What is Negotiation Process?

What is Negotiation Process?

Negotiation is a process by which two or more people solve an issue or arrive at a better result through agreement. In simple words, negotiation is a method to stay away from argument and come to an agreement with which both parties feel proud.

Negotiation can be used by a variety of groups in a variety of situations. 

For example, between a particular market focus to get the best price on an item, between association focus to consolidate organizations through business negotiations, or between governments who want to come to a calm unity.

Main Steps in the Negotiation Process

Following are the main steps in any negotiation process −

  • Preparation and Planning

  • Definition of Ground Rules

  • Clarification and Justification

  • Bargaining and Problem Solving

  • Closure and Implementation

Let us try to understand each step in detail.

Preparation and Planning

When starting any new assignment, including negotiation efforts, it is important to set the foundation first. The preparation stage is composed of a variety of steps that are all customized toward helping you set the preliminaries. In this stage, naturally, preparation is key.

Disputes can arise at any time, which means there is no allocated lapse of time for you to prepare your negotiation techniques. Consequently, it is critical to start this first stage as soon as possible.

The preparation and planning stage involves researching appropriate information as well as examining all the data you collect to regulate its advantages.

Definition of Ground Rules

In stage one, you haven’t even formally met with the other side yet. You’ve done your research to construct your case and have learned all you can about your resistance.

In stage two, you will begin to communicate with your resistance, but there is still work to be done before any formal negotiating can start. In this stage, your main focus is to form the terms of the negotiation as well as exchange information to upgrade the possibility of a successful negotiation.

At this stage, you’ll also focus on surveying the other side. This provides you a chance to test the premises you begin during your initial research. This is also the best chance to try and build a positive relationship heading towards the negotiation.

While you are coming to the negotiating table with broadly different views, a perception of common ground and understanding is helpful. With effort, you can evolve a better understanding of what the other side wants to fulfil and what possible solutions may engage well with your own objectives.

Clarification and Justification

Before falling toward true negotiations, it is necessary to be sure that both parties are on the same page regarding the negotiations process.

  • In this stage, you’re basically finalizing this process.

  • Take the time to give back on what you’ve learned and note whatever the gaps and confusions may present.

  • You’ve to just clarify your statements or give justification for your summary.

  • This stage allows you the opportunity to search any necessary clarifications from your resistance involving the issue itself, other parties will support in the negotiations.

Bargaining and Problem Solving

This is the stage where true negotiation begins. We have taken the time to do research and fully understand the issue at hand.

  • In the bargaining stage, it is important to be aware of not only the verbal nod of your negotiation partner but the non-verbal nod as well, including body language.

  • This process can be elegant, and in difficult negotiations, you must sometimes move back a step to solve the problem till all parties are comfortable.

  • During the bargaining stage, each side will outline their anxiety as well as their recognized solutions.

  • This process is all about the compromise, so it is useful to recall that the conclusive object is to search for a mutual agreement.

Closure and Implementation

At this stage, it is important to make sure that all crucial elements to formally begin the unity are in place. Consequently, intelligence is key to certify that everyone is on the same page before implementation begins.

  • This stage can involve signing contracts or legally applying any other terms outlaid during the negotiation process. Investigation is critical, make sure that implementation brings with it the desired outcomes for both parties.

Factors that Influence Effectivity of Individuals’ Negotiations

The following factors influence the effectiveness of an individual’s negotiation −

  • Personality

  • Mood/Emotions

  • Culture

  • Gender

Let us try to understand each factor in detail.


It is believed that personality appears from within the individual and remains sufficiently compatible all over life. Examples of personality can be found in how we describe other people's attributes.

For example, "She is generous, caring, and a bit of an idealist," or "They are loyal and safeguarding their friends."

Present Mood or Emotions

Emotions are short-term feelings with a recognized source, while moods last further than emotions, and have no obvious source. Emotions are very temporary feelings that come from a well-known source. Emotions can influence attitudes and behaviors in the workplace.

Examples of mood or emotions are - Joyful, Anxious, Calm, etc.


Culture is the common standard, values, and faith that a group of people attribute to.

For example, the culture of working long hours is one that most Americans attribute to but many other cultures do not. Culture dynamically affects the personal style of negotiators.

For example, Britain has a more formal style than Germany.


When individuals negotiate with members of the opposite gender, commonplace trust affects their interactions. This is true even when negotiating with people of the same gender. Many men and women assume that males are highly competitive, scheming, win-bust negotiators. People frequently see men as wanting to achieve solid deals from the other negotiator.


Negotiation is a process in which two parties can easily solve their issue without any problem. If any party is not getting any conclusion regarding their issue they can negotiate and come to an end result. It is very important for both the parties to be on the same page while negotiating. People usually think that men can negotiate better deals as compared to women.

Negotiation might appear to be a horrifying and huge task, however whilst, the events are knowledgeable about the process, organized for the negotiation, and practiced within side the process. A negotiation might also additionally lead to a win-win answer that benefits anybody involved.

Updated on: 13-Jul-2022


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