Negotiation: Understanding the Process and its Significance in Daily Life

This essay explores the concept of negotiation and its significance in daily life. It discusses the need for negotiation, the relation between negotiation and culture, and the difference in negotiation approaches across different cultures. The essay also highlights the difference in negotiation approaches between men and women.

Running head: NEGOTIATION
Negotiation
Name of the Student
Name of the University
Author Note

1NEGOTIATION
Introduction
Negotiation being a psychological activity has its traces in all spheres of life and
human activity. It is not merely a task or activity undertaken to achieve favourable terms of a
contract, but helps in getting favourable outcomes in other activities as well. It is integrated in
parenting, employee-employer relationship, among couples, between colleagues and friends
and even strangers. Negotiation is thus the process of discussion with a perceived goal in
mind, it is the exchange of ideas and suggestion to derive at a solution or agreement best
suited for all those involved. Negotiation is thus on the face of it a utilitarian concept that is
aimed at being beneficial to the majority. The shape the process takes varies depending on the
parties and the ultimate goal of the process.
The two ideas introduced in the question are not mutually inclusive, the first part
questions the magnitude of the concept of negotiation while the second generalizes the
process and techniques of negotiation across all platforms and nations. The scope and reach
of negotiation have been analysed while exploring negotiations that exist not only in all
spheres of our life but also those that happen within us and those that we undertake
subconsciously. The second part of the question is dealt with in the second part of the essay
by bringing out different negotiation styles and attitudes that exist around the globe. The
essay concludes with understanding whether the true concept of negotiation is in reality
limited to skilled diplomat, top salesperson, or ardent advocates and whether globalization
has had its impact on how negotiation is conducted by unifying the strategies and policies of
negotiators.
When does a need for negotiation arises?
Negotiations conducted in daily life are attempted to avoid misunderstandings and
conflict. The presence of conflict, certainty, information and third parties have an impact on
negotiation behaviour. Uncertainty has a negative impact on negotiation outcomes which can

2NEGOTIATION
be countered by information and mitigation by third parties (Essa, Dekker and Groot 2012).
Negotiations conducted within a family make family life easier and dilute tense and awkward
situations. Negotiations are also an integral part of all purchases that might happen, buying
groceries, buying a new car, a house, repairs, partnerships, employment contracts, project
deadlines, dismissal from job all form negotiations.
Negotiation thus can be said to contribute towards creating a balanced and amicable
atmosphere at home and even in one’s workplace, if the same is conducted in a polite and
orderly manner. Negotiation contributes towards healthy relationships, as it helps avoid bitter
confrontations and futile arguments. In ‘Difficult Conversations’ the importance of
successfully conducting all forms of dreaded but essential conversations is highlighted. One
is constantly forced to enter into difficult conversations and negotiations with their partners,
employers, clients, neighbours, parents, children and even pets as the same is inevitable it
becomes essential to navigate these conversations better to achieve a more agreeable
outcome. Avoiding essential but difficult conversations is a strategy for most people but the
outcome of this approach is more negative than positive. Such conversations should be
conducted at the earliest instance to avoid last minute stress and hasty decisions.
Time also plays a significant role in the negotiation process. Time pressure reduces
the ability and desire to process information in a systematic and coherent manner.
Negotiations that are conducted under high time pressure often fail to reach an integrative and
innovative outcome, this pressure contributes towards propagating the stereotypes of how a
negotiation must be conducted (De Dreu 2003). Time pressure makes a negotiation process
unimaginative, distributive and reinforces the element of competition among negotiators who
view each other as adversaries.

3NEGOTIATION
According to Fox the most important negotiation is carried out with oneself which
holds the maximum value. These negotiations may range from trivial pursuits and dilemmas
to topics that are more serious, having a larger impact on life. We constantly negotiate with
our desires, ethics, aspirations and duties. We negotiate to integrate other’s needs with our
own, we negotiate to excel, we negotiate to understand better, we negotiate to please and we
negotiate to escape. This process gives a direction to our inner turmoil and varies depending
on our personal style, motivation and rules.
The concept of negotiation can be taken to a broader platform to include the
sociological and psychological concept of identity negotiation. This concept was introduced
in the 20th Century by thinkers like Goffman, Secord and Backman, Swann. It stands to
establish that the role and relationships that individuals’ possess in context to each other is
derived through the process of negotiation forming ‘working consensus’ and once established
the same must be maintained and propagated. Swann coined the term in the late 1980s to
highlight competing social interactions. Identity negotiation is also the process through which
battles of the will are resolved and reconciled.
Negotiations that take place within a family has also drawn attention and evoked
compelling literature. Scott Brown focuses on using integrative negotiation techniques to
develop creative solutions for conflicts that may arise within the household. He outlines
negotiation strategies for a persuasive parenting style, that involves dealing with emotions
both of the parent themselves and the child and listening attentively. Conflict negotiation is
also a vital part of romantic relationships and develops gradual over time (Shulman et all.
2008). Couples constantly negotiate their role and duties in the household and relationship
with each other to reach a desirable outcome and understanding.

