- For Wikipedia's negotiation policy, see . For other uses, see Negotiation (disambiguation).
Negotiation is a dialogue intended to resolve disputes, to produce an agreement upon courses of action, to bargain for individual or collective advantage, or to craft outcomes to satisfy various interests. It is the primary method of alternative dispute resolution.
Negotiation occurs in business, non-profit organizations, government branches, legal proceedings, among nations and in personal situations such as marriage, divorce, parenting, and everyday life. The study of the subject is called negotiation theory. Those who work in negotiation professionally are called negotiators. Professional negotiators are often specialized, such as union negotiators, leverage buyout negotiators, peace negotiators, hostage negotiators, or may work under other titles, such as diplomats, legislators or brokers.
The word "negotiation" is from the Latin, "negotium".
Approaches to negotiation
Negotiation typically manifests itself with a trained negotiator acting on behalf of a particular organization or position. It can be compared to mediation
where a disinterested third party listens to each sides' arguments and attempts to help craft an agreement between the parties. It is also related to arbitration
which, as with a legal proceeding, both sides make an argument as to the merits of their "case" and then the arbitrator decides the outcome for both parties.
Negotiation involves three basic elements: process, behavior and substance. The process refers to how the parties negotiate: the context of the negotiations, the parties to the negotiations, the tactics used by the parties, and the sequence and stages in which all of these play out. Behavior refers to the relationships among these parties, the communication between them and the styles they adopt. 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.
Skilled negotiators may use a variety of tactics ranging from negotiation hypnosis, to a straight forward presentation of demands or setting of preconditions to more deceptive approaches such as cherry picking. Intimidation and salami tactics may also play a part in swaying the outcome of negotiations.
The advocate's approach
In the advocacy approach, a skilled negotiator usually serves as advocate for one party to the negotiation and attempts to obtain the most favorable outcomes possible for that party. In this process the negotiator attempts to determine the minimum outcome(s) the other party is (or parties are) willing to accept, then adjusts their demands accordingly. A "successful" negotiation in the advocacy approach is when the negotiator is able to obtain all or most of the outcomes their party desires, but without driving the other party to permanently break off negotiations, unless the best alternative to a negotiated agreement
(BATNA) is acceptable.
Traditional negotiating is sometimes called win-lose because of the assumption of a fixed "pie", that one person's gain results in another person's loss. This is only true, however, if only a single issue needs to be resolved, such as a price in a simple sales negotiation.
The "win/win" negotiator's approach
During the early part of the twentieth century, academics such as Mary Parker Follett
developed ideas suggesting that agreement often can be reached if parties look not at their stated positions but rather at their underlying interests and requirements to reach a decision that benefits both parties.
During the 1960s, Gerard I. Nierenberg recognized the role of negotiation in resolving disputes in personal, business and international relations. He published The Art of Negotiating, where he states that the philosophies of the negotiators determine the direction a negotiation takes. His Everybody Wins philosophy assures that all parties benefit from the negotiation process which also produces more successful outcomes than the adversarial “winner takes all” approach.
In the 1970s, practitioners and researchers began to develop win-win approaches to negotiation. Win-win is taken from Economic Game Theory, and has been adopted by negotiation North American academics to loosely mean Principled Negotiation. Getting to YES was published by Roger Fisher and William Ury as part of the Harvard negotiation project. The book's approach, referred to as Principled Negotiation, is also sometimes called mutual gains bargaining. The mutual gains approach has been effectively applied in environmental situations (see Lawrence Susskind and Adil Najam) as well as labor relations where the parties (e.g. management and a labor union) frame the negotiation as "problem solving". If multiple issues are discussed, differences in the parties' preferences make win-win negotiation possible. For example, in a labor negotiation, the union might prefer job security over wage gains. If the employers have opposite preferences, a trade is possible that is beneficial to both parties. Such a negotiation is therefore not an adversarial zero-sum game.
