Negotiation Essay

1556 Words Jan 10th, 2011 7 Pages
Negotiation is a form of decision making in which two or more parties talk with one another in an effort to resolve their opposing interest.

Bargaining vs negotiation

Competitive refer to win-win situation such as those that occur when parties are trying to

Win-lose situations find a mutually acceptable solution to a complex conflict.

Reasons for Negotiation

1. To agree on how to share or divide a limited resource

2. To create something new that neither party could do on or her own

3. To resolve a problem or dispute between the parties.

Several Characteristics Of Negotiation Situation:

1. There are two or more parties. Although people can negotiate with themselves negotiation is considered a process between
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When the parties depend on each other to achieve their own preferred outcome they are interdependent.


1. Zero sum or distributive situation

-when the goals of two or more people are interconnected so that only one can achieve the goal

-individuals are so liked together that there is a negative coordination between their goal attainments

2. Non-zero sum or integrative situation

-goals are linked so that one person’s goal achievement helps others to achieve their goals

-positive correlation between goal attainments of both parties.

Mutual Adjustment

Both parties can influence the other’s outcomes and decisions, and their own outcomes and decisions can be influenced by other. Mutual adjustment continues throughout the negotiation as both parties act to influence the other. It is important to recognize that negotiation is a process that transforms over time, and mutual adjustment is one of the key causes of the changes that occur during negotiation.

Two Dilemmas In Mutual Adjustments

1. Dilemma of honesty- how much should negotiators believe what the other party tells them.

2. Dilemma of trust- how much should negotiators believe what the other party tells them.

Satisfaction with negotiation is as much determined by the process through which an agreement is reached as with the actual outcome obtained.

Value Claiming and Value Creation

Distributive bargaining (distributive situation)

Accepts the fact that there can

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