The Essential Elements of Negotiation

There are many different ways to categorize the essential elements of negotiation.

One view of negotiation involves three basic elements: process, behavior and substance. The process refers to how the parties negotiate: the context of the negotiations, the parties to the negotiations, the tactics used by the parties, and the sequence and stages in which all of these play out. Behavior refers to the relationships among these parties, the communication between them and the styles they adopt. The substance refers to what the parties negotiate over: the agenda, the issues (positions and - more helpfully - interests), the options, and the agreement(s) reached at the end.

Another view of negotiation comprises four elements: strategy, process, tools, and tactics. Strategy comprises the top level goals - typically including relationship and the final outcome. Processes and tools include the steps that will be followed and the roles taken in both preparing for and negotiating with the other parties. Tactics include more detailed statements and actions and responses to others' statements and actions. Some add to this persuasion and influence, asserting that these have become integral to modern day negotiation success, and so should not be omitted.

Adversary or Partner?

The two basically different approaches to negotiating will require different tactics. In the distributive approach each negotiator is battling for the largest possible piece of the pie, so it may be quite appropriate - within certain limits - to regard the other side more as an adversary than a partner and to take a somewhat harder line. This would however be less appropriate if the idea were to hammer out an arrangement that is in the best interest of both sides. A good agreement is not one with maximum gain, but optimum gain. This does not by any means suggest that we should give up our own advantage for nothing. But a cooperative attitude will regularly pay dividends. What is gained is not at the expense of the other, but with him.

Negotiation Styles

Kenneth W. Thomas and Ralph H. Kilmann identified 5 styles/responses to negotiation. These five strategies have been frequently described in the literature and are based on the dual-concern model. The dual concern model of conflict is based on two themes or dimensions

1.A concern for self (i.e.assertiveness), and

2. A concern for others (i.e.empathy).

Based on this model, individuals balance the concern for personal needs and interests with the needs and interests of others. The following five styles can be used based on individuals’ preferences depending on their pro-self or pro-social goals. Before we proceed to explain about the different negotiation styles it is important to note two things. First, people tend to prefer a style. In fact, with practice people can effectively use all five negotiation styles. Second, there is no universal best negotiation style. The best style to use differs from negotiation to negotiation.

These styles are: accommodating, avoiding, collaborating, competing and compromising.

1. Accommodating: Individuals who negotiate with an accommodating style put great value and emphasis on preserving the relationship. Accommodators are sensitive to the emotional states, body language, and verbal signals of the other parties.

2. Avoiding: Individuals who do not like to negotiate and don't do it unless warranted. When negotiating, avoiders tend to defer and dodge the confrontational aspects of negotiating; however, they may be perceived as tactful and diplomatic.

3. Collaborating: Individuals who enjoy negotiations that involve solving tough problems in creative ways. Collaborators are good at using negotiations to understand the concerns and interests of the other parties.

4. Competing: Individuals who enjoy negotiations because they present an opportunity to win something. Competitive negotiators are often strategic. Because their style can dominate the bargaining process, competitive negotiators often neglect the importance of relationships.

5. Compromising: Individuals who are eager to close the deal by doing what is fair and equal for all parties involved in the negotiation. Compromisers can be useful when there is limited time to complete the deal; however, compromisers often unnecessarily rush the negotiation process and make concessions too quickly.

Source: Kenneth W. Thomas and Ralph H. Kilmann, Thomas-Kilmann Conflict Mode Instrument (TKI)