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Unit 14: Conflict and Negotiation

14.7 Elements of Negotiation Notes

Most of the descriptions given above basically identify the following elements in the process of
negotiation:

1. People generally do not negotiate with themselves. All negotiations involve transactions
between a minimum of two individuals/groups. However, in some situations, it could be
more than two individuals/groups. For example, in India, differences between labour and
management are often resolved with the involvement of the Government.

2. For negotiation to take place, there must exist a conflict of interest between two
individuals/parties. When they come to negotiate, they would like to find a solution that
would satisfy the individual interests of both the parties.

3. The reason why two individuals/groups opt for negotiation is because their relationship
is interdependent. One depends on the other for the satisfaction of his interests, which
cannot be taken care of by another individual or group. For instance, the union depends
on the management and the management is dependent on the workers who are represented
by the unions.
4. The process of negotiation begins by presentation of an initial demand/proposal which is
followed by a counter proposal by the other party. If this is followed by several proposals
and counter proposal, negotiation does not take place. Saying yes or no as opening move,
or tossing a coin and sticking to it does not constitute negotiation.
5. In all negotiations the concern is either for division and/or exchange of specific resources.
The first is a fixed pie situation where negotiation takes place for a share of the pie. The
second is simply a barter situation, where negotiation takes place as a process of give and
take.
6. Very often people negotiate on behalf of another person, organisation, or even a country,
called constituents. Often the constituents provide these negotiators the ranges within
which they are to settle the deal. However, in some cases no such ranges are provided and
the final deal is left to the judgement of the negotiators. In cases where the people actually
negotiate on behalf of someone, they have to be accountable to their constituents.

7. All negotiations do not always end up in a mutually satisfying memorandum of agreement.
Sometimes the negotiators get so involved with the issues that they are not able to go
beyond them. At this point of time, they may decide to involve mediation by a third party,
acceptable to both the parties in negotiation.

Hence, we see negotiation as a way of getting what one wants by presenting proposals and
counter proposals for division and/or exchange of resources in a mutually dependent relationship.
In case of parties failing, it provides the possibility of a third-party intervention.

Notes People generally do not negotiate with themselves. All negotiations involve
transactions between a minimum of two individuals/groups. However, in some situations,
it could be more than two individuals/groups.

14.8 Nature and Type of Negotiation

Like it or not, everybody is a negotiator. We use negotiation techniques almost every day. We
negotiated when we were kids trading sports cards or toys. We still do it today when we
negotiate with the boss for a salary raise, or to buy bigger toys like autos and the latest gimmicks.

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