4NEGOTIATION
The process of negotiation is highly dependent on the individuals who are engaged in
it. In the process of negotiation each individual possesses a certain role that guides their
behaviour and conduct (Donohue and Taylor 2007). Individuals largely differ in the power
and the strength they possess, the final outcome they desire to achieve from the negotiation
and the involvement of third parties in the process (Pfetsch, F. & Landau 2000). The
symmetry and asymmetry introduced by them is not an essential component of negotiation
though it contributes greatly towards the process. This helps establish the power dynamics of
negotiation.
People at powerful positions may exploit the same to get what they want and desire
(Lewicki, Saunders and Barry 2011). However, this is a one-dimensional view of power as
the same can be used to benefit the whole situation. Power increases ones bargaining abilities
as they want to give up less and are in a dominant position. Power can be derived from
position, status, knowledge, contacts, individual relationship, strong alternatives. Power can
even be borrowed from external sources to shape negotiation (Klock 2010) Being aware of
ones BATNA and also the other parties is an essential factor in the power dynamics (Van
Kleef et all 2006) (Korobkin 2003).
In real life negotiations finding the zone of possible agreement may be difficult as you
are dealing with friends and family. An individual maybe wiling to extend and modify their
limit to accommodate the needs of their closed ones. For example, while paying a restaurant
bill the common practice is to split it equally. Some individuals are difficult and may only
want to pay for exactly what they consumed or ordered or just be stingy. Negotiations
between friends can be coloured with affection, fairness even competition.
Even through examples like the Prisoner’s Dilemma the significance of negotiation is
broadcasted. Negotiations on policies to control climate change are similar to those in a

5NEGOTIATION
prisoner’s dilemma (Barrett and Dannenberg 2012) In a court room also an accused
negotiates for a lesser sentence that will positively affect his whole life and the prosecutors
negotiate for justice and to fulfil their social responsibility and carry out their duty.
Negotiation is an integral part of the legal system where it’s a part from the fees to be paid to
the advocates to the final judgment. There is constant negotiation between the parties, the
advocates and the judge.
This section attempts to highlight some of the instances, scenarios and concepts where
negotiation takes place outside the world of business and politics.
Relation between Negotiation and Culture
The internet has opened up communication and negotiation across different cultures
and countries, these could happen face-to-face or be anonymous (Kresten, Koeszefi and
Vetschera 1999). Culture plays an integral role in the negotiation process thereby questioning
the assumption that negotiation skills are same everywhere. Different cultures value different
approaches and negotiation style depending on their history and business practices,
generalizing the process of negotiation would defeat the human value that is created and
integral to the process of negotiation. People having the same cultural background generally
respond similarly to the same factors in negotiation process.
The process of negotiation differs across the globe. Asian cultures focus on the
relationship that exists or has developed as opposed to the actual deal while in the USA
negotiation is more competitive and focuses on the event of negotiation. Some cultures prefer
to enter into longer agreements that will carry on for generations and develop sustained
relations while others value current gain and benefits. Some cultures have a distinct manner
in which they prefer all negotiations to be carried out. Gender perspectives of a nation also
influence the negotiation process depending on the mix of negotiators. The following
paragraphs bring out the process of negotiation in Japan, China and America.

