Anyone who is in need of resolving a dispute or would like to get the best deal possible regarding some sort of financial transaction or a trade of any kind is certainly in the market to learn negotiating skills. A person may need to learn negotiating skills because they are limited in their knowledge or experience in communicating their needs and desires. When attempting to make the most beneficial deal, understanding the subtle points of negotiating or dispute resolution can spell the difference between getting what one wants and giving away too much in the process. The purpose of negotiating with another party is to get them to do something. They need to do more, pay more, give up more, etc. Or perhaps they need to do less or stop some action. Ultimately, negotiations are necessary in order to get something which is not otherwise forthcoming.
Two Variations of Negotiation Processes
Distributive negotiating is referred to as the “Fixed Pie” method as there is a set, limited, or finite amount in whatever is to be distributed. Like old-fashioned tug of war. The seller wants as much as they can get; the buyer hopes to pay as little as possible. Since most distributive negotiation occurs between two individual who are unfamiliar with each other, they tend to not worry about how they appear to their opponent. They are not concerned with their reputations with the other person and usually demonstrate self-serving interests. Integrative negotiation is also referred to as the “win-win scenario.” The two parties usually come to the bargaining table with an eye on a long-term relationship. As such, both sides tend to have more detailed knowledge of their counterpart’s needs, desires and willingness to compromise.
Distributed Negotiating Basics
- Give as little information to the opposition as possible. Ones interests or why they are making the deal should be withheld in order not to communicate weaknesses that could be exploited.
- Attempt to glean as much information from the other party as possible, however.
- The one bit of info to share is that there are other parties we are willing to take the deal to. We will walk at any time if we feel the negotiating is not going our way.
- Get the other party to make the first anchoring offer. From there a starting point is known.
- Keep the deal real. Behave too greedy or stingy and the result is likely no deal.
Integrative Negotiating Basics
- There are usually a number of issues which need to be decided. This sets the stage for both parties to give and take during resolution discussions.
- Cooperative sharing of information is crucial to successful integrative negotiations. If both sides are able to fully understand their counterparts, there is a higher likelihood of success.
- Attempt to solve your oppositions problems for them. If your side can promote an adequate solution to one of their requirements at a cost less than what they are asking, it should result in a win for both sides on that issue.
- Build long-term relationships with the opposition. If the negotiations are with a potential joint venture partner, understanding the power and influence of a successful on-going relationship should help smooth the bumps inevitable in the negotiating process.
Desired Consequences of Dispute Resolution
If performed properly, the consequences of dispute resolution is for both parties to achieve what they are hoping to attain. In order to get what one wants, there is a paramount importance on knowing exactly what that want is. Then, as important, is an understanding of why they need a specific item. Just as vital in the positive resolution to the situation is understanding what the opposition wants and why they need to have their wants fulfilled. It is only once all four bits of this information have been sussed out that the possibilities of amicable resolution can be had. When effective negotiations take place, the consequences should be that all parties involved get a majority of their wants and needs fulfilled.
Where To Learn More About Negotiating
Depending upon ones learning style there are several options to become a better negotiator. If self-learning via the local library or Internet suits ones style, there are plenty of options and materials available. Some challenges can be had with the sheer volume available, however. For those who need to observe and be led into knowledge acquisition, taking a course from a local university extension may be the perfect solution. Of course today’s lifestyles and schedules can make it challenging to attend a class. A person interested in information technology degree online or a dispute resolution degree can opt to take structured classes online. There are several fine online-learning institutions with exemplary negotiation and dispute resolution programs.
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