Negotiation Types, Strategies and Key Process Components
Types of Negotiation
Types of negotiation:
- Bilateral: Between two parties.
- Multilateral: More than two parties (more people, more difficult).
Negotiation by Strategy
By strategy:
- Competition / Distribution: Power confrontation.
- Cooperation / Integration: Both sides profit.
- Mixed: They combine the two approaches.
Negotiators
Negotiators: Negotiations are conducted by the people involved or by their representatives.
Business Negotiations
In business, negotiations include:
- Politics / International: Performed by experts in politics or international relations.
- Commercial: Frequently occurring in business transactions.
- Education: Between employers and employees; can establish working conditions.
Components of Negotiation Processes
Components of negotiation processes:
- Subject to negotiation: Each of the people who debate an issue may defend their own interests or those of others; outcomes depend on their ability to achieve success.
- Delegation: Makes lengthy or involved processes more fluid by allowing people who know most of the case to act for greater success.
- Subject and theme: The purpose of negotiation, i.e., the issue on which the parties seek to obtain a common position.
- Controversy: The part of the negotiation where differing positions are expressed.
- Agreement: When all sides find their position. Can be documented in writing. (Name of the negotiators, position held, agreements reached, conditions and obligations, supplementary agreements, guarantee to ensure compliance, duration of the agreement, signature) — see p. 163 (look pág.163).
Documentation of Agreements
The documentation of the agreement can take:
- Written contract or agreement: To document the obligations.
- Treaty: To record the agreements reached.
Factors of Negotiation
Factors of negotiation:
- Personal factors:
Personal Factors
- Training: Companies require workers who possess certain social skills.
- Capacity to dialogue: A good negotiator must explain convincingly but also include or consider opposing views.
- Intuition: Ability to anticipate the other side's ideas.
External Factors
- Information: You must obtain information because it is critical to the process; learn about the opposing party and the subject matter.
- Domain level: One party may hold more information than the other and thus take advantage when proposing solutions.
- Degree of dependence / independence: Dependence on the object should never be demonstrated; if dependence is proved, the opponent may take advantage.
- Environment: Refers to the place in which negotiations occur. For the benefit of both parties, negotiations should take place in a neutral place.
- Time: The time available to achieve a common agreement is fundamental.