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Negotiations
3.1 Difficulties:
There are many reasons for difficulties in the Details Stage. a. Complicated: The details stage by its nature is complicated. It is sometimes more complicated than the prenegotiations but definitely more complicated than the Formula Stage. It means: i. The Details Stage is more complex, ii. The Details Stage involves larger negotiating teams, iii. Larger teams, in turn, have more disagreements within the teams, iv. The Details Stage sometimes lingers on for a long time, which makes the entire issue even more complicated.
d. Attempt by Either Party to Shift the Balance of Advantage: Any one or both parties will usually
attempt to shift the balance of advantage in the agreed formula in their favor. This may occur in an imperceptible manner, because of the complexity of negotiations at this stage.
Both parties may be afraid of each other of this type of attempt, particularly when the trust between the parties is at the minimum and the sakes are high.
3.2Negotiating Strategies:
There are three generally used strategies for negotiation: (i) Compromise on individual issues, (ii) Exchange concession on one item with the acquisition on another item, and (iii) a mix of the above two strategies.
b. Exchanging Points:
This strategy involves giving the other party what it wants on one item and in return getting from the other party what you want on another item. This may involve full concession on the demand or a major part of it. This strategy is called Exchanging Points by Zartman and Berman.
Homanss Theorem:
According to George Homans (1961), this Theorem states that in a negotiated exchange each party is able to get from the other something more than in value than the value of what it surrenders.
d. Attitude to Strike
Attitude to strike at negotiations can vary greatly on a continuum, ranging from very accommodating to very tough.
Extremes of Flexibility and Rigidity are inconsistent with the logic of negotiation. ii. It is believed that it is better to make concessions in one big swoop rather than making incremental concessions, which shows weakness. iii. If incremental concessions are necessary, then the impression of weakness can be avoided by using Tactical Expedients, which are: Making concession contingent on final package. Periodically suspending talks to show the other party that they want to avoid collapse. Raising the question of formula again. Iv A tough attitude will be used only by those parties that believe that they can walk away without major damage to their position.