Negotiating and Bargaining
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What is Negotiating? Meaning.
Negotiation is a communication process between two or more people or parties intended to reach a beneficial outcome over one or more issues where a conflict exists with respect to at least one of these issues. It involves a dialogue or interaction between entities who compromise to agree on matters of mutual interest, while optimizing their individual utilities.
The beneficial outcome can actually be for all of the parties involved (a "Win-Win" result), or just for one or some of them (a "Win-Lose" result).
Negotiators should understand negotiation processes and their counterparts to increase their chances to close favorable deals, avoid conflicts, and establish a (long-term) relationship with other parties.
A negotiation process is typically conducted by putting forward a position/proposal and then making concessions to achieve an agreement. The degree to which the negotiating parties trust each other is a key factor in successful negotiations.
Negotiations occur in many different situations, ranging from simple interpersonal bargaining to situations around marriage, divorce, parenting, etc. to negotiating in and between organizations, including businesses, non-profits, and governments as well as in sales and legal proceedings.
Distributive negotiation approaches are assuming zero-sum conditions and imply that any gain one party achieves is at the expense of the other. They believe a "fixed pie" of benefits has to be ditributed.
Integrative negotiation approaches on the other hand aim to take advantage of situations in which different parties value various outcomes differently. They aim to "expand the pie" so there is more to be distributed. Other wordings being used for integrative negotiations are: interest-based negotiations, merit-based negotiations, and principled negotiations.
What is Bargaining? Meaning.
Bargaining is is a type of negotiation in which the buyer and seller of a good or service debate the price and exact nature of a transaction.
It is often the final stage of a negotiation. If the bargaining produces agreement on terms, the transaction takes place.
Bargaining can also be considered as an alternative pricing strategy to fixed prices.
What is Collective Bargaining? Meaning.
Collective Bargaining is normally seen as a negotiation method between representatives of the union and of the employer, to determine wages, hours, and various Employee Benefits through direct negotiations. But it can also be used to mean a sort of negotiation process between the employer and any group of employees for certain sets of objectives where both of them have common interest. The workers derive this power by coming together, that is by being united.
If their viewpoint - demands - are not considered, they have the power of withdrawing their services or adopting other actions which will adversely affect the employer. Thus the collective bargaining draws its power from the strength of being united.
The employer can ill-afford to neglect these actions as the concerted action by the workers can result in low output and monetary loss. The employer thus agrees to negotiate the matter and the bargaining process begins. Since both the employer and workers have areas of common interest, the bargaining is not stretched too far, because, then it will be counter productive.
The underlying force behind the collective action is the assumption - valid enough - that the employees and employer have vital common interests.
This ends our Negotiating and Bargaining summary and forum.
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