1. Negotiation
by Mark Gillan
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2. Definition
The act of discussing an issue between two parties or more with competing interests, with the aim of agreement
Negotiations can be in a variety of forms:
Management and staff can negotiate collective bargaining processes where procedural and substantive agreements are sought
Usually representatives of both parties may carry out negotiations
Procedural agreements relate to how parties can interact and how meetings will be conducted and items for discussion
Substantive agreements relate to the productivity and / or terms and conditions
Individual managers might negotiate with staff relating to issues such as operational tasks, interpersonal conduct, holidays and discipline
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3. Exercise
Recall a recent situation where there had been a need for you to negotiate.
Outline your approach to preparation and the negotiations itself.
What went well and what could have been better?
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4. The Negotiation Process
Various models for the negotiation phases of the process exist
Most are fairly similar in listing the processes and sub- stages tend to clarify
Not all negotiations are straight-forward with each phase moving onto the next, sometimes there is a need to backtrack
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5. Eight stage process suggested by Dr Gavin Kennedy (1998)
Prepare – get ready for negotiations. The main question at this stage would be “What do we want?”
Debate (Argue / Discuss) – finding out the arguments and discussing what each party wants. The main question at this stage would be “What do they want?”
Signal – indication as to the willingness to move from currently stated position
Propose – putting forward a tentative solution to a negotiation problem and sticking point. The main question at this stage would be “What ‘wants’ could be traded?”
Package – once key issues or variables have been discussed, proposals can be put together into a form that addresses each parties ‘wants’. Up until this point not all issues might have been clear
Bargain – this stage is all about exchanging – bartering – something gained for giving something up. Specific proposals are discussed in detail, if accepted, will lead to an agreement. The main question at this stage would be “What want’s will we trade?”
Close – final offers and decision to end trading
Agree – formal agreements
Gavin Kennedy, The New Negotiating Edge: The Behavioural Approach for Results and Relationships (Nicholas Brealey Publishing, 1998)
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6. Preparing to Negotiate
Often inexperienced negotiators view the bargaining phase as ‘haggling’ over best want
Possibly starting by offering their best want in the hope of it being accepted or using it as a starting point
The diagram shows the two ranges of ideal and limit, if parties negotiating have an area of overlap then this will be the bargaining area with a chance of reaching agreement
If no overlap, both parties may been to reassess their ideal position for any hope of reaching amicable agreement
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7. Reality of management / staff ‘wants’
Longer working hours
Small pay increase
Less holidays
Increased productivity
Greater flexibility
Reduced absence
New technology
Short working hours
Larger pay increase
More holidays
Productivity bonuses
Flexibility for time keeping
Improved working conditions
Job Security
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8. Management / staff negotiations
Representatives of each side could look at each item in turn and try to find middle ground
Representatives could consider the whole package and try trading a variety of items to enable each party to gain something
For example, a trade off between pay and holidays
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9. Preparing for Negotiation
Important to carefully consider exactly what might be open for negotiation
Important to consider the absolute minimum for each area of interest
Worth trying to assess the initial stated position (working out the negotiator’s range between minimum through to ideal)
Some theorists suggest aiming higher than ideal and raising the floor of the limitation. Be careful not to offend the other party and have negotiations breakdown prior to commencing
Explore as much as possible before stating a firm position upon any particular item of interest
The more information the better. Worth assessing the other party and their exact position
Be clear about assumptions, they will need to be tested during the negotiation itself
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10. Negotiation Behaviours Richard Walton and Robert McKersie 1965
Distributive Bargaining
Integrative Bargaining
Each party tries to gain as much as possible at the expense of the other party
This approach tends to cause parties to want to be the ‘winner’ at the expense of others
Parties negotiate and seek to explore the situation in order to reach a win/win solution for each party
This approach tends to provide more for a long lasting developing relationship built upon working together
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11. Debate / Discussion Phase
Very easy for this stage to deteriorate into an all out argument as opposed to exploration of what each side want
Some negotiators might try to put pressure on the other party, particularly if they feel more powerful
Assertiveness and careful communication can possibly help this stage progress and avoid all out argument stalling
This stage should see negotiators use questions to gain understanding or seek clarification
Each party should listen very carefully to what is being said. Attempt to assess what might be of more importance to the other party
Ask for justification of particular positions
If at all possible, no firm position should be given at this stage
Problems at this stage could be:
Not listening sufficiently – interrupting, talking too much
Behaviour likely to upset – attacking, blaming, sarcasm, threats
Not checking assumptions
Arguing without any constructive purpose for both parties
Not summarising areas of possible agreement
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12. Proposing and Bargaining
Dr Gavin Kennedy, in his book The New Negotiating Edge (1998) identifies how negotiators tend to approach negotiations based upon “Red” or “Blue” behaviours
RED negotiators tend to approach as a contest and tend to be quite aggressive in behaviour
BLUE negotiators tend to be concerned with developing relationships and may tend to give in when think negotiations are leading to a strengthening of the relationship for the future
RED negotiators will tend to take advantage of the “blue” negotiators, leaving the blue negotiators upset at their behaviour
Dr Kennedy argues what is needed is “purple” conditionality
He suggests negotiators tend to base their behaviour on the behaviour of the other party and a link between behaviour and outcome
He argues, instead of trying to be red or blue, negotiators should use a blend of the two approaches, thus ‘purple’ being a combination
The “purple” approach would always ensure a condition is in place on the othe rparty in relation to their receiving something in return
It is advised that when making a proposal, a “If … then …” format is adopted, starting from vague signals to full proposals
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13. The Purple Approach Format
What you want
What you offer in return
IF you give me …
Your RED side
Proposals should be made assertively starting with what you want
Avoid using “If we … will you?”
THEN … I will give you
Your BLUE side
Assertively offering something but ensuring something is received in return to satisfy own interests and theirs
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14. Win-Win Strategy
Situations can lend themselves directly to a win-win situation when both parties want the same thing
For example, management want flexible working around new contracts. Staff want flexible working around their own personal lives. An element of flexibility suiting both parties being negotiated could mean a win- win situation
The overlap between ideal and limit for both sides could be considerable. It would be the finer points to any proposal and win- win if both sides have an agreement that suits everyone
Win-Win strategy is dependent upon both sides wanting the same, willing to work together on the finer details and feel a winner upon final agreement
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15. Skills
Successful negotiators will negotiate many issues together as a whole package as opposed to haggle upon individual terms
Negotiation is a complex process requiring skills such as:
Assertiveness
Listening carefully
Effective questioning
Reasoning
Problem Solving
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