What Is Negotiation?

Negotiation is the process which helps people settle their differences and disputes. It is the method by which amicable agreement is reached avoiding arguments.

The term “negotiation” can be interpreted as a direct or indirect type of communication in which parties with divergent interests deliberate on a joint action plan intended to end their disagreement. Any issue that needs to be resolved can be accomplished through negotiation, as can laying the foundation for a future relationship between two or more parties.

All facets of daily life, whether at the individual, institutional, national, or global level, exhibit some degree of negotiation. Therefore, it has been said that negotiation is the best method for resolving disputes. Given how commonplace negotiating is in daily life, it is not surprising to learn that it may be used in other dispute resolution procedures like mediation and settlement conferences.

But in India, Negotiation doesn’t have any statutory recognition i.e through way of legislation. Negotiation is self counseling between the parties to resolve their dispute.The word “negotiation” is from the Latin expression,”negotiatus”, past participle of negotiator which means “to carry on business”.”Negotium” means literally”not leisure”. Negotiation is a process that has no fixed rules but follows a predictable pattern. Negotiation is the simplest means for redressal of disputes. In this mode the parties begin their talk without interference of any third person. The aim of negotiation is the settlement of disputes by exchange of views and issues concerning the parties.

Scope Of Negotiation:

The history of negotiations can be directly traced to the monarchical age, when Kings would negotiate during active Wars to stop the killing. Following the two major World Wars of the 20th century, negotiations led to the founding of the League of Nations and then the United Nations.

Over time, the range of the negotiation has expanded. The parties concerned want to resolve the disagreement outside of court, which is the main goal of negotiation. The litigation procedure has its own drawbacks, including burdensome documentation, lengthy processing times, process delays, high costs, and adverse verdicts.

Because of such reasons alternative dispute resolution gained fame and with increase in fame of negotiation the demand for experienced negotiators also increased. Negotiation is considered to be alternative dispute resolution as an informal process which helps the parties to resolve that differences through mutual understanding and agreement.

Some situations in which negotiation is applicable:

1. Marital Deadlock:Negotiation is a part of the pre-litigation procedure when a dispute involves a marital connection. Husband and wife’s feelings and egos in such disputes are frequently resolved through conversation throughout the negotiating process.
   
2. Business Negotiation: The goal of business negotiation is to manage commercial and corporate issues. Making agreements, talking about the company’s revenues, team building, negotiating contracts with employees, and effectively addressing cases of customer and employee disputes are all necessary skills in this type of negotiation.
   In order to establish a business agreement, the art of negotiation is essential full stop business negotiation can be considered as a skill where in the big problems are drop down to small chunks and to every touch problem a solution is carefully found out.
   
3. Contract-Based Negotiations:The conditions of the disagreement are negotiated by the parties before they enter into a contractual relationship. The most well-known kind of negotiation is this one, which resembles corporate negotiations in certain ways. After a violation of contract, negotiations can also be used to break the impasse.
   
4. International Negotiations: Conflicts between nations have a tendency to escalate into scandals that need to be resolved right away. Due to their complexity, numerous steps, and involvement of bureaucrats, international negotiations typically take longer than other negotiation processes. The main goal of international organisations is to facilitate seamless interconnection and relationships between nations in a way that benefits the economies of all participating nations.
   

Characteristics Of Negotiation Process:

1. Voluntary:The parties’ free consent is used to carry out the negotiation process. No one is compelled to take part in the procedure. The parties may freely accept or reject the conclusion of the negotiations. Additionally, it is revocable at any stage in the process. The parties may engage in direct negotiations or they may select any representative.
   
2. Bilateral/ Multilateral:
   The process of negotiation can involve two or more parties. The parties can range from two individuals seeking to agree on sale of house to negotiation involving diplomate from dozens of States.
   
3. Non-Adjudicative:
   Negotiation is an informal process which only involve the parties. The outcome is amicable reached by the parties together without any records to a third party through mutual understanding.
   
4. Informal:Contrary to arbitration, bargaining is a non-binding process without established guidelines. The adoption of any rules is entirely at the parties’ discretion. In general, the parties reach consensus on matters like the process’s timing and venue. Other rules could include things like confidentiality, the frequency of negotiations, and the acceptable types of papers.
   
5. Flexible:
   The scope of negotiation is dependent upon the choice of parties where determine not only the topic which will be the subject matter of negotiation but also if they will adopt a positional based bargaining approach or interest-based approach.

Stages Of Negotiation (Process)

Each negotiation has its own unique characteristics. Therefore, there is no such uniform and exclusive method of negotiation and bargaining session.

A structured approach has to be followed in order to come at a desired outcome. Therefore, various steps have to be followed in the negotiation process so that the parties with conflicting ideas and differences reach to an amicable solution.

The process includes following stages:

1. Preparation: The appropriate preparation prevents pitiable performance is as crucial in negotiating as it is in further areas like presentations, businesses etc. Parties must be obvious with their objectives and must plan their approach towards its accomplishment. Additional, it is also vital to predict the other party’s come close to so that a structure can be organized for negotiation. Preparation also involves making decisions connected to the most vital issues and development one’s strategy.
2. Discussion:
3. Clarification of goals: Subsequent to preparation, the moment comes when parties assemble each other. For the duration of this stage,members from both side put forward their sympathetic of the situation. Key essentials of this phase are questioning,listening and illuminating. Parties concerned should try to appreciate each other’s point of view and should take remarks during the conversation to trace all points put forward linked to the case. Discussing each other’s hopes and prospect sets the eminence for the negotiation. Dialogue also involves asking questions and sympathetic the key points significant for attainment an agreement.
4. Negotiate towards a Win-Win outcome
5. Agreement
6. Implementation of course of action

Preparation/ Initial Assessment

The process of negotiation begins with the signal of communication from one party to the other showing a willingness to bargain. As negotiation is a voluntary process it is of primary importance to know that whether the other party is interested in negotiation or not.

