Negotiation is a process between individuals within groups and between groups and when there is a conflict of needs and desires between two or more parties. Negotiation is largely a voluntary process. We negotiate because we think we can improve our outcome or result, compared with accepting what is offered. It is a strategy pursed by choice.
When we negotiate we expect a “give and take” process that is fundamental to the definition of negotiation itself. We expect that both sides will modify the request or demands. The movement towards the middle of these positions is called compromise. Successful negotiation can be reached with the management of tangible and intangibles.
Interdependence is a key characteristic of a negotiation situation. It happens when both parties must coordinate with each other to achieve their own objectives.
Mutual adjustment occurs when both parties have to find a way to resolve their differences. Both parties can influence the other’s outcomes and decisions, and the other can influence their own outcomes and decisions.
Value claiming and value creation is used when negotiators employ win-lose situations. The purpose of negotiation is to claim the reward or gain the larges piece possible.
A potential consequence of interdependent relationships is conflict. Conflict can be defined as a disagreement or opposition of interest or ideas. Conflict can result from strongly divergent needs of the two parties or from misperceptions and misunderstandings. Conflict can also occur when two parties are working toward the same goal and generally want the same outcome or when both parties want very different outcomes.
In conclusion, the above-mentioned processes are essential to negotiation they serve as a foundation.
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