Negotiation

NegotiationConflict: It is a process thatbegins when one party perceives that another party has negatively affected, oris about to negatively affect, something that the first party cares about. Inorder for the conflict to exist, several factors must be present1.       Peoplemust have opposing interests, thoughts, perceptions, and feelings.2.

       Thoseinvolved must recognize the existence of different points of view3.       Disagreementmust be ongoing rather than a single occurrence4.       Peoplewith opposing views must try to prevent one another from accomplishing their goals.`Conflict can bea destructive force and can also be beneficial when we use it as a source of renewal and creativity. It can beviewed in two ways. First, it can be considered as the negative force thatmakes people feel uncomfortable and make them less productive. In another way, it can be viewed as natural part ofthe organizational life and beneficial to the workplace.There are four types of conflicts.

They are: Interpersonal within a person whogot engaged in two or more activities that are incompatible, Interpersonalwhich occurs between two or more people interacting and have incompatiblegoals, Intragroup within a group when members disagree over goals andleadership, Intergroup between groups or divisions that disagree over a task or a piece of information.Conflicts mayarise from both personal and organizational context. Personal context includesthe perceptions, cross-cultural differences, lack of motivation. Organizationalcontext includes Goal Incompatibility, Uncertainty, Resource Scarcity, RewardSystems, and interdependence etc.In order toovercome the effects of the conflicts, management or third party usesNegotiation. The term Negotiation is derived from a Latin word negotiates whichmeans to carry on business.

It is defined as the process with the help of whichtwo or more parties involved in a conflict over outcomes attempt in reaching anagreement. It is the constructive, positive alternative to arguing and is aimedat building an agreement rather than winning a battle. Negotiations can occurin the business place and in everydaysituations outside of the workplace whenthere are more possible outcomes from a situation in which two or more partieshave an interest, but not determined what will be the outcome. For example, itcan occur between a buyer and seller in the purchase of a second-hand car or even between groups offriends deciding on what film to watch. There are four basic third-party rolesinvolved in the negotiation process.

They are:1.       Mediator:Mediator is a neutral person whose main focus is to facilitate a negotiatedsolution by reasoning and persuasion, suggesting alternatives to the involvedparties. They are more commonly seen in labor-managementconflicts and in civil court disputes2.       Arbitrator:They act as the authority for dictating the agreement between the parties andcan be requested by the parties or enforced bythe parties by court or contract. The authority of them varies according to therules set by the parties or court law. The major advantage of having anarbitrator is it always results in settlement.3.

       Conciliator:Their job is to establish an informal communication link between both theparties and are widely used in international and community disputes. Theyengage in fact-finding, interpretingmessages and help the parties in reaching an agreement.4.       Consultant:Consultant is a skilled and impartial third party who attempts to facilitate problem-solving via communication and analysisand to improve the relations between the conflicting parties. NegotiationStyles:  There are five long-recognizedstyles of negotiating that characterize the approach the person is taking inorder to resolve the disputes or make a deal with the other party. Eachnegotiator may have a different style ofnegotiation and with the awareness of own style, and what the counterpartbrings may make a bumpier road to successful outcomes. Above mentioned fivestyles will be followed by the negotiator and exhibit the certaincharacteristics.

1.       Competingstyle: This style is used when the negotiators need to get quick results and isbased on the expected result I win – You Lose. In this style, competitorasserts their interests and offer the results that are more favorable for them and the competing style ismainly focussed on the outcome of the process rather than the relationship andalso making an effort to deceive and exploit the weakness of the otherparty.  This type of situation often maylead to a deadlock as there is no chance of meeting two high competingapproaches.2.

       AccommodatingStyle: It is quite opposite to that of competing style where the relationshipsare mattered between the parties rather than the outcome. The result of thismaybe I lose – You Win. If one of the party is high in competing for style, the domination of the party increases andother party generosity may be overlooked as a sign of weakness. It involves thetendency in helping another party even bygiving up your own needs and also allows us to focus on issues that both sidesagree on rather than those of disagreement.3.       CollaborationStyle: It involves exploring the individual as well as mutual interests in aneffort of satisfying everyone’s needs. This style usually results in I win –You win model where both the parties try to build trust to satisfy their needs,search for creative solutions acceptable to both parties by sharing ideas amongthemselves. It is one of the best-chosen stylesas both the parties will get benefitted.

The main disadvantage of this style isas the information is shared across the parties, they must make sure that noparty takes advantage of exploiting the data of the other party.4.       AvoidingStyle: It is a style in which parties not only avoids the issues but also thenegotiation itself which results in a lossfor both the parties (I lose – You lose). It is usually applied as the defense mechanism against the competing styleand is also difficult as the aim of this style is to avoid conflict but moreoften avoiders get themselves into conflict.

5.       CompromisingStyle: It is a style where both the parties compromise something for gettingthe benefit. It is a partial-win, partial-lose situation.