6NEGOTIATION
For Japanese organisations it is integral to understand the other person’s needs in
order to arrive at a consensual decision, the ability to do this is viewed as successful
leadership skill (Hall and Hall 1987). The negotiations are broadly aimed at bringing out the
interests and concerns of those involved, this coupled by meetings and interactions outside
the scope of the immediate negotiation eases the process. Traditionally top management
officials did not participate in the negotiation process that took place with other companies
and delegated the same to their staff, this approach has its own set of drawbacks. Social status
in Japan is a source of power. The initiation of ritualistic moves shows who the dominant
party is in a negotiation process, and are integral to it. The same is followed by informal
conversations revolving around the subject matter of the negotiation that sets the tone for
negotiation. Thus, such negotiations are aimed at problem solving and have a cooperative
tone. The aim of the negotiation is also to develop long-term and lasting relationships and are
carried out with the intention that everybody must win making it a pleasant and amicable
process.
Chinese people posses a strong sense of cultural superiority (Fang 1999). How the
Chinese negotiate is influenced by the religious background of the nation coupled with
ancient military strategies. Negotiation is seen as a confrontational process that is used to
benefit oneself. Negotiation normally happens between adversaries however discussions
happen among partners, therefore to have affective communication a relationship of faith and
trust must be developed before entering business. There exist low levels of trust for strangers
making interpersonal connections important. The individuals involved in the process of
negotiation can become more important than the subject matter thereby making local
representatives an integral part of the process. Important decisions are taken by a leader with
full autonomy hastening the process off negotiation and eliminating direct argument. Leaders
have an image to upkeep and cannot be considered soft by their juniors. Chinese have a more

7NEGOTIATION
wholistic approach to a process and initiate by establishing general terms before delving into
specifics. Chinese negotiators prefer to enter negotiation after a level of socializing (Paik and
Tung 1999). As Chinese negotiation is undertaken with the motivation to win and they avoid
conversations on sensitive topics, value creation therefore remains at a minimum.
Americans have a structured approach to negotiation where the roles and authority of
the team members are defined. There is little focus on developing relations outside the scope
of negotiation or entering into long contracts. Thus, no effort is made to know the other
negotiators personally or indulge in casual conversations before a contract exists. Americans
do not distinguish between strangers, acquaintances or close relations while conducting
negotiation.
Given increased globalization and integration it would be incorrect to comment
conclusively that negotiation is culturally specific, varied and individualistic. Individuals
today have a broader horizon where they are more integrated, can come from multicultural
families or be exposed to international education and colleagues. Additionally, the
predominant cultural characteristics of any section of the world does not unanimously apply
to all individuals from that background (Susskind 2004). However, a managers expectations
and aspirations from a negotiation are culturally motivated (Kumar and Worm 2004).
Cultural diversity can exist in various strata of negotiation. According to Hall it exists
in the nature and context of communication. Hofstede points out four differences in cross-
culture negotiation - individualism-collectivism, power distance, uncertainty avoidance and
masculinity-femininity. Lewicki brings out ten factors associated with culture that affects
negotiation – purpose, perception of negotiation, nature of negotiation, communication style,
sensitivity to time, insistence on collectivism or individualism, inclination for risks,
emotionalism, selection of negotiators and form of the agreement. In another study by Ready

8NEGOTIATION
and Tessema between Malaysia, Vietnam and America differences were revealed in 14 out of
16 factors that were measured.
There is a difference in how negotiation is approached by men and women which
have an impact on their career growth and advancement (Greig 2008). Men predominantly
have a more aggressive and competitive approach as they have a higher aspirational level.
Personal relationships and an understanding of what situations are negotiation may act as a
hindrance when women negotiate. The approach developed by women is a reaction to the
criticism and negativity that assertive and dominating women negotiators face. Lower
aspirations during the negotiation process was also seen in obese individuals (Proestakis and
Branas-Garza 2016). Salacuse in 1998 through his survey established that gender, cultural
and occupational backgrounds have an impact on an individuals’ negotiation strategy and
style.
Counter-claim
The impact of negotiation on business cannot to be undermined by making
negotiation a common place activity. Negotiation is a skill which when used effectively and
cautiously is mutually beneficial. It is especially important in the field of business and
politics as these have a large impact on society and the economy. Even those in the legal
system as it has a direct effect on people’s lives. The importance of negotiation cannot be
undermined by simply equating it with a bargain, barter or process for all agreements.

9NEGOTIATION
Negotiation is a complex process that is dynamic and rests on the shoulders of the
negotiators. Like a game of chess, the move of the opponent can only be assumed and
guarded against but what happens in reality may differ. Therefore, to win, a flexible and
adaptive approach is needed, along with a good understanding of the opponent’s strategy and
previous game plans.
The process of negotiation has also evolved to accommodate the impact of
globalization. There is increased sensitivity and understanding of diverse nationalities and
cultural differences to accommodate all sentiments and needs in the process of negotiation.
As some factors are affected by culture, others remain unaffected in the negotiation process
(Gunia, Brett and Gelfand 2016).
Conclusion
Negotiation as a concept of discussion and reaching an agreement has existed in all
human transactions and communication, its scope and application are only being studied
recently but that however does not limit the instances where negotiations already exist. The
negotiation conducted by diplomats and salespersons may involve studied and developed
strategies and targets however negotiation in daily life has strategies that develop
subconsciously and through trial and error.
Cultural differences largely affect the process of negotiation as negotiators bring their
cultural background and context to the process. The studies done in the 1990s about the
differences that exist in different parts of the globe no longer exist in that magnitude. The
internet has played a vital role in blurring national boundaries and constructs. Negotiations
can happen without parties ever really meeting with each other. With increased global
migration and intermingling of people from all walks of life the process of negotiation though
still technical and complex is losing its cultural barriers.

