WHAT IS A NEGOTIATION?
It is a planned discussion that results in a mutually acceptable solution to a problem. In a negotiation, each side tries to persuade the other to agree with their position. One party will always win because negotiations involve some giving and taking. However, the other side must offer even a minor concession.
To reach a particular end goal, two or more parties will work together during negotiations to find a compromise or a solution that will be acceptable to all parties. One party will give their position, and the other will either agree with it or take a different position in response. The process keeps going until both sides come to an agreement.
Negotiation is so important for so many reasons, whether it’s done for individual, corporate, or government interests. It allows you to advance yourself and get ahead in your career and/or in life. Being able to negotiate also helps people resolve conflicts and create value for themselves.
If the process of negotiation breaks down and agreement cannot be reached, then re-scheduling a further meeting is called for. This avoids all parties becoming complicated in heated discussion or argument, which not only wastes time but can also damage future relationships.
When do Negotiations Take Place?
Many people assume that prices and offers are firm and final. But that’s not necessarily true. In fact, many are actually flexible. Negotiating can be a way to come to agreements in a variety of areas. Some examples include:
- Debts Reduction
- sales
- Improving the conditions of a contract
- Legal proceedings
Good negotiations are important for business success because they help you establish stronger relationships and produce long-term, high-quality solutions rather than poor, short-term solutions that don’t meet the needs of either party. It also aids in the prevention of future issues and confrontations.
It’s common to assume that negotiations entail tension or deception. Therefore, when entering a business negotiation, whether with a supplier or vendor, potential client, or their boss, many people fear the idea of having to play earnest and run the risk of alienating their counterpart or coming across as weak and ultimately giving up more and getting less than they want. Any process must, of course, involve some mutual giving and taking. But at its core, negotiation is about finding a solution to a problem; it calls for both cooperation and assertiveness and starts with a clear understanding of both your own and the other party’s intentions.
The ability to negotiate is not just for businesses. A variety of real-world scenarios, such as negotiating an employment offer, or at home or in the church. Understanding the five fundamental stages of the negotiation process is the first step to becoming a skilled negotiator and ultimately “getting to agreement.”
Two Types of Negotiation
There are two possible types of negotiation, depending on the point of view and leadership styles of each negotiating party:
- Distributive negotiation: When two parties negotiate about a particular product or topic, such as price, it is known as distributive negotiation. Negotiating the price of a worn-out device with a trader or dealing with a shop, for example. One party would win, while another is forced to step back and ends up losing. The ability to negotiate a fair distribution of resources will ultimately affect your performance.
- Integrative negotiation: Do you know what happens after representatives from the workers’ union meet with management to discuss their demands? When people engage in integrative negotiation, they argue, clarify, cajole, and so on. It is a category where several subjects are covered. They reach a consensus that is accepted by both parties. One of the bargaining styles in which multiple issues must be settled is this one. Both parties gain from a discussion of this kind. Integrative negotiation techniques produce a result that is equal for both parties.it is sometime called win-win or collaborative negotiation.
The Stages of the Negotiation Process
In order to achieve a desirable outcome, it may be useful to follow a structured approach to negotiation. For example, in a work situation a meeting may need to be arranged in which all parties involved can come together.
The process of negotiation includes the following stages:
- Preparation
- Exchange Information
- Clarification of goals
- Bargain
- Agreement
- Implementation of a course of action
Preparation
The first stage involves a lot of preparation work. Going in unprepared won’t help you at all. This often starts by establishing and laying down the foundation. Make sure you answer some key questions, including:
What are your expectations?
What do you hope to gain?
What compromise are you willing to make?
What happens if you don’t get reach your end goal?
Determine what your negotiating strategy is and how you intend to do it. Are you competing, accommodating, or will you be collaborative? You’ll have to adjust this strategy according to your end goal(s) and what you hope to accomplish. This is followed by research. Find out as much as you can about the other party.
For instance, come prepared with information about why you deserve a raise if you’re meeting your manager. Concrete examples of where you succeeded with hard numbers and results, along with testimonials from clients and/or co-workers, and any plans you may have to further your career can help firm your stand.
Exchange Information
Now that you’ve laid down the groundwork for your negotiations, it’s time to sit down with the other party, who has probably also done their homework before meeting at the table. This is the point where both sides are able to lay down what their arguments are that can help them reach their end goals.
Communication is key here. Being able to articulate effectively and thoroughly is critical to the negotiation process. This means you shouldn’t skimp on the details. As long as you lay your cards out, there will be fewer details to iron out later. So, if you’re negotiating a contract, offer any details you have as to what you intend to bring, what your conditions are, and why you’re hoping to gain. You can do this verbally, in writing, or in a presentation.
Clarification of goals
By this point, you’ve both explained your positions and where you stand. You should have a firm grasp as to what the other party is looking for and they should know what you want. This step is very important because you want to be sure that you and the other party are on the same page.
If there are any wrinkles that need to be ironed out, any additional information that you need, or any questions that are left unanswered, now is the time to ask. And be sure that the other party is satisfied with your position, too.
Bargain
Now that all the information is exchanged and you both have clarity, it’s time to start bargaining. This is where the true negotiation begins. And it can take time, so be sure you don’t rush the process.
Be sure you pick up on any cues given by the other party (verbal and nonverbal) that may help you get to your end goal. Listening, reading body language, and understanding the other party’s tactics, and responding in a manner that will be accepted are critical when you’re bargaining.
The key to this step is to refrain from being argumentative. This can actually take you away from the point. Be sure you’re ready to compromise if the need arises. After all, negotiating involves a little give and take on both sides.
Closure
Once both parties are happy and satisfied with the results, it’s time to end the negotiations. The conclusion involves coming to an agreement and solidifying it. This can come in the form of a verbal or written contract. The latter is usually a better idea as it clearly outlines the position of each party involved. Make sure there are clear details and expectations for each party. And include any concessions/consequences if one or more of you fail to live up to your end of the deal.
Skills Needed to Be a Good Negotiator
Negotiating doesn’t always come easy for everyone. That’s why it’s often called an art. Some people are naturals while others have to chisel their skills. Regardless of which end of the spectrum you lie on, there are several skills you need to make you a good negotiator. Among them are:
- Listening
- Thinking clearly, concisely, and on your feet
- The ability to work well under pressure.
- Articulating your thoughts
- Being able to persuade
- Flexibility
- Knowledgeable and being prepared.
The ability to negotiate is crucial in the business sector. Besides that, it shows itself in our daily existence. Every day, parents and their children negotiate allowances, businesses and governments negotiate contracts, and businesses and governments discuss trade agreements. Whatever you’re negotiating, being a good negotiator involves listening, making concessions, and accepting the other side’s stand. However, arguing never solves anything. Therefore, being prepared for setbacks can help you achieve your end objective.
1 Comment
Great article