negotiation

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negotiation

the process by which two or more parties attempt to achieve agreement on matters of mutual interest. It can occur at the interpersonal level, for example, to resolve who does the washing-up on a particular evening; or at the organizational and societal level, for example, negotiations between TRADE UNIONS and employers over the size of an annual pay award (see COLLECTIVE BARGAINING). It can be viewed as a way of resolving CONFLICTS of interest in a way that is at least acceptable, if not ideal, to all concerned. Negotiation between two parties can be relatively straightforward but becomes much more complex when more are involved.

Research into negotiation has established that the process works most smoothly when each party listens fully to the other so that the points of difference can be delineated precisely. In many cases this does not happen, with the result that each party's view of the other's position is in fact erroneous. Listening is also essential during hard bargaining to pick up any signals that the other party is prepared to change its bargaining position.

Inexperienced negotiators often believe that negotiation is a zero-sum activity: that one party's gain must be the other's loss. However, such an outcome is rarely effective in the long term. The defeated party may well harbour such resentment that when it is in a more favourable position it will strike back. More experienced negotiators tend to view bargaining as a positive-sum activity: all parties can gain something from the process. Negotiation is the activity through which the possibilities are explored. However in some cases, during INDUSTRIAL DISPUTES for example, negotiators find it impossible to reach agreement. At this point it can be useful to enlist the services of a neutral third party to conduct ARBITRATION, CONCILIATION or MEDIATION.

negotiation

(1) Under the Uniform Commercial Code, it is a voluntary or involuntary transfer of possession of a negotiable instrument by someone other than the issuer, to another, who thereby becomes a holder.(2) More commonly,it is the art and science of bringing two or more parties to an agreement that each views as delivering at least some of his or her goals.

When negotiating in real estate, keep some of these thoughts in mind:

• Price and terms (amount of earnest money, contingencies, time to close, what personal property stays behind, seller financing, etc.) are like two ends of a street. The closer you get to one, such as the price you want to pay, the further you are away from the other, such as the ability to also obtain seller financing. (Common wisdom says you can negotiate price or terms, but not both. That is not true, but they do tend to have an impact on each other.)

• The better armed you are with facts, the more likely you will succeed in your negotiations. If you think a price is too high, be prepared to give examples of similar properties that sold recently for lower prices. You may learn about features making the subject property more valuable. The seller may drop the price. You may find that, while you think the price is high, it is actually below market compared to similar properties.

• In commercial lease negotiations, there is always a certain amount of money the landlord is willing to spend—the deal money. It might be spent in the way of rent concessions, renovation of the leased property, or real estate commissions. Rent concessions consist of free rent for some time or reduced rent for the entire time. Free or reduced rent that is paid back later in the lease is not a true rent concession and shouldn't reduce the amount of available deal money. Learning about other rent concessions in the marketplace, and the amount of leasing commissions typically paid by a particular landlord, will give you a good idea of how to calculate the deal money. (The easiest negotiation in leasing is to tell the landlord how you want the deal money spent. After that, the measure of a good negotiator is how much more you can get.)

• Learn everything you can about the person or company on the other side. Negotiation is not always about reaching an agreement on price. Many times it is discovering and meeting unspoken goals or needs of the other party.

• Don't bid against yourself. If your offer is rejected, wait for a counteroffer.

• Never be embarrassed by a low offer if you think that's what the property is worth. It is far more common than you would think for properties to have asking prices well above what the owners are willing to accept. See bottom-fishing.

• In negotiations over specific wording of a written contract or lease, draw a red “X” on the first page of each version as it is rejected, but keep all rejected versions in a safe place. It may become important later—even years later if there is a lawsuit—to reconstruct what terms were discussed and rejected by the parties.

• Be aware that written negotiations, even by e-mail, can be interpreted as an enforceable contract under some circumstances. All writings, even e-mail messages, should contain a line saying, “For negotiation purposes only.” See Uniform Electronic Transactions Act and Statute of Frauds.

• Letters of intent can be construed as binding contracts. If you want to avoid this, say so in the LOI. If you want the LOI to be a binding contract as to its deal terms, with details to be worked out later, say that. But, the devil is in the details, as they say, so     be prepared to find contract or lease language particulars that become deal breakers. If your LOI is a binding contract, then you may find a court deciding the other contract terms for you.

• Be aware that popular word processing programs may keep track of all changes to a document. If you send that document file to someone else, that person may be able to click a menu item and view all your changes, thereby being able to track your thoughts. If in doubt regarding this feature, click on the Help button for your program and enter “track changes,” “compare documents,” or similar words.

References in periodicals archive ?
The developed RTMC-BDSS helps to improve the efficiency of bargaining through the following functions: search for housing alternatives; formulation of the initial comparative table of alternatives; multiple criteria analysis of housing alternatives; multiple criteria analysis of negotiation tactics; determination of the most useful home option for buying; presentation of recommendations and real-time determination of a home's market value; ebargaining using templates of bargaining e-mails generated by the system.
Coming to agreement within your own team about the top vendors and issues with each vendor will help you decide your negotiation tactics and resolution plan if talks break down with the preferred vendor.
However, for the purposes of this study, the data obtained was placed into three main categories: 1) negotiation strategy, 2) negotiation tactics and 3) negotiation behaviour and its evolution.
Some of the findings include: Chinese negotiators ask more questions and interrupt more frequently versus Americans (Adler, Brahm, and Graham 1992); the initial stages of building rapport and understanding the status/power relations are more important for the Japanese and Brazilians than the Americans (Graham 1983); Russians use competitive negotiation tactics at the table to reach higher outcomes for themselves when compared to US negotiators (Graham, Evenko, and Rajan 1992); a problem solving approach is the best strategy for Americans, whereas Chinese prefer competitive, and Japanese buyers do better than Japanese sellers (Graham, Kim, and Robinson 1988); and compared to their Mexican counterparts, Americans are more structured, less flexible, and more direct (Husted 1994).
Cross-cultural studies of negotiation tactics are needed as instances of international negotiations increase geometrically.
Various ethical criteria (the Golden Rule, Universalism, Utilitarianism, Distributive Justice) are used to evaluate ten commonly used negotiation tactics (lies, puffery, deception, weakening the opponent, strengthening one's own position, nondisclosure, information exploitation, change of mind, distraction, and maximization).
Toward the final stretch of the negotiation process, a top official at the Defense Agency who was clearly annoyed by Washington's negotiation tactics, complained by saying, ''There is no other ally besides Japan who would pay this much money for the U.S.
But ASEAN felt such negotiation tactics could split them and reduce their bargaining power, the sources said.
These negotiation tactics may be inspired by children, but they offer some real insights; from using tantrums as a 'secret weapon' (if Bill Gates can do it, so can others) to changing the rules and appearing needy.
Thus, the BOP is now moving to a two-pronged approach to hostage negotiation: a large cadre of first responders trained in basic listening skills and negotiation tactics; and more highly trained and organized hostage negotiation teams with protracted crisis response capabilities.
Says Gordon, "Palmquist was looking for a reason to cancel." AGMA filed a bad faith bargaining charge with the NLRB against The Washington Ballet for their negotiation tactics regarding the tour and is asking for compensation for the dancers for the canceled weeks of work.