Negotiation Basics

Key Concepts Covered

  1. Negotiation as a Process – Always think of a negotiation as a process rather than an act. When you are negotiating you are going through the process, hence it is not relevant what each specific interaction results are hence those are just components, specific acts in the process.
  2. Approaches to Resolving Disputes – We need to negotiate when there is a dispute between us and the other party. There are three different pillars to base you negotiation though:
    • Interest-based Negotiation – trying to reconcile interests
      • Cost: $
    • Rights-based Negotiation – determining rights (often resorting to contracts, lawyers, etc)
      • Cost: $$
    • Power-based Negotiation – determining who is more powerful
      • Cost: $$$
  3. Choosing the Approach – The choice of approach – interest, rights, or power – depends on what we really want and what is important for us – below are some examples. Generally, try to start with Interest, then if that doesn’t work you move towards Rights and finally if it comes to that the Power approach is to be used. There could be other sequences though and all depends on your situation / requirements – i.e. sometimes it is Power – Rights – Interest, all depends on circumstances and the ability to engage the other party in the Interest based negotiation upfront. Again think of what is important for you in a specific negotiation:
    • Transaction costs
    • Satisfaction with outcome(s)
    • Effect on the relationship with the other party
    • Recurrence
  4. Understand the Factors Influencing Negotiation Strategy Choice
Visual Aid 14: Negotiation Strategies

5. Negotiation Checklist

Exhibit 1 – Negotiation Checklist

Task to Prepare

Each student will be required to provide a short clip (could be one from Youtube, or similar platforms) where there is some kind of a negotiation process taking place. Each student will show his/her clip via sharing the screen and afterwards he or she is to comment on which negotiation approach is used in the example provided.

It could be anything from a movie clip to a tv show moment or a political debate – as long as it shows what the dispute is all about and some elements to negotiate over the dispute.