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What is Negotiation?

Overview of Negotiation

Written by Jason Gordon

Updated at April 15th, 2022

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Table of Contents

What is negotiation?DiscussionKey Concepts in Negotiation

What is Negotiation?

Negotiation is a process by which two or more individuals communicate with the purpose of furthering or achieving differing or conflicting perceived interests or objectives. Further, negotiation is an instance in which parties engage in the negotiation process. 

The essence of negotiation is that the parties have the option of arriving at more than one outcome. That is, the results of the parties interaction are uncertain. As such, each party believes that communicating with the other party will allow her to further her interest or objective in the situation. 

For a negotiation to be successful, the parties must arrive at an agreement that fits with a range of situational outcomes acceptable to both parties. This does not mean that the parties must reach their desired outcomes. The outcome must simply be acceptable to each negotiator. 

Back to: Negotiations & Communications

Discussion

Why do you think that negotiations result from conflicts or differing interests? Are the differences always real or simply perceived by the negotiators? Do parties ever negotiate when a single outcome is inevitable? Why must a negotiator believe that she can improve her position through negotiation? Is it important for a negotiator to understand what terms or results of a negotiation are acceptable before beginning to negotiate?

Key Concepts in Negotiation

  • What is negotiation?
  • What scenarios or situations lead to a negotiation or cause parties to negotiate?
  • What characteristics are common to all negotiations?
  • What are the differences among negotiators that affect the negotiation process?
  • What is a conflict and how does it give rise to negotiation?
  • How is a negotiators disposition toward conflict resolution related to negotiation strategy?
  • What is the level of dependence in a conflict negotiation?
  • What are integrative, distributive, and compatible bargaining scenarios?
  • What is the BATNA and what is the significance of alternatives in negotiation?
  • What is the significance of the reservation point and ZOPA in a negotiation?
  • What is the significance of concessions or adjustment of the bargaining position?
  • What are anchor points and the bargaining range in a negotiation?
  • What personal and situational factors are commonly understood to affect negotiation?

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