• Unit 4: Bargaining and Negotiations

    Now that we have addressed creating value and the various outcomes that could happen during a negotiation, it is important to address bargaining. You can create value by uncovering the exact needs of each side during the negotiation process. Then you can use that information to create a win/win situation. Not all negotiations will end with a win/win scenario, and some may end with one side winning and another side not being in a worse situation than when they started. When bargaining, both sides should understand their best- and worst-case scenarios. Understanding best- and worst-case scenarios allows for some movement in addressing concerns from both parties.

    Completing this unit should take you approximately 5 hours.

    • Upon successful completion of this unit, you will be able to:

      • evaluate the difference between negotiation and bargaining;
      • compare the needs for each party to a conflict in a given scenario;
      • examine creative solutions in negotiation for a given conflict; and
      • examine collaboration and why it is important to the negotiation process.

    • 4.1: What Does Each Side Need?

      It is important to understand the wants and needs of both sides in every negotiation. This will allow you to understand the conflict as a whole and help you make an informed decision when determining a win-win situation.

      • How to Determine Needs and Wants Page

        Determining needs and wants can be assessed by asking questions about ideal and minimum resolutions, speaking to key stakeholders, or researching how past negotiations have been handled. This section discusses the issue of how to manage the conflict during a negotiation. How might you manage a negotiation? Can you give a specific example of the process?

      • How to Use Information to Bargain Page

        Once you have conducted all of your research and understand the needs and wants of both sides, it is time to begin the bargaining stage. A meeting time and place are set, and everyone gathers to discuss needs. Each side will present its case, and then the bargaining begins. Again, the goal is to reach a win-win resolution, but sometimes this won't be possible, and alternative solutions might be sought. How can you obtain needs and wants from each side? How can these be used during the negotiation process?

      • Bargaining vs. Negotiation Page

        Bargaining and negotiation may be similar in meaning, but they are two different things. The negotiation process is when two or more parties attempt to agree on a specific issue, and bargaining is the process used in a negotiation. When bargaining is used in a negotiation, it typically begins with one side stating what they would like to happen, and the other side will counter and ask for what they need. This begins the process of bargaining in a negotiation. Watch this video about the process of integrative negotiation and using bargaining to reach a resolution.

    • 4.2: View the Conflict from Each Side

      By understanding the conflict from each side, you will have a better understanding of the whole situation. You may be able to gather ideas on how to reach a successful resolution. A win-win situation is the goal of any negotiation, and ideas for this type of resolution come when you understand each side in depth. Once you understand the whole conflict from each side, which includes wants and needs, why this situation became a conflict in the first place, how each side has resolved issues in past negotiation sessions, and any additional information you can gather, you will be able to come up with alternative resolutions and ideas for a win-win situation. To better understand the opposing side and their needs, you must ask questions and gather as much information as possible.

      • Using Information Gained in the Negotiation Process Page

        This video mentions ways to uncover and discover information that may be useful in a negotiation. Think of a conflict you have or have had about the team you manage and gather as much information for both sides of the conflict as possible. Specifically, this information from the last section may help you in your quest for information and better understanding and then apply that to your conflict. Information you can research might include wants and needs, why this situation became a conflict in the first place, and how each side has resolved issues in past negotiation sessions. With any additional information you can gather, try to devise alternative resolutions and ideas for a win-win situation. After you have gathered good information about the conflict, develop a few win-win ideas that might help bring the resolution to a positive conclusion. This should include ideas to help both sides feel heard and accept the resolution as a win. If the conflict is ongoing in your workplace, try to use these ideas to resolve the conflict as you work with both sides. Afterward, take a moment to reflect. What information did you gather? What were the win-win ideas you created? What was the outcome? Was it a win-win situation for each side?

    • 4.3: Bargaining to a Solution

      Bargaining to a solution will include discussing what each side is willing to compromise to resolve the conflict successfully.

      • Coming to an Agreement Page

        As you create win-win situations, you will begin the bargaining stage, and this may move back and forth as each side explains their needs in more detail and what outcomes they would like to occur. Read this critical thinking case about negotiating salary and answer the questions at the end. What additional information could you gather to bargain in this situation?

      • Asking Questions and Trying Different Options Page

        Asking questions to gain a better understanding of the conflict is essential. You may need to use brainstorming ideas and ask detailed and follow-up questions after each side states their needs. Spend some time answering these review questions.

    • 4.4: Creative Solutions and Collaboration

      Using creativity and collaboration is an important part of the negotiation process. Understanding your resources and how you might resolve issues can be useful in almost any conflict.

      • Collaboration Page

        Collaboration occurs when at least two people devise a solution to a problem. In negotiation, collaboration is important because you need the willingness and flexibility of both sides to resolve a conflict successfully. Watch this video about collaboration, what the other side might get from the negotiation process, and when they might not participate.

      • Creative Thinking Page

        In a negotiation, creative and out-of-the-box thinking can help resolve a conflict and come to a resolution. This short video is about brainstorming in groups and offers great ideas about thinking outside the box. These techniques can create a win-win resolution that may work for both sides of your conflict.

      • Using What Others Have Learned Page

        This video includes additional strategies that can be used in conflict management. Reviewing what has been completed by others in similar situations or by people who have handled this situation before may help give you a better understanding of the conflict. Sometimes it may also be helpful to find out how the company has handled conflicts in the past. For conflicts with your staff, you can rely on information from other managers and ask how they have handled similar employee conflicts in the past. Your human resources office may be another resource and can give you helpful information on settling disagreements. This section included information about strategies that may be used in conflict management. At times, you will need to be creative when resolving conflict. Depending on the conflict, you will need to understand the available resources to assist you in managing the conflict. How would you summarize a conflict that is either taking place in your workplace now or has occurred in the past? What strategies can be (or were) used to resolve the situation?

    • Unit 4 Summary

      • This unit covered bargaining and negotiation. By creating value and showing the opposite side that value, you can help bring the negotiation to a win-win situation in which both sides get what they need from the negotiation. By utilizing bargaining in negotiation, both sides address their needs and then bargain to a resolution that will work for both sides. The next unit will cover information about resolving the conflict and closing it.

    • Unit 4 Study Resources

      This review video is an excellent way to review what you've learned so far and is presented by one of the professors who created the course.

    • Unit 4 Assessment

      • Unit 4 Assessment Quiz
        Receive a grade

        Take this assessment to see how well you understood this unit.

        • This assessment does not count towards your grade. It is just for practice!
        • You will see the correct answers when you submit your answers. Use this to help you study for the final exam!
        • You can take this assessment as many times as you want, whenever you want.