BUS641: Strategic Negotiations and Conflict Management

4a. Evaluate the difference between negotiation and bargaining

• What is bargaining?
• How do negotiation and bargaining relate to each other?
• Are bargaining and negotiation the same thing?

The process of bargaining and negotiation are sometimes viewed as the same, but they are two separate things. As we discussed in a previous unit, when two or more parties try to agree on a specific issue or conflict, it is called negotiation. Bargaining is a strategy used in the negotiation process.

For example, in bargaining, one side states what they would like to occur, and the other side will make a counteroffer and ask for what they need. This process will continue until a resolution is found that both parties can agree to. We also see bargaining occur during certain sales situations, such as when buying a car or trying to talk someone down on a listed price. It is a technique that some people are very comfortable with, while others may shy away from it because it makes them uncomfortable.

To review, see How to Determine Needs and Wants.

 

4b. Compare the needs for each party to a conflict in a given scenario

• Why is it important to determine the needs of both sides in a negotiation?
• Can you just understand the needs of one side in a negotiation?
• Why should you compare needs in a negotiation?

It is important to determine the needs and wants of both sides so that information can be assessed for a better understanding of the negotiation itself. Understanding the needs and wants of both sides might lead to an easy solution to a conflict, especially if the needs of each side do not conflict with each other and neither is bothered by giving up what the other side needs.

This is why it is important to compare needs in any negotiation. Needs can be determined by asking questions about a perfect situation and what their minimum needs are. It is also important to remember to speak directly to the key stakeholders when determining needs. You can also research how past negotiations were conducted. This information can be very telling when it comes to comparing wants and needs.

To review, see How to Determine Needs and Wants.

 

4c. Examine creative solutions in negotiation for a given conflict

• How can you come up with creative solutions to resolve a conflict?
• Why is it important to examine creative solutions for a conflict?
• What is an example of a creative solution to resolve a conflict?

Creative thinking can be very useful in resolving conflict. After understanding the conflict from the perspective of both sides, you can then begin to think about creative solutions to the problem. Brainstorming ideas with a group of people, or even the people involved in the conflict, is one option that may allow for some out-of-the-box thinking.

Another option that might be helpful in creative thinking is reviewing what has been conducted in the past, either in similar situations or perhaps with the same people involved in the conflict. This may give you a better understanding of the conflict overall and possible options for resolution. In your workplace, a few options might be to speak to other managers about what they have done to resolve similar situations or even speak to human resources about possible options.

To review, see Creative Thinking.

 

4d. Examine collaboration and why it is important to the negotiation process

• What is collaboration?
• How can collaboration help in the negotiation process?
• Why is it important to understand the collaboration process?

Collaboration occurs when two people come up with a plan to resolve a negotiation or conflict. Collaboration is important to any negotiation process because it shows how motivated each side is in a conflict. The more willing each side is to discuss and work together to come up with a resolution, the more successful the negotiation will be, and a win-win situation is likely.

By better understanding the collaboration process, you may be able to move a negotiation forward and arrive at potential solutions to your problem or conflict. Then, by actively engaging the other side to collaborate with you, you are creating a situation in which a resolution will be found. The collaboration process is an important step to understand in the negotiation process.

To review, see Collaboration.

 

Unit 4 Vocabulary

This vocabulary list includes terms you will need to know to successfully complete the final exam.

• bargaining
• collaboration
• compare needs
• creative thinking