Negotiating in business/administrative

contexts

Negotiating in business/administrative
contexts

Assoc. Prof. Dr. Malini Ganapathy

LEM311:LECTURE TWO 24 OCTOBER 2023

 Topics
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1. ADR: Reasons for using

2. Forms of ADR
3. Negotiation in administrative contexts:
Dealing with conflict
4. Why do we need negotiation?
5. Language in negotiation
 Topic One
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Appropriate Dispute Resolution (ADR):

Reasons for using
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• ADR as it is commonly called, comprises Arbitration,

Mediation, Conciliation and Negotiation.

• These time proven processes are the alternatives to

seeking settlement of disputes through the courts.

• The courts are backlogged with waits often measured in

years. People with disputes to settle want to do so
quickly, and then get on with their lives.

• ADR can in most cases be the answer to the dilemma.

• Business contracts and many statutes [a written law passed by a

legislative body] now contain requirements that disputes
arising be settled using ADR.
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• Some of the benefits of using ADR :

1.Can be completed quickly
2.Schedules to suit the parties
3.Generally less costly than proceeding through to a
court trial.
4.Confidentiality - ADR settlements are a private matter
between the parties, and there is no public record.
5.ADR is generally voluntary, except where it is required
by contract or by statute.
6.It is rare for ADR settlements to be appealed to the
courts.
Topic Two
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Forms of ADR
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1. Arbitration
2. Mediation
3. Conciliation
4. Negotiation

• They are considered the most common

means by which parties resolve disputes
outside of courts (Goltsman, et al., 2009)
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• Arbitration is a dispute resolution process where the

opposing parties select or appoint an individual called
an Arbitrator.
• Upon appointment, the Arbitrator will arrange the
process to hear and consider the evidence, review
arguments and afterwards will publish an award in
which the items of dispute are decided.
• In some cases the Arbitrator can conduct the
arbitration on documents evidence only.
• An arbitration award (or arbitral award) is a
determination on the merits by an arbitration tribunal in
an arbitration, and is analogous to a judgment in a
court of law.
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• According to Goltsman et al. (2009: 1398), “Under

arbitration, a neutral third-party renders a decision after
hearing proofs and arguments from each party.
• While both the agreement to arbitrate and the presentation
of these arguments is voluntary, the arbitrator’s decision is
binding (can’t be broken), in the sense that courts will
enforce it against a reluctant party”.
• It is rare for an arbitration to be appealed to the courts. An
arbitration may comprise a sole Arbitrator, or may be a panel
of Arbitrators.
• Costs of the arbitration are disposed of in the Arbitrator's
award, unless the parties have some agreement to the
contrary.
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• Mediation
• It is a dispute resolution process in which the parties freely
choose to participate and any agreements reached to settle
disputes is done solely by the parties, without interference.

• The Mediator is selected by the parties and once selected,

the Mediator will arrange the mediation process.

• The Mediator makes no decisions, instead he/she acts as a

facilitator only to assist the parties to understand the
dispute, provide structured discussion and to help the
parties reach a dispute settlement agreement.
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• If the parties can't reach a settlement agreement, they are

free to pursue other options.

• The parties generally decide in advance how they will

contribute to the cost of the mediation.

• Mediation is a very important form of ADR, particularly if the

parties wish to preserve their relationship.

• So, under mediation, the neutral third-party has no authority

to impose a settlement. Instead, he merely suggests an
agreement that must be acceptable to the decision-maker
(Goltsman et al., 2009: 1398).
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• Conciliation
• Conciliation is a less frequently used form of ADR, and
can be described as similar to mediation. The
Conciliator's role is to guide the parties to a settlement.

• The parties must decide in advance whether they will

be bound by the Conciliator's recommendations for
settlement.

• The parties generally share equally in the cost of the

conciliation.
 Topic Three
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Negotiation in administrative contexts:

Dealing with conflict
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• Wherever conflict occurs, the potential exists for violence

or other harmful consequences.

• In the international arena, in the absence of any generally

accepted “rules of the game”, conflicts can easily escalate
into highly destructive wars.

• The course of a conflict depends on how the parties

manage their disagreements.

• Typically, international actors deal with conflict by taking

one or more of three possible actions: unilateral, bilateral,
or third-party intervention.
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• The unilateral mode may involve an attempt to win

over the opponent through violent struggle, or it may
involve withdrawal or avoidance.

• The bilateral mode implies some form of bargaining

and compromise (i.e., negotiation).

• The third-party mode means the intervention of a

party not directly involved in the conflict (i.e.,
adjudication or mediation).
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• The questions of interest are how negotiation or

mediation begins and why parties choose one method or
the other?

• While institutionalized mechanisms exist for dealing with

some types of conflict, giving specifications about the
process and how to initiate it (e.g., arbitration for labor-
management disputes), conflicts in the international
arena generally lack such procedural guidelines.

