Formal negotiation needs to have a structure. Negotiations take up a structure even when they are informal. Unlike formal negotiations, this may not have been pre-arranged. However, informal negotiation may have evolved into a structure over time through socio-cultural influences or the influence of practicality. What is the fundamental structure of negotiation?

Everyone knows that if you want to haggle over an item, the seller first of all, gives you an asking price before you make your first offer. From that point, both of you will adopt solution based approach until eventually find what can be called a middle ground. This in effect, is the structure of that negotiation. Therefore, the fundamental structure of negotiation is the process taken to arrive at a conclusion.

The Importance Of A Structure

1. It Allows For Efficient Interaction

The parties involved are able to interact in an efficient manner because they know the timetable. They know what they should be discussing at any given time and this allows the negotiation to flow seamlessly. The opposite will be the case, if there were no structure to follow. This would be the same thing as holding a meeting without an agenda.

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There will be nothing to serve as reference of guide and it would lead to a chaotic meeting. Human nature will be averse to it and negotiations would be avoided by everyone.

2. It Gives Both Parties A Chance To Grow Their Expertise

Since the structure and form of interaction is already known, both parties are given a level playing field to build an expertise. This is why some people can haggle more than others. As things stand today, there are professional negotiators that make a comfortable living out of handling negotiations.

This would not have been possible if there was no structure. Structure allows for it to be systematized. It allows it to be studied and this brought about the development of critical processes and tools that have made it more efficient.

It has made it to advance to the point of being used to deal with big issues. It is now possible to hear of complex negotiations because they building block of that complexity started from the fact that formal negotiations have been structured to allow for better interaction that is measurable.

3. It Gives A Definite State Of Progression

You are able to measure the progress of a negotiation when there is a structure in place. This gives you a sense of time and direction. Both parties will get to know the stage they are at and what is left for them to accomplish. This makes the system predictable and reliable.

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If there were no structure in place, many things would be left to chance and this will make it a highly unreliable means of resolving issues.

The Fundamental Structure Of Negotiation

1. Agenda

Every negotiation should have an agreed agenda. The agenda lists all the stages of the process involved. Outside the agenda, there is what can be called a “pre-meeting” where the agenda and issues related to it will be discussed. This is where the problem that needs to be resolved will be put on the table so that an agenda can be set.

2. Comparing Documentation

Negotiations are basically disputes and a form of conflict resolution. Each party already has a position and they will have documents supporting that position. The stage of comparing documents is to ensure that there is an alignment and both parties are on the same page.

It would be confusing if both parties are citing different documents or present papers that clash with each other to support their case.

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This is the stage where they get to verify each document and determine what would be presented at the negotiation, and what does not meet the benchmark.

3. Stating Facts

This is where they look at the issues on the ground on the basis of verifiable facts. They also get to resolve cases where there is a clash. This is an extension of comparing documents because those documents also serve as prove to facts.

4. Comparing Areas Of Similar Objectives

Whereas they come to the negotiation table to sort out differences, achieving this is done by finding areas of similar objectives. it may be in the end goal or just about anything. There are usually points of agreement and a good negotiation process seeks to build on those points of agreement.

5. Offering Of Concessions

These are areas where one or each party is ready to sacrifice, either to move forward or to conclude on the negotiation. They may be willing to offer an area as a concession, if the other party is willing to do so in another area.

SEE ALSO: How To Explore Joint Gains During Negotiations

In some instances, they make a request for a concession in one area from the other party and offer something else in return.

6. Closing The Negotiation

This happens when they have come to agree on key issues. It also applies when both parties conclude that they will not be able to agree on the issue on ground.

There are different structures in place but this should serve as a rough guide to how a negotiation can be structured.