Let us move from the era of confrontation to the era of negotiation. - Richard M. Nixon ABSTRACT:
Negotiation is one of the most common approaches used to make decisions and manage disputes. It is also the major building block for many other alternative dispute resolution procedures. Similarly Business Negotiations is intended to be an intellectually challenging and dynamic elective course to assist in developing critical negotiation skills used in daily business activities. Managers negotiate with employees, salesperson negotiates with customers, employees’ covering up for each other for future mutual benefits are also examples of negotiation. In today’s organizational structure a common boss for multiple colleagues makes it important for a person to have negotiation skills. A successful negotiator knows the importance of finding balance between accomplishing business objectives (“keeping your eyes on the prize”) and nurturing and building relationship with clients for long-term mutual success. Negotiation is the principal way that people redefine an old relationship that is not working to their satisfaction or establish a new relationship where none existed before. Because negotiation is such a common problem-solving process, it is in everyone's interest to become familiar with negotiating dynamics and skills. In this conceptual paper we will see the introduction to negotiation and details of negotiation.
What is negotiation?
We can define negotiation as a process that occurs when two or more parties decide how to allocate scarce resources. Although we commonly think of the outcomes of negotiation in one shot economic terms, like negotiating over the price of a car every negotiation in every organisations also affects the relationship between the negotiators and the way the negotiators feel about themselves. Depending on how parties are going to interact with one another, sometimes maintaining the social relationship and behaving ethically will be just important as the immediate outcome of each bargain. The terms negotiation and bargaining can be used interchangeably. HOW TO DO INTEREST-BASED BARGAINING
Interests are needs that a negotiator wants satisfied or met. There are three types of interests: •Substantive interests--content needs (money, time, goods or resources, etc.)
•Procedural interests--needs for specific types of behaviour or the "way that something is done."
•Relationship or psychological interests--needs that refer to how one feels, how one is treated or conditions for on-going relationship.
Why parties choose to negotiate?
The list of reasons for choosing to negotiate is long. Some of the most common reasons are to:- • Gain recognition of either issues or parties;
• Test the strength of other parties;
• Obtain information about issues, interests and positions of other parties;
• Educate all sides about a particular view of an issue or concern;
• Ventilate emotions about issues or people;
• Change perceptions;
• Mobilize public support;
• Buy time;
• Bring about a desired change in a relationship;
• Develop new procedures for handling problems;
• Make substantive gains;
• Solve a problem.
Now we will have a look on conditions when parties refuse to negotiate: Why parties refuse to negotiate?
• Negotiating confers sense and legitimacy to an adversary, their goals and needs;
• Parties are fearful of being perceived as weak by a constituency, by their adversary or by the public;
• Discussions are premature. There may be other alternatives available--informal communications, small private meetings, policy revision, decree, elections;
• Meeting could provide false hope to an adversary or to one's own constituency;