There are a tremendous number of other scholars who have contributed to the field of negotiation, including Gerard E. Watzke at Tulane University, Sara Cobb at George Mason University, Len Riskin at the University of Missouri, Howard Raiffa at Harvard, Robert McKersie and Lawrence Susskind at MIT, and Adil Najam and Jeswald Salacuse at The Fletcher School of Law and Diplomacy.
Other Negotiation Styles
Shell identified five styles/responses to negotiation. Individuals can often have strong dispositions towards numerous styles; the style used during a negotiation depends on the context and the interests of the other party, among other factors. In addition, styles can change over time.
1. Accommodating: Individuals who enjoy solving the other party’s problems and preserving personal relationships. Accommodators are sensitive to the emotional states, body language, and verbal signals of the other parties. They can, however, feel taken advantage of in situations when the other party places little emphasis on the relationship.
2. Avoiding: Individuals who do not like to negotiate and don’t do it unless warranted. When negotiating, avoiders tend to defer and dodge the confrontational aspects of negotiating; however, they may be perceived as tact and diplomatic.
3. Collaborating: Individuals who enjoy negotiations that involve solving tough problems in creative ways. Collaborators are good at using negotiations to understand the concerns and interests of the other parties. They can, however, create problems by transforming simple situations into more complex ones.
4. Competing: Individuals who enjoy negotiations because they present an opportunity to win something. Competitive negotiators have strong instincts for all aspects of negotiating and are often strategic. Because their style can dominate the bargaining process, competitive negotiators often neglect the importance of relationships.
5. Compromising: Individuals who are eager to close the deal by doing what is fair and equal for all parties involved in the negotiation. Compromisers can be useful when there is limited time to complete the deal; however, compromisers often unnecessarily rush the negotiation process and make concessions too quickly.
Emotion in negotiation
play an important part in the negotiation process, although it is only in recent years that their effect is being studied. Emotions have the potential to play either a positive or negative role in negotiation. During negotiations, the decision as to whether or not settle, rests in part on emotional factors. Negative emotions can cause intense and even irrational behavior, and can cause conflicts to escalate and negotiations to break down, while positive emotions facilitate reaching an agreement and help to maximize joint gains.
Dispositional affects affect the various stages of the negotiation process: which strategies are planned to be used, which strategies are actually chosen, the way the other party and its intentions are perceived, the willingness to reach an agreement and the final outcomes. Positive affectivity (PA) and negative affectivity (NA) of one or more of the negotiating sides can lead to very different outcomes.
Positive affect in negotiation
Even before the negotiation process starts, people in a positive mood have more confidence, and higher tendencies to plan to use a cooperative strategy. During the negotiation, negotiators who are in a positive mood tend to enjoy the interaction more, show less contentious behavior, use less aggressive tactics and more cooperative strategies. This in turn increases the likelihood that parties will reach their instrumental goals, and enhance the ability to find integrative gains. Indeed, compared with negotiators with negative or natural affectivity, negotiators with positive affectivity reached more agreements and tended to honor those agreements more.
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.
Post negotiation positive affect has beneficial consequences as well. It increases satisfaction with achieved outcome and influences one’s desire for future interactions. The PA aroused by reaching an agreement facilitates the dyadic relationship, which result in affective commitment that sets the stage for subsequent interactions.
PA also has its drawbacks: it distorts perception of self performance, such that performance is judged to be relatively better than it actually is. Thus, studies involving self reports on achieved outcomes might be biased.
Negative affect in negotiation
Negative affect has detrimental effects on various stages in the negotiation process. Although various negative emotions affect negotiation outcomes, by far the most researched is anger
. Angry negotiators plan to use more competitive strategies and to cooperate less, even before the negotiation starts. These competitive strategies are related to reduced joint outcomes.
During negotiations, anger disrupts the process by reducing the level of trust, clouding parties' judgment, narrowing parties' focus of attention and changing their central goal from reaching agreement to retaliating against the other side. Angry negotiators pay less attention to opponent’s interests and are less accurate in judging their interests, thus achieve lower joint gains. Moreover, because anger makes negotiators more self-centered in their preferences, it increases the likelihood that they will reject profitable offers.