Some of the important factors should be ensured before moving on. They are:

• if there is desire to resolve the dispute
• the credibility of other parties
• the willingness of parties to preserve or establish the relationship
• whether there is disparity between the parties that it would be impossible to bargain equal or not
• desirability of using any other form of dispute resolution system.

This stage involves ensuring the important facts of the dispute and its situation in order to clarify the position of both the parties. Before any negotiation takes place, a decision shall be taken as to when and where the meeting for negotiation shall happen and as to who will attend the discussion and negotiation sessions. During this time setting of a limited timescale can help prevent this agreement continuing.

Discussions

Once it has been established that negotiation is the appropriate course of action the further arrangement shall be made in that course with the other party included. The arrangement must include:

• outlining the scope of negotiation
• forming a time table as to whether or not that will be a fixed duration of negotiation
• ensuring that all the interested parties are identified and have been consulted
• choosing a location Which is feasible to both the parties.

During this stage the parties of other side put forth their case as they see it and try to understand the vice-versa situation. Clarification as to misunderstandings and disagreements shall be spoken and heard. An equal opportunity shall be granted to both the side.

Clarification Of Goals

From the second stage of discussion whatever goes interest and viewpoints of the parties of this agreement needs to be clarified. To clarification it becomes easy and possible to identify and establish a common ground post settlement. Clarification is one of the crucial parts of negotiation process is without a doubt the misunderstanding and disagreements are likely to continue which main result to cause problems and barrier in reaching a beneficial outcome.

This can lead to harmonizing and Reconcile the bearing and competing interest of the parties.

Negotiating Towards A Win-Win Situation

It is not always possible to reach to a Win-Win situation but it shall be the ultimate goal. this stage focuses on which can be termed as Win-Win outcome wherein both the parties may have the satisfaction that they have gained something positive through the process and both the parties may feel that their point has been considered.

Agreement

A proper agreement can be achieved only when both the parties understand each others point of view and interest are considered simultaneously. Every member involved in the negotiation process it is essential to keep an open mind so that an acceptable solution can be reached full stop such agreement needs to be clearly communicated so that no for the dispute can occur.

Implementation Of Action:

Once agreement is reached a proper course of action has to be implemented so that the decision can be carried out.

Right place & environment:

The negotiator has to choose right environment and familiar territory.Home territory is always preferred,unless there are any compelling reasons.One should see that persons its by the side of his greatest opponent. It is making the opponent a neighbor. It will be difficult to be belligerent with neighbour. Very sitting position and making rivals neighbours brings in new atmosphere and a thought provoking environment. One should not put a barrier of table between disputants. It is also suggested that a business lunch might be helpful.

Advantages Of Negotiation

1. Party-based Dispute Resolution:
   One of the primary reasons for success of negotiation is that it only involves the stakeholders and does not involve any other party as a result of which the process remains a private affair and confidential. The parties decide the subject matter duration of process locations papers to be referred etc.
    
2. Freedom of Parties:
   The parties are at freedom to choose agendas of the choice in addition to ensure your objective that negotiation is achieved.
    
3. Consent of Parties:
   The negotiation process ensures that both the parties involved in negotiation have free will in participating and that no one is forced to engage in the process. this freedom also ensure that all the parties are at equal footing and there is no play of powers.
4. No Third-Party Intervention:
   Unlike most of the radius system which requires a neutral third party for dispute resolution such is not the case with negotiation.
    
5. Comfortable Process:
   Negotiation is an informal process. It is normally a speedy process whose decisions are not binding upon the parties. Latest a completely self-build process wherein the decision can either be accepted or rejected by the parties at their own win all the process can be withdrawn at any point of time.
    
6. Improvement in Relations:
   Once the negotiation process is successfully completed that is a scope of improvement in the relation between the parties. And it also facilitates the process of negotiation for any further education.

Disadvantages Of Negotiation

1. Power Tactic:
   It is not always necessary that the parties to negotiations are of equal stature and power. Therefore, in the absence of a neutral third party the party whichever is in the position to dominate the other uses the dominance over the consent of other party and come at an agreement. This leads to an unfair agreement which is ultimately useless.
    
2. Impasse:
   Sometimes the difference is and disagreement between the parties may lead to a deadlock situation. And Impasse situation occurs during the negotiation process where at any discussion the parties are stand still and cannot have any for the discussion. This stage is very frustrating when no possible successful outcomes can happen. This generally happens when any one party is so rigid over its goal that no middle ground can be achieved. This ultimately results into a walkout situation.
   
    
3. Backing Off:
   The unsuccessful negotiation leads to creation of bad relations between the parties along with termination of any business are contractual relations afterwards. It also happens that sometimes the parties lose confidence in the process of negotiation as a dispute resolution and consider the other options.
   
4. Not all issues are Negotiable:
   There are various cases which involve multiple stakeholders for home negotiation process cannot be made applicable and such cases can directly go to the court for the decisions.

Conclusion:

The term’Negotiation’ can be defined as a direct or indirect form of communication through which the parties with conflicting interest deliberate a form of Joint Action aiming to resolve the dispute between them. Negotiation can be used either to resolve any existing problem or for a future relationship between two or more parties by setting a ground work. But in India, Negotiation doesn’t have any statutory recognition i.e through way of legislation. Negotiation is self counseling between the parties to resolve their dispute.