Page 77 - DMGT519_Conflict Management and Negotiation Skills

Unit 4: Negotiation

(Bazerman & Neale, 1992). It is a challenge to develop a negotiation skill, set general enough to Notes
be used across different contexts, groups, and continents, but specialized enough to provide
meaningful behavioural strategies in any given situation. This book helps to develop such
skills.

4.6 Preconditions for Negotiations

1. There must be two or more parties which have either conflict or disagreement.

2. There must be a perceived conflict of needs, positions and interests.
3. There must be interdependence so that the outcome must be satisfying to all parties.
4. Agreement must be required to be reached within reasonable time, so that it becomes
beneficial to parties.
5. The success of negotiation depends on the facts that:
(i) The issue is negotiable.

(ii) The negotiators are not only taking but giving also.
(iii) The negotiator’s parties must trust each other to some extent.
(iv) There is a fear that failure may lead to crisis.

4.7 Elements of Negotiation

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

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