10NEGOTIATION
Businesses from all parts of the globe need to have an international approach and
understanding in order to expand, survive and sustain. This question combines two concepts
that stand separate on their own merit. Negotiation does occur outside business and politics
this however does not necessarily mean that the process of negotiation is unified and same
wherever, it is a process that is adapting to keep pace with increased globalisation and
integration.

11NEGOTIATION
Reference List :
Barrett, S. and Dannenberg, A., 2012. Climate negotiations under scientific
uncertainty. Proceedings of the National Academy of Sciences, 109(43), pp.17372-17376.
Brown, S. How to Negotiate with Kids . . . Even When You Think You Shouldn’t (Viking,
2003),
De Dreu, C.K., 2003. Time pressure and closing of the mind in negotiation.
Organizational Behavior and Human Decision Processes, 91(2), pp.280-295.
Donohue, W.,A. and Taylor, P.,J., (2007) Role Effects in Negotiation: The One‐Down
Phenomenon. Negotiaton Journal 23(3):307-331
Essa, S., Dekker, H.C. and Groot, T. (2012) The Role of Accounting Information and
Monitoring Controls in Buyer-Supplier Negotiations Under Conditions of Uncertaintly.
SSRN Electronic Journal
Fang, T. 1999. Chinese business negotiating style. Thousand Oaks, CA: Sage
Publications
Fox, E., A. (2013) The Most Important negotiation in Your Life. Harvard Business
Review
Greig, F. (2008) Propensity to Negotiate and Career Advancement: Evidence from an
Investment Bank that Women Are on a “Slow Elevator”, Negotiation Journal 24(4):495-
508
Gunia, B.C., Brett, J.M. and Gelfand, M.J., 2016. The science of culture and
negotiation. Current Opinion in Psychology, 8, pp.78-83.

12NEGOTIATION
Hall, E. and M. Hall. 1987. Hidden differences: Doing business with the Japanese. New
York: AnchorBooks
Heen, S., Stone, D. and Patton, B. Difficult Conversations : How to Discuss What Matters
Most
Kersten, G., Koeszegi, S.,G. and Vetschera, R. (1999) The Effects of Culture in
Anonymous Negotiations: A Four Countries Experiment.
Klock, C. (2010) ‘Borrowing’ Power to Influence International Negotiations: AOSIS in
the Climate Change Regime, 1990–1997. Politics 30(3): 131-148
Korobkin, R., 2003. Bargaining power as threat of impasse. Marq. L. Rev., 87, p.867.
Lewicki, R., Saunders, D. and Barry, B. (2011) Essentials of Negotiation. London,
McGraw Hill. Chapter One.
Paik, Y. and R. L. Tung. 1999. Negotiating with East Asians: How to attain “win-win”
outcomes. Management International Review 39(2): 103–122
Proestakis, A. and Branas-Garza, P. (2016) Self-identified Obese People Request Less
Money: A Field Experiment. Frontiers in Psychology 7
Ready, K.,J. and Tessema, M., T. (2011) Perceptions and strategies in the negotiation
process: a cross-cultural examination of USA, Vietnam and Malaysia. International
Journal of Business and Globalisation 6(2):198-216
Shulman, S., Mayes, L.C., Cohen, T.H., Swain, J.E. and Leckman, J.F., 2008. Romantic
attraction and conflict negotiation among late adolescent and early adult romantic
couples. Journal of Adolescence, 31(6), pp.729-745.
Susskind, L. 2004. What gets lost in translation. Negotiation September.

13NEGOTIATION
Swann, W.B., 1987. Identity negotiation: where two roads meet. Journal of personality
and social psychology, 53(6), p.1038.
Ting-Toomey, S., 2005. Identity negotiation theory: Crossing cultural
boundaries. Theorizing about intercultural communication, pp.211-233.
Van Kleef, G.A., De Dreu, C.K., Pietroni, D. and Manstead, A.S., 2006. Power and
emotion in negotiation: Power moderates the interpersonal effects of anger and happiness
on concession making. European Journal of Social Psychology, 36(4), pp.557-581.