Negotiation 1. The Nature Of Negotiation

Chapter 1. The Nature Of Negotiation

People are always in negotiation and the structure and processes of negotiation are fundamentally the same at the personal level as they are at the diplomatic and corporate levels. Negotiations occurs for one of two reasons
1) To create something new that neither party could do on his or her own or
2) To resolve a problem or dispute between the parties.
This chapter basically comes across the words bargaining and negotiations often interchangeably. Negotiation is a more formal process that occurs when parties are trying to find a mutually acceptable solution to a complex conflict.
Characteristics of a negotiation situation are as follows
1) There are two and more parties
2) There is a conflict of interest between two or more parties
3) The parties tries to negotiate because they want to influence each other
4) In between two parties or more one of the party might be ready for agreement rather than to fight openly have one side capitulate permanently break off contact or take their dispute to a higher authority to resolve it.
5) In negotiation there is always give and take
6) Successful negotiation involves the management of intangibles as well as the resolving of tangibles
The situation of mutual dependency is called interdependence. In negotiation both parities need each other. Interdependent relations are complex and have their own special challenge. Hence, managing and dealing with those option s can be difficult however because of the complexity of the interdependent relationship Interdependent relationships are characterized by interlocking goals. The parties need other to accomplish their goals. Interdependance may be “ win-loose” or :”win-win” situation where in the case the 0nly one party gains the more the other party loose and in the last case both the party can be in the benefit.
The mutual adjustment continues throughout the negotiation as both parties’ acts to influence the other. Interdependent relationships those in which people are mutually dependent are complex. Problem solving is essentially a process of specifying the elements of a desired outcome examining the components available to produce the outcomes. IN every negotiation there might be dilemma of honesty and dilemma of trust may be happen.
Identifying systematic biases in negotiators initial perception of the nature of the interdependence between the negotiating parties is the key thing. One of he main source of value creation is contained tint he differences that exist between negotioators. There are many types of differences
Differences in interprets
Differences in opinions
Differences in risk aversion
Differences in time preference

The other potential consequence of inter-dependent relationship is conflict .Conflict can occur when the two parties working toward the same goal and generally
Want the same outcomes
Conflict can be one of the following
1 interpersonal or
2-intra personal
3intra group
4 inter-groups

I t is not proper to judge conflict as bad thing because a lot of improvements can be done because of conflict.
Conflict management is the way that the parties themselves cab manage conflict. Two dimensional framework also called dual concerns mod
el best defines the conflict management process There are five major strategies for conflict management have been commonly identifies in dual concern model
1) Contending
2) Yielding
3) Inaction
4) Problem solving
5) Compromising