Negotiation is a bargaining process whereby two or more parties at discuss and arrive at mutually agreeable decision. It is a give and take process where both the parties feel satisfied at the outcome of the deal. It is a two way process and requires active participation from both the parties.
Example:
A salesman settling price with the prospective buyer
Features of Negotiation:
1. There should be at least two parties.
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2. The parties should be willing to discuss out the matter
3. Both the parties should have pre-determined goals and should be interested in the deal.
4. The parties should have a flexible attitude.
5. The decision arrived at should be beneficial to both the parties
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Approach of Negotiation Process:
1. Win orientation:
In this one party wins and other losses in the deal. It is usually taken up by competitive communicators. It thus produces both winners as well as losers, where the gain of one party is matched by loss of the other.
2. Lose -Lose orientation:
In this situation both the party disagree to such degree that they end up in discarding the deal. Thus both the parties are losers.
At the beginning the parties however do not have this end in mind but the conflict between them forces the either or both party to abandon the deal.
3. Compromise:
Sometimes in order to avoid a lose-lose situation both the parties find it profitable to compromise rather than quitting the deal. Thus in situation of lose- lose compromise comes out as the best possible alternate.
4. Win – Win Orientation:
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Under this such a deal is struck between parties whereby both the parties needs are satisfied. It looks beyond the conflicts and focuses on satisfying both the parties. Thus both the parties emerge out as winners.