Negotiation and Dispute Resolution
CHAPTER ONE
The Nature of Negotiation
4-2
Introduction
Negotiation is something that everyone does, almost daily 4-3
Negotiations
Negotiations occur for several reasons:
• To agree on how to share or divide a limited resource • To create something new that neither party could attain on his or her own
• To resolve a problem or dispute between the parties 4-4
Approach to the Subject
Most people think bargaining and negotiation mean the same thing; however, we will be distinctive about the way we use these two words:
• Bargaining: describes the competitive, win-lose situation • Negotiation: refers to win-win situations such as those that occur when parties try to find a mutually acceptable solution to a complex conflict
4-5
Three Important Themes
1. The definition of negotiation and the basic characteristics of negotiation situations
2. Interdependence, the relationship between people and groups that most often leads them to negotiate
3. Understanding the dynamics of conflict and conflict management processes which serve as a backdrop for different ways that people approach and manage negotiations 4-6
Characteristics of a
Negotiation Situation
• There are two or more parties
• There is a conflict of needs and desires between two or more parties
• Parties negotiate because they think they can get a better deal than by simply accepting what the other side offers them
• Parties expect a “give-and-take” process
4-7
Characteristics of a
Negotiation Situation
• Parties search for agreement rather than:
–
–
–
–
Fight openly
Capitulate
Break off contact permanently
Take their dispute to a third party
• Successful negotiation involves:
– Management of tangibles (e.g., the price or the terms of agreement) – Resolution of intangibles (the underlying psychological motivations) such as winning, losing, saving face
4-8
Interdependence
In negotiation, parties need each other to
The Nature of Negotiation
4-2
Introduction
Negotiation is something that everyone does, almost daily 4-3
Negotiations
Negotiations occur for several reasons:
• To agree on how to share or divide a limited resource • To create something new that neither party could attain on his or her own
• To resolve a problem or dispute between the parties 4-4
Approach to the Subject
Most people think bargaining and negotiation mean the same thing; however, we will be distinctive about the way we use these two words:
• Bargaining: describes the competitive, win-lose situation • Negotiation: refers to win-win situations such as those that occur when parties try to find a mutually acceptable solution to a complex conflict
4-5
Three Important Themes
1. The definition of negotiation and the basic characteristics of negotiation situations
2. Interdependence, the relationship between people and groups that most often leads them to negotiate
3. Understanding the dynamics of conflict and conflict management processes which serve as a backdrop for different ways that people approach and manage negotiations 4-6
Characteristics of a
Negotiation Situation
• There are two or more parties
• There is a conflict of needs and desires between two or more parties
• Parties negotiate because they think they can get a better deal than by simply accepting what the other side offers them
• Parties expect a “give-and-take” process
4-7
Characteristics of a
Negotiation Situation
• Parties search for agreement rather than:
–
–
–
–
Fight openly
Capitulate
Break off contact permanently
Take their dispute to a third party
• Successful negotiation involves:
– Management of tangibles (e.g., the price or the terms of agreement) – Resolution of intangibles (the underlying psychological motivations) such as winning, losing, saving face
4-8
Interdependence
In negotiation, parties need each other to