Negotiating
Negotiating is a crucial process in which two or more parties come together to resolve disagreements and reach mutually beneficial agreements. This can occur in various contexts, including business deals, political treaties, labor negotiations, or personal matters. The negotiation process aims for all parties to engage in open discussions about their differing interests, ultimately seeking a resolution that satisfies everyone to some degree. There are two primary types of negotiations: informal negotiations, which happen directly between the parties, and specialized negotiations, which often involve a facilitator and may result in binding contracts.
Effective negotiation requires strong communication skills, patience, and a willingness to understand each other's perspectives. Successful negotiators often employ strategies such as "principled negotiation," which focuses on mutual interests rather than confrontation. Respect and equality among participants are vital for a constructive dialogue, helping to minimize conflict and enhance collaborative outcomes. Notable historical negotiations, such as the Treaty of Versailles or the Paris Climate Accord, highlight the significant impact that negotiation can have on a broader scale. Ultimately, mastering negotiation skills can lead to better results in both personal and professional contexts, fostering long-lasting relationships and reducing the likelihood of future disputes.
On this Page
Subject Terms
Negotiating
In order to reach an agreement about something—be it a business deal, a political treaty, a contract, or any other matter debated by two or more people—the parties involved must engage in negotiation. Negotiation is a process in which all parties to a particular debate get together to discuss the issues in detail, hoping to reach a mutual settlement that will satisfy all those involved to some extent. In order for a negotiation to be effective, all participants must continue the proceedings until an agreement is reached. If an agreement is not reached, the matter being negotiated will remain unresolved.
Negotiations may be conducted between collective bodies, such as countries, governments, or unions and employers. Or, they may involve individuals such as professional athletes, employees and their managers, persons making a large purchase such as a car or a home, or anybody involved in some sort of legal dispute. Negotiations begin when it is clear that a disagreement between two parties with disparate interests must be resolved in order to reach a common goal. They may take place either in a formal setting, with professional negotiators representing the parties involved, or in an informal setting, with the parties attempting to resolve the issue without an outside representative.
Background
A number of famous historical negotiations have had significant and long-lasting impacts, particularly in the realms of politics and labor, and the strategies employed can often be applied to future negotiations. Major political agreements reached via negotiation include the Louisiana Purchase of 1803, in which the United States negotiated the purchase of the Louisiana territory from France, and the 1919 Treaty of Versailles between Germany and the Allied powers, which officially ended World War I. A more contemporary example is the 1981 Algiers Accords between the United States and Iran, which resolved the Iran hostage crisis of 1979 after more than a year of intense hostage negotiations.
Since the legalization and subsequent growth of labor unions in the nineteenth century, several well-known labor disputes have resulted in major changes to labor and business practices. Unionization, collective bargaining, and strikes continue to be among the most effective tools in negotiations between workers and their employers. In 1997, the International Brotherhood of Teamsters union tried to negotiate with the United Parcel Service (UPS) on behalf of its members for new contracts. UPS had replaced the majority of its full-time workers with part-time workers who received lower pay and fewer benefits. The workers wanted more full-time jobs with better pay, while the company wanted to take control of employees’ pension funds, which were being maintained by the union. When the two parties could not reach a satisfactory agreement, the Teamsters organized a strike of more than 185,000 workers—the largest strike since the US Postal Service strike of 1970. It lasted for sixteen days and cost UPS about $650 million. The strike ended when UPS offered a five-year contract that would increase pay for drivers and part-time workers, as well as raising base hourly pay by fifty cents. UPS also agreed to limit subcontracting and to allow the union to maintain control of workers’ pension funds.
In the twenty-first century, a major negotiation was the Paris Climate Accord, which took place at the UN Climate Change Conference in Paris on December 12, 2015. The agreement was made to slow the progression of climate change by limiting the global temperature increase to 1.5°C above pre-industrial levels. The agreement was reached by 196 countries after two weeks of negotiations and demonstrated the potential for worldwide collaboration.
