HR Glossary


Negotiation is strategic communication performed to find a mutually agreeable resolution for an issue between two or more parties.


Negotiation occurs when an issue arises between two or more parties, and a mutually agreeable decision is made through proper discussion. This involves the analysis of the issue, weighing the possible choices, and settling on the one that is acceptable to everyone’s interests. Most of the time, a subtle sacrifice is made by one of the parties before agreeing. The purpose of negotiation is to resolve a conflict peacefully so that no one suffers in the end. Negotiation can be easy and difficult depending on the parties involved and the type of issue they are dealing with. Healthy discussion is the key to performing a good negotiation. 

Use cases:

Negotiation is a familiar concept in business deals and vendor contracts where negotiation is performed regarding pricing, conditions, and quality standards between the parties to reach a common ground. In recruitment, candidates and recruiters engage in a conversation for negotiation of the salary, benefits, or other employment terms before the decision on offer acceptance is made. Negotiation is also employed in legal settings to resolve conflict outside court. As for Human Resource management, conflict resolution is a frequent event that HR faces in the workplace for which negotiation is carried out to settle the issue among employees.

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