R.M. Boylan BSc. M.A.

The 7 elements of negotiation

Negotiation is a multifaceted process comprising several components that influence its success. Grasping these components can greatly improve the negotiators' effectiveness. I know following a structured path can be boring and daunting, but I can assure you it allows you to cover every aspect so when you are in the scenario you are not blindsided. Presented below are the seven essential elements of negotiation, accompanied by scholarly insights and references.

1. Interests

Interests refer to the underlying needs, desires, or concerns that motivate parties in a negotiation. They are distinct from positions, which are the specific demands or stances that parties take. For example, in a salary negotiation, an employee's interest might be financial security (interest), while their position might be a specific salary figure (position). Fisher and Ury (1991) emphasize the importance of focusing on interests rather than positions to create value and find mutually beneficial solutions.

2. Options

 Options are the various possibilities that negotiators can explore to satisfy their interests. Generating a wide range of options is crucial for creative problem-solving. Fisher and Ury (1991) advocate for brainstorming multiple options before deciding on a course of action. This approach allows negotiators to expand the pie rather than merely dividing it.

3. Standards

 Standards refer to the criteria or benchmarks used to evaluate the fairness of proposed solutions. These can include industry norms, legal guidelines, or ethical considerations. According to Bazerman and Neale (1992), using objective standards can help parties reach agreements that are perceived as fair and legitimate, reducing the likelihood of conflict.

4. Alternatives

 Alternatives, often referred to as BATNA (Best Alternative to a Negotiated Agreement), are the options available to a party if the negotiation fails. Knowing one’s BATNA provides leverage and confidence during negotiations. Fisher and Ury (1991) highlight the importance of assessing alternatives to strengthen one’s negotiating position.

5. Commitments

 Commitments are the agreements or promises made by parties during the negotiation process. They are essential for ensuring that the negotiated terms are upheld. According to Lewicki, Barry, and Saunders (2015), clear and enforceable commitments can foster trust and accountability among negotiators.

6. Communication

Effective communication is critical in negotiation, as it facilitates the exchange of information, clarifies misunderstandings, and helps build rapport. Scholars like Thompson (2013) emphasize that active listening and clear expression of thoughts and feelings are vital for successful negotiation outcomes.

7. Relationship

The dynamic between negotiating parties can greatly influence the negotiation process. A constructive relationship can boost collaboration and result in more favorable outcomes, whereas a tense relationship might cause conflict and distrust. As per Deutsch (1973), nurturing cooperative relationships can result in integrative solutions that meet the interests of both parties.

Thomas-Kilmann Conflict Resolution Modes

The Thomas-Kilmann Conflict Mode Instrument (TKI) outlines five modes of conflict resolution: competing, accommodating, avoiding, collaborating, and compromising. These modes represent various strategies for managing conflict and negotiation. For example, collaborating aims for win-win outcomes, whereas competing prioritizes winning over others (Thomas & Kilmann, 1974). Recognizing these modes enables negotiators to select the most suitable strategy according to the negotiation's context.

Conclusion

 In conclusion, effective negotiation requires a comprehensive understanding of the key elements involved, including interests, options, standards, alternatives, commitments, communication, and relationships. By leveraging these elements and understanding conflict resolution modes, negotiators can enhance their ability to achieve favorable outcomes. Future research and practice should continue to explore these elements to further refine negotiation strategies.

References

• Bazerman, M. H., & Neale, M. A. (1992). Negotiating Rationally. Free Press.

• Deutsch, M. (1973). The Resolution of Conflict: Constructive and Destructive Processes. Yale University Press.

• Fisher, R., & Ury, W. (1991). Getting to Yes: Negotiating Agreement Without Giving In. Penguin Books.

• Lewicki, R. J., Barry, B., & Saunders, D. M. (2015). Negotiation. McGraw-Hill Education.

• Thompson, L. (2013). The Mind and Heart of the Negotiator. Pearson.

• Thomas, K. W., & Kilmann, R. H. (1974). Thomas-Kilmann Conflict Mode Instrument. TKI Publications.

• The 7 Elements of the Harvard Negotiation Method | The Training Box

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