Negotiation

Planning Negotiating Purpose Foundations of Negotiating Negotiating Elements Tasks of the Negotiator Five things that make a Good Negotiator Understanding Negotiating Facts Pre Negotiating Procedure The Negotiating Process Conflict Management in the Negotiating Process Successful Negotiating Checklist Six different Sources or Bases of Power [advantages and disadvantages] Three stages of every Negotiation Five Characteristics of a Successful Negotiation

Negotiation
Planning
Is the most important element of negotiation in a dispute resolution process It assists you, the negotiator, to understand: The nature of the present conflict situation. More clearly the goals and objectives to achieve. The opponent and how their personality, history and negotiating style may impact on your own strategy. The key issues at stake. Which of the key issues are important, able to be achieved and what may be the minimum acceptable area. More greatly appreciate the fundamental predictability of the negotiation process. To a greater degree your opponents objectives and needs

Negotiating Purpose
Negotiating is a process of offer and counter offer, of concession and compromise by which both parties reach an agreed position and outcomes. The purpose or role of the negotiator is to persuade an opponent and at the same time find a solution to the problem that is satisfactory to both parties.

Foundations of Negotiating
Never narrow negotiations down to just one issue Different people want different things Price is not always all-important

Negotiating Elements
That by direct discussion with the other party, a resolution to a problem is possible That there is a lot of uncertainty at the start of the negotiation process about the exact nature of the outcome Planning is the most important element in negotiation That there is a commitment by both parties, to the process as a means of resolving the problem That both parties will determine how to resolve any settlement terms Negotiation is partly about winning and getting a satisfactory outcome that can be honored

Tasks of the Negotiator

Find acceptable solutions to both parties To keep negotiation communications and feedback up to date and accurate To ensure that the agreed solutions are implemented

Five things that make a good Negotiator

1. 2. 3. 4. 5. Knowing that both sides are under pressure so you do not feel intimidated Wanting to learn negotiating skills Understanding negotiating skills Be willing to practice Wanting to create win/win situations

Understanding Negotiation Facts

You are negotiating all the time Everything you want is owned or controlled by someone else In the negotiating process there are predictable responses you can count on There are three critical factors in every negotiation, being Power, Information, and Time The proper mesh of personality types is important to negotiating success

Pre Negotiating Procedure

A Pre Negotiating Procedure aims to establish confidence and possibly supremacy over the other party in the dispute and take the following form: Setting the agenda Establishing the bargaining range Concession trading Pre negotiation threats and ultimatums

The Negotiating Process

The Negotiating Process generally takes the form of: Each party presenting its own position Each party analysing and evaluating the others position Each party adjusting its own position The above steps being repeated until agreement is reached

Conflict Management in the Negotiating Process

Major types of conflict reduction strategies include: Reducing tension and hostility Controlling the number and size of issues at stake Enhancing communication and feedback Establishing common ground for agreement Enhancing the desirability of the options and alternatives provided

Successful Negotiating Checklist

Learn your opponents needs Learn your opponents objectives Plan your negotiations Have a clear pre-established deadline or resistance point beyond which you will not go Know what time deadlines/pressures can do: Lead to soften demands Increase the pressure to reach agreement Both of the above are less likely to be seen as weaknesses under time pressure The frequency of concessions is likely to rise quicker as deadline approaches Deadlines is frequently negotiable If there are no deadlines, they may be created to move the negotiations on When both sides do not share the same deadline; the party without the deadline has more power

Treat last minute concessions or add-ons by your opponent as an opportunity for you to reopen and re-examine all the other issues Use a site location and the physical space to your advantage Know about and how to use the six different sources or bases of power, their advantages and disadvantages

Six different Sources or Bases of Power, [advantages and disadvantages]

Type of Power 1. Reward Advantages Direct control over behaviour Rapid action Disadvantages Rewards may loose potency May be seen as illegitimate Potential for retaliation Coercion may loose potency as fear decreases May loose impact if legitimacy is questioned To be more effective may require additional power sources

2. Coercive

Direct control over opponents behaviour Compliance increases

3. Legitimate/title

Power based on office position and not the person Has a high impact if opponent recognises and acknowledges the office holder No outlay of resources needed Quick Tied to facts Builds a commitment to holders ideas No outlay of resources needed Creates a positive climate Quick Creates a positive disposition in opponent Based on facts Based on information No outlaying of resources

4. Expert

Likely to fail if outside area of expertise May be seen as illegitimate Must work to maintain expertise Likely to fail if outside area or scope of identification with power holder Likely to fail if seen as illegitimate May lead to rejection Time consuming Need opponent to be receptive

5. Referent

6. Informational

Note there can also be Punish power and Charismatic power in some cases.

Three Stages of Every Negotiation

Learning your opponents stated goals and stating what you want Gathering information on your opponent and their needs Reaching for comprise

Five Characteristics of a Successful Negotiation

Both sides feel sense of accomplishment Both sides feel the other side cared Both sides feel the other side was fair Each side would deal again with the other Each side feels the other side will keep the bargain outcomes