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The Four Phases Of Negotiation

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The four phases of Negotiation are: 1. The preparing phase 2. The discussing phase 3. The proposing phase 4. The bargaining phase Preparing Phase: Following are the steps in Preparation: 1. Identify Interests (needs, desires and fears) È To be successful in negotiations, it is not enough to argue for a position. A negotiated outcome should satisfy the interest of both parties, at least better than if there were no agreement. È Identify the relevant parties È Clarify the interests 2. Develop Options È Be open-minded (not just what you will settle for) È Create options to meet interests È Find ways to maximize joint gains È Use creative brainstorming methods 3. Identify alternatives È We should know our BATNA È Think of alternatives to the …show more content…

The Discussing Phase We should plan our opening moves carefully to establish a positive tone. Then stay alert and be flexible to create and make use of all our opportunities in the course of a negotiation. The heart of successful negotiations is trust and goodwill. Establishing and maintaining good relationships For negotiations to be successful there has to be a degree of mutual trust. Before a final written agreement is reached, various part-agreements need to be reached. For this process to work, therefore, there has to be good relations between the negotiating parties. In many well publicized negotiations, such as pay negotiations in nationalized industries, or budget negotiations, we can see how negotiations are hindered because of bad relations between parties. Following are the objectives of the Discussing Phase: È Represent our position È Verify understanding of customers positions and interests È Establish customers tactics and attitude È Establish and maintain good relationship È Find out the customers shopping list The Proposing Phase In the proposing phase, the parties in the negotiation will offer alternatives to enable a Win/Win outcome. Golden Rule: 
Never offer a concession without receiving something in return. Following are some important points to be kept in mind in proposing phase. È Being prepared with alternatives - Making a proposal is fundamental to all negotiation. It is vital to decide early on in the planning process whether

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