Negotiating and Bargaining

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Summary

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.


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Negotiation Strategies and Tactics
One can broadly distinguish between negotiation strategies and tactics:

Negotiation Strategies Negotiation S (...)
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7 comments
Different Negotiating Types / Bargaining Styles
Soft Bargaining: Very cooperative, conciliatory bargaining that focuses primarily on reaching an agreement and on not ma (...)
11
 
1 comments
Tripartite Social Dialogue to Build Trust and Collaboration Among Government, Business and Labour
National tripartite social dialogue brings together government, workers and employers to discuss public policies, laws a (...)
11
 
2 comments
Rules and Tips for Price Negotiations
Whether you are an owner of an investment project or a manager, an employee or an executive director, you will find your (...)
10
 
5 comments
Negotiation: The Final Offer Arbitration Challenge
Being unreasonable in negotiations makes the process dysfunctional and costly. Also it harms the relationship between th (...)
9
 
BATNA: Should you Accept or Reject a Deal?
Life is an endless series of negotiations. You may negotiate a salary with a potential employer, negotiate a deal with y (...)
7
 
The Ethics of Negotiations
Usually, when negotiating a contract, the parties follow different tricks and tactics to reach satisfactory results, how (...)
7
 
2 comments
Stages in the Negotiation Process (Manning & Robertson)
Negotiation should be viewed as a process of compromise, involving parties with different sets of objectives and values, (...)
6
 
How to Avoid Legal Pitfalls of Negotiating Contracts?
Every aspect of a business requires contracts of some kind, which have to be negotiated before signing them. Sometimes c (...)
5
 
🔥 NEW What is a Pre-Negotiation Agreement? Good Faith
Negotiations should be based on the principle of "good faith" (reflecting that it should be built on an ethical basis an (...)
4
 
Contract Lifecycle Management
Negotiation is (legally) just one, major stage of the total lifecycle of a contract. Please find my summary of contract (...)
3
 
Is Negotiation a Science or an Art?
There is an opinion that negotiation is an art, not a science.
Some argue that there is no process script for negot (...)
3
 
What do you need to be a Smart Negotiator ?
To be a smart negotiator you need both emotional and cognitive intelligence (Smithey Fulmer, I. and Barry, B. (2004), In (...)
3
 
2 comments
Collective Bargaining : Role of Chairman?
What is the role of the chair person in any collective bargaining process? (...)
3
 
1 comments
Influence of Collective Bargaining in Public Sector
In what ways could collective bargaining affect a government organization? (...)
1
 

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Four Principles for Effective Negotiation
When you're thinking about managing a conflict, it's useful to also remember the Four Principles for Effective Negotiati (...)
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14 comments

Should you Negotiate Tough or Be Nice?
When bargaining or entering into a business negotiation, you have the choice between various styles. The Thomas-Kilmann (...)
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12 comments

Preparing for a Negotiation: BATNA or Bottom Line?
It is important to prepare yourself for any negotiation, including the minimum you are willing to accept. In my post on (...)
20
 
9 comments

Negotiating for Personal Purposes (Kolb)
A major distinction can be made between a negotiation on behalf of an organization and one for personal purposes. Manage (...)
15
 
4 comments

Negotiating while Making Multiple Equivalent Simultaneous Offers: THE MESO STRATEGY
In business negotiations, when each side roots firmly in its position, there seems to be no way forward. Medvec and Gali (...)
15
 
Issues in the Negotiation Process (Manning & Robertson)
Negotiation should be viewed as a process of compromise, involving parties with different sets of objectives and values, (...)
13
 
Negotiating Without a BATNA
As discussed in my post “BATNA: Should You Accept or Reject a Deal”, having an established BATNA is fundamental to negot (...)
12
 
Negotiation Intentions of Mastenbroek
In 1996 Dutch bargaining expert Willem F.G. Mastenbroek developed a bargaining model consisting of four negotiation inte (...)
11
 
Asking Advice to your Counterpart in Negotiations
In negotiation, seeking advice from others or even your counterpart could be an effective strategy, even if working WITH (...)
11
 
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Advanced insights about Negotiating and Bargaining. Here you will find professional advices by experts.


How to Prevent the Other Party in Negotiating from Lying

Lying in Negotiations, Dodging, Negotiating with a Liar, Negotiate with a Liar
Nearly half of people will lie in a negotiation when having a motivation and the opportunity to do so, according to stud (...)

Do's and Dont's for Negotiating Across Cultures

Cross-cultural Negotiation, Negotiating Cross-culturally, International Negotiations, Negotiating Internationally
The complexity of cross cultural negotiation is daunting. Miscommunication can hinder or derail a deal. According to Eri (...)

Tips for Integrative Negotiation

Negotiating, Bargaining, Integrative Thinking
Only a small number of negotiations are distributive, or single-issue negotiations. Far more commonly negotiations invol (...)
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An Outline of Negotiation and Bargaining Strategies and Tactics

Bargaining, Negotiation Strategy, Negotiation Strategies, Dual Concerns, Avoid, Compete, Collaborate, Accomodate
Presentation that distinguishes various negotiation strategies, including the following sections: 1. Introduction 2. N (...)

Visions on Managers and Negotiators

Negotiating, Management, Leadership, Workshops, Trainings
This superb presentation outlines the roles and tasks that managers perform. The presentation includes views of importan (...)

Framing in the Context of Conflicts

Framing, Negotiation, Collective Bargaining, Stakeholder Analysis, Force Field Analysis, Conflict Management
Framing and conflicts This presentation elaborates on the extent to which framing relates to conflicts (and its resolut (...)

Communication and Negotiation in a Cross-cultural Context

Cross-Cultural Communication, Cross-Cultural Negotiation
Presentation about Communications and Negotiations Across Different Cultures. The presentation includes the following se (...)

Group Conflicts, Group Cohesion and Groupthink in Decision Making

Group Decision Making, Conflicts in Groups, Cohesion of Groups, Groupthink
Presentation about conflicts and cohesion in groups, and how it influences decision making. The presentation includes th (...)

Employee Relations / Labor Relations

Relationship Management, Employee Relationship
This presentation provides you with information about employee relationships within organizations and union environments (...)

Introduction and Summary of Collective Bargaining

Initial Understanding of Collective Bargaining
Collective Bargaining is not easy and is never fast. But it works. This animation shows why and describes the process f (...)

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Compare with: Pressure Group  |  Force Field Analysis  |  Six Change Approaches  |  Core Group Theory  |  Bases of Social Power  |  Coalition  |  Loss Aversion Bias

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