• We need to understand the characteristics of Negotiation

and Mediation and other ways of Appropriate Dispute
Resolution (ADR).
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• In unfacilitated negotiation, or cheap talk, the two parties

directly and voluntarily exchange information back and
forth, until the decision-maker makes his final decision
(Goltsman et al., 2009: 1398).
• Thus,
• Under negotiation, the two parties engage in (possibly
arbitrarily long) face-to-face cheap talk.

• Under mediation, the parties communicate with a neutral

third party who makes a non-binding recommendation.

• Under arbitration, the two parties commit to conform to

the third party recommendation (decision is binding).
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• When people want to do something together, buy or

sell an item, make a business deal, decide where to go
for dinner, they need to use some sort of mechanism
for reaching an agreement.

• Unless they agree instantly on every element of the

choices to be made, they need to use a mutually
acceptable process for decision making.

• Negotiation is one name for a variety of joint decision-

making processes, although people also use such
terms as making a deal, trading, bargaining, dickering
(engage in bargaining), or (in the case of price negotiation)
haggling.
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• The word “negotiation” stems from the Roman word

negotiari meaning “to carry business” and is derived
from the Latin root words neg (not) and otium (ease or
leisure).

• Obviously, it was true for the ancient Romans as it is for

the businesspersons of today that negotiations and
business involves hard work.

• In the process of negotiation, each of two or more sides

attempts to obtain what it wants through the exchange
of information in the form of offers and counteroffers.
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• Negotiation is a central component of national policy-making

processes from setting agendas, to determining what issues
are to be addressed by policy makers, exploring options,
finding solutions and securing needed support from relevant
parties in order to ensure that planned policies are
sustainable.

• Negotiations are a vehicle of communication and

stakeholder management.

• As such, they can play a vital role in assisting policy-makers

to obtain a better grasp of the complex issues, factors and
human dynamics behind important policy issues.
 Negotiation: 4 meanings in the dictionary
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• 1. General
• Bargaining (give and take) process between two or more
parties (each with its own aims, needs and viewpoints)
seeking to discover a common ground and reach an
agreement to settle a matter of mutual concern or resolve a
conflict. Noun form of the verb negotiate.
• 2. Banking
• Accepting or trading a negotiable instrument (something of
value is transferred, held or accomplished).
• 3. Contracting
• Use of any method to award a contract other than sealed
bidding (document enclosed in a sealed envelope and
submitted in response to invitation-to-bid).
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• 4. Trading
• Process by which a negotiable instrument is
transferred from one party (transferor) to another
(transferee) by endorsement or delivery.

• The transferee takes the instrument in good faith, for

value, and without notice of any defect in the title of
the transferor, and obtains an indefeasible title.
Read more:
http://www.businessdictionary.com/definition/negotiation.
html#ixzz2D9NWkczS
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• One of the most important skills anyone can hold in daily

life is the ability to negotiate.

• In general terms, a negotiation is a resolution of conflict.

• We enter negotiations in order to start or continue a

relationship and resolve an issue. Even before we accept
our first jobs, or begin our careers, we all should learn
how to negotiate.

• For one person, it begins with the negotiation of an

allowance with a parent. For another, it involves
negotiating a television schedule with a sibling.
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• Some people are naturally stronger negotiators, and are

capable of getting their needs met more easily than
others.

• Without the ability to negotiate, people break off

relationships, quit jobs, or deliberately avoid conflict and
uncomfortable situations.

• Negotiation involves continued interaction and dialogue

between parties to find a solution with maximum
advantages to both.

• By negotiation, mutual interests are met and the most

satisfactory solution is achieved.
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• Your dealings with customers—or suppliers,

neighbours, or relatives—should not be viewed as
competitions.

• We negotiate with people to reach an agreement

that meets as many of the parties’ interests as
possible.

• Our fundamental obligation is to pursue our own

interests, assuming that the other parties are doing
their best to get their interests met.
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• In the world of business, negotiating skills are used for a

variety of reasons, such as to negotiate a salary or a
promotion, to secure a sale, or to form a new partnership.

• Here are a few examples of different types of negotiations

in the business world:

• Manager and Clerk: Negotiating a promotion

• Employer and Potential Employee: Negotiating job
benefits
• Business Partner A and B: Making decisions about
investments
• Company A and Company B: Negotiating a merger
• Customer and Client: Making a Sale
 Topic Four
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Why do we need negotiation?

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Conflict in Conflict with

our lives customers

Conflict inside
organizations
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• Pick up any newspaper and, on the front page,

there are numerous examples of conflict situations.

• Conflict: A situation where two or more parties have

interests or perceptions that differ.

• Negotiation should be understood as a process of

exchange to resolve conflict and reach a mutually
beneficial agreement.
 Conflict in our lives
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• Conflict is inevitable; therefore, negotiation is a survival

skill.

