1 / 20

Interest-Based Bargaining

Interest-Based Bargaining. Interest-Based Bargaining. Interest-based bargaining involves parties in a collaborative effort to jointly meet each other’s needs and satisfy mutual interests.

jgrossman
Download Presentation

Interest-Based Bargaining

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Interest-Based Bargaining

  2. Interest-Based Bargaining • Interest-based bargaining involves parties in a collaborative effort to jointly meet each other’s needs and satisfy mutual interests. • Rather than moving from positions to counter positions to a compromise settlement, negotiators pursue a joint problem-solving approach, identifying interests prior to examining specific solutions.

  3. Strategies and outcome of two party (A and B) disputes

  4. Definitions • An issue is a matter or question parties disagree about. Issues can usually be stated as problems. • Positions are statements by a party about how an issue can or should be handled or resolved, or a proposal for a particular solution. • Interests are specific needs, conditions or gains that a party must have met in an agreement for it to be considered satisfactory. • Settlement options: possible solutions that address one or more party’s interests. The presence of options implies there is more than one way to satisfy interests.

  5. Language of negotiations

  6. Doing the Magic • Helping stakeholders to reveal their interests, jointly educate each other on them, and use them to build options is at the heart of participation and consensus building.

  7. Sustainable and Durable Agreements • To achieve a durable settlement, there are at least three types of interests that generally must be met (Lincoln, 1986). These are: • Substantive interests: that is, content needs, money, time, goods, or resources. • Procedural interests: that is, the needs for specific types of behavior or the “way that something is done.” • Relationship or psychological interests: that is, the needs that refer to how one feels, how one is treated, or conditions for ongoing relationships.

  8. Sustainable and Durable Agreements • Frequently, technical professionals, in designing conflict management and public involvement processes, implicitly or subconsciously behave as if they are reaching for point B.

  9. Procedural Satisfaction • We know we have achieved procedural satisfaction when the parties to the process say they would use the process again.

  10. Defining psychological satisfaction

  11. Interest-Based Negotiation • Interest-based negotiation is also a set of procedures that can be followed by parties to reach a mutual agreement. • Although the procedures may be different from traditional positional bargaining, this is still a formal negotiation process between participants who have the authority to make commitments on behalf of their organizations.

  12. How to do Interest-Based Bargaining? • Identify the substantive, procedural and relationship interest/needs that you expect to be satisfied as a result of negotiations. Be clear on: • why the needs are important to you • how important the needs are to you. • Speculate on the substantive, procedural and relationship interests that might be important to the other negotiators. • assess why the needs are important to them • assess how important the needs are to them.

  13. How to do Interest-Based Bargaining? • Begin negotiations by educating each other about your respective interests. • Be specific as to why interests are important. • If other negotiators present positions, translate them into terms of interest. Do not allow other negotiators to commit to a particular solution or position. • Make sure all interests are understood. • Frame the problem in a way that it is solvable by a win–win solution. • remove egocentricity by framing problem in a manner that all can accept • include basic interests of all parties • make the framing congruent with the size of the problem to be addressed.

  14. How to do Interest-Based Bargaining? • Identify general criteria that must be present in an acceptable settlement. • look for general agreements in principle • identify acceptable objective criteria that will be used to reach more specific agreements. • Generate multiple options for settlement. • present multiple proposals • make frequent proposals • vary the content • make package proposals that link solutions to satisfy interests • make sure that more than two options are on the table at any given time.

  15. How to do Interest-Based Bargaining? • Utilize integrative option generating techniques: • Expand the pie: Ways that more resources or options can be brought to bear on the problem. • Alternating satisfaction: Each negotiator gets 100 percent of what s/he wants, but at different times. • Trade-offs: Exchanges of concessions on issues of differing importance to the negotiators. • Consider two or more agenda items simultaneously. • Integrative solutions: Look for solutions that involve maximum gains and few or no losses for both parties. • Set your sights high on finding a win–win solution. • Separate the option generation process from the evaluation process.

  16. How to do Interest-Based Bargaining? • Work toward agreement. • Use the “agreement in principle” process • Fractionate the problem and use a “building-block” process • Educate and be educated about interests of all parties. • Assure that all interests will be respected and viewed as legitimate. • Do not exploit another negotiator’s weakness, demonstrate trust. • Put yourself in a “one down position” to other on issues where you risk a small, but symbolic loss. • Provide benefits above and beyond the call of duty. • Listen and restate content to demonstrate understanding. • Listen and restate feelings to demonstrate acceptance (not necessarily agreement) and understanding of intensity. • Identify areas of agreement, restate them, and write them down.

  17. Costs and Benefits of Interest-Based Bargaining • Costs • requires some trust • requires negotiators to disclose information and interests • may uncover extremely divergent values or interests. • Benefits • produces solutions that meet specific interests • builds relationships • promotes trust • models cooperative behavior that may be valuable in future.

  18. Stages of Negotiation • Stage 1: Evaluate and Select a Strategy to Guide Problem Solving • Stage 2: Make Contact with Other Party or Parties • Stage 3: Collect and Analyze Background Information • Stage 4: Design a Detailed Plan for Negotiation • Stage 5: Build Trust and Cooperation • Stage 6: Beginning the Negotiation Session • Stage 7: Define Issues and Set an Agenda • Stage 8: Uncover Hidden Interests • Stage 9: Generate Options for Settlement • Stage 10: Assess Options for Settlement • Stage 11: Final Bargaining • Stage 12: Achieving Formal Settlement

  19. Different attitudes to disputes

  20. Thank You ! Any Question ?

More Related