Negotiating and Bargaining

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What is Negotiating?

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.

Key Aspects of Negotiation

The following things are the main characteristics of negotiating:

• UNDERSTANDING INTERESTS: Effective negotiators focus on underlying interests, not just positions. What truly matters to each party?
• BUILDING RAPPORT: Creating a positive and respectful atmosphere fosters trust and facilitates open communication.
• EXCHANGING OFFERS AND COUNTEROFFERS: Negotiators present their desired outcomes and respond to proposals from the other side with counteroffers.
• CONCESSIONSAND TRADE-OFFS: Reaching an agreement often requires strategic concessions on less important points in exchange for gaining on priorities.

2 Views on Negotiation

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?

Bargaining 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 typically involves a focus on price and securing the best possible deal for oneself, often with a fixed good or service in mind. Bargaining has 2 main characteristics:

• HAGGLING OVER THE PRICE: The primary focus is on obtaining the lowest price for a product or service.
• LIMITED FLEXIBILITY: Bargainers often have a fixed price point in mind and are less open to considering the other party's needs.

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?

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 productive.

The underlying force behind the collective action is the assumption - valid enough - that the employees and employer have vital common interests.

Forum Forum about Negotiating and Bargaining. 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... 15   7 comments 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... 11   1 comments Tripartite Social Dialogue to Build Trust and Collaboration Among Government, Business and Labour National tripartite social dialogue brings together government, workers and employers to discuss public policies, laws and other decision-making that affects these social partners. Tripartite consulta... 11   2 comments 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... 10   5 comments 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... 9   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... 7   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... 7   2 comments Stages in the Negotiation Process (Manning & Robertson) Negotiation should be viewed as a process of compromise, involving parties with different sets of objectives and values, based on their different vested interests. It is assumed that more effective n... 6   How to Avoid Legal Pitfalls of Negotiating Contracts? Every aspect of a business requires contracts of some kind, which have to be negotiated before signing them. Sometimes contract negotiations can be tricky, particularly for businesses in which the man... 5   🔥 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 ... 4   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... 3   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 ... 3   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... 3   2 comments Collective Bargaining : Role of Chairman? What is the role of the chair person in any collective bargaining process?... 3   1 comments Influence of Collective Bargaining in Public Sector In what ways could collective bargaining affect a government organization?... 1   Start a new topic about Negotiating and Bargaining Sign up for free

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Best Practices The best, top-rated topics about Negotiating and Bargaining. Here you will find the most valuable ideas and practical suggestions. 🥇 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... 33   14 comments 🥈 Communication Style in Negotiations: Tough or Nice? When bargaining or entering into a business negotiation, you have the choice between various styles. The Thomas-Kilmann Conflict Mode Instrument in fact distinguishes among 5 negotiating styles. But ... 24   13 comments 🥉 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 ... 20   9 comments 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... 15   4 comments Negotiating while Making Multiple Equivalent Simultaneous Offers: THE MESO STRATEGY In business negotiations, when each side roots firmly in its position, there seems to be no way forward. Medvec and Galinsky describe a strategy of "Multiple Equivalent Simultaneous Offers" (MESO) whi... 15   Issues in the Negotiation Process (Manning & Robertson) Negotiation should be viewed as a process of compromise, involving parties with different sets of objectives and values, based on their different vested interests. It is assumed that more effective n... 13   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... 12   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... 11   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 ... 11

Expert Tips Advanced insights about Negotiating and Bargaining. Here you will find professional advices by experts. Consultancy Tips Teaching Tips Practical Implementation Tips How to Prevent the Other Party in Negotiating from Lying 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... Do's and Dont's for Negotiating Across Cultures 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... How to Prepare for a Critical Negotiation Leadership, Crisis Management, Preparing for a Major Event, Preparing for a Pivotal Moment, Coaching, Negotiating When people are connected to their core self and values, they are more likely to achieve their best performance as they ... Tips for Integrative Negotiation Negotiating, Bargaining, Integrative Thinking Only a small number of negotiations are distributive, or single-issue negotiations. Far more commonly negotiations invol...

Information Sources Various sources of information regarding Negotiating and Bargaining. Here you will find powerpoints, videos, news, etc. to use in your own lectures and workshops. An Outline of Negotiation and Bargaining Strategies and Tactics Bargaining, Negotiation Strategy, Negotiation Strategies, Dual Concerns, Avoid, Compete, Collaborate, Accomodate Presentation that distinguishes various negotiation strategies, including the following sections: 1. Introduction 2. N... Visions on Managers and Negotiators Negotiating, Management, Leadership, Workshops, Trainings This superb presentation outlines the roles and tasks that managers perform. The presentation includes views of importan... Framing in the Context of Conflicts 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... Communication and Negotiation in a Cross-cultural Context Cross-Cultural Communication, Cross-Cultural Negotiation Presentation about Communications and Negotiations Across Different Cultures. The presentation includes the following se... Group Conflicts, Group Cohesion and Groupthink in Decision Making Group Decision Making, Conflicts in Groups, Cohesion of Groups, Groupthink Presentation about conflicts and cohesion in groups, and how it influences decision making. The presentation includes th... Employee Relations / Labor Relations Relationship Management, Employee Relationship This presentation provides you with information about employee relationships within organizations and union environments... Introduction and Summary of Collective Bargaining Initial Understanding of Collective Bargaining Collective Bargaining is not easy and is never fast. But it works. This animation shows why and describes the process f...

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