Interest-based negotiations achieve better outcomes than position-based negotiations

Business Communication
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Contents
Part-1-Essay.....................................................................................................................................3
1ntroduction.....................................................................................................................................3
Interest-based negotiations achieve better outcomes than position-based negotiations..................3
Conclusion.......................................................................................................................................5
Part-2 Feed Forward Exercise (Summary)......................................................................................6
References........................................................................................................................................8
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Part-1-Essay
1ntroduction
Negotiation is an important communication skill through which a manager or an employee can
create new opportunities for attainment of business goals (Kasper, 2015). Negotiation is an art
through which a manager is able to arrive at an agreement with the other parties without any
disruptions; in a way which creates an advantage for one or all the parties concerned (Maude,
2014). Negotiation skills are required in business in a wide range of situations like marketing,
sales, recruitment, employee compensation etc. Negotiation in business can be addressed through
various approaches. Two of them are position based negotiation approach and interest based
negotiation approach.
Interest-based negotiations achieve better outcomes than position-based negotiations
Able negotiator is one who can strike a deal without any major conflict (Lewicki & Hiam,
2011). Interest based and position based approaches have contrasting methodologies to arrive at
a business agreement (Baum, 2013). Under positional negotiation, the negotiator takes a fixed
position regarding any deal and argues in favour of that position. This approach generally
involves a win-loose situation. Under interest based negotiation there is no fixed position that the
negotiator takes. However, the parties in the negotiation try to find mutually beneficial solutions
to the dispute based on interests (Hughes, et al., 2013). Hence, this approach focuses more on
the win-win scenario.
An example of positional approach is a salesman and a customer negotiating over price of the
product. Both take a position on the monitory value of the product which is a fixed position and
then negotiate on the price. Gain of one will be the loss of other in terms of monetary value
(Hughes, et al., 2013). Therefore, position based negotiation may lead to statement or breakdown
of the deal due to its focus on win loose. On the other hand, interest based negotiation focuses on
win-win scenario where a mutually beneficial solution is sought (Sarkar, 2010). Positional
approach involves hard bargaining involving fear, threats and intimidation. Conversely, in
interest based approach, a manager tries to give priorities to concerns and needs of the parties
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