NEGOTIATION

NEGOTIATION

  16:37    Rahul R

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Negotiation can be defined as a process in which two or more parties exchange goods and services and attempt to agree on the exchange rate for them

Preparation and planning

•          What is the nature of the conflict

•          What is the history leading to this negotiation

•          Who is involved

•          What are the goals

•          Prepare an assessment of what you think the other party’s goals are

•          Develop a strategy

•          BATNA – Better Alternative To a Negotiated Agreement

Definition of ground rules

•          Define the ground rules and procedures with the other party over the negotiation itself

•          Who will do the negotiating

•          Where will it take place

•          What time constraints, if any, will apply

•          During this phase, the parties will also exchange their initial proposals or demands

Clarification and Justification

•          Both parties will explain, amplify, clarify, and justify the original demands

•          It is an opportunity for educating and informing each other on the issues, why they are important, and how each arrived at their initial demands

•          Provide documentation that helps support position

Bargaining and problem solving

•          It is here where concessions will undoubtedly need to be made by both the parties

Closure and implementation

•          This will require hammering out the specifics in a formal contract

•          However for most cases, closure of the negotiation is nothing more formal than a handshake

Third Party Negotiations

Mediator

•          A neutral third party who facilitates a negotiated solution by using reasoning and persuasion, suggesting alternatives etc

•          The settlement rate is around 60%.

•          Most effective under moderate levels of conflict

•          Mediator must perceived as neutral and non coercive

Arbitrator

•          A third party with the authority to dictate an agreement.

•          Arbitration can be voluntary or compulsory

•          It always results in settlement

Conciliator

•          Trusted third party who provides an informal communication link between the negotiator and the opponent

•          They engage in fact finding, interpreting messages, and persuading disputants to develop agreements

Consultant

•          Is a skilled and impartial third party who attempts to facilitate problem solving through communication and analysis, aided by a knowledge of conflict mgt.

•           Role is to improve relations between the conflicting parties