What is negotiation? Discuss common characteristics of all negotiation situations. Describe the situations in which avoiding negotiation is a better solution.

Negotiation

People get involved in negotiation all the time either knowing it or not knowing it.  They negotiate with other for coming to a decision, for settling dispute, for reaching an agreement and so on. They also negotiate with themselves about what to do next, where to go, what to eat etc. So the term negotiation is not a process, which needs to be done only by the executives or the important people or the lawyers.

The term negotiation can be defined as a win –win situation in which both the parties are trying to find a mutually acceptable solution to a complex conflict. This is a win-win situation because unlike bargaining in a negotiation both the parties ensure their gain by the agreement.

For example, when we go to a shop to purchase a personal PC salesman offers us a price then we counter offer a lower price. If the salesman agrees to that price he gives us the product or else he offers us another price which is closer to our offer and lower than previous one. The example is describing an interactive negotiation situation.

Common Characteristics of All Negotiation Situations

Authors from different books and articles have argued about some common characteristics of all negotiation situations, which are-

1.      Two or More Parties:  In a negotiation there are two or more individual, group or organization involved. Although people can negotiate with themselves, these are not noticeable by others so it is not considered as a negotiation.

2.      Conflict of Needs and Desires between Parties: People try to reach an agreement because there are conflict among their needs and desires. Without a conflict negotiation doesn’t take place.

3.      Parties Negotiate by Choice: Negotiation is a voluntary process, means in a negotiation parties negotiate by choice. If a party is forced by other party then it will not be termed as a negotiation rather we will describe the situation as there was no scope for negotiation.

4.      Give and Take Process: It’s a fundamental aspect of a negotiation situation. When we involve in a negotiation, we expect and accept that some give and take will be needed for the agreement. For example-when employers and candidates negotiate for recruitment, employers give money as remuneration to the employee in response they take working hours and effort of the employee. On the other hand employees give their efforts and take money as salaries.

5.      Intention for Negotiating: In a negotiation parties should have the intention for the negotiation and reaching out an agreement to a complex or conflicting situation rather than fight with each other. Negotiation occurs when the parties prefer to invent their own solution for resolving the conflict, when there is no fixed or established set for rules and procedures for how to resolve the conflict.

6.      Tangible and Intangible Factors: Successful negotiation involves management of tangible and intangible factors. Some tangible factors are ,

                               I.            The need to win, beat the other party or avoid losing to the party.

                            II.            The need to look good, competent or tough to the people one represent.

                         III.            The need to defend an important principle or precedent in a negotiation.

                         IV.            The need to appear fair or honorable or to protect one’s reputation.

Intangible factors are rooted in person’s values and emotion. It is necessary to stay cool for a successful negotiation but we find that people come with the baggage of values, attitudes and personal habits which effect the negotiation in great deal. 

Situations in Which Negotiation should be Avoided

Every situation doesn’t require negotiation. Sometimes it is a better strategy to avoid negotiation. Such situations are described below:

1.      Issue is Trivial: Negotiation process requires a lot of efforts, planning, and time. So if an issue is trivial or not significant enough to bring the sufficient return it is better to avoid negotiation. So it needs to be measured primarily that for what we are negotiating, what we can get from the negotiation, does the outcome really worth the whole negotiation process.

2.      Potential Dysfunctional Effect of confronting the other Party Outweighs the Benefits of Resolution: Sometimes other party holds strong position in negotiation. Thus it may be risky that negotiating may irritate other party and they can cancel the deal which will effect negatively to the situation. For example, in an interview between the recruiter and candidate demanding a specific amount of salary may motivate employer not to give you the job. This situation occurs when other party has a good BATNA (Better Alternative to a Negotiation Agreement).

3.      Cooling off Period is needed: Suppose you want to negotiate with your boss for increasing your salary or about a promotion. But your boss is currently very busy with a project or he is angry because employees could not give a good output to this month. So it is not a good situation to raise the issue about a salary increment or promotion. It is better to wait for the change of mood of your boss. So situation analysis is important before entering into a negotiation.