RADPAC Model Of Negotiation- Models And Strategies Of Negotiation

Introduction

The RADPAC model is a kind of negotiation model which explains a certain process in which negotiation can be held. The negotiation model is largely used in Corporates and will be discussed later. For better understanding we need to know the other terms which are explained as follows :

What is Negotiation?

This concept can be understood as a discussion among a few individuals to come up with a solution that is acceptable by all. Negotiation is an activity in which people have a conversation, analyze the positives and negatives, and then reach out with an option that can be satisfactory to all.

For example: If X purchases a product after bargaining with a local market, the shopkeeper and X try to agree on a price that is beneficial for both.

Negotiation aids in decreasing disputes and conflicts and focuses more on peace with stress-free living in any type of work.

Models Of Negotiation

Moving ahead there are four basic types of negotiation model which needs to be understood:

Models Of Negotiation​
Models Of Negotiation​

Win Lose Model

In the win-lose model briefly, one party or the person loses while the other party wins. From such a model, after many conversations and discussions, one party remains satisfied while the other does not get a negotiated or convincing deal.

For example: If Surya wants to purchase a television that costs Rs. 50000 and bargains with the storekeeper. Now the shopkeeper agrees at Rs. 47500 after which he has to compromise with his profits but Surya insists on more reduction.
After such a point the deal is called a win-lose situation where if the costs are deducted so the shopkeeper turns unsatisfied and by paying Rs. 47500 Surya remains unsatisfied.

As a result, this model explains that only one of them can benefit from the deal.
However, if a win-lose model applies within an organisation resulting in employees loss then it might create dissatisfaction which needs to be settled. As a result, this settlement can be briefly studied in employee retention meaning.

Lose Lose Model 

This model briefly explains itself which states that neither of the party agrees to one another and the outcome of the deal is zero. The parties are reluctant to cooperate with each other so therefore no discussions can help because of which no party is satisfied with this model. 

For example: If Sachin (HR HEAD) quotes a salary structure to Mukesh, but Mukesh was not convinced with the figure. Mukesh tried to convince him in the best possible way to raise it more.
After several discussions, both of them tried to negotiate at their best level but it did not work which quotes an example of the Lose-Lose model.

As a result, none of them got anything out of the deal.

Radpac Model​

As discussed above the radpac model is a largely used method in Corporates. However, the radpac model will be discussed in detail now. Every alphabet of the radpac model symbolizes something:

Radpac Model​
Radpac Model​

R–(RAPPORT)

Referring to the name itself of the radpac model,  it symbolizes the connection between the parties enrolled in the negotiation. The people involved in the deal should share a comfortable bond and rapport.

A–(ANALYSIS)

This section of the radpac model explains that one person must understand the desires of others. It is significant to understand the interests and aspirations of other individuals. 

The storekeeper should relate to the pocket of the consumers and consumers should also get the profit margins of the storekeeper.

D–(DEBATE)

Here in the radpac model comes the most important part of the negotiation which explains the round of discussions. This step explains the thought of sharing issues among the individuals and discussing the positives and negatives of the deal

People have a conversation with each other and each of them tries to convince their perception regarding the same. One must explain things calmly without losing his/her patience.

P–(PROPOSE)

Here in the radpac model, each person tries to convince others and come up with the best alternative idea which is acceptable by all. In this step, the individuals try to conclude at their level best.

A–(AGREEMENT)

Here the radpac model chooses the best possible alternative is chosen out of all and everyone agrees to the conclusion which is best out of one.

C–(CLOSE)

This stage of the radpac model describes the level of satisfaction and reflects that the negotiation procedure is complete. All individuals go satisfied.
Now let’s understand the radpac model with the help of an example of SACHIN and MUKESH quoted above :

Rapport level explains that Sachin and Mukesh must not directly start with the negotiation part first but rather the discussions should initiate with a warm welcome and smiles.

After the formal part is done each one of them should get the other’s desires where Mukesh needs an opportunity and Sachin wants to hire a member in the company.

Now there should be various rounds of debate. Mukesh should propose the best salary he can work on which Sachin should also offer the maximum he could.

Both of them should compromise and agree on one point when finally the closure should proceed with an offer letter and the acceptance.

WIN-WIN MODEL 

n such kind of model, every person involved in the discussion is satisfied. Said as the most accepted model, no individual is a loss in this negotiation and everyone gets benefited. 

For Win-Win examples: Let’s say Surya wants to purchase a television and visits a store. There the storekeeper quotes a price at which Surya negotiates.

After several discussions and bargaining, they both agree on a price that can be paid by Surya.
Moreover, the storekeeper does not have to compromise with his profits to great extent.

This quotes a win-win situation where both are satisfied. Surya does not have to burn his pocket and the storekeeper gets a loyal customer.

Other win-win examples: In an organization, Sachin quotes a salary structure for Mukesh.

Mukesh does not found the proposal satisfactory and as a result, they discussed their requirements.
At one point they both agreed and benefitted from the deal.

Mukesh got a pay scale according to his demands and Sachin gained an employee. When both parties happily negotiate with one another, such an example comes under the win-win situation.

WIN-WIN STRATEGY

A win-win situation is created when both the parties are convinced and get whatever they want out of the negotiation. However, to create such a type of situation the participants should be ready to hear one another. 

Furthermore, the common will of everyone must be present to create a better understanding and choose among the best alternative. The conflicts should be avoided as much as they can and get satisfaction out of all. 

HOW TO CREATE WIN-WIN SOLUTION / STRATEGY

HOW TO CREATE WIN-WIN SOLUTION / STRATEGY
HOW TO CREATE WIN-WIN SOLUTION / STRATEGY
PREPARATION

The first stage for negotiation is preparation. One should be well prepared priorly. Everyone should take the negotiations seriously and gather information as much as they can. 

For example: As a small sample when you purchase a register, you must know its price and the competitive shops plus brands price.

In the case of expensive things, it’s always good to compare first and be ready with your facts. For higher-level like business meetings, never go in a rush and check all the documents mentioned.

SPECIFICATIONS

The party must be clear about his expectations out of the negotiation. The needs and purpose of the deal should be straight in mind. 

Also, it is important to have realistic expectations and be firm enough with what you want. Never keep the impossibilities as your alternative. One must be practical enough.

ALTERNATIVES

The participant should not be dependent on one plan because that might not work. You must have alternatives ready which can be a bit negotiating from the original plan. The person should be cooperative, tactful, flexible, and intelligent at the same point.

TRANSPARENCY, HONESTY, AND UNDERSTANDING with the second party

Honesty is the key factor that helps to build a healthy relationship between the parties. If anyone hides the terms and conditions, he may benefit from it at that point but can be troublesome in the long run. 

  • Be CONFIDENT and GOOD COMMUNICATOR
  • PERSONALITY matters 
  • A person should know how to compromise with his alternatives to or best extent possible 

Once all the negotiation is done, one must sign contacts and agreements in the confirmation & presence of all the members of the party.

There must be a positive attitude when a person moves ahead for a win-win negotiation deal.

Although there are 4 models of negotiation, the RADPAC model is considered in most of the company. The reason being the radpac model just explains a process rather than the result arising out of the model like the other three of them.

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