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Models of Bargaining

Based on Chapter 23 of Human Resource Management in a Business Context (2nd Edition) by Alan Price - published by Thomson Learning

There are several models of the bargaining process, the clearest of which identifies four main stages (Lyons, 1988: 110):

1 Initial positioning. Both parties set out their positions and requirements in emphatic, firm way aimed at giving the impression that there is no possibility of budging from those positions. The situation can appear hopeless at this stage.

2 Testing. The next stage is a less formal probing of the other side's demands, testing out which are really unmovable and which might bend in the right circumstances.

3 Concession. Some tentative proposals and concessions are exchanged on which detailed negotiations can take place.

4 Settlement. Finally, agreement is reached and the package of new terms is settled and actioned.

Obviously, the model does not apply in every case (...). Lyons argues that successful negotiation requires specific skills. (...):

  • Analysis. (...)
  • Effective argument. (...)
  • Signals of cooperation.(...)
  • Attention to detail. (...)

The full version, including a case example is shown on pages 646-649 of Human Resource Management in a Business Context.

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