ADVANTAGES OF NEGOTIATION
One of the reasons for the absolute success of a negotiation is that negotiation only involves the stakeholders and does not include any other party as a result of which the negotiation process remains an absolutely private affair.
Negotiations ensure that there is absolute freedom of the parties. Freedom to set agendas of their choice and to ensure the objective of the negotiation is achieved.
This process ensures that the consent of both parties is taken into consideration and that the individual interests are well looked after. The freedom also ensures that there is no play of powers and all the parties in the negotiation are given equal footing to speak and consider their options.
The negotiations have a possibility of greater successful outcomes because it is ultimately based on the party’s interest and is entirely run by the party’s consent to dissolve the dispute also the process of dispute resolution is suited with that of the parties.
By using the principled approach to the negotiations and considering the various other strategies one can successfully conclude a negotiation process. The parties can easily come to a win-win situation which is mostly the advantage of negotiations.
Negotiation is considered to be a voluntary process. However, agents representing the parties can also take part in the negotiation process. There is no interference of a third party in the negotiation process which leads to the proper safeguard of the confidential information.
The need for a neutral third party which is the characteristics of most of the ADR systems is not the case with negotiations. This type of ADR is mostly recommended in cases of highly classified information such as the case of administration which if leaked through a third party would create havoc.
The process of negotiation is safe. It normally is a speedy process. The decision does not bind any other party other than the stakeholders. The process does not require witnesses. It is comfortable. There is not the third party imposing any order over the parties. It is a completely self-built process.
After the successful completion of the negotiation rounds such as in the international negotiations, there is an improvement in the relations of the parties. The successful completion of negotiations further leads to the incentives of the negotiations with the other countries as well. Thus facilitating the process of negotiations on further occasions.
DISADVANTAGES
the parties to negotiation may not always be of equal stature and power. In the absence of a neutral third party, the party which is in a position to dominate uses the scope to dominate over the consent of the other party and thus come at an agreement. This play of powers thus is a disadvantage in the negotiation process. The result may be an unfair agreement which later can be relegated to be useless.
The agreement that the parties arrive at the time of negotiation can be unequal when there is one is a powerful party than the other.
The dispute and disagreement between the parties sometimes lead to an impasse. An impasse is a situation at the time of negotiation when the parties to an agreement reached a standstill in their discussion, where they cannot proceed with their discussion any longer. It is a stage of the frustration of the discussion of the parties wherein the parties where no possible successful outcomes can happen. This generally happens when one of the parties is so adamant over its goals that no middle ground can be achieved.
The walkout situation happens when an impasse frustrates the parties to the extent that no fruitful discussion can happen any longer. The parties in such situations may storm out of the room and terminate negotiations any further.
The unsuccessful rounds of negotiations sometimes lead to bitterness in the relationship. The parties are not ready to come for another round of negotiations and fail to reach an agreement at all.
The unsuccessful negotiations sometimes lead to the creation of bad relations along with the termination of any other business and contractual relations all together afterward. Some parties sometimes lose confidence in the process of negotiation as a process of dispute resolution and consider other options.
There are cases that involve multiple stakeholders that are non-negotiable. These cases directly go to court.
