HR Glossary

Negotiation

What is a negotiation?

Negotiation refers to a discussion between two or more individuals with the goal of achieving a mutually advantageous agreement. In the workplace, this usually involves pay, benefits, job duties, and other terms of employment.

What are the types of negotiation?

Here are the different types of negotiation:

• Distributive negotiation 

  Distributive negotiation, or win-lose negotiation, involves a fixed amount of resources that parties aim to divide. Each party's gain is the other's loss, making it competitive in nature. An example would be negotiating a salary increase where the employer's goal is to minimize costs while the employee seeks higher pay.

• Integrative negotiation

  Integrative negotiation, or win-win negotiation, focuses on collaborative problem-solving to ensure all parties achieve beneficial outcomes. It involves understanding each other's interests and working together to find creative solutions that satisfy everyone involved.

• Team negotiation 

  Team negotiation involves a group of individuals working together to reach an agreement. As there are multiple perspectives and skill sets at the table, this kind of negotiation may result in better and more palatable solutions; however, they also require proper coordination and communication.

• Multiparty negotiation 

  Multiparty negotiation occurs when more than two parties are involved in the negotiation process. They can be complex due to differing opinions and need to be managed with caution to achieve common ground.

What are some common negotiation strategies?

• Compete

  A party pursues their own concerns assertively, often at the expense of others. This strategy is suitable when quick, decisive action is needed on important issues but may harm relationships if overused.

• Accommodate

  One party gives up their own interests to meet the other's concerns. This strategy keeps peace but might produce resentment if employed excessively.

• Avoid

  A party ignores the conflict and waits for it to go away or is indifferent. This serves well for unimportant matters but can cause problematic issues to escalate in the future.

• Collaborate

  Parties cooperate and reach a decision that is optimal for both sides. This creates long-term relationships based on trust but can be inefficient.

• Compromise 

  Both sides sacrifice something in order to come up with an acceptable solution. Though it results in a quicker resolution, the solution may not be entirely satisfactory to either party.

What is the role of HR in negotiation?

HR plays a key role in workplace negotiations, serving as a buffer between employees and management. Major roles include:

• Policy development: 

  Setting proper guidelines for negotiation procedures so that they remain fair and consistent

• Facilitation: 

  Resolving conflicts through mediating disputes and facilitating discussions

• Training: 

  Conducting negotiation skills training for managers and employees to improve their ability to negotiate

• Compliance: 

  Making sure that all negotiations comply with legal and organizational requirements to avoid potential risks

What are the five core concerns of negotiation?

The five core concerns of negotiation are:

1. Appreciation: 

   An appreciation of and respect for the other's point of view, feelings, and input

2. Affiliation: 

   Creating a sense of bonding and partnership between the two parties

3. Autonomy: 

   Each party having freedom of choice without interference from the other

4. Status: 

   The relative position and role of each party being respected and acknowledged

5. Role: 

   Both parties assuming a significant and satisfying role in the negotiation process

What are the six stages of negotiation?

Successful negotiations usually go through the following phases:

1. Preparation: 

   Collecting information pertinent to the situation, setting goals, and learning the interests of all parties

2. Establishing ground rules: 

   Setting the procedures, timeframes, and behaviors to be followed during the negotiation

3. Clarification: 

   Exchanging and clarifying each party's positions and interests to ensure that there is mutual understanding

4. Negotiation: 

   Having discussions to identify the common ground

5. Closure: 

   Finalizing the negotiation process, including developing an action plan and filling out any paperwork

6. Implementation:

   Applying the agreement terms, evaluating outcomes, and resolving any issues

What are the essential skills required to negotiate effectively?

• Active listening: 

  Properly comprehending the other side's view to recognize underlying interests and concerns

• Communication: 

  Effectively expressing thoughts, offers, and counter-offers in order to prevent misunderstandings

• Emotional intelligence: 

  Controlling one's own feelings and understanding others in order to make interactions smoother

• Problem-solving: 

  Finding innovative solutions that meet the interests of everyone

• Decision-making: 

  Objectively considering alternatives in order to make informed decisions during the negotiation

• Patience and persistence: 

  Being calm and steadfast, particularly during long negotiations

What are some common pitfalls to avoid during a negotiation process?

When negotiating, sidestepping the following errors can enhance the likelihood of coming to a successful compromise.

• Lack of preparation and research
• Competing with the other parties
• Making things personal
• Failing to establish trust
• Neglecting the interests of the other parties
• Failing to understand when to walk away