Negotiation, Mediation, and Arbitration

The term negotiation conjures a variety of images in people’s minds, many of which involve haggling over a sale price or a starting salary. In reality, negotiation is far more pervasive, involving more than just haggling over a price. New recruits may indeed negotiate their starting salaries, but they also negotiate job assignments, budgets, schedules, supplier contracts, joint ventures, and the resolution of conflicts with coworkers. Whether applied to crafting deals or resolving disputes, negotiation refers to a joint decision-making process in which two or more parties, whose interests conflict, attempt to reach an agreement. When negotiations become difficult or impossible, and when the costs of disagreement are high, others often intervene. These third parties typically act as mediators or arbitrators as they assist negotiators ...