NEGOTIATING

Negotiating

Executive Summary

Negotiation is an art of influencing each other to reach a mutually accepted conclusion. There are different approaches that negotiator employees for negotiations, however in this study, a case has been selected to apply zero sum distributive bargaining technique. The case is than analyzed from the perspective of winner and the loser, in order to find out what are the factors that make the losing party to agree on the terms of winning party. It has been found that even in the zero sum distributive bargaining, the interest of losing party is being fulfilled. In this study, the BATNA (best alternative to a negotiated agreement) has also been suggested for the case to reflect the understanding of writer about different negotiating techniques.Table of Contents

Introduction4

Distributive Bargaining5

The Case5

Theoretical Effect of This Case6

Advantages6

Disadvantages7

Key Goals from the Winners and Losers Perspective8

Key Goals from Devine's Perspective8

Key Goals from Peter's Perspective8

Possible Dysfunction of Conflict and Negative Consequences8

Step One: Separate the People from the Problem9

Cultural, Emotional, and Psychological Considerations10

Step Two: Focus on Interests, Not Positions10

Step Three: Invent Solutions for Mutual Gain12

Hardball Tactics13

The Concepts of BATNA13

What If I Will Be the Losing Party?15

Conclusion15

Negotiating

Introduction

The best way to reach any mutually accepted decision by two or more parties is negotiation. Adler (2006) Negotiation has always been considered as the best way to find a third way besides conflict and reconciliation. Negotiation's history is as old as the history of mankind. However, the term negotiation can be defined as the process of resolving any issue that generates the way acceptable by all the parties involved in the negotiation process. Skills of negotiation are imperative at present environment because it helps people to fulfill their interest without annoying other concerned persons. This subject has attracted researchers from every walk of life including but not limited to businessmen, military, police, society, states, diplomats and others. Although, numerous studies have been carried out in order to explicitly define this term, however, still the field of negotiation demands further research. (Cook, Hardin & Levy, 2007)

One factor, which rejected the effectiveness of previous studies, is the ever changing nature of the people. With the passage of time, the nature, behavior and attitudes of the people alter, thus studies in 80s cannot be applied to people living in this 2011. This factor demands the consistent monitoring of these changing factor and a better way to do so, is by analyzing the key challenges in this field of study. Hence, this study will attempt to explore key issues relating negotiating skills using a particular case of zero sum distributive bargaining situation, in order to provide not only the issues but solutions as well.

Distributive Bargaining

Distributive bargaining presumes a fixed and limited pool of resources to be divided. The goals of opposing parties in distributive negotiation are in direct conflict — a win for one side is a loss for the other. In the language of game theory or economics, the parties are in a zero-sum or constant sum interaction. Because the resource “pie” is fixed, relative gains are ...