Negotiation
Negotiation
Negotiation
Negotiation
Negotiation is a process in which the common and conflicting interests come to reaching an agreement. Negotiation can be either collective or individual: It is the very essence of any industrial Relations system based on collective bargaining. Negotiation is concerned with:
Purposeful persuasion Constructive compromise
It is relatively unstructured with no chairperson There are no firm rules of procedures There is no common agenda: each party pursues its own interest It involves talking, listening and observing The aim is to reach an agreement acceptable to both parties The process belongs to the parties concerned: no third party unless there is a deadlock Negotiation doesnt result in agreement: the parties may simple agree to disagree
Negotiation Outcomes
Win-Lose
One party achieves all or most of what it sets to do. The
other party achieves nothing or very little
Lose-Win
One party achieves nothing or very little.
Lose-lose
The parties fail to reach agreement
Win-Win
Both parties achieve some but not all of their opening positions.
When to negotiate?
Let us never negotiate out of Fear , but let us never fear to negotiateJohn F Kennedy
When to negotiate?
When to negotiate?
Dont negotiate if:
You have no bargaining power You have nothing to bargain with Broader objectives may be prejudiced You are not prepared You dont know exactly what you want
Structure of Negotiation
A. Preparation
This involves setting objectives and priorities, collecting information and adopting strategies
B. Discussion
This signals the commencement of actual negotiation
C. Bargaining
This involves making proposals, offering concessions and moving towards agreement
A. Preparation
To fail to plan is plan to fail
The Purpose of preparation is to develop a case that is well researched, follows a plan and identifies consequences Successful negotiation doesnt come out of magicians hat, but needs careful preparation
Preparation
To fail to plan is plan to fail
1. 2. 3.
Preparation involves :
Collecting information Setting objectives Establishing priorities Assessing the other party and its case Developing a negotiation strategy Knowing policy constraints and mandate limitations Considering the consequences of failure
4.
5. 6. 7.
Preparation
Collecting Information; This entails collecting facts
concerning
the agreed procedures for settling disputes the validity of a claim under law the cost implications of concessions the spillover effects of concessions the previous outcomes of such types of claim the external competitive situations the indicators of inflation,productivity,industry growth and enterprise profitability *make sure that you have enough evidence to support the facts
Preparation
Setting Objectives
This involves:
Knowing why you want to negotiate and what the negotiation is about Distinguishing between objectives Each party considering three positions, namely: The Ideal position The resistance position The target position ******Negotiators try to push the other party as close as
possible to that partys resistance point
Preparation
Establishing Priorities
This involves deciding on
Which objectives are most important and must be achieved The issues of lesser importance on which concessions
might be made
*********Establishing priorities involves distinguishing between what must and what might be achieved
Preparation
Preparation
Preparation
Preparation
Developing a Negotiation Strategy
deciding on who should be involved and the division of responsibilities among team members selecting the team members for negotiation identifying the elements in each partys position where concessions may be possible deciding on where negotiation should take place allocating sufficient time for the negotiation
Preparation
situation is being understood Knowing when the negotiation will have to be adjourned to allow consultations with superiors and constituents understanding that few negotiators have unlimited authority
Preparation
B. Discussion
******During discussion stage, no offers are made and no trade-offs take place.
Discussion
Communicating:
Talking
Not speak too quickly be aware of your body language Concentrate on communicating meaning, not just words Communicate in an open and clear way; don't leave room
Discussion
Communicating:
Listeningconcentrate on what is being said listen attentively and actively keep listening, notwithstanding repetitive, irrelevant and long winded declarations assess what you hear repeat to yourself the main substance of what you hear be sensitive to non verbal body language make notes, if necessary not show irritation, boredom or interrupt be attentive to hidden meanings of the messages
Discussion
Questioning:
Asking questions has several functionsto obtain information to challenge statements and assertions to check if you understand everything properly to show interest in what someone is saying Closed questions Open questions
Discussion
Signaling :
and body language. Signals can indicate the style of negotiation(competitive/cooperative),what the need are, degrees of commitment to the case as well as areas for further exploration
Clear and unambiguous communication is an important part of giving signals if you want them to be understood.
Discussion
Presenting arguments :
make only a few points at a time start with your strongest, best supported arguments build of your arguments in a logical and careful way dont start by saying you disagree restate the other partys case to show that you have understood. ask for justification of the other partys case(why or why not) dont interrupt an argument of other party
C. Bargaining
Discussion of the problem can not continue indefinitely. A stage comes where discussion gives way to actually making proposals and counter proposals. During this stage, one need to be: prepared to make concessions in return for some of the things you want prepared to move from a set position ready to package and repack proposals prepared to relate concessions to different timeframes
******** Making compromises is not a sign of weakness; it is commitment to the negotiation process.
Bargaining
Making proposals
make specific proposals; don't just complain or say you can not agree making proposals forces the other party to concentrate on your case aim high with your proposals, but be aware that unrealistic ones can lead to a breakdown of the negotiation be specific in stating the conditions under which you could accept a proposal or make a concession try to be creative in the proposals/counter proposals
Bargaining
Making concessions:
concessions should always be traded try to trade your concessions for something not less than something of equal value initial concessions may be relatively smaller making the first concessions shouldnt be seen as weakness set a deadline for responding to offers of concession dont be too quick to accept concessions to avoid giving an impressions that the other party has offered too much when making concessions, don't lose sight of the main subject of the negotiation.
In this stage, the parties actively seek to reach an agreement acceptable to both. It represents a search for Win-Win outcome.
be very clear on what, in fact has been agreed ask questions to be sure that you are talking about the same thing define the scope of agreement write down the contents and conditions of agreement be sure that it is clear and unambiguous
ensure that what is agreed relates to specific timeframe agree on the consequences in case either of the parties doesnt comply with the agreement provide the dispute settlement procedures ensure that an agreement for an indefinite period sets out how its provisions may be varied in future follow up the negotiation agreement, once signed, to ensure its implementation.
*****In the closing phase of negotiation, the situation changes from us and them to we.
Deadlock
A deadlock is not a lose-lose situation. It occurs when both parties are reluctant to move towards each other beyond a certain point. In a deadlocked situation, the end result of the negotiation is intentionally held in suspense. Before obtaining the help of an independent and impartial third party(conciliator or arbitrator),you might consider the following to end the deadlock:
try to understand why the other party says no seek new issues on which to make concessions try to agree to put a specific matter aside for the time being to enable negotiations on other issues continue If convinient,a concession already agreed on may be offered as a trade off.
Deadlock
Consider the possibility of trading off a group of small concessions for one major, more important one
Where there may still be a possibility for further negotiation:
dont escalate the scope of activity that might be under dispute dont go back over old disputes dont publicize your position to a third party to secure support
A. Cooperative negotiation
create an atmosphere of mutual respect and trust make it clear from the beginning that you want a win- win situation start with identifying problems before indicating solutions begin with issues on which an agreement can easily be reached if possible, make several small concessions avoid defensive language and postures. be flexible
B. Competitive negotiation:
Competitive negotiation is acceptable in very few circumstances and is possible only if you have a very strong position. you should be aware of the long term consequences this may have. you may have to adopt this style if it becomes very clear that the other party doesnt want a cooperative negotiation.
state from the beginning your commitment to your set position indicate the consequences if you dont get what you want provide for some concessions which are not important to you, but which will prevent the other party from completely losing face.
*****positional bargaining leads to negative relations between the parties and results in deadlock rather than agreement.
Bad timing of public statements can seriously deteriorate relations with colleagues/grassroots supporters, making all further negotiations more difficult.
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