MBA Pundit: MBA News, Views and Notes

Since agreement requires mutual consent, negotiation necessarily includes the possibility of disagreement. Parties may discuss terms of settlement but they can also refuse to agree to the terms demanded by the other side. Put another way, negotiation means that both sides have the right to disagree with each other, the right to say no. But…

The unabridged edition of the Random House Dictionary of the English language defines negotiation as the “mutual discussion of the terms of a transaction or agreement.” The College Edition also defines negotiation as “mutual discussion” but it correctly adds the words “aiming at an agreement, at least for most negotiations.” But discussion isn’t indispensable. Negotiation…

Games theory provides a useful means of relating and distinguishing negotiation, mediation, arbitration and litigation from each other. The theory divides games into three categories: skill, chance and strategy and identifies them by their dominant characteristics. In track and field, the skill of the competitors usually determines who will be the winner. Craps and roulette…

In the words of the eminent Scottish poet Robert Burns, try to see yourself as others see you. Strive also to see others as they see themselves. Clearly define the issues at the outset of the dispute. Remember, you can’t argue about a fact, but only be ignorant of it. Bluffing and puffing in the…

  Remember: your goal is to get the disputants to agree with each other; it is not to pass judgment on the merits of their respective claims. Never let your personal views on the merits of the dispute influence your mediation efforts. It is not inappropriate and is, in fact, desirable for you to take…