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Basics Of Negotiation And It's Process

Consilia omnia verbis prius experiri, quam armis sapientem decet -An intelligent man would prefer negotiation before using arms.

What Is Negotiation?

Negotiation is the process which helps people settle their differences and disputes. It is the method by which amicable agreement is reached avoiding arguments.

The term 'Negotiation' can be defined as a direct or indirect form of communication through which the parties with conflicting interest deliberate a form of Joint Action aiming to resolve the dispute between them. Negotiation can be used either to resolve any existing problem or for a future relationship between two or more parties by setting a ground work.

The presence of negotiation can be found at all aspects of everyday life whether at individual level, Institutional level, National level or global level. Negotiation therefore has been characterized as the preeminent mode of dispute resolution. In compliance to the presence of negotiation in daily life it is not astounding to find that negotiation can be applied to other dispute resolution processes for example mediation and litigation settlement conferences.

Scope Of Negotiation:

The history of negotiation can be traced back to the times of Monarch era where Kings used to negotiate at the time of ongoing Wars in order to prevent the bloodshed in war. After the two great World Wars in the 20th century the negotiation rounds resulted into the creation of League of Nations followed by United Nations.

The scope of negotiation has increased over the time. The major objective behind negotiation is that the parties involved wishes to settle the dispute outside the court. The litigation process has its own disadvantages such as: bulky paperwork, excessive time, delays in process, costly- expensive and unfavorable decision.

Because of such reasons alternative dispute resolution gained fame and with increase in fame of negotiation the demand for experienced negotiators also increased. Negotiation is considered to be alternative dispute resolution as an informal process which helps the parties to resolve that differences through mutual understanding and agreement.

Some situations in which negotiation is applicable:
  1. Marital Deadlock:

    Where a dispute involves a relationship of marriage the pre litigation process includes negotiation. In such disputeís sentiments and ego between husband and wife in a conjugal relationship are often settled by communication during negotiation process.

  2. Business Negotiation:

    Business negotiation aims to manage business and corporate matters. The skill which are required in such negotiation includes making deals discussion on profits of the company team building negotiation of contracts negotiations with employees and laborer's efficiently handling cases of disputes between clients and employees.

    In order to establish a business agreement, the art of negotiation is essential full stop business negotiation can be considered as a skill where in the big problems are drop down to small chunks and to every touch problem a solution is carefully found out.

  3. Contract-Based Negotiations:

    Before entering into a contractual relationship, the parties negotiate the terms condition of dispute. This type of negotiation is the most famous type of negotiation and is in somewhat line with that of business negotiation. After a breach of contract, the deadlock can also be settled with the help of negotiations.

  4. International Negotiations:

    The conflict between different nations can easily turn into scandals that needs to be resolved immediately. The international negotiations generally take a longer time than other negotiation processes as this process is complicated and involve various steps s bureaucrats are involved in the process. The major objective of International Organization is primarily to allow a smooth interconnectivity and interrelations between Nations in such a way that it is beneficial for both for all countries in the economy.

Characteristics Of Negotiation Process:

  1. Voluntary:

    Process of negotiation is conducted through free consent of parties. No party is forced to participate in the process. The outcome of negotiation can be freely accepted or rejected at the will of parties. Also, at any point of process it can be withdrawn. The parties can directly negotiate or they may choose anyone to be represented.

  2. Bilateral/ Multilateral:

    The process of negotiation can involve two or more parties. The parties can range from two individuals seeking to agree on sale of house to negotiation involving diplomate from dozens of States.

  3. Non-Adjudicative:

    Negotiation is an informal process which only involve the parties. The outcome is amicable reached by the parties together without any records to a third party through mutual understanding.

  4. Informal:

    Unlike arbitration negotiation is an informal process which has no prescribed rules and regulations. The parties get a free will to adopt whatever rules they choose if any. Generally, the parties agree on the issues such as the subject matter timing and location for the process. Other rules may include metals such as confidentiality number of negotiating sessions and which documents may be used can be addressed.

  5. Flexible:

    The scope of negotiation is dependent upon the choice of parties where determine not only the topic which will be the subject matter of negotiation but also if they will adopt a positional based bargaining approach or interest-based approach.

Stages Of Negotiation (Process)

Each negotiation has its own unique characteristics. Therefore, there is no such uniform and exclusive method of negotiation and bargaining session.
A structured approach has to be followed in order to come at a desired outcome. Therefore, various steps have to be followed in the negotiation process so that the parties with conflicting ideas and differences reach to an amicable solution.

The process includes following stages:
  1. Preparation
  2. Discussion
  3. Clarification of goals
  4. Negotiate towards a Win-Win outcome
  5. Agreement
  6. Implementation of course of action

Preparation/ Initial Assessment

The process of negotiation begins with the signal of communication from one party to the other showing a willingness to bargain. As negotiation is a voluntary process it is of primary importance to know that whether the other party is interested in negotiation or not.