Overview
Negotiations can be divided into two main types: informal negotiations and specialized negotiations. Informal negotiations are usually conducted between the interested parties themselves, without the aid of a facilitator or moderator. They may be held in professional situations, such as a job interview or a business transaction, or they may involve personal matters. Specialized negotiations are usually more complicated, often requiring many meetings under the guidance of a facilitator or moderator, and are resolved with binding contracts as necessary. Such negotiations are usually highly sensitive and demanding.
To be an effective negotiator requires several social and managerial skills. Negotiators should have excellent communication skills. Arguing and fighting are not conducive to reaching an agreement. All the parties involved in a negotiation must be able to listen, discuss, and participate in a professional manner. In this respect, negotiation is similar to diplomacy, where a civil discussion is necessary for a productive dialogue. All sides must try to understand one another in order to draw up a resolution that will benefit everyone.
Negotiations occur not only among politicians and businesses but also between individuals. Personal negotiations range from more formal matters, such as marriage contracts or divorce proceedings, to informal, everyday decisions, such as what to have for dinner, what movie to watch, or what house to buy. Negotiation comes up whenever two or more people disagree on a decision to be made. Although personal negotiations are a far cry from negotiating nuclear disarmament, for example, developing the skills to reach a satisfactory compromise can benefit an individual in either situation.
Some professional negotiators make their living conducting negotiations on behalf of others or teaching others how to negotiate effectively. Professionals emphasize the importance of advance preparation, such as writing down one’s arguments and supporting facts before engaging in a negotiation. They also study and make use of specific negotiation strategies. One such strategy is called "principled negotiation." This method steers parties away from argument and disagreement and encourages them to discuss each other’s interests instead. The goal is to reach a settlement in which the interests of all sides are met while preserving the relationship.
Professional negotiators point out the emotional elements of negotiation. People are generally afraid to compromise their autonomy, or sense of freedom. They can lash out in anger if they feel that something is being taken away from them or if they are forced to do something that they do not want to do. Also, people want to be treated with respect. When meeting for negotiations, they want to be treated as equals, as colleagues or peers. All parties to a negotiation should show respect and appreciation for each other so that conflict is minimized and a resolution can be met.
A negotiation may be intense, long, and sensitive, or it may be resolved within a manner of minutes. Either way, the skillful implementation of negotiation tactics can help lead to a more satisfactory outcome. When all sides of a negotiation are satisfied with the outcome, this lessens the likelihood of a need for further negotiation in the future.
Bibliography
Burger, Rachel. “Project Management Negotiation – A Definitive Guide for 2022.” Work Life Balance Blog , Resource Guru, 6 Aug. 2024, resourceguruapp.com/blog/project-management/project-negotiating. Accessed 5 Dec. 2024.
Deutsch, Morton. "Negotiating the Non-Negotiable." Morton Deutsch: Major Texts on Peace Psychology. By Peter T. Coleman and Deutsch. Springer, 2015. pp. 63–71.
Fisher, Roger, William Ury, and Bruce Patton. Getting to Yes: Negotiating Agreement without Giving In. 3rd rev. ed. Penguin, 2011.
Hofman, Mike. "5 Things You Should Never Say while Negotiating." Inc., Mansueto Ventures, 31 Jan. 2011, www.inc.com/guides/2011/01/five-things-to-never-say-while-negotiating.html. Accessed 5 Dec. 2024.
Movius, Hallam, and Lawrence Susskind. Built to Win: Creating a World-Class Negotiating Organization. Harvard Business, 2009.
Nemko, Marty. "The Psychology of Negotiating." Psychology Today, 6 June 2014, www.psychologytoday.com/us/blog/how-to-do-life/201406/the-psychology-of-negotiating. Accessed 5 Dec. 2024.
Witt, Matt, and Rand Wilson. "The Teamsters’ UPS Strike of 1997: Building a New Labor Movement." Labor Studies Journal, vol. 24, no. 1, 1999, pp. 58–72. Sage Journals, doi.org/10.1177/0160449X9902400106. Accessed 5 Dec. 2024.