Approaches And Techniques In Contract Negotiation

APPROACHES TO NEGOTIATION:
There are four different approaches to negotiation and the outcome of the negotiation depends on the approach. The various approaches to negotiation are as follows:
WIN- WIN INTEGRATIVE APPROACH
This negotiation approach is also called as collaborative or creating value approach. It is superior to all negotiation approaches. It results in both the parties feeling that they are achieving what they wanted. It results in satisfaction to both the parties. It has the following characteristics.
  1. There are a sufficient amount of resources to be divided and both sides can ‘win’
  2. The dominant concern here is to maximize joint outcomes.
  • The dominant strategies include cooperation, sharing information, and mutual problem-solving. This type is also called ‘creating value’ since the goal here is to have both sides leave the negotiating feeling they had greater value than before.
Since the integrative approach is most desirable, some of the guidelines to integrative bargaining are listed and explained below:
  • Orient yourself towards a win-win approach: your attitude going into negotiation plays a huge role in the outcome
  • Plan and have a concrete strategy...be clear on what is important to you and why it is important
  • Know your BATNA (Best Alternative to a Negotiated Alternative)
  • Separate people from the problem
  • Focus on interests, not positions; consider the other party's situation:
  • Create Options for Mutual Gain:
  • Generate a variety of possibilities before deciding what to do
  • Aim for an outcome based on some objective standard
  • Pay a lot of attention to the flow of negotiation;
  • Take the Intangibles into account; communicate carefully
  • Use Active Listening Skills; rephrase, ask questions and then ask some more
This information was obtained from http://www.tutorialshero.com/tutorials/contract-law-and-negotiation/approaches-and-techniques-in-contract-negotiation

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