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Tag: Negotiation

Negotiation

The process of negotiation aids in the resolution of conflicts and disagreements. It is a means of settling disputes amicably without resorting to confrontation.

The term “negotiation” can be interpreted as a direct or indirect method of communication whereby parties with divergent interests plan a joint action to settle their disagreement. Any current issue can be resolved through negotiation, or it can be used to lay the foundation for a future relationship between two or more parties.

However, there is no statutory acknowledgment of negotiation in India, i.e. through the legal system. Negotiation is the parties’ own form of conflict resolution therapy. The Latin word “negotiatus,” the past participle of the verb negotiare, which meaning “to conduct business,” is the source of the English term “negotiation.” “Negotium” properly translates as “not leisure.” Although there are no set rules in negotiation, it has a recognizable structure. The simplest method for resolving problems is negotiation. Without any outside intervention, the parties start talking in this mode. The resolution of disagreements through the exchange of ideas and concerns between the parties is the goal of negotiation.

The dispute’s core must be the parties’ main focus, and their single goal should be its resolution. The disputing parties attempt to settle their differences via mutual understanding. By working together and cooperating on mutually accepted conditions, the parties undoubtedly hope to find some form of resolution. As it is favoured in corporations, government agencies, non-profit organizations, and legal actions, such as those involving adoption, divorce, and other family-related issues, negotiation is one of the most widely employed kinds of ADR.

Following are some of the characteristics of Negotiation:

  • Two or more parties
  • Negotiation contributes to better results
  • Conflicts between needs and desires
  • Equalizing process
  • It contributes to attaining mutual satisfaction or agreement.

A common legal adage that states “Consilia omnia verbis prius experiri, quam armis sapientem decet” which translates to “An intelligent man would prefer negotiation before using arms”—properly supports the goal of conducting negotiation.This technique aids the disputing parties in reaching a mutual understanding and settlement by recommending better outcomes to them. In general, it is a process of equalization in which a solution is presented while taking into account the interests of both sides. The parties to a dispute should only choose Mediation as an alternative dispute resolution method if they do not believe they are capable of settling the conflict on their own or with the assistance of an impartial third party.

TYPES OF NEGOTIATION

The ability to negotiate is crucial for today’s professional. When both parties are on opposing ends of the spectrum, negotiation may also involve reaching an amicable compromise. There are different negotiation styles, including:

1. DISTRIBUTIVE NEGOTIATION:

When two parties bargain on a particular good or issue, like pricing, it’s called distributive bargaining. Negotiating with a street seller or a dealer about the cost of a used car are two examples. In this case, one party triumphs while the other is forced to concede and loses. Your distributive negotiating abilities will ultimately determine your level of success.

2. INTEGRATIVE NEGOTIATION:

Do you know what occurs when representatives from an employee union deliver their requests to management? They converse, counter argue, present, disagree, persuade, and quickly. Then they come to an agreement over compensation and other perks. Negotiation that is integrated is what this is.It is one of the kinds of negotiations when more than one subject needs to go through the process of negotiation. The negotiation benefits both parties. A win-win situation is guaranteed through an integrative negotiation process.

3. MULTIPARTY NEGOTIATION:

In a multiparty negotiation, three or more parties will use a variety of negotiating tactics to make their views. Multiparty negotiation is used when six friends are determining where to hold the party and debating its advantages and disadvantages.

4. TEAM NEGOTIATION

These discussions are held between the two teams in this kind of negotiating procedure. Team discussions, for instance, are negotiation tactics used by the teams of two corporations seeking to merge.

Being a master negotiator is not rocket science. Neither is it an overnight miracle. It is a five- stage frame work that can be learned, practiced, and applied. Here are the five stages of the negotiation process

Steps of Negotiation Process

  1. Preparing and Planning

Planning and preparation are the first steps in the negotiation process, during which the parties determine their objectives. The “best alternative to a negotiated agreement (BATNA)” and “worst alternative to a negotiated agreement (WATNA)” must be chosen by each party, respectively. These two represent the situation’s most unlikely outcomes. A suitable alternative avoids the possibility of a fruitless dialogue, therefore the better the BATNA, the bigger the negotiating potential. Determining the WATNA is crucial because it shapes the worst-case scenario in the event that the negotiation process fails. Costs and hazards are part of it.

