Negotiation : One of the Method of Alternative Dispute Resolution System. Parties with mutual understanding and consensus try to settle the conflict between them.

1. Negotiation
Dr. Deepa Pravin Patil, Asst. Prof., IMLC, Satara
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Modes of ADR System
Negotiation
Conciliation
Mediation
Arbitration

3. Negotiation: Meaning and Definition
 Meaning :
Negotiation is any form of voluntary communication between two or more
people for the purpose of arriving at a mutually acceptable agreement.
 The Pepperdine University of USA has developed an explanatory
definition for ‘negotiation’.
Negotiation is a communication process used to put deals together or
resolve conflicts. It is a voluntary, non-binding process in which the parties
control the outcome as well as the procedures by which they will make an
agreement. Because most parties place very few limitations an
negotiations process, it allows for a wide range of possible solutions
maximizing the possibility of joint gains
 P Gulliver has explained Negotiation in following words:
As a first description the picture of negotiation is one of two sets of people,
the disputing parties or their representatives, facing each other across a
table. They exchange information and opinion, engage in argument and
discussion and sooner or later propose offers and counter offers relating to
the issue in dispute between them seeking an outcome acceptable to both
sides. 3

4. Need for Negotiation
 Cost of the litigation
 Lawyers are often reluctant to initiate
settlement talks.
 The transaction cost for a client is often
income for a lawyer
 Less concern for client choices or
interests.
 Uncertainty
 Different expectations
 Out come mostly depends on Judge.

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Advantages of Negotiation
Anyone can Negotiate
Win – Win situation
Greater Participation of
Parties
Party’s Control over out come
Problem solving
Fast Remedy
No Institutional Barrier
Protect Interest of parties
Prevent litigation
Less Expensive

6. Principled Negotiation
Principled negotiation is a method of
focusing on basic interests, mutually
satisfying options, and fair standards
typically results in a wise agreement.
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7. Principles of principled
negotiation..
 1) Separating the people from the problem;
 2) Focusing on interests, not positions;
 3) Inventing options for mutual gain; and
 4) Insisting on objective criteria.
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8. Principles of
Negotiation
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9. Principles
1. Interests
2. Options
3. Alternatives
4. Legitimacy
5. Relationship
6. Communication
7. Commitment
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10. NEGOTIATION PROBLEM
Ms.Preeti v. Samudra Film Productions.
1. The Manager of Samudra Film Productions offered Ms. Preeti a lead role in their
prestigious film “ Rani Padmini” based on historical research. The Manager was sending the
offer as per the advise of their Director who was impressed by her role in a tele-serial based on
mythology. The letter also included terms and conditions, which read as follows:
i. That the Producers will complete the shooting of the film within one year.
ii. That Ms.Preeti will be paid a sum of Rs.50,00,000/- for her role.
iii. That she should not sign any other films till the completion of Padmini.
iv. That in case any disputes arise in relation to this matter, it shall be resolved by any of
ADR mode.
Ms.Preeti agreed to the above proposal and sent a formal letter of acceptance.
A controversy arose about the research on which the film was based. It was successfully proved
that the researcher had resorted to sensationalisation without any basis. He had depicted the king
in a very poor light. The researcher had not undertaken proper research. He was made to
apologize publicly. During this time an association of the followers of Padmini was started and
the association vowed to stall the screening of the film which was on the verge of completion if
based on the faulty research.
The producer commissioned another research to set the story right. However, this researcher was
not in a position to complete the research in time due to sheer work pressure. Due to this the film
could not be completed within one year.
In the mean time, Ms.Preeti, who had attained fame by now was approached by several film
producers to act in their films. Honouring the commitment she has made to Samudra Film
Productions, she kept on rejecting the offers. When the film was not completed even after one
year, she started signing for other producers.
Being aggrieved, by the acts of Ms.Preeti, Samudra Film Productions issued a notice for
negotiation and threatened to have recourse to legal proceedings in case she accepted any role in
any films till the completion of their film. Both the parties
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11. Skills
 Attitudes
 Knowledge
 thinking out of box
 Interpersonal Skills
 Drafting
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12. Five negotiation approaches / styles : an
overview
 Accommodating
 Avoiding
 Collaborating
 Competing
 Compromising
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13. Negotiation Approaches/Styles
 Accommodating
 Individuals who negotiate with an accommodating style put great value
and emphasis on preserving the relationship. It is a great style when in
negotiation with a recurring party (say a recurring trade partner) however, it
is less ideal to use when chances are high you will only negotiation once
with this party.
 Avoiding
 This style is used by parties who dislike negotiation and tend to avoid it.
When trapped in a negotiation, parties will tend to concede swiftly and have
little initiative. This can be viewed as diplomatic. The downside is that
avoiding parties will not be very likely to obtain a satisfactory result in the
negotiation.
 Collaborating
 Collaborating parties tend to enjoy coming to creative solutions during
negotiation. This can potentially lead to positive results or transform simple
problems into difficult solutions. Either way, parties that prefer a
collaborating style make a real effort to understand the issues of the
opposing party of the negotiation.
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14. Negotiation Approaches/Styles
 iv. Competing Individuals who prefer the competing
style of negotiation see negotiation as a game that
must be won at any cost. It is an ideal style when
dealing with negotiation where lasting relationships
are not very important. However, when preservation
of the relationship is an issue, the competing style
of negotiation is less suited.

