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Negotiation Process Overview

Jul 11, 2025

Overview

This lecture introduces the common elements and phases of negotiation processes, emphasizing a descriptive understanding of how negotiations typically unfold in real-world scenarios.

Descriptive vs. Prescriptive Approaches

  • Descriptive approaches explain what actually happens in negotiations, while prescriptive approaches suggest how negotiations should be conducted.
  • The focus of this material is on describing observed negotiation processes, not prescribing best practices.

Common Phases of Negotiation

  • Most negotiations are composed of three main phases: initiation, problem solving, and resolution.
  • These phases are derived from observed patterns across multiple negotiation processes.

Initiation Phase

  • Initiation includes preparation, relationship building, and information gathering.
  • Preparation involves understanding the issue, your position, and the underlying interests of the other parties.
  • Effective negotiation relies on thoroughly researching both the problem and the interests/motivations of all parties.
  • Relationship building helps negotiators understand each other, which can influence the negotiation's outcome.

Problem Solving Phase

  • Parties use gathered information in dialogue to address the issues at hand.
  • Negotiators may reveal positions, limits, and preferences during this phase.
  • The "bidding" or "claiming value" sub-phase involves making and responding to offers and counter-offers.

Resolution Phase

  • Not all negotiations reach resolution; some end in impasse with no agreement.
  • Closing the deal means finalizing and agreeing to the terms of negotiation.
  • Commitments to action must be made to ensure agreed terms are actually implemented.
  • Implementation includes both the action on agreements and ensuring accountability.

Key Terms & Definitions

  • Descriptive approach — focuses on observing and describing how something actually occurs.
  • Prescriptive approach — provides recommendations or guidelines on how something should be done.
  • Initiation phase — the starting stage of negotiation, including preparation and relationship building.
  • Problem solving phase — the stage where issues are discussed and offers are made.
  • Resolution phase — the final stage, involving agreement finalization and implementation.

Action Items / Next Steps

  • Review your recent negotiation (e.g., Appleton v Baker simulation) and identify which phases and sub-components were present.
  • Prepare for upcoming simulations by practicing thorough information gathering and relationship building.