Alternative Dispute Resolution

RMIT Year 1 - Semester 1

Importance of ADR

• Provides parties more control.

• Helps parties maintain a positive relationship.

• Informal and accessible (compared to courts).

• Attempts to create a win-win situation by trying to satisfy both parties appropriately.

ADR includes what three forms of alternative dispute resolutions?

• Negotiation.

• Mediation.

• Arbitration.

How should negotiators act?

They should be:

• Purposeful - they need to think through what their doing and why.

• Encourage mutual trust between parties.

• Question critical assumptions - What do we have in common, rather than the negatives.

What is the purpose of a negotiator?

The negotiator's main goal is to serve their side's interests. If that can be done without the involvement of the other party that should be done. However, there are times that negotiation with others can lead to better outcomes, making negotiation more appropriate.

The 7 Elements of Negotiation: Interests

What someone wants within a negotiation; includes their needs, concerns, desires, hopes and fears.

The 7 Elements of Negotiation: Alternatives

The options available to a negotiator if an agreement cannot be reached.

The 7 Elements of Negotiation: Options

The full range of possibilities that the parties might use to come to an agreement.

• All options are presented, but no final decision has yet been made.

The 7 Elements of Negotiation: Legitimacy

Ensures that the outcome of the negotiation is fair for both parties involved.

The 7 Elements of Negotiation: Commitments

The oral or written statements about what a party will or won't do.

• These must be well planned so they are practical, durable, and easily understood by the parties.

The 7 Elements of Negotiation: Communication

Two-way communication between parties - meaning individuals both talk and listen when coming to an agreement.

• Communication can be verbal, body language, written, etc.

The 7 Elements of Negotiation: Relationship

An attempt needs to be made to improve the parties ability to work together and reduce conflict in the future.

What questions should you ask when negotiating?

"Why and what for?". This will allow you to find the root cause of the issue to be able to fulfill each person's needs.

When negotiating it’s important to focus on …

What the parties interests are rather than their positions.

Position

An individual's point of view, their demands.

Options

All the things that you and your counterpart to a negotiation can agree on, which will help lead to mutual gain between parties.

BATNA - Best Alternative To a Negotiated Agreement

Ensures that parties won’t accept something that is worse than their best alternative option.

• There is only one BATNA for each party.

• ‘No agreement’ is better than a ‘bad agreement‘.