Lose Lose Model - As the name suggests, in this model, the outcome of negotiation is zero. No party is benefited out of this model.
Had Daniel not purchased the laptop after several rounds of negotiation, neither he nor the store owner would have got anything out of the deal. Daniel would return empty handed and the store owner would obviously not earn anything.
In this model, generally the two parties are not willing to accept each other’s views and are reluctant to compromise. No discussions help.
Let us understand the above three models with an example from the corporate world.
Mike got selected with a multinational firm of repute. He was called to negotiate his salary with Sara- the HR Head of the organization.
Case 1 - Sara quoted a salary to Mike, but Mike was not too pleased with the figure. He insisted Sara to raise his salary to the best extent possible. After discussions Sara came out with a figure acceptable to Mike and she immediately released his offer letter. Mike got his dream job and Sara could manage to offer Mike a salary well within the company’s budgets - A Win win Situation (Both the parties gained)
Case 2 - Sara with her excellent negotiation skills managed to convince Mike at a little lower salary than he quoted. Mike also wanted to grab the opportunity as it was his dream job and he was eyeing it for quite some time now. He had to accept the offer at a little lower salary than expected. Thus in this negotiation, Mike was not completely satisfied but Sara was - A win lose negotiation
Case 3 - Mike declined the offer as the salary quoted by Sara did not meet his expectations. Sara tried her level best to negotiate with Mike, but of no use.-A lose lose model of negotiation. No body neither Mike nor Sara gained anything out of this negotiation.
RADPAC Model of Negotiation
RADPAC Model of Negotiation is a widely used model of negotiation in corporates.
Let us understand it in detail
Every alphabet in this model signifies something:
R - Rapport
A - Analysis
D - Debate
P - Propose
A - Agreement
C - Close
R - Rapport: As the name suggests, it signifies the relation between parties involved in negotiation. The parties involved in negotiation ideally should be comfortable with each other and share a good rapport with each other.
A - Analysis: One party must understand the second party well. It is important that the individual understand each other’s needs and interest. The shopkeeper must understand the customer’s needs and pocket, in the same way the customer mustn’t ignore the shopkeeper’s profits as well. People must listen to each other attentively.
D - Debate: Nothing can be achieved without discussions. This round includes discussing issues among the parties involved in negotiation. The pros and cons of an idea are evaluated in this round. People debate with each other and each one tries to convince the other. One must not lose his temper in this round but remain calm and composed.
P - Propose: Each individual proposes his best idea in this round. Each one tries his level best to come up with the best possible idea and reach to a conclusion acceptable by all.
A - Agreement: Individuals come to a conclusion at this stage and agree to the best possible alternative.
C - Close: The negotiation is complete and individuals return back satisfied.
Let us again consider Mike and Sara’s example to understand RADPAC Model
R - Rapport between Mike and Sara. They must be comfortable with each other and should not start the negotiation right away. They must first break the ice. The discussions must start with a warm smile and greetings.
A - Both Mike and Sara would try their level best to understand each other’s needs. Mike’s need is to grab the opportunity while Sara wants to hire an employee for the organization.
D - The various rounds of discussions between Mike and Sara. Mike and Sara would debate with each other trying to get what they want.
P - Mike would propose the best possible salary he can work on while Sara would also discuss the maximum salary her company can offer.
A - Both Mike and Sara would agree to each other, where both of them would compromise to their best possible extent.
C - The negotiation is complete and probably the next course of action is decided, like in this case the next step would be generation of the offer letter and its acceptance.
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