This style is used inthe business negotiations between the people known and trustworthy. Accordingto the theory, this style requires best quality negotiation training.Types ofNegotiation:        There are two types of negotiation basedon the relationship between the negotiators. Distributive negotiation mainlybased on the impersonal nature of negotiation which is not usually used tobuild relationships. The integrative negotiationwhich is based on creating benefits for both the parties that can help increating a long-term relationship.DistributiveNegotiation: This is also called as slicing the pie bargaining or win-losebargaining and emphasizes distribution of negotiated thing among the partiesinvolved. In this one party gets and one party loses whereas both the parties tryto protect their benefits without looking the other party interests.

There aresome principles in this model like when slicing a pie, most valuableinformation is negotiator’s best alternative to reaching an agreement which cannot be substituted byanything. They can enhance the ability to get the alternative with the help offollowing strategies: determining prior to negotiations, improve upon theiralternatives, researching the other party alternative, setting highaspirations, using objective-appearing rationales to support offers andappealing to norms of fairness.IntegrativeNegotiation:  It is also called aswin-win or expanding the pie negotiation and is mostly based on thecollaborative effort. It requires a high degreeof trust and relationship, sharing information about preferences andpriorities, asking diagnostic questions, making package deals, making multipleoffers simultaneously that can capitalize the expectations and attitudes anduse pre-and post-settlement strategy for a successful win-win negotiation. Itis the best way in order to create a long-term relationship along with mutualgain.NegotiationStrategies:Following arethe six important strategies that can be used in the negotiation process are:1.

       Thenegotiating process is continual, not an individual event: Outcomes of theprocess are good if the relations are good and the relations must be developedover time. It is the reason for which negotiators constantly look for theopportunities to enhance the relationship and strengthen their position. The result of the negotiation may be determinedeven before individuals meet for the discussion.2.       ThinkPositive: Many negotiators feel underestimated themselves as they don’tperceive power inside them. It must be believed that the outcomes that arebrought up in the process are much needed by the parties. In most situations,negotiators have more power than they think.

3.       Prepare:Information is crucial at any point intime in negotiation. In order to get the information, perform the research onthe history, past problems and understand the strengths and weaknesses of boththe parties. The more knowledge they have about the situation, the betterposition they will be to negotiate.4.

       Thinkabout best and worst outcome: We need to be ready for both the positive and negative outcomes even before the negotiationsbegin. If the expectations of both the parties are known prior, it will be easyto achieve a middle ground in the overlapping areas.5.       Bearticulate and build value: This is the key where the difference between goodnegotiators and masters are separated. Present all your thoughts and ideas toboth the parties such that they see a value in it. When presenting, be clearabout the expectations and also discuss the consequences and how proposedsolution will be beneficial.6.

       Giveand Take: When a person gives something up or concedes as part of the negotiation, always make sure to get somethingin return. Maintaining a balance will establish that both parties are equal.Stages of Negotiation: In order to achieve a desirable outcome, it may be useful to follow astructured approach which includes the following steps:1.       Preparation:This stage involves ensuring all the pertinent facts are known to all theparties beforehand and clear all thequestions that they have. Undertaking the preparation before the discussion about the disagreement will help inavoiding the conflict in further stages and prevent the time wastage during themeeting.

It is also needed to discuss when and where the meeting takes placeand set a limited timescale in order to prevent the disagreement continuing.2.       Discussion:In this stage, all the individuals involved in the negotiation present theirunderstanding of the situation. It ishelpful in taking notes during the stage and record all points put forward incase there is no need for further clarification. It is extremely important toinclude the skills like questioning, listening and clarifying and whendisagreement takes place it is easy to make the mistakeof speaking much and listening little.

Both the parties should have equalopportunity to present their case.3.       ClarifyingGoals: Based on the discussion goals, interests and viewpoints of both theparties of disagreement should be clarified and based on that it is oftenpossible to identify some common ground. With clarification, we can avoid misunderstandingsthat may cause problems and barriers toreaching a beneficial outcome.4.       Negotiatetowards win-win outcome: In this stage, all the alternative strategies arediscussed and the compromises that can be done from both sides can beconsidered.

The ultimate goal of the negotiation is to get a win-win outcome.  Compromisesare often positive alternatives which can often achieve greater benefit for allconcerned compared to holding to the original positions.5.       Agreement:Based on the discussions and the alternate solutions, the agreement can be achieved by understanding theviewpoints and interests of both theparties. It is essential in order to keep everybody in open mind in order toachieve an acceptable solution. Any agreement that is made should be perfectlyclear so that both sides know what has been decided6.

       Implementingcourse of action: Based on the agreement, a course of action needs toimplemented in order to carry through the decision.In any negotiation, the followingelements are important and more likely affect the ultimate outcome ofnegotiation are Attitude, Knowledge and Interpersonal skills.

x

Hi!
I'm Tamara!

Would you like to get a custom essay? How about receiving a customized one?

Check it out