• Whenever one individual’s needs, wants, and desires

conflict with another’s, we have the potential for
negotiation.

• For most of us, 90 % of the resources we need to do

our jobs and live our lives are owned by someone else.
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• Later, conflict may involve disputes about being included

in peer groups or competing to be captain/leader of a
team.

• In adulthood, we want to purchase houses, cars, and

other items to meet our needs; and many conflicts arise
with the significant other in our life.

• If not handled well, relationships deteriorate and couples

divorce.

• Without a doubt, we encounter many conflicts throughout

our lives.
 Conflict inside organizations
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• One of the most significant arenas for generating

conflict is the workplace.

• As organizations become less hierarchical and more

cross-functional, managers as well as individuals are
under increased pressure to resolve conflicts.

• Interdependence and collaboration are increasingly

important issues of nearly everyone’s work life.

• Despite the benefits that accrue from working together,

one problem that emerges is the increased likelihood of
conflict.
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• Interdependence between individuals and departments

with diverse interests and points of view can lead to
better results precisely because it forces us to deal
with the conflicts.

• Other trends in business also contribute to the

increasing frequency of conflict.
 Conflict with customers
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• Conflict in the arena of sales, and the relationship

between the supplier and the customer, deserves
special consideration.

• Most salespeople tend to think of themselves as good

negotiators because they have numerous opportunities
to negotiate with customers.
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• Conflict arises in several aspects of workplace life. The

following are two examples:
• First, the customer has competing demands for his or
her attention.
• Second, the customer wants the supplier to start
making concessions early (i.e., between interest and
decision), while the supplier attempts to hold firm until
after the decision has been made and other suppliers
are eliminated.
• The following examples of conversations show that the
structure of the conversation on the tape between two
friends and the structure of business negotiations is
often similar.
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• Examples of conflict situations in our daily life:

• “I want that.”
“No, it’s mine.”
• “I want to ride on Daddy’s shoulders!”
“But it’s my turn!”
• “I want the window seat!”
“So does your sister.”
• I want the replacement lecture on Friday.
No, it should be on Tuesday.
 A conversation
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• JACK: What shall we do on Saturday?

• JILL: Er ... let's go and see a film.
• JACK: We could do that - or what if .. , you know it's
Mary's birthday? Why don't we go out with her and
Thomas - go for a meal or something?
• JILL: That's a good idea. Where shall we go?

• Jill mutually agrees to Jack’s suggestion to go out with

Mary and Thomas in view of her birthday.
 Another example
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• LAWYER: Yes, I understand what you are saying,

but the facts are clear. The company was
responsible for carrying out all the safety checks.
Those checks were not made.
• MANAGER: That's what you say ...
• LAWYER: There is evidence that safety practices
were poor. You know that. I advise you to make a
settlement, Mr Cooper. If not, I think it could be
worse for the company. You don't want the press
involved in this.
• Lawyer manages to convince with evidence.
 A third example
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• FIRST MAN: The price includes all the land and the
buildings.
• SECOND MAN: Yes. What about the payment
terms? With better terms, you could accept a lower
price?
• FIRST MAN: No, I think terms are not the problem.
The issue is price, Mr Ford. We have had several
offers.
• First man convinces by reiterating that the issue is
price and not terms.
 Definition
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• Negotiation is a process in which two or more parties

with common (and conflicting) interests enter into a
process of interaction with the goal of reaching an
agreement (preferably mutual benefit) (Henden, et al
1996:1).

• This is should be our definition of this term.

• Based on this definition, we have to consider

negotiation as a joint decision-making under conditions
of conflict and uncertainty, combining divergent
positions into a single outcome (Zartman, 2008:106)
 Topic Five
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• Language in negation
a) Vocabulary commonly used in negotiation
b) Phrases/sentences in negotiations
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Vocabulary in negotiations.pdf
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1. It took over five hours of negotiating for the parties to come

to a .........
hostility - bottom-line - consensus - indecisive

2. It was a ......decision to settle our differences out of court.

Flexible - mutual - unrealistic - victorious
3. One ......that always works is to ask your counterpart to
speak first.
tactic - bargain - resistance - tension

4. We would have more .......if we had some more recent

statistics to use.
Haggling - concession – impulse - leverage
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5. They were ....... to our proposal until we made our last

demand.
hostility - receptive - resistance - tension

6. We were .........over prices all afternoon.

misleading - conflict- dispute - haggling

7. I wasn't expecting our opponents to .........so quickly.

amplify - yield - counterproposal - arbitration

8. When I .........the client about their promise they agreed to

honour it.
log-rolled - entitled - confronted - dominated
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9. If that is your only ...............I would be happy to concede.

pressure - objective - victory - co-operation

10. Within ten minutes the negotiations had already ended in

a .................

deadlock - counterpart - collective - bottom-line

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Phrases/sentences commonly
used in negotiation

Phrases/sentences
to show Phrases/sentences
understanding/ to use in closing
agreement on a
point

Phrases/sentences
for objection on a
point or offer
 Phrases/sentences to show
understanding/agreement on a point We l e a d

• I agree with you on that point.