Some of the important factors should be ensured before moving on. They are:
  • if there is desire to resolve the dispute
  • the credibility of other parties
  • the willingness of parties to preserve or establish the relationship
  • whether there is disparity between the parties that it would be impossible to bargain equal or not
  • desirability of using any other form of dispute resolution system.
This stage involves ensuring the important facts of the dispute and its situation in order to clarify the position of both the parties. Before any negotiation takes place, a decision shall be taken as to when and where the meeting for negotiation shall happen and as to who will attend the discussion and negotiation sessions. During this time setting of a limited timescale can help prevent this agreement continuing.

Discussions
Once it has been established that negotiation is the appropriate course of action the further arrangement shall be made in that course with the other party included. The arrangement must include:
  • outlining the scope of negotiation
  • forming a time table as to whether or not that will be a fixed duration of negotiation
  • ensuring that all the interested parties are identified and have been consulted
  • choosing a location Which is feasible to both the parties.
During this stage the parties of other side put forth their case as they see it and try to understand the vice-versa situation. Clarification as to misunderstandings and disagreements shall be spoken and heard. An equal opportunity shall be granted to both the side.

Clarification Of Goals

From the second stage of discussion whatever goes interest and viewpoints of the parties of this agreement needs to be clarified. To clarification it becomes easy and possible to identify and establish a common ground post settlement. Clarification is one of the crucial parts of negotiation process is without a doubt the misunderstanding and disagreements are likely to continue which main result to cause problems and barrier in reaching a beneficial outcome.

This can lead to harmonizing and Reconcile the bearing and competing interest of the parties.

Negotiating Towards A Win-Win Situation

It is not always possible to reach to a Win-Win situation but it shall be the ultimate goal. this stage focuses on which can be termed as Win-Win outcome wherein both the parties may have the satisfaction that they have gained something positive through the process and both the parties may feel that their point has been considered.

Agreement

A proper agreement can be achieved only when both the parties understand each otherís point of view and interest are considered simultaneously. Every member involved in the negotiation process it is essential to keep an open mind so that an acceptable solution can be reached full stop such agreement needs to be clearly communicated so that no for the dispute can occur.

Implementation Of Action:
Once agreement is reached a proper course of action has to be implemented so that the decision can be carried out.

Advantages Of Negotiation

  1. Party-based Dispute Resolution:

    One of the primary reasons for success of negotiation is that it only involves the stakeholders and does not involve any other party as a result of which the process remains a private affair and confidential. The parties decide the subject matter duration of process locations papers to be referred etc.
     
  2. Freedom of Parties:

    The parties are at freedom to choose agendas of the choice in addition to ensure your objective that negotiation is achieved.
     
  3. Consent of Parties:

    The negotiation process ensures that both the parties involved in negotiation have free will in participating and that no one is forced to engage in the process. this freedom also ensure that all the parties are at equal footing and there is no play of powers.
     
  4. No Third-Party Intervention:

    Unlike most of the radius system which requires a neutral third party for dispute resolution such is not the case with negotiation.
     
  5. Comfortable Process:

    Negotiation is an informal process. It is normally a speedy process whose decisions are not binding upon the parties. Latest a completely self-build process wherein the decision can either be accepted or rejected by the parties at their own win all the process can be withdrawn at any point of time.
     
  6. Improvement in Relations:

    Once the negotiation process is successfully completed that is a scope of improvement in the relation between the parties. And it also facilitates the process of negotiation for any further education.

Disadvantages Of Negotiation

  1. Power Tactic:

    It is not always necessary that the parties to negotiations are of equal stature and power. Therefore, in the absence of a neutral third party the party whichever is in the position to dominate the other uses the dominance over the consent of other party and come at an agreement. This leads to an unfair agreement which is ultimately useless.
     
  2. Impasse:

    Sometimes the difference is and disagreement between the parties may lead to a deadlock situation. And Impasse situation occurs during the negotiation process where at any discussion the parties are stand still and cannot have any for the discussion. This stage is very frustrating when no possible successful outcomes can happen. This generally happens when any one party is so rigid over its goal that no middle ground can be achieved. This ultimately results into a walkout situation.

     
  3. Backing Off:

    The unsuccessful negotiation leads to creation of bad relations between the parties along with termination of any business are contractual relations afterwards. It also happens that sometimes the parties lose confidence in the process of negotiation as a dispute resolution and consider the other options.

  4. Not all issues are Negotiable:

    There are various cases which involve multiple stakeholders for home negotiation process cannot be made applicable and such cases can directly go to the court for the decisions.

    Award Winning Article Is Written By: Ms.Simran Shaikh
    Awarded certificate of Excellence
    Authentication No: MA106913962219-10-0321

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