Question

1. (a) What are the key differences between positional bargaining and principled negotiation?

(b) What is the link between principled negotiation and Covey’s 5th habit?

Answer 1

1)The key difference between positional bargaining and principled negotiation is that in positional bargains, a person negotiates based on his bargaining power while in principled negotiations, interests of both parties are taken into account. Positional bargaining seeks to leverage your bargaining power to make a winner takes all deal. Positional bargaining does not have any consideration for the interest of other side and only your interest remain supreme. Positional bargaining does not seek to build relations and only attempts to win the deal with the term in favour. Principled negotiations seek to maintain the interests of both parties to maintain the relationship after the deal. The deal will work only if both parties are satisfied and it is mutually beneficial.

2)Covey's 5th habit is seek first to understand, then be understood. This habit can be of use in principled negotiations as both of the methods keep the interests of other parties paramount. Both parties seek to understand each other and then consider the deals for mutual benefits. Covey's 5 the habit allows negotiators to build satisfying relationships with each others. This creates a good working environment without any hurt ego or bad blood and both the parties can do work in future also.