NEGOTIATION CHAPTER 1 The Nature of Negotiation

NEGOTIATION CHAPTER 1

THE NATURE OF NEGOTIATION

SUMMARY

This chapter, we have set the ground work for a thorough and detailed examination of the negotiation process.
Our definition lead us to explore four key elements of the negotiation process: managing interdependence, engaging in mutual adjustment, creating or claiming value, and managing conflict. Each of these elements is foundational to understanding how negotiation works. Managing interdependence is about the parties understanding the ways they are dependent on each order for attaining their goals and objectives. Mutual adjustment introduces the ways parties begin to set goals for themselves in a negotiation and adjust to goals stated by the other party in order to emerge with an agreement that is satisfactory to both. Claiming and creating value are the processes by which parties handle negotiation opportunities to share or ‘win’ a scarce resource or to enhance the resource so both sides can gain. Finally, managing conflict helps negotiators understand how conflict is functional and dysfunctional. It involves some basic strategies to maximize the benefit of conflict and limit its costs.