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When and How to Use a Third Party to Take Effective Negotiation

Posted on | August 15, 2009 | Comments Off

If negotiations go slow or at a stalemate, or there are also external intervention.  Negotiations require third parties to resolve the problem. Several reasons for the use of a third party, namely:

  • Both parties found the aggravating circumstances in terms of emotional
  • Reluctance of each party in the resolution of the problem so that the communication is not going well.
  • Disapproval on both sides of a piece of information.
  • Both parties do not agree on matters relating to problems, tend to be difficult to reconcile
  • The difference is very much value, and the parties – the negotiating parties do not agree about what is considered a fundamental right.

Advantages and Disadvantages of Using a Third Party
There are several advantages in using a third party, namely:

  • Negotiating parties had time to cool the problems
  • Improved communication between the negotiating parties
  • Selection of issues important
  • Emotional condition can be corrected because the participants had to reduce anger and increase the confidence
  • The real deal may be cultivated.
  • The cost of the conflict can be controlled.
  • The time to solve the problem can be returned so that the time resolution can be more clear.

Losses using a third party:

  • Reputation of parties  to a negotiation can be decreased.
  • Party ; the party will lose control negotiating process, results, or both.

Below are examples of third parties:

1.      Arbitration

Arbitrator will hold control of the negotiation process, form and determine the output of the negotiation
Advantages of arbitration:

  • Solutions are only suggestions and opinions (the negotiating parties may agree or not agree).
  • The resulting solution comes from a trusted source and can be accounted for, because the arbitrator is usually chosen.
  • Costs incurred when the conflict took place can be minimized

The disadvantages are :

  • Parties will negotiate reduced control over the problem. The solution of the arbitrator may not be beneficial for the parties – parties who negotiated and can lead to additional costs.
  • The parties will negotiate shame if no arbitrageur implement recommendations from.

2.      Mediation

Mediator aims to help make negotiations work effectively. The mediator does not provide a solution to a problem, but only help the negotiating parties.

Mediation can contribute to solve the problem if :

  • Have a commitment to follow the process of mediation and have the same strength.
  • Each side has a high motivation for settlement

3.      Process consultation

As a consultant in the negotiation process, usually served enhance communication, reduce the existing emotions, and enhance the ability of the parties involved in negotiations to find a good solution.

4.     “Ombuds” and others

Aiming to solve problems quickly and informally. Usually they are not from the organization but to keep the ombudsperson can diperusahaan justice.

5.      Managers as Third Party

Workplace issues there is usually a procedure that the authority could be used for solving the problem. This procedure is called PGR or Peer Group Resolution. The objective is to investigate, revise, and solve problems experienced by employees of the company.

Review

Use a third party as an alternative to overcome a complicated negotiation issues for both parties. There are several advantages and disadvantages of using third parties. But not all types of third parties can contribute in solving problems.

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