International Negotiation
Lecturer: Raqiah Alwajeeh
Learning Objectives
• What is negotiation?
• What is the characteristics of negotiation?
• What is negotiation skills?
• How does interdependence affect negotiation process?
Introduction
• Negotiation is something that everyone
does, almost daily.
What is Negotiation?
o Negotiation is a decision-making process
between two or more parties.
o The parties talk in an effort to resolve
their opposing interests.
o It's about achieving mutually acceptable
outcomes where there's a perceived conflict
of interest.
o Negotiation can involve individuals, groups, or
organizations.
Why Negotiate?
o To agree on how to share or divide a
limited resource (e.g., money, time,
land).
o To create something new that neither
party could do on their own (e.g., a
partnership, a new product).
o To resolve a problem or dispute
between parties.
Bargaining vs. Negotiation
o Bargaining: Often refers to the competitive,
"win-lose" situations (e.g., haggling over
price).
o Negotiation: More broadly encompasses
both "win-lose" and "win-win" scenarios,
focusing on finding mutually acceptable
solutions.
Characteristics of a Negotiation Situation
Two or More Parties: Involves individuals, groups, or organizations.
Conflict of Needs/Desires: A perceived conflict of interest where parties believe their goals are
incompatible.
Expectation of a Better Outcome: Parties believe they can get a better deal by negotiating rather than by
simply accepting what the other side offers.
"Give-and-Take" is Expected: The process involves making concessions and adjustments.
Parties Prefer to Negotiate: They choose for agreement rather than fighting, independent action, or
breaking off relations.
Management of Tangibles and Intangibles:
o Tangibles: The concrete, measurable terms (e.g., price, terms of agreement).
o Intangibles: The underlying psychological motivations or needs (e.g., the need to "win," saving face,
maintaining a relationship, reputation). Successful negotiation addresses both.
Negotiation Skills
• Be prepared.
• Diagnose the fundamentals structure of the negotiation.
• Work the BATNA (Best Alternative to a Negotiated Agreement).
• Be willing to work away.
• Remember the intangibles.
• Actively manage coalition.
• Savor and protect your reputation.
• Remember that rationally and fairness are relative.
• Continue to learn from experience.
• Master the key paradoxes.
Negotiation Skills
Master the key paradoxes
• Claiming vs. creating value.
• Sticking by principles vs. being resilient to the flow.
• Sticking with the strategy vs. opportunistic pursuit of new options.
• Honest and open vs. opaque.
• Trust vs. distrust.
• In negotiation, parties need each other to achieve their preferred
outcomes and objectives.
• This mutual dependency is called interdependence.
• Interdependent goals are an important aspect of negotiation
- Win-lose.
- Win- win
Interdependence in Negotiation
• Interdependence refers to the reliance of parties on each other to achieve their
respective goals, which can lead to better outcomes than working independently.
• Types of interdependence include independent (self-sufficient), dependent (relying
on others), and interdependent (mutual reliance for goal achievement).
• In zero-sum negotiations, one party's gain is another's loss, while in mutual-gains
negotiations, both parties can achieve their goals simultaneously.
• Understanding one's own and the other party's Best Alternative To a Negotiated
Agreement (BATNA) is crucial for assessing negotiation power and options.
• The attractiveness of alternatives shapes the interdependence and can dictate the
willingness to negotiate.
Type of interdependence Affect Outcomes
• Zero-sum (distributive) – one winner
• No- zero sum (integrative) – mutual gain situation.
Managing Interdependence
• Parties rely on each other to achieve their goals—this interdependence
drives negotiation.
• Relationships can be independent, dependent, or interdependent.
• Mutual adjustment shapes negotiation dynamics, where parties influence
and respond to each other throughout the process.
• The concept of BATNA (Best Alternative to a Negotiated Agreement)
helps parties evaluate whether to agree or walk away.
The Role of Conflict
Conflict is an express struggle between at least two interdependent parties
who precise incomputable goals, scare resources and interference from
others in achieving their goals.
It happened when:
• Disagreement exist.
• Emotional antagonisms or dispute.
So:
• Negotiation is a tool to manage conflict by finding mutually acceptable
solutions.
• Conflicts can be constructive if handled well, leading to better decisions,
or destructive if unresolved.
Thank You
Characteristics of a Negotiation Situation
• When we negotiate, we expect a “give-and-take” process that is
fundamental to our understanding of the word negotiation. We expect that
both sides will modify or move away from their opening statements,
requests, or demands.
• The parties prefer to negotiate and search for agreement rather than to
fight openly, have one side dominate and the other capitulate, permanently
break off contact, or take their dispute to a higher authority to resolve it.
• Successful negotiation involves the management of tangibles (e.g., the
price or the terms of agreement) and also the resolution of intangibles.
Intangible factors are the underlying psychological motivations that may
directly or indirectly influence the parties during a negotiation.