MODELS OF NEGOTIATION

MODELS OF NEGOTIATION

ANKIT UPPAL

A2305210211

“Negotiation” is defined as a discussion among individuals to reach to a conclusion acceptable to one and all. It is a process where people rather than fighting among themselves sit together, evaluate the pros and cons and then come out with an alternative which would be a win-win situation for all. A good Negotiation helps in reducing conflicts and disputes among each other. Negotiation is essential in every walk of life for a peaceful and stress free living. There are “three basic models of negotiation”: v   WIN-WIN MODEL v   WIN-LOSE MODEL v   LOSE-LOSE MODEL

WIN-WIN MODEL:

In this model, each and every individual involved in negotiation wins. Nobody is at loss in this model and everyone is benefited out of the negotiation.

Effective negotiation helps you to resolve situations where what you want conflicts with what someone else wants. The “aim” of win-win negotiation is to find a solution that is acceptable to both parties. It leaves both parties feeling that they've won, in some way, after the event.

For a negotiation to be 'win-win', both parties should feel positive about the negotiation once it's over. This helps people keep good working relationships afterwards.

This is the most accepted model of negotiation.

Let us understand it with the help of an example:

My friend wanted to purchase a mobile handset, he went to the shopkeeper and tried his level best to buy it at the lowest possible rate. At the same time, the shopkeeper also ensured that he could earn his profits as well. Thus, the negotiation benefited not only my friend who didn’t have to shell out loads of money and the shopkeeper was also satisfied because even he earned his profits.

WIN-LOSE MODEL:

In this model, one party wins and the other party loses. In such a model, after several rounds of discussions and negotiations, one party benefits while the party remains dissatisfied. Win-lose situations result when only one side perceives the outcome as positive.

When choosing this strategy, one takes on an adversarial or competitive view. The “focus” is on achieving immediate goals, with little or no regard for building future relationships. Little time or energy is needed in resolving conflicts using a win-lose strategy, because few if any creative solutions are considered.

Thus, win-lose outcomes are less likely to be accepted voluntarily.

Let us understand it with the help of an example:

Please refer to the above example once again where my friend wanted to buy a mobile handset & both he and the store owner were benefited out of the deal. Suppose my friend could not even afford the price quoted by the store owner and requests him to further lower the price. At the same time, if the store owner further lowers the price, he would not be able to earn his profits but my friend would be very happy.

Thus, negotiation will result in a situation where only one side is satisfied and only one of the two walks away with the benefit.

LOSE-LOSE MODEL:

In this model, no party is benefited out of the negotiation. The outcome of negotiation is zero. Generally, both the parties are not willing to accept each other’s views and are reluctant to compromise.

This negotiation may result in a situation where all parties to a negotiation leave resources or gold on the table at the conclusion of a negotiation and fail to recognize or exploit more creative options that would lead to a ‘win-win’ negotiated outcome.

The “aim” of both the parties is to use a win-lose strategy.

Thus, If the other party believes that you don’t genuinely care about their needs and interests, you can have a lose-lose outcome or if both parties elect to use a win-lose strategy, the chances of a lose-lose outcome increase.

Let us understand it with the help of an example:

In reference to the same example used above, if my friend had not purchased the mobile handset after several rounds of negotiation, neither he nor the store owner would have got anything out of the deal. He would return empty handed and the store owner would obviously not earn anything resulting in a lose-lose situation.

In daily lives, all situations may take place i.e win-win, win-lose or lose-lose but, win-win negotiation are always better, efficient & satisfactory.