NEGOTIATION AND THE NEGOTIATOR
Negotiation is the process of interacting with the goal of obtaining agreement or the
result you desire. It is an interpersonal skill that is not specific to any profession. It is an art,
which may be considered scientific as it involves application of different systematic principles
and rules through experience and training. Negotiations become complex as it involves
interaction between human beings. However, not everything is negotiable. If there is a potential
for mutual benefit exchange that makes both parties satisfied, then the matter should not be
negotiated.
Every person has a unique combination of traits that they may use while negotiation.
Generally, the following steps can be used for developing negotiating power:
1. Practice critical thinking and empathy
2. Study and understand key principles from psychological, sociological, communication
and conflict theories.
3. Know yourself
4. Understand the dynamics of conflict
5. Know where and when to apply major negotiation styles and temperaments
6. Communicate effectively, allowing different perceptions to come to light
7. Acknowledge cultural and contextual expectations
8. Understand dynamics of power
9. Identify interests and goals
10. Be assertive
11. Be persuasive
12. Be thoroughly prepared so that you avoid mistakes
13. Use tactics that suits your personality and understand tactics of others.
14. Know when to walk away from conflict
15. Know how to evaluate your performance and improve your mistakes.
MAJOR NEGOTIATING STYLES
There are four major negotiation styles that are based on the personality of the negotiator.
These are avoidance, competitive, compromising, and cooperative/collaborative.
Avoidance style in addressing conflict involves withdrawing or retreating from conflict.
It may be partial or may be complete. Behaviors that depict this style are sulking, making
sarcastic remarks, refraining from addressing the main issue etc. People with external locus of
control usually use this style in negotiation and remain at a disadvantage as this causes missed
opportunities and missed benefits.
Competitive style of negotiation is a win/lose approach. Behaviors that depict this style
are criticizing, defensiveness, stonewalling and contempt on both sides. People with high need
for power, control, achievement accompanied with low emotional stability mostly used this style.
However, they face a disadvantage as this approach is beneficial for one party only and
sometimes focus on winning causes a person to overlook important cues or information.
Compromising style is a middle-of-the-road approach where you give up something for
the other party while retaining your own needs as well. Behavior that supports this style is
agreeing openly on adjusting differences but being internally satisfied. People with need for
affiliation and external locus of control use this style. This style may be effective in situations
which are otherwise non-negotiable, however sometimes parties stand to lose their footing if they
compromise too much on their demands.
Collaborative style is a win/win approach. It is different from compromising style where
you give up something to achieve your outcome; whereas in collaborative style you create a
situation where both parties stand to benefit from the situation. Key behavior of these types of
negotiators are listening and expressing feelings and desires.
Case Example#1
You desire your work team to complete a project within the next two weeks. Doing so will
necessitate a great number of extra hours. In the past, all of the individuals involved have
expressed dislike for overtime and have gone to great lengths to avoid it.
1. Which negotiation style would you choose?
2. Why is that style appropriate?
3. What factors and issues can you think of that may indicate that a collaborative style
would be effective?
Case Example#2
Assume that you own an operating business and your production currently has 100,000 unsold
units. You have been selling your product at Rs. 500/- and expect to sell these units on same
price. You do not have storage capacity and you have exhausted all options for disposal of these
units. This morning has made contact and asked for these units but on a price of Rs. 300/- for
each unit.
1. How would you assess whether or not you should negotiate? Identify factors you would
consider for your decision.
2. What factors can you readily identify that will affect your negotiation options and
outcomes?
3. What unconscious factors might also affect your negotiation performance?
