ASSESSMENT DESCRIPTION: United Approach to Negotiation Scenario As a result of the recommendations of a training needs analysis, Barbara Johnstone, the General Manager of United Beverages Pty. Ltd.,...

United Approach to Negotiation
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Executive Summary
United Beverages Pvt Ltd is the manufacturer and seller of beverages planning to organize training sessions to develop the negotiation skills of the employees. To develop an efficient training program, the various negotiation approaches are required to be studied. The two major approaches to negotiation are interest based negotiation and competitive position based negotiation. The purpose of the report is to analyse the negotiation approach to training sessions in United Beverages Pvt Ltd. The report discusses the risks, assumptions, characteristics and impact of approaches on relationships. The report found that interest based approach is to be focused upon as it involves less risk and has positive impact on relationships.
Contents
1.    Introduction    4
2.    Information Analysis    4
2.1 Characteristics of each approach    4
2.2 Assumptions in each approach    5
2.3 Risks in each approach    7
2.4 Impact of Negotiation approach on Relationships    7
3.    Findings    8
4.    Conclusion    9
References    10
1. Introduction
United Beverages Pvt. Ltd. is a renowned manufacturer and seller of beverages. The organization is experiencing low productivity of staff and therefore, has been recommended to organize training sessions for the staff. However, negotiation can be adopted before establishing training methods. An appropriate methods of negotiation needs to be adopted and hence, it is necessary to scrutinize the negotiation approaches. The report discusses the two approaches of negotiation, that is, competitive positional-based negotiation and problem solving interest based negotiation and assess the suitable approach that United Beverages Pvt Ltd can adopt for increasing the productivity of their employees. The use of secondary data is done to conduct the analysis. The report begins with the discussion of characteristics of each approach followed by the assumptions and risks of each approach and finally the impact of relationships of each approach is explained determining the suitable approach for United Beverages Pvt Ltd.
2. Information Analysis
Negotiation is a method of striking deals to resolve conflicts between two or more people (Rahwan 2003). The two common approaches of negotiation are competitive positional-based negotiation and problem solving interest based negotiation. In order to compare both the approaches, it is imperative to discuss their characteristics, assumptions, risks and impact on relationships.
2.1 Characteristics of each approach
Competitive positional-based negotiation focuses on traditional way of bargaining. This method involves the two parties deciding their needs and wants initially and arguing for their position throughout the negotiation (Rahwan et al 2003). This method results in parties pitting against each other and relationships are harmed.
The various characteristics of positional bargaining are as follows:
· The initial demand presented before the other party is high and is eventually lowered down to what is actually desired. This educates the other party about the needs and wants of the negotiator.
· The demands are kept secretive and the level of disclosure is quite low to benefit from the other party as much as possible.
· One major characteristics of this method of negotiation is bluffing which is used to get concessions from the other party by showing high expectations of desires and wants.
· The use of threat is also common in this approach in case of no agreement in the parties. This method of threat is used to enhance the cost of the other party. In some cases, the other party is even degraded to reach the desirable behaviour.
· Incremental concessions in the form of small benefits are provided to the party to bring the party closer to the desired position.
Interest based negotiation focuses on managing the need and interests of people involved in the bargaining process (Leavy 2015). The involved parties are made to resolve the conflicts through communication about the major issues and not necessarily come to a conclusion or solution to the problem. This type of bargaining shows weather the other party is cooperative or not.
Interest based bargaining is nothing like traditional bargaining. It does not involve tricks like bluffing, withholding information, deception or posturing to win an argument. Unlike the traditional method where proposals from each party are submitted initially, this method involves solving the problems and reaching to a solution through the negotiation process. In interest based negotiation the parties together find a solution to the problem by considering all alternatives. In interest based negotiation, both parties are considered to be winners unlike in competitive positional-based negotiation where one wins at the cost of other. ...