Essentials of negotiation

Essentials of negotiation

1. Terms

   • Agreement: one wins and another loses
   • Negotiation: both parties win

2. Characteristics

   • There are two or more parts
   • There is a conflict of needs and desires between two or more parties
   • The parties negotiate by their own decision
   • The process of "give and take" is fundamental. Modify the initial position to reach an agreement towards a "middle term" of the positions, which is called a compromise.
   • The parties prefer to negotiate and seek an agreement instead of fighting openly

3. The relations between the parties are classified in

   • Interdependent
     • When the parties depend on each other to achieve their result
       • BATNA suggests that negotiators need to understand their own BATNA and that of others. The value of a personal BATNA always depends on the settings available in the current negotiation.
     • Types
       • Zero or distributive sum
         • Declare a value, do everything necessary to claim the reward
       • Non zero or integrative sum
         • Create a value, find a way for all parties to meet their objectives
   • Independent
     • Are able to meet their needs without the help and support of others
   • Dependent
     • Must rely on others to get what they need

4. Mutual adjustment

   • Both can influence the results and decisions of the other, and their own results and decisions in turn are affected by the other party.
   • Two dilemmas
     • Dilemma of honesty
       • How much truth to reveal to the other party?
     • Dilemma of trust
       • How much should the negotiators believe what the other party is telling them?
   • Two actions in a negotiation help to create that trust and the notions of sincerity and justice
     • To be based on the perceptions of the results
     • To be based on the perceptions of the process

5. Concession

   • When a party accepts a change in its own position

6. Conflicts

   • The two-dimensional structure is called the double interest model. This model postulates that people in conflict have two types of independent interests.
     • Interest in their own results (in the horizontal dimension of the figure)
     • Interest in the results of the other (in the vertical dimension of the figure)

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