SETTLEMENT NEGOTIATIONS

One of many forms of alternate dispute resolution is negotiation. Negotiation happens at various stages of life. When you’re bargaining for better prices at the flea market, or negotiating for better business deals, you’re negotiating with the prosecutor to settle and when you’re trying to convince your parents to let you have that last piece of cake. That’s why knowing the art of negotiating your way through life or the courtroom is a basic and needed skill. In this article, we will discuss a few tips and tricks that can be used to resolve disputes before trial.

Negotiation ensures that both parties are mutually reaching a common consensus. This ensures that both parties equally agree and are happy with the outcome.

Advantages:

1. It ensures that people maintain healthy relations,
2. Avoids unnecessary arguments,
3. Assists parties in coming up with various solutions to the problem,
4. Provides an opportunity for better networking,
5. Easier and better time management,
6. Avoids opting for lengthy court processes to resolve disputes.

There are various types of negotiation tactics that can be used during a dispute. However, only the best negotiator can identify the most suitable style of negotiation to opt for. A good negotiator is often independent, impartial, unbiased, and considerate. “Specific forms of negotiation are used in many situations: international affairs, the legal system, government, industrial disputes, or domestic relationships as examples. However, general negotiation skills can be learned and applied in a wide range of activities. Negotiation skills can be of great benefit in resolving any differences that arise between you and others.”[1] Let us discuss a few of them in this article.

Types of Negotiations

1. Distributive negotiation, sometimes called zero-sum negotiation or win-lose negotiation, is a bargaining approach in which one person succeeds only if another person loses. [2] Since the major focus in this type of negotiation is on winning, the whole point of negotiation loses its meaning. Subsequently, this type only favors one of the parties.
2. Integrative negotiation, sometimes called win-win or collaborative negotiation, is a bargaining approach where negotiating parties attempt to reach a mutually beneficial solution. [3] As suggested earlier the type of style will solely depend on what your client expects out of the negotiation. In a vendor-client relationship, distributive styles are most acceptable as you will be able to assert your tone and might just end up getting the terms and conditions of a contract in your favor. If you are a diplomat, it is always suggested and often practiced using an integrative style of negotiation. In order, to maintain a cordial relationship that usually is the topmost priority.
3. Team negotiations “are those types of negotiation situations where the negotiating parties are made up of more than one person. These might include union contract negotiations or major business negotiations.” [4] This type of negotiation is a collaborative effort, as such opens an opportunity to be creative and come up with as many unique solutions to a problem as possible.

Why do Negotiations fail?

1. People get agitated quickly when they don’t get their way,
2. Ego comes in the way: We all are looking for better deals and are ready to jump at the next best thing, the best jobs, best schools for kids. As such we tend to ignore the opportunities that can also do us a great deal of good.
3. We end up being swayed by so many opportunities in front of us, that we do not realize the value that they hold until we give one up for another. It is important that we analyze the pros and cons of every deal we get out of the negotiation and all the possible outcomes.
4. Not better use of BATNA and WATNA approaches.

Tips & Tricks

1. It’s vital to first prepare a pal or skeleton that outlines what you expect and what are the other outcomes that you are ready to accept and the ones that will not work for you.
2. Even after a favorable outcome, as stated earlier in the introduction, negotiation is a constant part of our daily life. Therefore, is a continuous process. As such maintaining long-term good relationships can always change the course of your negotiation. Sometimes, the outcomes are already decided even before the parties meet.
3. prepare, prepare, prepare: Reiterating again, it is very important to weigh your risks and come up with as many options/solutions at your disposal and the ones you are ready to opt for.
4. Negotiation is a give & take: When a person gives something up or concedes on part of a negotiation, always make sure to get something in return as a bargaining strategy.[5] Even if it is not something you would settle for, it is crucial that you do not leave a negotiation empty-handed.
5. Be Articulate and Build Value: “This is a key negotiation tactic that separates good negotiators from masters. Be direct when presenting a situation.  Be clear about what is expected.  Discuss ways to apply how it can happen. Don’t simply talk about what needs to happen.  Discuss the consequences – how your solution will be beneficial to the other party.” [6]

[1] What is Negotiation? - Introduction to Negotiation | SkillsYouNeed

[2] 4 Types of Negotiation Strategies (With Tips and Examples) | Indeed.com

[3] Ibid.

[4] What are the Types of Negotiation? - PON - Program on Negotiation at Harvard Law School

[5] 6 Successful Negotiation Strategies | Vistage

[6] Ibid.