Negotiation typically manifests itself with trained negotiator acting on behalf of a particular organization or position. It can be compared to mediation where a disinterested third party listens to each side’s arguments and attempts to help craft an agreement between the parties.
It is also related to arbitration which, as with a legal proceeding, both sides make an argument as to the merits of their “case” and then the arbitrator decides the outcome for both parties.
Negotiation involves three basic elements: process, behavior and substance. The process refers to how the parties negotiate: the context of the negotiations, the parties to the negotiations, the tactics used by the parties, and the sequence and stages in which all of these play out.
Behavior refers to the relationships among these parties, the communication between them and the styles they adopt. The substance refers to what the parties negotiate over: the agenda, the issues (positions and – more helpfully – interests), the options, and the agreement(s) reached at the end.
Skilled negotiators may use a variety of tactics ranging from negotiation hypnosis, to a straight forward presentation of demands or setting of preconditions to more deceptive approaches such as cherry picking. Intimidation and salami tactics may also play a part in swaying the outcome of negotiations.
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