Negotiation – Steps in Negotiation



Negotiation is defined as the deliberate interaction of two or more social units on an attempt to reach a jointly acceptable position on some conflicting issues. – Walton and McKersie

Negotiation results into a mutually agreed decision that is acceptable to both the parties even if they have different preferences. In many organizations it is a common activity. Management and employees use to sit together to decide on the issues like next year target, resolving issues, allocation of resources and salary increment. 

Steps in negotiation:

The process of negotiation involves following steps.

Preparation and planning: It is important to collect the information about the conflict, parties involved and causes of the conflict. Proper planning is required to resolve the conflicts of different types. It is responsibility of negotiator to find the clear goals of the negotiation process. He should plan and decide the minimum acceptance level of the best alternatives possible to both the parties involved.

Defining basic rules: Rules and procedures of negotiation should be framed. To avoid confusion it should be cleared that who will meet whom, time of meeting and place of meeting, in advance. It is very important to be clear about procedure of negotiation and issues to be discussed. All rules and procedures must be communicated to both the parties.

Clarification and Justification: Once the rules are framed, both the parties initiate the exchange of proposals and demands. Doubts are clarified and justification of the demands is given. This the understanding phase of the negotiation phase. Supporting documents must be shared according to the proposals and demands.

Bargaining and Problem resolution: It is the phase of deciding the common acceptance to the alternatives and mutual agreement on the issue. Bargaining process is also a process of give and take. This process is done with cool mind and calm spirit of give some and get some.

Closure and implementation: this is stage of finalizing the agreement. It is decided that how the agreement is monitored and implemented. All decisions are done in black and white by the parties of negotiation. Parties remain in touch for further amendments if required.