• That's a fair suggestion.
• So what you're saying is that you...
• In other words, you feel that...
• You have a strong point there.
• I think we can both agree that...
• I don't see any problem with/harm in that.
Phrases/sentences for objection on a point
or offer We l e a d

• I understand where you're coming from; however,...

• I'm prepared to compromise, but...
• The way I look at it...
• The way I see things...
• If you look at it from my point of view...
• I'm afraid I had something different in mind.
• That's not exactly how I look at it.
• From my perspective...
• I'd have to disagree with you there.
• I'm afraid that doesn't work for me.
• Is that your best offer?
 Phrases/sentences to use in closing
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• It sounds like we've found some common ground.

• I'm willing to leave things there if you are ....
• Let's leave it this way for now.
• I'm willing to work with that.
• I think we both agree to these terms.
• I'm satisfied with this decision.
• I think we should get this in writing.
• I'd like to stop and think about this for a little while.
• You've given me a lot to think about/consider.
• Would you be willing to sign a contract right now?
• Let's meet again once we've had some time to think.
 KAHOOT! We l e a d

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 Questions We l e a d

1. In an essay of 250-150 compare between arbitration and

mediation.
2. Explain in which context the following statements can be
used in negotiation in administrative contexts:
a. You have a strong point there
b. Let's meet again once we've had some time to think.
c. I'm afraid I had something different in mind.
d. It sounds like we've found some common ground.
3. Based on Henden, et al. (1996), define “Negotiation” and
support your answer with one authentic example.
4. List the forms of ADR.
5. Define the following:
a. Mediation
b. Arbitration
 References
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• Dolan, J. P. (2006) Smart negotiating: It's a done deal.

Entrepreneur Press
• Hendon, D. W. (1989). How to negotiate worldwide. Hants,
England: Gower Publishing Company Limited.
• Hendon, D. W., Hendon, R. A., & Herbig, P. A. (1996). Cross-
cultural business negotiations. Westport, Conn.: Quorum.
• Hendon, D. W., Hendon, R. A., & Herbig, P. A. (1998).
Negotiating across cultures. Security Management, 42(11), 25-
28.
• Zartman, I. W. (2008). Negotiation and conflict management:
Essays on theory and practice. Oxon: Routledge.
• Huang, L (2010). Cross-cultural Communication in Business
Negotiations. International Journal of Economics and Finance,
2(2): 196-199.
 References We l e a d

• Bhatia, V. (2004). Worlds of Written Discourse. London: Continuum.

• Bhatia, V. K. (2010). Interdiscursivity in professional communication. Discourse
& Communication, 4(1), 32-50.
• http://goo.gl/FcD6Sc
• https://www.youtube.com/watch?v=AQENwD-QlRA (secrets of body language)
• DeVito, J. A. (2013) The Interpersonal Communication Book. New York:
Pearson.
• Dolan, J. P. (2006) Smart negotiating: It's a done deal. Entrepreneur Press
• Hendon, D. W. (1989). How to negotiate worldwide. Hants, England: Gower
Publishing Company Limited.
• Hendon, D. W., Hendon, R. A., & Herbig, P. A. (1996). Cross-cultural business
negotiations. Westport, Conn.: Quorum.
• Hendon, D. W., Hendon, R. A., & Herbig, P. A. (1998). Negotiating across
cultures. Security Management, 42(11), 25-28.
• Zartman, I. W. (2008). Negotiation and conflict management: Essays on theory
and practice. Oxon: Routledge.
• Huang, L (2010). Cross-cultural Communication in Business Negotiations.
International Journal of Economics and Finance, 2(2): 196-199.
 We l e a d

• Dolan, J. P. (2006) Smart negotiating: It's a done deal.

Entrepreneur Press
• Hendon, D. W. (1989). How to negotiate worldwide. Hants,
England: Gower Publishing Company Limited.
• Hendon, D. W., Hendon, R. A., & Herbig, P. A. (1996). Cross-
cultural business negotiations. Westport, Conn.: Quorum.
• Hendon, D. W., Hendon, R. A., & Herbig, P. A. (1998).
Negotiating across cultures. Security Management, 42(11), 25-
28.
• Zartman, I. W. (2008). Negotiation and conflict management:
Essays on theory and practice. Oxon: Routledge.
• Huang, L (2010). Cross-cultural Communication in Business
Negotiations. International Journal of Economics and Finance,
2(2): 196-199.
THANK YOU