The Negotiation Process, Emotion in Negotiation

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Emotion in Negotiation



The Negotiation Process

Basic to the understanding of negotiations is the

concept of PROCESS its necesary to explore theprincipal components of this concept.

These components, in terms of variables anddealt can be :

QUANTITATIVELY or QUALITATIVELY.




BASIC ELEMENTS OF THE PROCESS:

Negotiatons is seen as a system consisting of a newinterrrelated blocks, Process and its Outcomes.

Thus when planning for a negotiation to come-oractually negotiaing- it is essential not to forget the

basic fact: negotiation is never a unilateral exercise, the negotiator should never ignore the

“reality ” of the opponent(s).




FIVE MAJOR BLOCKS:

ACTORS (Negotiators acting individually or asdelegations).

STRUCTURE (context, agenda,number ofparticipants,site, moment, etc).

STRATEGY . PROCESS.

OUTCOME .




THREE COMPONENTS:

STAKES and INTEREST. BARGAINING STRENGTH.

CLIMATE.

These components constitute the FORCES orparameters of the dynamics that intervene in thenegotiation.



The Negotiation Process STAKES and INTEREST: May take many forms:

Economic, such as profitability, volume,market,share,etc.

Subtle and even Intangible , such as principales( amajor factor in a Diplomatic, negotiation.

Negotiations analysis (planning,operating) starts withthe problem of identifying INTERESTS tangible or

not). In an IBN, “parties” interests are of a similar variety to

domestic negotiations, but in sharp contrast to thelatter they are often complicated by cultural factors.



The Negotiation Process The STAKE on negotiations is precisely the impact

that the negotiations will bear on this twofoldstructure.

In other terms it is the sanction that the process andits outcome will have on interests in a large sense;tangibles elementes as well as principles and

values. It will exert an important influence onstrategies and behavior.



The Negotiation Process Ex.The negotiation between Walt Disney Company

and the French Government, in this case , each partydid not comprehend fully the interests (expectations,

constraints and risks) of its partner. The negotiations were discussed by the PIN (Process of internationalNegotiations) (group of researchers, profesors andpractitioners including business executives and

diplomats. The NP, is also dependant on theSTRUCTURE (relates to conditions as thebackground framework of the Negotiation. Theantecedents, the agenda (points to be discussed).



The Negotiation Process BARGAINING STRENGTH; POWER;

Derived from a number of sources; some are tied to

the Negotiating Situation, others are connected to the Negotiator .

The factors in the NS;

The Latitude of choice, Ex. The Buyer may select the

seller according to his/her own criteria, Ex. The bestbid on price. Also concerns , more qualitative,subjective elements, ex. The value given to a durable,relationship.



The Negotiation Process The capacity to sanction either positively (benefits,

rewards, compensations.) or negatevily (cost inflictedon the oponent.

The Relative importance of the opponent inregard of the needs of the negotiator

The latitude of the party in respect of time.

(deadlines), for one party while the opponent feels asense of urgency for concluding the deal , the Irstnegotiator benefits from a bargaining strengthrelative to the other.



The Negotiation Process There are four other sources of strength that may be

tied to the Negotiator.

Skill Negotiation (natural or acquired).

Credibility and Reputation,interpersonalconfidence, capacity to be trusted.

Close to the preceding categories is the capacityof influence (combination of skills, ex.persuasive

power). Information; depends on a capacity of the

individual to join relevant data. It is also a matterin preparing negotiations.



The Negotiation Process Climate and Relationships;

The first sequence and the type of interpersonal

relationships, are the Climate of the negotiations. Walton and McKersie , say that is traditional to

differentiate cooperative (integrative) andconflictual (confrontational or distributive)

relationships and behaviors. They manifestthemselves in attitudes, actions and styles.



STRUCTURE OF THE PROCESS Negotiations are events that are dated, situated, regroup

and given number of participants ( can be small such asbilateral encounters, or number more than one hundred)

(respect or not certain formal procedures etc. Components:

Types, composition, status of delegation ornegotiating teams, the role of constituencies, third

parties, lobbies,the practice of negotiators hasenphazised this factors under the forms ofrecomendations,giding principales or golden rules.



STRUCTURE OF THE PROCESS A Synthetic view of models. Two principales tracks can be diferentiated: The abstract method: Derive from deductible logic. Two

main streams can be distinguished; Economic models of negotiation and application of game

theories. The key element in the process is the exchange of

concessions based on economic calculus (benefit/costs

analysis). The game Theory (optimal choice) “Strategies” faced by

the negotiator to maximize his/or her, gains in a givensituation.



STRUCTURE OF THE PROCESS Selected Models of Negotiations:

Wilton and McKersie: Considerable influence of thismodel, its “milestone” in the history of negotiation

theory. Sawyer & Guetzkow: Five variables:

Goals factors (referring to the degree of convergenceand to the specificity of goals parties).

“Fundamental”factors referring to a variety of variables such as personality, culture, intragroup,

relationships, attitudes. Antecedent-Conditions –

Process.



STRUCTURE OF THE PROCESS Bartos:

Developed a mathematical model, designed to

explain the outcome by a limited number of variables.“hard” versus “soft”, strategies, and it provides ananalysis of the relevance of normative,mathematically determined solutions.

Lax & Sebenius.- They have elaborated a ‘qualitative model of

negotiations, at present time is one of the bestexplanations of process and outcome.



STRUCTURE OF THE PROCESS First: The “raw material of the negotiations”: Issues,

stakes,interests, values and positions of the parties,(Units of measure of negotiation.

Second: The negotiation process develops through theconstant “Confrontation” “ value creating and valueclaiming” elements.

Third; limits that are imposed on negotiation as aresult of their respective BATNAs. Puts constraints onthe margins each negotiator comands.



STRUCTURE OF THE PROCESS Fisher & Ury: (Getting to yes)

They present 4 principles:

1.-Separate “persons for problems.” 2.-Focus on “interests, not on positions”

3.-Look for joint acceptable solutions.

4.-Accept to adhere to certain mutually chosen

“criteria’, rules and principles.

The Negotiation Process, Emotion in Negotiation

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