 v. Compromising Parties that value fair and equal
deals in negotiation tend to prefer the
compromising style. This style tends to get fast
results from a negotiation. A pitfall of this style is
that concessions often come too fast, without
properly discovering the underlying issues.
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15. The Five Phases of Negotiation
1. Investigation
2. Determine your BATNA
3. Presentation
4. Bargaining
5. Closure
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16. Phase 1: Investigation
 The first step in negotiation is
the investigation, or information gathering
stage.
 During the negotiation, you’ll inevitably be
faced with making choices. It’s best to
know what you want, so that in the heat of
the moment you’re able to make the best
decision.
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17. Phase 2: Determine Your BATNA
 One important part of the investigation and
planning phase is to determine your BATNA,
which is an acronym that stands for the “best
alternative to a negotiated agreement.”
 Your BATNA will help you reject an
unfavorable deal. On the other hand, if the
deal is better than another outcome you could
get (that is, better than your BATNA), then
you should accept it.
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18. Phase 3: Presentation
 The third phase of negotiation
is presentation.
 In this phase, you assemble the information
you’ve gathered in a way that supports your
position.
 In a job hiring or salary negotiation situation,
for instance, you can present facts that show
what you’ve contributed to the organization
in the past (or in a previous position), which
in turn demonstrates your value.
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19. Phase 4: Bargaining
 During the bargaining phase, each party
discusses their goals and seeks to get an
agreement. A natural part of this process is
making concessions, namely, giving up
one thing to get something else in return.
Making a concession is not a sign of
weakness—parties expect to give up some
of their goals.
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20. Phase 5: Closure
 Closure is an important part of
negotiations.
 At the close of a negotiation, you and the
other party have either come to an
agreement on the terms, or one party has
decided that the final offer is unacceptable
and therefore must be walked away from.
 Most negotiators assume that if their best
offer has been rejected, there’s nothing left
to do.
 You made your best offer and that’s the
best you can do. 20

21. Qualities of a Negotiator
 1. Negotiator must be unbiased.
 2. He should not have hidden agendas or
prepared statements
 3. He must have formal and documented
training in conflict management.
 4. He must have sensitivity towards opposite
party,
 5. He must be a good listener as well as ability
to interact tactfully.
 6. He must have objective approach in
resolution of the dispute.
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22. Qualities of Negotiator
 i. Negotiator must be unbiased. A negotiator must be
impartial having empathetic approach towards the other
party. An unbiased negotiator is able to create options of
settlement of disputes agreeable to other party.
 ii. He should not have hidden agendas or prepared
statements- Negotiator should disclose all the facts relating
to dispute to other party. He should not have previous
agendas or prepared statements for the settlement of
dispute as it will affect degree of satisfaction for the
settlement of dispute.
 iii. He must have formal and documented training in
conflict management. Negotiator must be trained about
the resolution of conflict process as both the parties by
principled communication try to create options which will be
most acceptable/agreeable and beneficial to both the
parties. 22

23. Qualities of Negotiator
 iv. He must have sensitivity towards opposite party
Negotiator must be empathetic towards other party. He must
have sensitivity to understand the situation or position of the
opposite party for the sake of creation of better options of
settlement of dispute.
 v. He must be a good listener as well as ability to
interact tactfully. - A negotiator must be a good listener, he
must have patience to listen to the other side. This will make
both the parties to think about each others’ position and
their future relations which is beneficial to resolve their
dispute.
 vi. He must have objective approach in resolution of the
dispute. A negotiator must be tactful person who will make
the parties to concentrate on the main points of issues
between them rather beating bush on unnecessary
situations. 23

24. THANK YOU
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