The term ‘Negotiation’ actually means a discussion intended to produce an agreement. This discussion may encompass parties whose needs being different, come to an interface where they achieve a common solution. We certainly find examples of day-to-day negotiations whenever we are in dire need of buying articles and goods for maintaining our living. A negotiating party may as well be a consumer at one end and the seller at the other end. A transaction is not carried out unless the wants and needs of the customer are not given certain taste of satisfaction, keeping in regard of the profit earned. In order to add to this agenda of transaction the key point that is fundamental is Negotiation. The same maybe applied in case of Managers, who make use of their excellent persuasive and negotiating skills to equip themselves to guide their employees towards joint problem solving and in joint opportunity finding. Negotiation is the process of two individuals or groups reaching joint agreement about differing needs or ideas. Negotiation applies knowledge from the fields of communications, sales, marketing, psychology, sociology, politics, and conflict resolution. Negotiations become an important aspect of business communication when resolving issues. Business negotiations can range from a worker's request for higher pay to discussions of an international business deal. Negotiation Process:
The process of negotiation is instrumental in achieving the desired results in the company’s run of transactions. It is therefore necessary for a business deal to adhere to strict stages in the negotiation. The basic stages of negotiation may be enlisted as:
(a) Preparation: The preparation for a negotiation may involve: * Identifying what the needs are.
* Planning thoroughly.
* Identifying alternatives and prioritizing issues (BATNA-Best alternative to negotiated alternative). * Establishing a settlement range (ZOPA- zone of possible agreement). * Focusing on long-term goals and consequences.
(b) Discussion: The next stage involves further discussion of the issues with the members so as to choose the best strategies before the actual negotiation. This again involves the following: * Being aware that "no" can be the opening position and the first offer is often above expectations. * Being aware of the reluctant buyer or seller ploy.
* Revising strategies.
* Considering many options.
(c) Proposal: The proposal that is to be presented depends upon the existing needs of the presenter and revolves around a set of issues and alternatives that maybe a threat or opportunity. The proposal is designed keeping in view that it appeases the parties at the other end of negotiation table. As such, the ultimate goal being a Win-Win negotiation. The few key points under this are:
* Increasing power by getting the other side to commit first. * Adding credibility by getting agreements in writing.
* Being wary of splitting the difference.
* In handling an impasse, offering to set it aside momentarily. * In handling a stalemate, alter one of the negotiating points. * In handling a deadlock, bring in a third party.
* When asked for a concession, asking for a tradeoff.
* Being wary if the other party uses a "higher authority" as a rationale for not meeting negotiating points. * Being aware of the "vise" tactics.
(d) Agreement: The agreement finally comprises of the accepted negotiated proposal that is in accordance with the norms of both the negotiating parties.
This agreement follows certain steps as under:
* Counter the other party's asking for more concessions at the end by addressing all details and communicating the fairness of the deal in closure. * Do not expect the other party to follow through on verbal promises. * Congratulate the other side.
The process of negotiating...