time. The
moderator should speak with confidence.

 Exchange of knowledge –

Preparation and having knowledge of the case is extremely important. At this

point, each side will lay out their first opinion on what they want and what
they’re set to offer in exchange. This process depends on your capability to
express yourself easily. One must have a clearer understanding of their position
and possible areas of mutual gain.

 Logrolling –

The parties express their positions on all issues up front, and the deal is also
finalised by saying what was and wasn’t negotiable. Avoiding being dismissive
or argumentative are pivotal factors of this step. A cordial relationship is more
likely to be successful than an aggressive bone in accommodations because
successful accommodations number some give and take on both sides. It’s
important to keep in mind that a concession may take some time, so avoid
rushing it or letting yourself get pressured.

 Achieving or closing a Deal –

It’s time to wrap up the addresses after everyone is happy with the outgrowth. A
formal contract or a verbal agreement could be used as the ensuing stage.