Negotiations

NEGOTIATIONS

Negotiation is the process in which actors interact in order to effect agreement. There are a lot of types of agreements that may be reached in negotiations. Negotiations may be held to extend an agreement that is already in force or to normalize relationships as when two actors re-establish diplomatic relations. Redistribution agreement involves situations where parties agree to change a particular status quo. Innovation agreements may be reached to establish new actors. Negotiations may be entered into for the so-called 'side-benefits'. Parties may negotiate simply in order to establish a clearer perception of each other's goals, and to make propaganda for themselves and their position.

These categories may be combined.

Formal negotiations are held in five stages, which are:

• Preparation and planning
• Definition of ground rules
• Clarification and justification
• Bargaining and problem solving
• Closure and implementation

Preparation and planning is the first step in the negotiation process. Here, both parties will organize and accumulate the information necessary to have an effective negotiation. The second step in negotiation is the definition of main rules. In this step, rules and procedures will be established for the planned negotiation. Now that the rules have been established, a discussion needs to take place. In the third negotiation step, clarification and justification, the positions of both parties are discussed and explained. Bargaining is where the "give-and-take" happens. If you think success means all take and no give, you won't capture real value. You make and manage your concessions in bargaining. When you give and take that which satisfies both parties' interests, you will build a lasting relationship and a fruitful outcome. During the Bargaining Stage, you continue to create value, and with trades, finally capture value. Stage 5, closure and implementation, is the point in the process when you reach an agreement. It is important to find out if the other side has the capacity to follow through with the things they said they would do. This is the time to put down in writing the common interests and produce a comprehensive summary of the agreement.

Once all sides are in possession of the other's demands then three basic strategies are available:

* to accept agreement on the available terms, that is to say upon the terms other parties put forward;

* to attempt to improve the available terms by bargaining;

* to break off negotiations because neither of the previous choices are acceptable.

Bilateral negotiation is a process of making offers and counter offers by the two parties of agents with the aim of finding an acceptable agreement.

Multilateral negotiations are characterized by intensive international discussions that involve multiple actors and interests, highly complex agendas, and differentiated international settings.