In the negotiation process, people are the key actors who have the power to influence the relationship, the satisfaction, and the outcomes of the parties involved. People are important in the negotiation process because they have different needs, interests, goals, and values that motivate them to negotiate. Moreover, people have different perceptions, views, emotions, feelings, and biases that can alter the way they judge, present their point-of-view, and show their decision-making skills in the process of negotiation. Besides, they have different personalities, styles, and preferences that affect how they behave and communicate in a negotiation. Negotiators need to consider these aspects about people and should respect them to maintain positive and trustful relationships with their counterparts as well as manage their relationships effectively to avoid impulsive and irrational actions. For instance, some people may experience anger, anxiety, or frustration during a negotiation deal which can affect their ability to think rationally.
Focusing on people, therefore, is an important factor of an effective negotiation process because it can help an individual build trust and rapport with their counterparts which can lead to more cooperative outcomes. Showing a strong commitment and consistency demonstrates that the negotiator is not only interested in gains but is also interested in finding a solution that satisfies both sides. People are not just rational beings who seek to maximize their own interests in different realms of life, but also social actors who think and care about how they are treated and perceived by others in a certain society. By listening carefully and asking questions, negotiators can uncover their counterpart’s hidden interests and build rapport as well that suits their counterparts’ interests. Furthermore, by paying attention to the relationship aspect of negotiation with people, negotiators can avoid unnecessary conflicts, enhance reputation, and create value for both parties. For instance, some people may have a lower or higher status, power, or authority than their counterparts which can affect their influence and leverage in a negotiation.
Negotiators can focus on people for the effectiveness of the negotiation process by showing consistency and a strong commitment to the interests of both parties, two-way communication, and giving respect to the contributions and differences of the other party. Listening empathetically and actively to their counterpart’s concerns, needs, and interests can help elicit useful information which can be shared in a clear and respectful way while negotiating. Moreover, a negotiator can make people feel important by respecting the differences and contributions of both sides while following through on his promises or commitments. Appreciating the values and recognizing the preferences of the other party while respecting their culture and style also adds value to the negotiation strategies that parties bring to the process of negotiation (Curhan et al., 2006). In a nutshell, people are the most important element in the negotiation process as they determine the quality as well as the outcome of the negotiation so the negotiators who understand the importance of people in the negotiation process can achieve more satisfying outcomes.
Explain the importance of focusing on INTERESTS in your negotiation process. Give specific examples.
Interests are an important aspect of the negotiation process as they are underlying needs and motivations that drive a person’s behavior in a negotiation. These needs and motivations are the reasons why an individual wants something and are often related to the objectives and goals of both parties involved in the process of negotiation. Interests help individuals create more value, understand the underlying needs and motivations of the other party, and avoid getting stuck in positional bargaining (Lax & Sebenius, 1986). Therefore, interests are the fundamental drivers that are crucial for finding creative solutions which can satisfy more wants and needs and build a better relationship with the other party. These interests are often unspoken and hidden behind the demands or positions that people make.
One of the significance of focusing on interests than on positions in the negotiation process is that interests create value in the negotiation whereas positions are demands that individuals can accept or deny. The reason why positions are less important than interests is that positions are rigid and fixed which may not reflect the true desires and needs of the negotiators. For instance, if siblings have to decide where they want to host their parents’ anniversary party when one wants it to be in an expensive restaurant or the other wants it to be in the garden of home and they disagree with each other, it means that their positions are incompatible. However, if they explore their interests, they may find out that one who is in favor of arranging a party at home does not have enough money and the other does not have enough time devoted to party preparation. Armed with each other’s interests, both siblings can look for creative solutions such as hosting the anniversary party in a relatively inexpensive restaurant that satisfies both siblings’ interests.
Focusing on interests in the process of negotiation also helps people avoid falling into the trap of power and rights as this trap can sometimes be costly, uncertain, time-consuming, and damaging to the relationship among negotiators. Rights, in the negotiation process, are the criteria or external standards that can be used to justify an individual’s position such as policies, laws, or norms related to the field of business. Power, in the process of negotiation in the realm of business, is the ability to impact a party’s way to do something they would not otherwise do such as using threats, authority, or rewards. So, power and rights can lead to a lose-lose or win-lose outcome in the negotiation where no party can get benefits or end up worse than before.
Furthermore, the reason for the importance of focusing on interests is that it can improve the trust and relationship between the negotiators of both sides. Negotiators can reach a better understanding of each other’s concerns and work together to find a mutually beneficial solution by listening and expressing to each other. They can also show empathy, respect, and understanding to each other while negotiating by avoiding blame, personal attacks, and accusations which can damage the cooperation and rapport among negotiators. In conclusion, interests are the key aspect to successful negotiation as they can help negotiators improve relationships, create value, look beyond their positions, avoid rights as well as power, and explore the best possible options that meet both parties’ interests and achieve desired outcomes amicably.
Explain the importance of focusing on OPTIONS in your negotiation process. Give specific examples.
