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Saturday, 31 May 2014

NEGOTIATION




NEGOTIATION
An indispensable step in any Alternative Dispute Resolution (ADR) process is negotiation. It is a fundamental key to all consensual Alternative Dispute Resolution (ADR) activities and, in fact, the most satisfactory method of settling disputes.
The ability to negotiate is inherent, that is, it is an art which is learnt from the earliest stage. Usually, negotiation consists of a quid pro quo of a sort, that is, giving up something in order to get something in return.
It involves discussions or dealings about a matter, with a view to reconciling differences and establishing areas of agreement, settlement or compromise that would be mutually beneficial to the parties or that would satisfy the aspiration of each party to the negotiation. Compromise here implies flexibility on both sides and flexibility derives from a genuine desire on the part of the parties to reach an agreement.
Each adult person would at one time or the other have consciously negotiated one agreement or the other, personal and financial and we might all have developed our own individual approach in trying to persuade others to give what we want, which is what negotiation is all about.
NEGOTIATION APPROACHES
There are various approaches to negotiation, its procedure and technique vary with each negotiation, depending on the nature of the issues being negotiated, the parties to the negotiation together with their skill, knowledge and experience.
The nature and personality of the negotiator is at once also relevant. A negotiator may be a tough and aggressive hard bargainer who may by nature is always reluctant to concede; he may be a person who would always want to heckle or threaten his opponent, that is, negotiating by browbeating; or he may be the opposite, that is, one who would implicitly adopt a pleading manner or cajole his opponent to submission.
There are no formal institutions as such where negotiation skills are learnt other than in continuing education forums like seminars. However, negotiating capacity and ability is enhanced by a thorough knowledge of its theories and intricacies.
PROCEDURE FOR NEGOTIATION
There are three (3) distinct steps in every negotiation. These are –
Step 1 – This involves the definition of the problem, the clarification of objectives, finding out exactly what the other side wants, that is, trying to assess the underlying needs or preferences of the other party to enable you develop a strategy to meet.
Step 2 – It is necessary at this step to have a brief but working knowledge of the habits, antecedents and inclinations of the other party to the negotiation. This information will help you tailor your strategy to meet his need.
Step 3 –This is the agreement stage. It is where compromises are made and a mutually satisfactory conclusion is reached. Surprisingly, in civil law systems, unlike in common law jurisdictions, there is an overriding principle of good faith in contract negotiation and performance.
IMPORTANCE OF NEGOTIATION
Negotiation requires participants to identify issues about which they differ, educate each other about their needs and interests, generate possible settlement options and bargain over the terms of the final agreement. Successful negotiations generally result in some kind of exchange or promise being made by the negotiators to each other. The exchange may be tangible (such as money, a commitment of time or a particular behavior) or intangible (such as an agreement to change an attitude or expectation, or make an apology).
TYPES OF NEGOTIATIONS
Negotiation may involve settlement of disputes, or domestic transactions such as banking, commercial or property transaction. It may also involve international transaction such as crude oil and agricultural exports, imports of industrial goods and technologies.
Whatever the type of negotiation, a legal practitioner must prepare for negotiation. Negotiation must not be seen as an easy option to litigation. The practitioner must prepare for negotiation in the same way he or she must prepare for litigation. To prepare for negotiation the facts of the matter must be ascertained and the objective which the client intends to achieve must be ascertained. The law applicable to the matter must also be a negotiated agreement.
The Best Alternative to Negotiated Agreement (BATNA) and Worst Alternative to Negotiated Agreement (WATNA) on the matter must be considered before deciding whether the matter is best resolved by negotiation or other means.
NEGOTIATING STRATEGIES STYLES AND TACTICS
Negotiating strategies are the methods which a negotiator uses to achieve his or her real objective in order to reach an agreement on the matter under negotiation. There are two types of negotiating strategies:-
  (a)   Competitive or Positional (otherwise known as win/lose)
  (b)   Co-operative or Problem-solving (otherwise known as win/win)
Negotiators also have distinctive negotiating styles. Each negotiator's style is influenced by his individual personality, the strategy he intends to adopt and his objective. Negotiating styles have been classified into three: Soft, Hard and Firm.
Negotiators also use tactics, to achieve their objective. Many tactics are used by negotiators and there are as many tactics as there are negotiators. The commonly used tactics includes – control of agenda; contextual manipulation; overwhelming numerical strength; puffs; threats; take it or leave it; piecemeal; package; nibble; limited authority; lack of authority; behavioral; and psychological tactics.
STAGES OF NEGOTIATION
Negotiation is a process that goes through several stages. Writers have identified different stages through which a negotiation must pass. The stages of negotiation identified varies from three to eight. The number of stages through which a negotiation is processed is divided, . though important, is a matter of individual classification preference. More important is what takes place during the negotiation process.
As negotiation is a process, it passes from one stage to another, and may or may not lead to an agreement. In analyzing the negotiation process, four stages are identified:
  (a)    Opening;
  (b)    Bargaining;
  (c)    Closing; and
  (d)    Execution.
PREPARING AND PLANNING FOR NEGOTIATION
The following should be put into consideration when planning and preparing for negotiation –
1.      It is advisable to first and foremost, understand the facts and issues involved.
2.      Then you are to decide what is least and the most you can expect during negotiation.
3.      You should know what is not negotiable in order to avoid irrelevant matters.
4.      Know what the other side cares about.
5.      Finally, know what is in both interest so that both parties will be satisfied (or almost satisfied) at the end.
CONDUCTING NEGOTIATION
This has to do with the following –
1.      Try to build a good relationship with the other party.
2.      Be friendly and cordial throughout.
3.      Always speak about what you would like (e.g I think, I feel, I suggest, etc).
4.      Find out what the other party will like.
5.      Brainstorm on solutions or options to solve the problem.
6.      Do not make unfair or unrealistic demands.
7.      Do not become abusive, over emotional or threatening.
8.      Try and offer to give something away in exchange for something else from the other party.


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