How Negotiation works:

Open the newspaper and you'll find the latest conflict among world leaders, celebrity divorce or local labor union dispute. You may also hear a shout from the other side of the breakfast table that tells you it's not your turn to read the paper, but rather to take the dog for a walk. Conflict seems to be everywhere. It's one thing that's been with us throughout history. So, how do we get anything done without resorting to violence?
Whether it has to do with buying a car, divvying up errands or spreading world peace, negotiation is usually the best way to accomplish anything fairly. In general, negotiation is the process of resolving a dispute or settling a business deal.
The principled negotiation has four components:
Separate the people from the problem: Try to account for others' emotions and cool your own. Communicate honestly and show that you actively and attentively listen to the other side.
Focus on interests, not positions: Although the outright demands (positions) of either side might prove incompatible at first, getting to the root of the demands (the underlying interests that motivated them) allows the parties to rethink and adjust demands to make them compatible.
Invent options for mutual gain: This part involves using the integrative approach of enlarging the pie we discussed on the previous page. Inventing new ideas could necessitate brainstorming and thinking of as many options as possible -- both ones you can offer the other side or the other side can offer you. Afterward, decide which ideas sound best to bring to the negotiating table.
Insist on using objective criteria: As a preventative method of keeping emotions at bay, try whenever possible to use objective criteria. Beforehand, make sure the parties agree on what is "objective," be it legal precedent or scientific studies.