In the principled process of negotiation, individual negotiators devote a significant amount of time to brainstorming multiple choices or options before choosing the best possible option for mutual benefits. They often determine a wide range and settle for the first decision or option of agreement they reach out of the options presented to hit upon an effective result that both sides of the negotiating parties can live with. So, focusing on options is an important aspect of negotiation as options help parties find interactive solutions that satisfy the wants, needs, preferences, and interests of both parties so that value can be created in negotiation. In the field of business, options refer to “any available choices parties might consider to satisfy trades, conditions, and interests” (Guthrie, 2002) as they can “capitalize on parties’ similarities and differences” to improve negotiators’ satisfaction (Guthrie, 2002).
Options are a powerful tool that helps enhance the quality of the agreement by finding the most efficient and effective solution that maximizes the parties’ interests which fosters a cooperative and collaborative relationship between the parties. The relationship is also fostered by demonstrating the parties’ willingness to accommodate each other’s preferences and concerns. To generate and evaluate options effectively, negotiators can expand the number of options by brainstorming, focusing on the interests and needs of both parties, using objective criteria to evaluate the options, and inventing options for mutual gain in order to achieve fairness, acceptability, legality, or efficiency to avoid subjectivity and bias in the negotiation process. Thus, the importance of focusing on options in the negotiation process in the business is that options satisfy interests, create value, enhance flexibility, improve availability, and expand the pie for both parties.
Generation and evaluation of multiple options through brainstorming help negotiators avoid getting stuck on fixed positions and find creative solutions that meet negotiators’ needs and those of their counterparts. For instance, if a customer visits a furniture store and negotiates for a lower price, free delivery of the article, a longer warranty, or a combination of all these options, he can use options to satisfy his interest in saving his money. On the other hand, the seller of the article in that furniture store can also use options to satisfy their interest in making a sale. Therefore, options give either side of the parties the ability to meet their most critical and crucial interests which increases the likelihood of accomplishing an outcome that creates additional value for both parties.
Thus, in conclusion, options are a significant key ingredient that is often overlooked in the process of negotiation which provides the ability to recognize and capitalize on multiple opportunities to negotiate for the future success of business. Negotiators through focusing on options while negotiating can increase their outcomes in any situation that adds value to the business deal. So, options not only offer alternative ways to negotiators so that they can meet their needs and goals but also increase the “size of the pie” by creating joint gains through multiple opportunities to be drawn on in the business and create mutual benefits for both sides.
Explain the importance of focusing on OBJECTIVE CRITERIA in your negotiation process. Give specific examples.
In a principled negotiation process, negotiators rely on objective criteria to settle the differences between two parties involved on a fair and independent standard. Objective criteria are independent standards that are fair and factual to both sides so that parties can avoid positional bargaining which is a battle of wills that subsequently leads to unfair and inefficient outcomes. Furthermore, objective criteria help negotiators focus on their wants or interests and find solutions that create market value for both parties involved in the negotiation process for a business deal. So, they are significant in the process of negotiation because they are more likely to produce a balanced and fair agreement efficiently. An example could be that people from both sides might agree to uphold basic standards of the business such as expert opinion or market value to close a negotiation deal.
In addition, objective criteria help negotiators support their claims in the negotiation process to prove other side that something is fair and reasonable. These criteria also make it harder and sometimes impossible for the other side to argue otherwise on the claims or options which potentially leads to avoiding conflicts in the negotiation deal (Zhu et al., 2018). Thus, the potential reason for the importance of the objective criteria in negotiation is that these criteria are based on facts, not personal opinions or subjective preferences which help people achieve fair and effective outcomes during their business negotiations. They also help negotiators avoid emotional conflicts and arbitrary decisions because these criteria are based on principles rather than on threats or pressure tactics in the business market. Moreover, they are significant because they help negotiators focus on the underlying interests of both sides involved rather than on their crucial positions.
In a nutshell, parties in a principled negotiation agree to use objective criteria as a baseline in a variety of real-world situations as they provide a rational and credible basis for people to justify their demands in order to persuade the other party in the negotiation. They reduce the range of possible options and outcomes which help negotiators to avoid personal attacks and emotional reactions. Furthermore, objective criteria narrow down the gaps in the negotiation process which help the negotiators to identify the areas of agreement and disagreements among both sides of negotiators. So, objective criteria are one of the fundamental drivers that help negotiators comply with the legal rights and obligations of both parties.
References
Curhan, J. R., Elfenbein, H. A., & Xu, H. (2006). What do people value when they negotiate? Mapping the domain of subjective value in negotiation. Journal of Personality and Social Psychology, 91(3), 493.
Guthrie, C. (2002). Panacea or Pandora’s box: The costs of options in negotiation. Iowa L. Rev., 88, 601.
Lax, D. A., & Sebenius, J. K. (1986). Interests: The measure of negotiation. Negotiation Journal, 2(1), 73–92.
Zhu, X., Zhu, H., Liu, D., & Zhou, X. (2018). Criteria making in role negotiation. IEEE Transactions on Systems, Man, and Cybernetics: Systems, 50(10), 3731–3740.
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