This Article has been written by Aakriti Singh, a 3rd Year student of LLB (Hons.) from Amity Law School, Amity University Noida. 

INTRODUCTION 

Alternate Dispute Resolution (ADR) is a collective term for the various methods of resolving conflicts and disagreements between parties, without the need for litigation. In recent years, this form of external dispute resolution (EDR) has gained acceptance both amongst the general public and the legal profession, being adopted as an alternate form of dispute resolution alongside the court system. Aside from arbitration and mediation, another prominent form of ADR is Negotiation.

Negotiation can be understood as a form of communication, either direct or indirect, where two or more parties with conflicting interests discuss possible action to take in order to manage and resolve their disagreement. The negotiation process does not necessitate participation from either of the parties, leaving it open to either accept or reject any decisions that come out of the negotiation. Additionally, there is no limit to the number of parties that can be involved in the process, ranging from two individuals to dozens of parties. In contrast to arbitration and mediation, the outcome of a negotiation is reached without the need for a neutral third party. This flexibility and informality allows for increased confidentiality, at the choice of the parties.

In terms of procedure, negotiation is probably the most flexible form of dispute resolution process because it involves only those individuals or parties who are interested in the matter. They can shape the process of negotiation as per their own needs and at their own convenience. The chances of reaching a mutually acceptable agreement are high in this process since the acceptance by all the parties is ensured. Since the process of negotiation uses an interests-based approach instead of the generally used positional-based approach, it provides a greater possibility of a successful outcome. As mentioned above, there is no compulsion for either of the parties to participate in the process, making negotiation a voluntary process. Once an agreement is reached between the parties, negotiation may also enhance the relations between them. Apart from all of this, opting for negotiation over litigation may also reduce the number of delays and prove to be less expensive as well.

APPROACHES:

This approach of negotiation, recognised by a number of terms such as distributive negotiation, claiming value, zero-sum and win-lose, is often used with the intention of one party to dominate the other – where only one side can triumph and the other side’s interests will be opposite. Individuals using this approach are likely to take up manipulative and withholding tactics in the hope of maximising their interests while minimising the other side’s. Despite the potential of developing a hostile relationship with the other party, the successful implementation of this method can lead to satisfactory outcomes.

Another negotiation technique known as ‘lose-lose approach’, or avoidance, can be put into practice when one of the parties believes that their interests are threatened. Rather than explaining the fears or finding a resolution that is agreeable for all parties, this strategy strives to render the end result undesirable for everyone involved. To keep this technique at bay, the parties must come to an understanding to cooperate with one another. Dismissing other sides’ wants can cause serious damage to the relationship and the exchange.

The accommodation approach involves the prioritising of the other party’s interests over one’s own, usually leading to unfavourable results for the person taking on this strategy. Although it does not reward them initially, it can establish a stronger bond with the other side, leaving a positive impression. Nevertheless, this should not be adopted for every negotiation as it can potentially undermine the negotiator’s interests in the long run.

Unlike the competition approach, the collaboration approach requires both parties to cooperate to generate value for one another. This approach is usually referred to as ‘win-win’, because both sides are successful in meeting their objectives. To make this strategy successful, both parties should have an affable attitude and adequate resources to share. Openly sharing knowledge and working together can lead to a much better outcome.

In certain circumstances, when interests are dissimilar and resources are limited, the best course of action might be the compromise approach, which is considered a mix between win-win and lose-lose. With this strategy, both parties must be content with less than what they desire. Nonetheless, this type of agreement may be altered when either or both parties become unhappy with their objectives or the resources available improve.

CONCLUSION

Having a firm understanding of negotiation tactics is essential for those who aim to succeed in the negotiation process. By understanding the various methods available, business leaders and executives are able to exert more control over the process and ensure a result that best satisfies their needs.

REFERENCES

5 approaches to negotiation – opportunity desk Opportunity Desk – The one stop place for global opportunities!, https://opportunitydesk.org/2021/11/07/5-approaches-to-negotiation/ (last visited Feb 27, 2023) 

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