Negotiation is a means of resolving differences between people. In the process of negotiation, not only are different opinions are taken into account, but also individual needs, aims, interests and differences in background and culture. This lesson looks at different ways we may negotiate including the WIN-LOSE approach, also known as bargaining or haggling, and the WIN-WIN approach to negotiation, which is preferable when you want to build a meaningful and strong interpersonal relationship.
Negotiation is sometimes seen in terms of ‘getting your own way’, ‘driving a hard bargain’ or ‘beating off the opposition’. While in the short term bargaining may well achieve the aims for one side, it is also a WIN-LOSE approach. This means that while one side wins the other loses and this outcome may well damage future relationships between the parties. It also increases the likelihood of relationships breaking down, of people walking out or refusing to deal with the ‘winners’ again, and the process ending in a bitter dispute.
WIN-LOSE bargaining is probably the most familiar form of negotiating that is undertaken. Individuals decide what they want, then each side takes up an extreme position, such as asking the other side for much more than they expect to get. Through haggling – the giving and making of concessions – a compromise is reached, and each side’s hope is that this compromise will be in their favor.
A typical example is haggling over the price of a car:
“What do you want for it?”
“I couldn’t let it go for under $2,000.”
“I’ll give you $1,000.”
“You must be joking.”
“Well, $1,100 and that’s my limit.”
“$1,900” … “$1,300” … “$1,700” ... “$1,500” … “Done.”
Both parties need good assertiveness skills to be able to barter or haggle effectively.
While this form of bargaining may be acceptable in the used car market, for most situations it has drawbacks. These can have serious consequences if applied to social situations.
While there are times when bargaining is an appropriate means of reaching an agreement, such as when buying a used car, generally a more sensitive approach is preferable. Negotiation concerning other people’s lives is perhaps best dealt with by using an approach which takes into account the effect of the outcome on thoughts, emotions and subsequent relationships.
Many professional negotiators prefer to aim towards what is known as a WIN-WIN solution. This involves looking for resolutions that allow both sides to gain. Negotiators aim to work together towards finding solution to their differences that result in both sides being satisfied.
Key points when aiming for a WIN-WIN outcome include:
This means not allowing the disagreement to damage the interpersonal relationship, not blaming the others for the problem and aiming to confront the problem not the people. This can involve actively supporting the other individuals while confronting the problem.
Disagreements and negotiations are rarely ‘one-offs’. At times of disagreement, it is important to remember that you may well have to communicate with the same people in the future. For this reason, it is always worth considering whether ‘winning’ the particular issue is more important than maintaining a good relationship.
All too often disagreement is treated as a personal affront. Rejecting what an individual says or does is seen as rejection of the person. Because of this, many attempts to resolve differences degenerate into personal battles or power struggles with those involved getting angry, hurt or upset.
Remember negotiation is about finding an agreeable solution to a problem, not an excuse to undermine others, therefore, to avoid negotiation breaking down into argument, it is helpful to consciously separate the issues under dispute from the people involved. For example, it is quite possible to hold people in deep regard, to like them, to respect their worth, their feelings, values and beliefs, and yet to disagree with the particular point they are making. One valuable approach is to continue to express positive regard for an individual, even when disagreeing with what he/she is saying.
Here are some examples of statements that might be used by a good negotiator:
Xcite™ believes that another way of avoiding personal confrontation is to avoid blaming the other party for creating the problem. It is better to talk in terms of the impact the problem is having personally, or on the organization or situation, rather than pointing out any errors.
Instead of saying:
the same point could be presented as,
By not allowing ‘disagreements over issues’ to become ‘disagreements between people’, a good relationship can be maintained, regardless of the outcome of the negotiation.
Rather than focusing on the other side’s stated position, consider the underlying interests they might have. What are their needs, desires and fears? These might not always be obvious from what they say. When negotiating, individuals often appear to be holding on to one or two points from which they will not move.
For example, in a work situation an employee might say “I am not getting enough support” while the employer believes that the person is getting as much support as they can offer and more than others in the same position. However, the employee's underlying interest might be that he or she would like more friends or someone to talk to more often. By focusing on the interests rather than the positions, a solution might be that the employer refers the employee to a befriending organization so that his or her needs can be met.
Focusing on interests is helpful because:
Most people have an underlying need to feel good about themselves and will strongly resist any attempt at negotiation that might damage their self-esteem. Often their need to maintain feelings of self-worth is more important than the particular point of disagreement. Therefore, in many cases, the aim will be to find some way of enabling both sides to feel good about themselves, while at the same time not losing sight of the goals.
If individuals fear their self-esteem is at risk, or that others will think less highly of them following negotiation, they are likely to become stubborn and refuse to move from their stated position, or become hostile and offended and leave the discussion.
Understanding the emotional needs of others is an essential part of understanding their overall perspective and underlying interests. In addition to understanding others’ emotional needs, understanding of your own emotional needs are equally important. It can be helpful to discuss how everyone involved feels during negotiation.
Another key point is that decisions should not be forced upon others. This is a negotiation. Both sides will feel much more committed to a decision if they feel it is something they have helped to create and that their ideas and suggestions have been taken into account.
It is important to clearly express your own needs, desires, wants and fears so that others can also focus on your interests.
Generate a Variety of Options that Offer Gains to Both Sides
Rather than looking for one single way to resolve differences, it is worthwhile considering a number of options that could provide a resolution and then to work together to decide which is most suitable for both sides. Techniques such as brainstorming could be used to generate different potential solutions. In many ways, negotiation can be seen as a problem solving exercise, although it is important to focus on all individuals’ underlying interests and not merely the basic difference in positions.
Xcite™ believes that good negotiators will spend time finding a number of ways of meeting the interests of both sides rather than meeting self-interest alone and then discussing the possible solutions.
Aim for the Result to be Based on an Objective Standard
Having identified and worked towards meeting shared interests, it is often inevitable that some differences will remain. Rather than resorting to a confrontational bargaining approach, which may leave individuals feeling let-down or angry, it can be helpful to seek some fair, objective and independent means of resolving the differences.
It is important that such a basis for deciding is:
If no resolution can be reached, it may be possible to find some other, independent party whom both sides will trust to make a fair decision.
Other sources of help who might assist in situations which cannot be resolved include:
Before turning for help from such sources however, it is important to agree that this approach is acceptable to both sides.
In the proceeding lesson you will learn about Avoiding Misunderstandings in Negotiation.
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