Emotion in Negotiation

The Negotiation Process

Basic to the understanding of negotiations is the
concept of PROCESS its necesary to explore the
principal components of this concept.
These components, in terms of variables and
dealt can be :

QUANTITATIVELY or QUALITATIVELY.



The Negotiation Process

BASIC ELEMENTS OF THE PROCESS:
Negotiatons is seen as a system consisting of a new
interrrelated blocks, Process and its Outcomes.
Thus when planning for a negotiation to come-or
actually 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).

The Negotiation Process

FIVE MAJOR BLOCKS:
ACTORS (Negotiators acting individually or as
delegations).
STRUCTURE (context, agenda,number of
participants,site, moment, etc).
STRATEGY .
PROCESS.
OUTCOME .
The Negotiation Process

THREE COMPONENTS:
STAKES and INTEREST.
BARGAINING STRENGTH.
CLIMATE.
These components constitute the FORCES or
parameters of the dynamics that intervene in the
negotiation.
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( a
major factor in a Diplomatic, negotiation.
Negotiations analysis (planning,operating) starts with
the 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 the
latter 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 twofold
structure.
In other terms it is the sanction that the process and
its outcome will have on interests in a large sense;
tangibles elementes as well as principles and
values. It will exert an important influence on
strategies and behavior.
The Negotiation Process
Ex.The negotiation between Walt Disney Company
and the French Government, in this case , each party
did not comprehend fully the interests (expectations,
constraints and risks) of its partner. The negotiations
were discussed by the PIN (Process of international
Negotiations) (group of researchers, profesors and
practitioners including business executives and
diplomats. The NP, is also dependant on the
STRUCTURE (relates to conditions as the
background framework of the Negotiation. The
antecedents, 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 best
bid 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 inflicted
on the oponent.
The Relative importance of the opponent in
regard of the needs of the negotiator
The latitude of the party in respect of time.
(deadlines), for one party while the opponent feels a
sense of urgency for concluding the deal , the Irst
negotiator benefits from a bargaining strength
relative 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,interpersonal
confidence, capacity to be trusted.
Close to the preceding categories is the capacity
of influence (combination of skills, ex.persuasive
power).
Information; depends on a capacity of the
individual to join relevant data. It is also a matter
in 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) and
conflictual (confrontational or distributive)
relationships and behaviors. They manifest
themselves 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 as
bilateral encounters, or number more than one hundred)
(respect or not certain formal procedures etc.
Components:
Types, composition, status of delegation or
negotiating teams, the role of constituencies, third
parties, lobbies,the practice of negotiators has
enphazised this factors under the forms of
recomendations,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 given
situation.
STRUCTURE OF THE PROCESS
Selected Models of Negotiations:
Wilton and McKersie: Considerable influence of this
model, its milestone in the history of negotiation
theory.
Sawyer & Guetzkow: Five variables:
Goals factors (referring to the degree of convergence
and 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 an
analysis 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 best
explanations 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 the
constant Confrontation value creating and value
claiming elements.
Third; limits that are imposed on negotiation as a
result of their respective BATNAs. Puts constraints on
the 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.