Anger doesn’t help in achieving negotiation goals either: it reduces joint gains and does not help to boost personal gains, as angry negotiators don’t succeed in claiming more for themselves. Moreover, negative emotions lead to acceptance of settlements that are not in the positive utility function
but rather have a negative utility
. However, expression of negative emotions during negotiation can sometimes be beneficial: legitimately expressed anger can be an effective way to show one's commitment, sincerity, and needs. Moreover, although NA reduces gains in integrative tasks, it is a better strategy than PA in distributive tasks (such as zero-sum
Conditions for emotion effect in negotiation
Research indicates that negotiator’s emotions do not necessarily affect the negotiation process.
Albarracın et al. (2003) suggested that there are two conditions for emotional effect, both related to the ability (presence of environmental or cognitive disturbances) and the motivation:
- Identification of the affect: requires high motivation, high ability or both.
- Determination that the affect is relevant and important for the judgment: requires that either the motivation, the ability or both are low.
According to this model, emotions are expected to affect negotiations only when one is high and the other is low. When both ability and motivation are low the affect will not be identified, and when both are high the affect will be identify but discounted as irrelevant for judgment.
A possible implication of this model is, for example, that the positive effects PA has on negotiations (as described above) will be seen only when either motivation or ability are low.
The effect of the partner’s emotions
Most studies on emotion in negotiations focus on the effect of the negotiator’s own emotions on the process. However, what the other party feels might be just as important, as group emotions
are known to affect processes both at the group and the personal levels.
When it comes to negotiations, trust in the other party is a necessary condition for its emotion to affect, and visibility enhances the effect.
Emotions contribute to negotiation processes by signaling what one feels and thinks and can thus prevent the other party from engaging in destructive behaviors and to indicate what steps should be taken next: PA signals to keep in the same way, while NA points that mental or behavioral adjustments are needed.
Partner’s emotions can have two basic effects on negotiator’s emotions and behavior: mimetic/ reciprocal or complementary. For example, disappointment
might lead to compassion
and more cooperation. In a study by Butt et al. (2005) which simulated real multi-phase negotiation, most people reacted to the partner’s emotions in reciprocal, rather than complementary, manner.
Specific emotions were found to have different effects on the opponent’s feelings and strategies chosen:
- Anger caused the opponents to place lower demands and to concede more in a zero-sum negotiation, but also to evaluate the negotiation less favorably. It provoked both dominating and yielding behaviors of the opponent..
- Pride led to more integrative and compromise strategies by the partner.
- Guilt or regret expressed by the negotiator led to better impression of him by the opponent, however it also led the opponent to place higher demands.. On the other hand, personal guilt was related to more satisfaction with what one achieved.
- Worry or disappointment left bad impression on the opponent, but led to relatively lower demands by the opponent.
Problems with lab negotiation studies
Negotiation is a rather complex interaction
. Capturing all its complexity is a very difficult task, let alone isolating and controlling only certain aspects of it. For this reason most negotiation studies are done under laboratory
conditions, and focus only on some aspects. Although lab studies have their advantages, they do have major drawbacks when studying emotions:
- Emotions in lab studies are usually manipulated and are therefore relatively ‘cold’ (not intense). Although those ‘cold’ emotions might be enough to show effects, they are qualitatively different from the ‘hot’ emotions often experienced during negotiations.
- In real life there is self-selection to which negotiation one gets into, which effects the emotional commitment, motivation and interests. However this is not the case in lab studies.
- Lab studies tend to focus on relatively few well defined emotions. Real life scenarios provoke a much wider scale of emotions.
- Coding the emotions has a double catch: if done by a third side, some emotions might not be detected as the negotiator sublimates them for strategic reasons. Self report measures might overcome this, but they are usually filled only before or after the process, and if filled during the process might interfere with it.
