Organizational Negotiations MGT_445
Negotiation is a process by which two or more parties, each with its own goals and perspective, coordinate areas of interest through concession and comprise to reach an agreement and take joint decisions about areas of common concern in a situation in which neither side has nor wants to use complete power. “we know that lawyers and car salespeople spend lots of time negotiating, but so do managers. Managers have to negotiate salaries for incoming employees, cut deals with superiors, bargain over budget, work out differences with associates, and resolve conflicts with subordinates. Negotiating is something that every one engages in almost every day and most of the time without even realizing it. . Negotiation occurs when two or more conflicting parties attempt to resolve their divergent goals by redefining the terms of their interdependence (Pruit and Carnevale 1993)
Some researchers have suggested that in negotiations, collaborative style is the most effective, but the truth is that it may be too overbearing for the negotiations (Brett, 1984). While collaborating, one is most often to share all the information to arrive at a satisfactory solution. However, information is rarely shared until trust is established. As a result, negotiators adopt a cautiously collaborative style in the beginning, slowly trying to find out whether the other party will share the information that it knows. This also helps build trust (Fells, 1993). If trust is not established, negotiators shift to the win-lose style of negotiation from the win-win style, there by trying to maximize their returns.
The success for negotiation depends on the bargaining technique used by both the parties involved. There are basically two major types of strategies. The first one is the distributive bargaining. The most distinctive feature of distributive...