Definition of Negotiation

Negotiation is a dispute resolution

approach where two or more parties,
who have disagreeing positions, values,
and interests, and competing needs and
goals, attempt to jointly search for
mutually acceptable solutions to their
common problems.

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 Positional Bargaining Approach
Positional bargaining revolves around
POSITIONS (i.e. demands and proposals),
whereas interest-based negotiation revolves
around the REASONS (i.e. interests) behind
the positions.
Two Types:
Hard Positional Bargaining; and
Soft Positional Bargaining.

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 Soft Positional

How the Friends or important people to

Other Side is be pleased
Regarded

Goal of Any agreement that will not

Negotiation adversely affect relationship with
the other party.

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 Soft Positional

Negotiation Be soft on the people and the

Posture problem
Be willing to accept one-sided
losses to reach agreement
Search for an answer that the
other side will accept.

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 Hard Positional

How the Other Adversaries

Side is
Regarded

Goal Victory = Defeat of the Other

Party

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 Hard Positional
Be hard on the problem and the
Negotiation people:
Posture Insist on own position
Apply pressures and make
threats
Search for the answer that YOU
will accept (without
consideration of the other
party)
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 Interest-based Negotiation

How the A co-stakeholder

Other Side is A co-problem solver
Regarded

Goal A wise outcome reached

efficiently and amicably.

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Key Principles & Elements of
Interest-Based Negotiation

• Make a sound diagnosis of the conflict: Identify

People Problem(s) and Substantive Problem(s).
• Focus on interests, rather than on positions.
• Invent Options for Mutual Gains.
• Use Objective Criteria in choosing the best option.
• Develop your BATNA, and know & prepare for
their BATNA.

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 1. Make a SOUND DIAGNOSIS of
the CONFLICT

• Identify the different parties/stakeholders to the conflict;

• Define the different sources of the conflict.
• Identify people problem(s) and substantive problem(s)
> People problem refers to problems related to:
perceptions, emotions & communications.
> Substantive problem refers to issues which the parties
want to resolve through negotiation.
> Identifying people problem(s) and substantive problem(s)
is a way of diagnosing conflicts.

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 1. Make a SOUND DIAGNOSIS of
the CONFLICT

• Analyze the power relations of the parties.

• Assess the present state of the conflict,
and if the parties are equally motivated
and ready to confront and resolve it; and
• Assess if the present structure encourages
a side-by-side process of solving the
problem.

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 Importance of sound diagnosis
of conflict
• Recognizing and acknowledging people problems
helps establish a positive negotiation climate.
This leads to a more focused discussion of
substantive problems.
• Helps in identifying the most appropriate
response to the conflict.
• Helps in the formulation of a more
comprehensive solution to the dispute.
• Facilitates the smoother resolution/ management
of conflicts.

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 2. Focus on INTERESTS, rather than
on POSITIONS
• Positions are one’s proposed
actions or solutions to the
problem.

• Interests are the

reasons behind
one’s positions.

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 Exercise: Identify INTERESTS and
POSITIONS, and assess the need to
focus on interests rather than on
positions.
You have to ban
We cannot commercial fishing in
ban commercial the municipal waters
fishing in the municipal because they affect our
waters because they fish catch and destroy
help us raise our our coral reefs.
municipal revenues

Vice-Mayor Small Fishers’

Association
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Why Focus on INTERESTS, rather than on
POSITIONS, and How?
• If interests are common or compatible,
the potentials of negotiation can be
exhausted.
• In finding and addressing common or
compatible interests, we make the
negotiation a side-by-side problem
solving process.
• Discover, communicate and analyse
interests. Ask why or why not.
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 3. Invent Options for Mutual Gains
Options 1, 2, • Options are our alternative
3, 4, 5
proposals if the positions
are in total conflict

• Options seek to satisfy

common or compatible
interests.

• Done in a brainstorming
manner. No outright
rejection of proposals.

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 Importance of Inventing Options for
Mutual Gains
• Allows the negotiators to creatively think of
other possible actions or solutions to their
problems.

• Enables the negotiators to find elegant

solutions to the problem.

• Is a way of finding mutually acceptable and

gainful solutions in an efficient manner.

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4. Use Objective Criteria in Choosing
the Best Option
• Objective criteria refers to
• Laws the negotiators’ standard
for selecting best option.
• EIA, ECCs

• Scientific • Possible basis: cost

Studies effectiveness, market,
efficiency, experts’
advise, tradition, etc.

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 Importance of the Use of
Objective Criteria
• Leads the negotiators to make decisions based on
merits and not on pressures.

• Nobody feels taken because the decision is based

on a mutually acceptable standard for best option.

• Gives the negotiators a common framework for

evaluating the generated options.

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 5. Develop your BATNA, and Know
and Prepare for their BATNA
• BATNA means Best I would rather do
my BATNA than
Alternative to a give in
Negotiated Agreement

• It refers to alternative
course(s) of action if
the negotiation fails.

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 Three Types of BATNA
1. Walk-away alternative: When one chooses to
resolve a problem without the other party’s
involvement.
2. Interactive alternative: When one party exerts
pressure on the other party/ies for the
recognition of their value in the resolution of
the conflict. (i.e. boycott, strike, rally, etc.)

3. Third Party alternative: When one seeks for the

intervention of a third party to resolve the
conflict (i.e. court, mediator, arbitrator)

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 The Values of BATNA
• Addresses power imbalance;
• Can change the rules of the game from hard
negotiation to interest-based negotiation
• Brings the hard negotiators to their senses.
• Shows the consequences of a no agreement

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