Strategy to Improve Negotiation Outcomes

Literature has examined conflict management strategies as avoidance, accommodation, forcing, collaboration and compromising.  In order for employees to cooperate they need to collaborate and have the conversation about differences and disagreements.  Disagreements can be resolved through negotiation.  It is important to consider what is being negotiated, where to negotiate and how to do it.  Moreover, it is also important to consider the psychological aspects of people in the negotiation process.

Psychological aspects of negotiation may include heuristics and biases.  The heuristics and biases may influence the perception of what is being negotiated and influence the outcome.  Research has identified 21 biases that can influence decision making in the negotiation process.  For example, the bias of loss aversion may influence how an increase in pay would seem.  The company may see it as a loss and the employee may see it as a gain.  Another bias is the compatibility bias where the negotiators assume that the issue is not compatible with the opponents leading to increased conflict.  A third party may be required to assist with managing the bias.  Mood and culture affect bias which may be unconscious and require a third party to identify and manage.  

Strategies to negotiate include the Warner’s style of negotiation where the negotiator’s style may include feeling powerful (bullying or confidently promoting ideas) or gentle (carefully suggesting ideas and quietly manipulating), while being coercive and persuasive.  The Warner’s style of negotiating can have strengths and weakness but can provide a framework on how to negotiate. Moreover, the interest-based model describes the negotiation skill of trust as an essential element.  Trust is needed to manage risk as people negotiating need faith in the ability to solve the problem.  Moreover, leadership that is empowering and trustworthy can provide psychological safety when managing conflict.  The interest-based model of negotiation also includes motivation to negotiate, the exchange of information and appropriate language.  There needs to be time to explore each other’s interest and space for creative invention of innovative ideas.  People negotiating need to understand the dynamics of integrative negotiation and be provided with a moderator to assist. When communicating a moderator would need to ensure that each party understands there is equal involvement.

Communication skills when negotiating include the ability to reveal only what is required to be negotiated and close the gap of differences, be flexible but realistic, have the ability to relate well with others, empathy and analytical ability.  The vision of the outcome, stakeholders involved, and a plan would also need to be identified before negotiation starts.  While negotiations take place, it is important that all parties understand the value of remaining until the end.  A representative such as a HRM will manage the negotiations and ensure that both parties feel heard.

The opening phase will involve not committing to an outcome, observing all questions and listening attentively to each other’s strengths and weakness and challenging each side’s position. The representative will encourage each party to challenge the other, while each will listen and ask appropriate questions.  The bargaining phase will enable each party to narrow the gap of differences by concealing and revealing information within their argument.  If a person decides to use tactics such as coercion, then it would not be treated as disrespectful but as a legitimate tool to negotiate.  However, trust and honesty need to be encouraged when exchanging information, the effort the resolve the conflict, negotiation is in good faith, and there is limited opportunism as the exchange is in the best interest of all parties.  Both parties are to seek a common interest when negotiating and a win-win collaborative approach.

Trust also involves that each person negotiating including the representative respecting each person’s view.  However, there are times when viewpoints within the negotiation process does not converge and a decision to end the conflict may be required if parties are not willing to negotiate. To improve the negotiation process, the representative’s role include ensuring the conversation stays on track, each party has equal say and an outcome in the best interest of each party is achieved.  The negotiation will be closed where there is an agreement to do something in the future.  An agreement may mean one party does not get what they want due to viewpoints not converging.  However, a collaborative approach is recommended where information is exchanged to focus on common interest rather than self-interest.  Policies and procedures would be developed to guide the negotiation process, so it remains collaborative and supportive and training developed to teach staff the process.