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
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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Negotiating and Bargaining Special Interest Group.
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Negotiation Strategies and Tactics
One can broadly distinguish between negotiation strategies and tactics:Negotiation StrategiesNegotiation Strategy is the manner of conscious behavior, including long term planning, in view of pe...
Different Negotiating Types / Bargaining Styles
Soft Bargaining: Very cooperative, conciliatory bargaining that focuses primarily on reaching an agreement and on not making the other side upset.
Hard Bargaining: Adversarial, competitive bargaining...
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 yourself in many situations as a seller or buyer. How can you, as a buyer, get the l...
Negotiation: The Final Offer Arbitration Challenge
Being unreasonable in negotiations makes the process dysfunctional and costly. Also it harms the relationship between the parties involved. To promote reasonableness in negotiations, Bazeman and Kahne...
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 your buyer, or even negotiate clothing choices with your teenage daughter. Accept...
The Ethics of Negotiations
Usually, when negotiating a contract, the parties follow different tricks and tactics to reach satisfactory results, however some parties may resort to lying, deceiving, bluffing or threatening, in or...
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 and on ethical behavior by both parties).
That may seem logical, but one day you ...
Contract Lifecycle Management
Negotiation is (legally) just one, major stage of the total lifecycle of a contract. Please find my summary of contract lifecycle management below.
Contract lifecycle management (CLM) is defined as t...
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 negotiation that can be applied to all situations. An approach that works in one context ...
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), International Journal of Conflict Management).
Emotional intelligence is about un...
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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 Negotiation of Roger Fisher and William Ury:
1. PEOPLE - Separate the people from the pr...
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 BATNA (Best Alternative to a Negotiated Agreement) I explained this concept and ...
Negotiating for Personal Purposes (Kolb)
A major distinction can be made between a negotiation on behalf of an organization and one for personal purposes. Managers are normally confident in negotiating for their company.
However according t...
Negotiating Without a BATNA
As discussed in my post “BATNA: Should You Accept or Reject a Deal”, having an established BATNA is fundamental to negotiation strategy as it helps people to determine when to walk away from a negotia...
Negotiation Intentions of Mastenbroek
In 1996 Dutch bargaining expert Willem F.G. Mastenbroek developed a bargaining model consisting of four negotiation intentions or negotiation activities:
1. Influence the Content. The main goal is t...
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 your counterpart seems counter effective at first sight. The possible benefits ...
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...
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...
Bargaining, Negotiation Strategy, Negotiation Strategies, Dual Concerns, Avoid, Compete, Collaborate, Accomodate Presentation that distinguishes various negotiation strategies, including the following sections:
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...