Art of negotiation

Premasara Epasinghe

(BA (Cey), Dip in Ed, Dip in Mkt, Lecturer in Management and Marketing, Public Relations and Mktg Consultant -

Negotiation is a key word in the Business World. In Latin, I presume the word Negotium-Negotiari – means business.

There are generally a number of definitions to the word Negotiation. A simple definition on Negotiation is “It is a discussion aimed at reaching an agreement”. The term Negotiable means, something can be modified after discussion. In the case of a cheque, the word, Negotiable means that can be converted into cash or transferred to another person. When, we use the term Negotiate, it means, try to reach an agreement by discussion to arrange (an affair) or bring about a (result). To get or give the value of the money for a cheque or bond can also be called a negotiation. Sometimes, even when you are driving your car, you must be really careful in Negotiating a bend.

In “Business Jargon” - Negotiation is the process, where interested parties resolve disputes, agree upon course of action, bargain for individual or collective advantage and or attempt to craft outcomes which serve their mutual interest.

Negotiation is generally considered as a form of alternative dispute resolution. First and foremost, one must see whether the situation needs a negotiation.

Let us discuss the essential qualities of negotiation

There should be two parties who share an important objective, but have some important differences. The purpose of the negotiating conference is to seek to compromise the differences. The end result of the negotiating conference may be a compromise satisfactory for both parties. Sometimes, failure to reach a satisfactory compromise or a stand off with an agreement. In a situation like this one has try to again at a later date. An important fact is that negotiation differ from “Influencing” or “Team Decision Making”.

During J R Jayewardene's and R Premadasa regime, the Blood Thirsty LTTE top carders and the Government had many Negotiation Conference to settle the ethnic war. It continued for more than three decades.

There are four options for a negotiation. They are “we win – they win situation known as (1) win win situation. Then, (2) we win – you lose scenario. (3) Temporary give the win to the opposing side and withdraw temporary and a reinforce your strategies to attack, in the future and win (4) The worse Negotiation is we lose – they lose situation”.

During the J R Jayewardene's and Premadasa regimes, the blood-thirst LTTE top carders and Government had many negotiations in negotiation discussion here and even in posh hotels like Hilton and abroad. LTTE took the government to a “Right Royal Ride”, which ultimately ended in a “they lose – we lose situation. The negotiation of LTTE and the then J R/Premadasa/Chandrika/Ranil regimes, although done genuine to stop the terrorism and Blood Bath, was unsuccessful, because both parties did not agree for a win – win Negotiation. The present President Rajapaksa very wisely knew that there is no point in going to a negotiation table with the undemocratic, autocratic LTTE carders, which will end up with “We lose They lose” situation. He adopted “Fire to Fire” philosophy which was hundred percent successful. The great war heroes had close negotiations with the Defence Forces which was headed by the Commander-in-Chief Mahinda Rajapaksa. Rajapaksa firmly believe that “Attack was the best form of defence.”

Government completely destroyed the terrorist. During J R, Premadasa, Chandrika, Ranil, regimes, they could not achieve success as “Impasse occurred, because LTTE demanded more than the Governments offered. I presume this will be a good example, relevant to show “they lose we lose” Negotiation scenario. Both parties lost.

For a successful negotiation settlement win win situation for both parties is necessary. For a successful negotiation, collective bargaining process is vital. Take for an example, a labour dispute. The process through which representatives of management and the Trade Unions meet to Negotiate, a labour agreement, can be called a collective bargaining.

According to the National Labour Relation Acts followed by respective countries both Management and Labour are required by Law to Negotiate, wage, hours, terms and conditions of employment “In good Faith”. In short, both parties are making every reasonable effort to arrive at agreement. Proposals are being matched with counter proposals. Both teams, generally go into the bargaining “Negotiating Table” after doing their homework properly.

If the negotiator is able to obtain all or most of their demands, without the other party to completely break off negotiations unless The Best Alternative to a negotiated agreement, known in the Marketing Jargon as BATNA, then it becomes a successful negotiation.

Tracing the History of Negotiation in Business Management, it was during the 20th century, an academic Mary Parker Follett, sow the seeds of negotiation in the business world. During the 1960's, Gerard I Nierenberg, published “The Art of Negotiation”, where he mentioned the Philosophies of the Negotiators and the direction a negotiation takes.

Further, Nierenberg's Book, “Everybody Wins”, assured that all parties benefit from Negotiation process, which also produces more successful outcomes then “Winner takes all approach”.

With the publication of “Getting to yes” Harvard Roger Fisher and William Ury's – the business world and its expert after reading these books effectively applied in problem solving in matters of negotiation.

For record purpose a number of scholar such as SARA COBB – George Mason University, Len Riskin University of Missouri, Howard Raiffa Harvard University, Robert Mc Kersia, Lawrence Susskind at Mit Adil Najam and Jeswald Salacuse at Fletcher school of Law and Diplomacy scholars, authorities on negotiation contributed a lot to enlightened the business world about negotiation.

In my next article Part II, which will follow, will contain -

(a) Negotiation Process -
(b) The six steps of Negotiation prices -
(c) Reviewing Negotiation -
(d) Tactics