Task 6 Types and Preparation for Negotiation

What is negotiations?

Negotiations are formal discussions between people who have different aims or intentions, especially in business or politics, during which they try to reach an agreement.

                                                                             

There are 7 types of negotiations:

     1.     Win-Lose Negotiations

In game theory they call a win-lose negotiation a zero-sum game. The vast majority of games are zero-sum. A common analogy for a zero-sum game is dividing a pie. The pie doesn't get smaller or bigger — the players play a game to decide who gets the bigger slice. If you're facing a win-lose negotiation focus your strategy on determining the other party's minimum requirements (e.g. bottom price). 

2.     Win-Win Negotiations

Win-win negotiations involve expanding the pie. For example, if two people decide to go into business together: their partnership negotiations are win-win. One partner may win and the other may lose. However, a win-win outcome is possible because they hope to make money on their investment (expand the pie). Salary negotiations and business-to-business sales can usually be considered win-win. Win-win negotiations may be just as focused on building a bigger pie as dividing the pie fairly. Every effort should be made to keep negotiations friendly and constructive. 

3.     Lose-Lose

Lose-Lose negotiations involve a situation in which everyone is going to lose.  Lawsuits are often lose-lose. Let's say you leave your jacket at a restaurant coat-check and they lose it. Your negotiations for compensation with the restaurant's manager are lose-lose. Your not likely to get more money than the coat was worth. The restaurant also loses. Lose-lose negotiations can quickly turn bitter and adversarial. Despite the fact that both parties will lose it's important to try to maintain a collaborative approach. 

4.  Adversarial Negotiations

Adversarial negotiations are highly competitive in nature. Win-lose and lose-lose negotiations are most likely to be adversarial. Nobody wants to lose, this tends to drive intense competition. In some cases, win-win negotiations are also adversarial. For example, high stakes business-to-business sales negotiations often become adversarial (customer vs seller). In extreme cases, negotiations are adversarial because the parties involved intensely dislike each other. In such cases, negotiators may not be interested in winning. Instead, they may seek to maximize the losses of the other party. Negotiations between political rivals may turn destructive in this way. Adversarial negotiations require battle strategies.

5.     Collaborative Negotiations

Collaborative negotiations are creative and friendly. For example, business partnership negotiations are often collaborative. Win-win negotiations that are expected to yield big wins tend to be collaborative. Collaborative negotiations rely on persuasive techniques, optimism and creativity.

6.     Multi-Party Negotiations

Multi-Party negotiations are complex negotiations between two or more parties. They can be extremely challenging and may take years to complete. International treaties between nations are often multi-party. Multi-party negotiations require advanced diplomatic techniques. 

7.     Bad Faith Negotiation

Bad faith negotiation occurs when a party makes commitments that they have no intention of keeping. Bad faith negotiation is often used as a delay or diversionary tactic. For example, a country may sign an environmental treaty with no intention of implementing it just to relieve political pressure from its citizens. If you suspect that the other side is negotiating in bad faith, it's time to start thinking about penalties in your agreement. This post is part of the ongoing series of articles called how to win at negotiation.

Preparation for negotiation:

If you want to start negotiations in a winning position, then you need to prepare like a tiger. That means you must pay attention to 7 crucial areas:

1.     Check Whether You're In A Negotiating Situation.

A negotiating situation exists when you are in any communication or problem-solving situation with others that can work out to your advantage. If there is no advantage to you, then don't negotiate; you'll only lose. As Sun Tzu, the author of "The Art of War", said hundreds of years ago, "Engage only when it is in the interests of the state; cease when it is to its detriment. Do not move unless there are advantages to be won."

2.     Clarify Your Aims.

Your overriding aim in any negotiation is to achieve the objectives you and your constituents have set. There are other aims, such as getting a good deal and improving your relationship with the other side. But getting what you want is tops. Always keep this aim firmly in your sights and don't stop until you get it.

3.     Gather Information.

Once you know you're in a negotiating situation, you need to gather information about the other side's offer and use it to refine your own. Many negotiations come unstuck simply because one side or the other doesn't listen, or check, or take the time to clarify exactly what the other side are offering, or indeed what they themselves are offering. This means that throughout a negotiation you should do tons of listening, clarifying and checking. And when it comes your turn to put over your case, you should use every skill you can muster to make sure they understand.

4.     Negotiate With Your Own Side.

It is rare to go into a negotiation only representing yourself. Usually you negotiate as a representative of others, your constituents. Part of your preparation for negotiations has to be spent getting the best mandate from your constituents. Aim to get the support you need; the trust you need; the resources you need; the understanding you need; and the freedom you need.

5.     Get A BATNA.

A BATNA is your Best Alternative To a Negotiated Agreement and is the only certain way to be successful in negotiations. By preparing for negotiations with one party by sounding out an alternative deal with another party, you get walkaway power. It means that, even if the alternative isn't quite what you want, you are still prepared to go there, if need be.

6.     Prepare The Setting.

There are five questions to ask yourself when preparing the setting for a negotiation. They are: Who? (i.e. who is to take part and do what?); Where? (i.e. our place or theirs?); When? (i.e. what is the time scale?); Why? (i.e. what are we negotiating about?); and How? (i.e. how are we to present our case?).

7.     Prepare Yourself Mentally.

The right attitude towards negotiations is the principal difference between successful and unsuccessful negotiators. Getting into the right frame of mind before you begin should be part of your preparation plan.

·        aim to be tough, business-like, alert and unyielding.

·        don't feel you owe them anything - don't be a bowl-beggar.

·        don't put yourself above or below them.

·        stay relaxed and unhurried.

·        don't reveal your feelings at any point.

There is no guarantee that good preparation will lead to success in negotiations. But the chances are that poor preparation will lead to failure. Don't take that risk. Pull out all the stops to get a head start and you won't regret it.

Source : https://www.collinsdictionary.com/dictionary/english/negotiation
https://training.simplicable.com/training/new/7-types-of-negotiation-and-1-big-myth
https://www.businessknowhow.com/growth/negotiations.htm
images are taken from Google.