Negotiation in Employee Relations (Blog 4)

Definition of Negotiation

Negotiation is a process between two or more different people or parties intended to reach an understanding, to produce an agreement to find a mutually acceptable solution and satisfy various interests of two people/parties involved in negotiation process. Negotiation is not about maximizing individual gain but about looking for “joint gain”( Menkel-Meadow, 2006). Both or all of the parties aim to win as much as they can from the other while giving away as little as possible (Armstrong, 2006). Lewicki and Hiam (2006) point out that there are four main concerns in any negotiation:

1. Being clear about your goals,
2. Being aware of emotional goals,
3. Recognizing the desired outcomes that are consistent with those goals,
4. Being attentive to the relationship with the other party.

Negotiation Process

skillsyouneed (2011) described stages in the process of negotiation. According to them In Preparation stage, it involves ensuring all the pertinent facts of the situation are known in order to clarify your own position. Undertaking preparation before discussing the disagreement will help to avoid further conflict and unnecessarily wasting time during the meeting. Sometimes it is helpful to take notes during the Discussion stage to record all points put forward in case there is need for further clarification. Through Clarification stage, it is often possible to identify or establish some common ground and goals and viewpoints of both side of the disagreement need to be clarified. Win-win outcome is usually the best result although this may not always be possible. Agreement can be achieved once understanding of both side’s viewpoints and interests has been considered. From the agreement, a Course of Action has to be implemented to carry through the decision. 

Figure 1: Negotiation process

(Source : ISM Dubai)

According to above processes in all steps of a negotiation, the involved parties bargain at a systematic way to decide how to allocate scarce resources and maintain each other’s interest.

Negotiating Skills

Figure 2 : Negotiation Skills
(Source : BusinessPhrases.Net)

Armstrong (2006) describe negotiation skills as,

• Analytical ability – the capacity to assess the key factors which will affect the negotiating stance and tactics of both sides, and to use this assessment to ensure that all the facts and argument that can be used to support the negotiator’s case;

• Empathy – the ability to put oneself in the other party’s shoes to understand not only what they are hoping to achieve but also why they have these expectations and the extent to which they are determined to fulfil them;

• Planning ability – to develop and implement negotiating strategies and tactics but to be prepared to be flexible about the tactics in the light of developments during negotiations;

• Interactive skills – the capacity to relate well with other people, to be persuasive without being domineering, to respond quickly to changing moods and reactions so that the opportunity can be seized to make progress towards consensus;

• Communicating skills – the ability to convey information and arguments clearly, positively and logically while also being prepared to listen to the other side and to respond appropriately.

References :

• Armstrong, M. (2006) ‘A Handbook of Human Resource Management Practice’, 10th edn., London, Kogan Page, pp. 796-804.

• Lewicki, R. J. and Hiam, A. (2006) 'Mastering business negotiation: a working guide to making deals and resolving conflict', Josey-Bass, San Francisco, CA.

• Menkel-Meadow, C. (2006) 'Why hasn’t the world gotten to yes? An appreciation and some reflections'. Negotiation Journal, 22(4): pp. 485–503.

• skillsyouneed (2011). SkillsYouNeed. [Online] Available at: https://www.skillsyouneed.com/ips/negotiation.html [Accessed on: 01 September 2018].

• Figure 1 : ISM Dubai [Online] Available at: http://ismdubai.com/blog/negotiation-skills/  [Accessed on: 01 September 2018].

• Figure 2 : BusinessPhrases.Net [Online] Available at: https://www.businessphrases.net/negotiation-skills/  [Accessed on: 01 September 2018].