References and further reading
- William Hernandez Requejo & John L. Graham, Global Negotiation: The New Rules, Palgrave Macmillan, 2008, ISBN 1-4039-8493-X
- Lothar Katz, Negotiating International Business: The Negotiator's Reference Guide to 50 Countries Around the World, BookSurge, 2006, ISBN 1-4196-3190-X
- Lothar Katz, Principles of Negotiating International Business: Success Strategies for Global Negotiators, BookSurge, 2008, ISBN 978-1-4196-9503-2
- Ronald M. Shapiro and Mark A. Jankowski, The Power of Nice: How to Negotiate So Everyone Wins - Especially You!, John Wiley & Sons, Inc., 1998, ISBN 0-471-08072-1
- David Lax and James Sebenius, 3D Negotiation, Harvard Business School Press, 2006.
- Roger Fisher and Daniel Shapiro, Beyond Reason: Using Emotions as You Negotiate, Viking/Penguin, 2005.
- Douglas Stone, Bruce Patton, and Sheila Heen, foreword by Roger Fisher, Difficult Conversations: How to Discuss What Matters Most, Penguin, 1999, ISBN 0-14-028852-X
- Catherine Morris, ed. Negotiation in Conflict Transformation and Peacebuilding: A Selected Bibliography. Victoria, Canada: Peacemakers Trust.
- Howard Raiffa, The Art and Science of Negotiation, Belknap Press 1982, ISBN 0-674-04812-1
- William Ury, Getting Past No: Negotiating Your Way from Confrontation to Cooperation, revised second edition, Bantam, January 1, 1993, trade paperback, ISBN 0-553-37131-2; 1st edition under the title, Getting Past No: Negotiating with Difficult People, Bantam, September, 1991, hardcover, 161 pages, ISBN 0-553-07274-9
- William Ury, Roger Fisher and Bruce Patton, Getting to Yes: Negotiating Agreement Without Giving in, Revised 2nd edition, Penguin USA, 1991, trade paperback, ISBN 0-14-015735-2; Houghton Mifflin, April, 1992, hardcover, 200 pages, ISBN 0-395-63124-6. The first edition, unrevised, Houghton Mifflin, 1981, hardcover, ISBN 0-395-31757-6
- Principled Negotiation definition, together with a business view on whether Principled Negotiation is used in Business
- The political philosopher Charles Blattberg has advanced a distinction between negotiation and conversation and criticized those methods of conflict-resolution which give too much weight to the former. See his From Pluralist to Patriotic Politics: Putting Practice First, Oxford and New York: Oxford University Press, 2000, ISBN 0-19-829688-6, a work of political philosophy; and his Shall We Dance? A Patriotic Politics for Canada, Montreal and Kingston: McGill Queen's University Press, 2003, ISBN 0-7735-2596-3, which applies that philosophy to the Canadian case.
- Leigh L. Thompson, The Mind and Heart of the Negotiator, Prentice Hall 0ct.2000, ISBN 0-13-017964-7
- Nicolas Iynedjian, Négociation - Guide pratique, CEDIDAC 62, Lausanne 2005, ISBN 2-88197-061-3
- Michele J. Gelfand and Jeanne M. Brett, ed. ‘’Handbook of negotiation and culture’’, 2004. ISBN 0804745862
- Emotion and conflict from the ‘’Beyond Intractability’’ Database
- Gerard I. Nierenberg, The Art of Negotiating: Psychological Strategies for Gaining Advantageous Bargains, Barnes and Noble, (1995), hardcover, 195 pages, ISBN 1-56619-816-X
- Andrea Schneider & Christopher Honeyman, eds., The Negotiator's Fieldbook, American Bar Association (2006). ISBN 1590315456
- A Professor Explains How to Negotiate, Negoatiating tips from Adam Galinsky.
- Dr. Chester Karrass Effective Negotiating Tips
- Charles Arthur Willard Liberalism and the Problem of Knowledge: A New Rhetoric for Modern Democracy. University of Chicago Press. 1996.
- Charles Arthur Willard, A Theory of Argumentation. University of Alabama Press. 1989.
- Charles Arthur Willard, Argumentation and the Social Grounds of KnowledgeUniversity of Alabama Press. 1982.