Page 140 - Communication in Organizations Basic Skills and Conversation Models

Negotiating 129

Figure 15.2 A situation without
negotiation space

In practice people often negotiate about certain questions without formulating in advance
a clear target point and point of resistance for themselves. In this case they are often
caught out by the strategy of the other party and have nothing to contribute. The other
party makes an offer, but wants to receive an answer in return.
Between target points and points of resistance lie the possibilities of coming to an
agreement. By ensuring in advance that they have something to exchange, negotiators can
enter the discussion well prepared. They then have the opportunity to make good use of
the negotiation space.
The negotiation space is not only bordered by the target points and points of
resistance. Psychological factors also determine this space. The importance that the
negotiators attach to success in that particular situation, or the fear of loss of face, will
reduce the room for negotiation. The desire to make a good impression on the opposing
party can increase the negotiation space.

In an example from the negotiation situation of Dinner Ltd, imagine that
rumours are going around that things are not going well with Central
Heating since the departure of the previous company president. Then the
company may consider it very important to attach its name to the renewal
of Dinner Ltd’s heating system. In such a situation the contractor of
Central Heating could be prepared to be satisfied with less than the stated
offer price.

Negotiation situations

The situations in which negotiations take place differ from one another as follows:
• the number of people who participate
• the subject
• the relationship between the negotiators.