Negotiation
Negotiation is a dialogue between two or more parties to resolve points of difference, gain an advantage for an individual or collective, or craft outcomes to satisfy various interests.
[1] Distributive negotiations, or compromises, are conducted by putting forward a position and making concessions to achieve an agreement.
[2][3] Negotiations may occur in organizations, including businesses, non-profits, and governments, as well as in sales and legal proceedings, and personal situations such as marriage, divorce, parenting, friendship, etc.
Distributive negotiation operates under zero-sum conditions, where it is assumed that any gain made by one party will be at the expense of the other.
In a distributive negotiation, each side often adopts an extreme or fixed position that they know will not be accepted, and then seeks to cede as little as possible before reaching a deal.
[12] Since prospect theory indicates that people tend to prioritize the minimization of losses over the maximization of gains, this form of negotiation is likely to be more acrimonious and less productive in agreement.
While concession by at least one party is always necessary for negotiations,[16] research shows that people who concede more quickly are less likely to explore all integrative and mutually beneficial solutions.
Negotiating parties may begin with a draft text, consider new textual suggestions, and work to find the middle ground among various differing positions.
Other more specific examples are United Nations' negotiation regarding the reform of the UN Security Council[21] and the formation of the international agreement underpinning the Regional Comprehensive Economic Partnership (RCEP) in the Asia-Pacific Region,[22] where the parties involved failed in 2019 to agree on a text which would suit India.
[25] The principle formed part of the British negotiating approach for the Brexit deal following the UK's withdrawal from the European Union.
The leverage gained in these rail negotiations more than offset the additional operating costs of sending his oil to Cleveland for refining, helping establish Rockefeller's empire, while undermining his competitors who failed to integrate their core operating decisions with their negotiation strategies.
The substance refers to what the parties negotiate over: the agenda, the issues (positions and – more helpfully – interests), the options, and the agreement(s) reached at the end.
[54] The dual-concern model of conflict resolution is a perspective that assumes individuals' preferred method of dealing with conflict is based on two themes or dimensions:[55] Based on this model, individuals balance their concern for personal needs and interests with the needs and interests of others.
[75][page needed] Emotions play an important part in the negotiation process, although it is only in recent years that their effect is being studied.
Negative emotions can cause intense and even irrational behavior and can cause conflicts to escalate and negotiations to break down, but may be instrumental in attaining concessions.
On the other hand, positive emotions often facilitate reaching an agreement and help to maximize joint gains, but can also be instrumental in attaining concessions.
Positive and negative discrete emotions can be strategically displayed to influence task and relational outcomes[77] and may play out differently across cultural boundaries.
Even before the negotiation process starts, people in a positive mood have more confidence,[82] and higher tendencies to plan to use a cooperative strategy.
[79] This, in turn, increases the likelihood that parties will reach their instrumental goals, and enhance the ability to find integrative gains.
[79] Those favorable outcomes are due to better decision-making processes, such as flexible thinking, creative problem-solving, respect for others' perspectives, willingness to take risks, and higher confidence.
[85] The PA aroused by reaching an agreement facilitates the dyadic relationship, which brings commitment that sets the stage for subsequent interactions.
[89] A possible implication of this model is, for example, that the positive effects of PA have on negotiations (as described above) are seen only when either motivation or ability is low.
[85] In a study by Butt et al. (2005) that simulated real multi-phase negotiation, most people reacted to the partner's emotions in a reciprocal, rather than complementary, manner.
Specific emotions were found to have different effects on the opponent's feelings and are strategies chosen: Negotiation is a complex interaction.
Research by Daniel Thiemann, which largely focused on computer-supported collaborative tasks, found that the Preference Awareness method is an effective tool for fostering knowledge about joint priorities and further helps the team judge which negotiation issues were of the highest importance.
[95] Women often excel in collaborative and integrative negotiations, where they can leverage their strong communication skills and empathy to find mutually beneficial solutions.
[99] Research also supports the notion that the way individuals respond in a negotiation varies depending on the gender of the opposite party.
For these faculties, where their research requires equipment, space, and/or funding, negotiation of a "start-up" package is critical for their success and future promotion.
[100][101] Also, department chairs often find themselves in situations, typically involving resource redistribution where they must negotiate with their dean, on behalf of their unit.
Techniques found to be particularly useful in academic settings include:[100][101] The word "negotiation" originated in the early 15th century from the Old French negociacion from Latin negotiatio from neg- "no" and otium "leisure".