2. Defining ground rules:

The second step entails establishing the ground rules that pertain to the negotiation’s procedural requirements. This particular phase involves reaching an agreement on the process’s duration, location, and start.

3. Clarification and justification

The parties will clarify and settle any misunderstandings regarding the issue in the third step. This step gives you the chance to update and notify the other party about the dispute’s difficulties. To guarantee that the discussion is conducted effectively, both parties to the dispute made clear what they wanted.

4. Bargaining phase:

At this point parties must link the gaps between their proposals. This stage focuses on what is termed a win-win conclusion where both sides believe that their point of view have been taken into deliberation and both sides feel they have gained impressive optimistic during the process of negotiation.

5. Closure and implementation phase

The last step is the validation of an agreement that has been worked out and elucidates how the parties will supervise each other’s actions to ensure that the negotiated agreement is carried out.

Characteristics Of Negotiation Process:

Informal:

Negotiation is a non-binding process without established norms and laws, unlike arbitration. The adoption of any regulations that the parties prefer, if any, is entirely up to them.The subject matter, timing, and venue of the process are typically issues that the parties may agree upon. Other regulations may apply, and they may cover things like confidentiality, the number of negotiations, and the acceptable papers.

Bilateral/ Multilateral:

There may be two or more parties involved in the negotiating process. The parties can be as simple as two people trying to sell their house together to negotiations involving diplomats from numerous different countries.

Voluntary:

Negotiations are performed voluntarily with the parties’ free permission. No one is compelled to take part in the process. 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 a representative.

Non-Adjudicative:

The sole participants in the informal process of negotiation are the parties. Without disclosing any information to a third party, the parties mutually agree upon the outcome.

Flexible:

The parties’ decision as to which issues will be the focus of the negotiation and whether to use a positional or interest-based approach to bargaining will decide the scope of the negotiation.

Advantages Of Negotiation

  1. Party-based Dispute Resolution:One of the fundamental factors in the effectiveness of negotiation is that it only engages the parties involved and excludes all other parties, keeping the process private and secret. The parties choose the process’s content, duration, venue, and other factors.
     
  2. Freedom of Parties:The parties are allowed to choose their own agendas while also making sure that the negotiation’s goal is met..
     
  3. Consent of Parties: The negotiating process makes sure that everyone engaging in the process is doing so of their own free will and that no one is coerced. Additionally, this freedom guarantees that there is no power play and that all parties are on equal footing..
     
  4. No Third-Party Intervention: Negotiation differs from most of the radius system in that it does not require a third party to arbitrate disputes..
     
  5. Comfortable Process: An informal process is negotiation. The decisions made in this quick process are typically not enforceable against the parties. The decision can now be accepted or rejected by the parties at any time within a fully self-built process, which allows for process withdrawal at any time.
  6. Improvement in Relations: There is potential for improvement in the relationships between the parties once the negotiating process has been effectively concluded. Additionally, it makes the process of negotiating for any additional schooling easier..

Disadvantages of Negotiation:

  1. Power Tactic :The parties to discussions do not necessarily need to be of equal strength and influence. Therefore, in the absence of a disinterested third party, the party that is in a position to dominate the other uses that dominance to secure the other party’s assent and reach a settlement. As a result, an unjust arrangement is reached, which is eventually useless..
     
  2. Impasse: A deadlock situation can occasionally result from differences and disagreements between the parties. During the negotiation process, there may be an impasse where the parties are unable to continue the conversation because they are both at a standstill. When there are no potential positive consequences, this stage can be exceedingly frustrating. This typically occurs when one party is so dogmatic in pursuit of its objective that compromise is impossible. In the end, a walkout occurs as a result of this. 
  3. Backing Off: Negative relations between the parties are created by a failed negotiation, and any business or contractual relationships are afterwards terminated. It also occurs that the parties occasionally lose faith in the negotiating process as a means of resolving their differences and look into alternative methods.
  4. Not all issues are Negotiable: There are a number of situations where the home negotiating procedure involves numerous parties and cannot be made applicable, and such situations can proceed directly to court for the conclusions..

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