NEGOTIATION

For millennia, negotiation has predated modern culture as a form of dispute resolution. Early
human society was communal in nature and was held around such communal gatherings,
whether gathered around the fireplace or during work discussions, with the aim of
strengthening relationships between people in society and mending relationships where
fractures had begun to form.

Negotiation became the most basic form of interaction, the negotiation mechanism seeks to
identify the constellation of actions and involves any sort of formal or informal speech or
action that serves to handle, mitigate or overcome problems or differences that occur between
individuals.1 Knowingly or unknowingly, almost every individual has negotiated at one point
with some being more effective than others.

DEFINITION OF NEGOTIATION

When two or more parties need to reach a joint decision but have opposite preferences, they
negotiate. Leigh Thompson defines negotiation as the essential interpersonal decision making
mechanism whenever we can not single-handedly attain our objects.

Negotiation is also defined as “back and fourth communication designed to reach an

TYPES OF NEGOTIATION

COMPETITIVE NEGOTIATION (power play)

Here a group seeks to find a compromise within strategic bargaining that individually favors
them to the detriment of the other party. It does not aim to establish relationships as the
relationship between the parties is of no importance but rather an I win you loose situation. In
competitive bargaining the parties try to retain their positions and are usually inflexible to the
interests of the other side. The day is carried by the party with a greater role.

COOPERATIVE NEGOTIATION

Under cooperative negotiation, both sides have a shared purpose in mind that they aim to
accomplish by generating more benefit by finding mutual advantages from the agreement,
results often in a win-win situation. The relationship between the parties is central, as
opposed to competitive negotiation and therefore treated with respect. The sides seek to build
or restore relationships between them. Cooperative negotiation is seen as a rational
mechanism because it promises to generate a win-win result and treats.

The key features of this type of negotiation are;

 Building relationships
 Win-win approach
 Transparency and trust
1
The Mind and Heart of the Negotiator
  Joint problem solving
 Fair process

PRINCIPLED NEGOTIATION

This is an approach to interest-based negotiation that focuses mainly on dispute and conflict
resolution management. It uses an intergrative approach to find a mutually shared result.
Seeks to take advantage of cooperative and competitive negotiation and avoids the drawbacks
to either of them, it aims to combine collaboration and competition to achieve the desired
result.

The negotiation process involves;

 Preparation
 Information validation and exchange
 Clarification and justification
 Bargaining and problem solving
 Execution and conclusion

Preparation

Starts by the determination of the situation to help select a good strategy, the next step entails
researching information, analysis of data and leverage. The final step is considering the
relationship and aiming at building a relationship, it also entails the making of oneself
familiar with the rules of engagement of the process.

Information Validation and Exchange

Involves the exchange by the parties of their initial positions, parties share information and
consider options to address each of their needs. It aims at building and cementing trust such
that all parties feel comfortable disclosing information.

Clarification and Justification

Aims to demystify any misunderstanding that may arise during the information exchange
between the parties. Each party gets to state their goals and interests plus provide justification
why their interests should be considered.

Bargaining and Problem Solving

This makes and spreads value, at this point a give and take scenario comes up and the parties
have to make concessions and sacrifice. Here parties are said to be actually negotiating.

Conclusion and Implementation

ADVANTAGES OF NEGOTIATON

 It is cheap, quick and private when conducted in good faith saves the parties money,
is quick and private.
 Parties are able to negotiate in-line with their personal needs and interests.
 Parties participate at their own will which is not available in the judicial process.
 It has a better possibility of succeeding as the interests of both parties are considered.
 It is restorative as it seeks to repair a broken relationship between the parties and
creates a new relationship based on trust and mutual understanding.

DISADVANTAGES OF NEGOTIATION

 Process might take longer and become costly if the parties become rigid and do not
want to compromise.
 Because of its voluntary nature no party can be forced to get into or continue
negotiating if they are no longer willing to participate in the process.
 It does not guarantee good faith from the parties.
 Can be used as a delaying tactic to deny one party the opportunity to state their rights
as it would be within the court structure in a judicial process.