Types And Stages Of Negotiation - Important Soft And Cognitive Skills

Types And Stages Of Negotiation – Important Soft And Cognitive Skills

In The First Part Of The Discussion Entitled “Betrayal Of Negotiation,” While Providing A Definition Of Negotiation, I Pointed Out How Other Important Cognitive Skills Such As Emotional Intelligence, Cognitive Flexibility, And Critical Thinking Affect Negotiation. 

I also said that one of the most important and perhaps the most essential principles in negotiation is to be ourselves and not to play a role and to be fully present in the talks at all times.

Although I have said that I will not follow the general and technical principles of negotiation and I will try to focus more on the psychological and hidden points of negotiation, I think it is necessary to first mention the types of bargaining and steps before dealing with other hidden issues of negotiation.

To have some comprehensiveness of the discussion for those who follow these topics. Types of negotiations …

Most sources and books related to this field divide negotiation into two general types: distributive or fixed negotiation and integrated or consolidated negotiation.
  • Distributive NegotiationDistributed or fixed bargaining is a strategy for sharing a fixed amount of benefits between two or more negotiating parties. In this type of negotiation, each party tries to get the maximum help. In a distributive negotiation, any honor or privilege gained by one party is deducted from the other. Suppose you want to sell your car and have considered 300 million tomans for that price, but in your mind, you are ready to discount up to 280 million tomans. On the other hand, someone wants to buy your car. He also announces the desired price of 270 million Tomans, but he knows that if he believes at the expense of 290 million Tomans, he will still profit compared to the market price. Here, no one knows at what price the other will end up satisfied. But both know that there is a Zone of Possible Agreement (ZOPA). This range, in this transaction, is ten million tomans, i.e., between 280 million and 290 million tomans. In this case, each of the parties can negotiate to get a part of these ten million, will feel satisfied with the deal. So why this type of deal is also known as “bargaining.”
  • Integrative negotiation In integrated negotiation, several factors are involved in the decision-making of the negotiating parties, and there is not a single factor such as price. Each party must look at the various aspects of its interests and outcomes and the goods and products of the other party. Because he knows that the other party will not be aware of a lasting agreement if he does not achieve his interests and demands. It is in this situation that you need all the cognitive skills I mentioned in the previous issue. For example, suppose you, as the company manager, will negotiate a contract to maintain your company site. In that case, price is not the only issue—training the company’s employees, 24-hour maintenance seven days a week, and accepting responsibility in the event of an attack, and several other problems that the two parties must agree on individually. Employment negotiation is another example of integrated negotiation in which just paying or receiving a salary is not an essential condition. Each party must identify crucial issues. The job applicant must be aware of the requirements of the work environment, the amount and type of insurance, the types of benefits, the possibility of career advancement, and the like, and discuss them in the negotiations. The employer should also be aware of the applicant’s motivation and cognitive skills, how to deal with problems, and how to solve the problem.

Ironically, in the integrated form, actual negotiation makes sense. In the distributive type, you are bargaining. Although you need some experience and intelligence for negotiation, you can usually have it in normal mode. Still, in the integrated talks, you need other soft skills, and this is where you need to be.

Put literal learning on the schedule to learn negotiation techniques and skills. Negotiation training courses, classes, and workshops are held to teach this type of negotiation. It is here that we must learn to use soft skills to both defend our interests and to be able to understand the other party’s interests and to negotiate a situation where the parties are satisfied and feel that they have been able to make valuable concessions in return. Get.

Negotiation steps …

Leonard Greenhalgh is one of the most prominent theorists in the negotiation debate. In his famous book called “strategic relationship management» (Managing Strategic Relationships) 1, the traditional negotiation doctrines on his side. Instead, studying hundreds of management emphasizes cooperation rather than competition.

Greenhall describes the steps of negotiation as follows:

1. Preparation

Set goals, list topics, review and identify alternatives, review conditions, and work with the other party.

2. Relationship building:

Establish a relationship with the negotiating party and get to know them better to facilitate the negotiation.

3. Information gathering:

At this stage, we look at the negotiation issue from the other side’s perspective, what this negotiation means, what benefits it brings, and what the consequences will be if this agreement is not formed.

4. Information using:

According to the information gathered and the knowledge gained from the goals, the type of negotiation and how to achieve the goals are determined.

5. Bidding:

At this stage, the key issues are discussed, proposals and concessions are exchanged, and the parties adjust their positions to reach a closer agreement. At this stage, the parties get the real goals from the initial demands.

6. Reaching the agreement (Closing the deal):

If the previous stage is well completed, we will reach the stage of concluding a contract. At this stage, which should write in most cases, the agreed items should record one by one, and nothing of the issues discussed should be recorded, as this contract will henceforth be the standard of action and subsequent judgments.

7. Closing the deal:

Contracts are not executed automatically after the warranty. They may interpret differently during the contract, or one of the parties may want to use some of the existing gaps and … At this stage, using the methods in the agreement to Fixing such problems is embedded, they try to solve the problem.

Dispute resolution authorities are usually mentioned in the contracts. If the parties are unable to resolve their differences through dialogue, they can refer to these authorities.

Description:

  1.  Leonard Greenhalgh. Management Strategic Relationship: The Key to Business Success. New York: Free Press, 2001,