5 Steps of Negotiation Process

Negotiation permeates the interactions of almost everyone in groups and organizations.

In today’s loosely structured organizations, in which members work with colleagues over whom they have no direct authority and with whom they may not even share a common boss, negotiation skills become critical.

5 Steps of Negotiation Process

On this post we will look at the negotiation process which is made up of five steps. These steps are described below;

  1. Preparation and Planning

    Before the start of negations one must be aware of conflict, the history leading to the negotiation the people involved and their perception of the conflict expectations from the negotiations etc.

  2. Definition of Ground Rules

    Once the planning and strategy is developed, one has to begin defining the ground rules and procedures with the other party over the negotiation itself that will do the negotiation. Where will it take place?

    What time constrains, if any will apply? To what issues will negotiations be limited? Will there be a specific procedure to follow in an impasse is reached? During this phase the parties will also exchange their initial proposals or demands.

  3. Clarification and Justification

    When initial positions have been exchanged both the parties will explain amplify, clarify, bolster and justify their original demands. This need not be confrontational.

    Rather it is an opportunity for educating and informing each other on the issues why they are important and how each arrived at their initial demands.

    This is the point where one party might want to provide the other party with any documentation that helps support its position.

  4. Bargaining and Problem Solving

    The essence of the negotiation process is the actual give and take in trying to hash out an agreement, a proper bargain. It is here where concessions will undoubtedly need to be made by both parties.

  5. Closure and Implementation

    The final step in the negotiation process is formalization the agreement that has been worked out and developing and procedures that are necessary for implementation and monitoring.

    For major negotiations – this will require hammering out the specifics in a formal contract.

Negotiation Process has five stages. In all steps of negotiation process the involved parties bargain at a systematic way to decide how to allocate scarce resources and maintain each other’s interest.

Watch this slideshow for learning 5 steps of negotiation process.