Negotiations

and its importance

occur in all aspects of the society. They play an important role inbusiness organization, government and governance, charityorganization, legal processes, international relations and personalsituations such as parenting, friendship, marriage and the generalsocial life. Negotiation can be defined as a dialogue betweenindividuals, groups of individuals or parties with an intention ofreaching an agreement or resolving differences. Negotiation can alsobe aimed at gaining individual or collective advantage from asituation or modifying the outcomes of a situation to satisfy theinterest of the parties involved (Shell,2014). The modern society isbecoming more diverse and at the same time integrated. Thediversification and liberalization of markets in the global societyhas also transformed the business environment. This has madenegotiation an important aspect of the modern society due to theconflicts that emerge as a result of diversity in the modern society.Also, negotiation theory has evolved into an important field of studywhich seeks to equip negotiators with critical negotiation skills.Although there are professional negotiators outside the businessenvironment, negotiations skills are essential especially amongbusiness leaders. This is because in the corporate environment, thereare numerous situations that call for a win-win situation that emergeevery day. Whether it is dealing with customers, supplier, regulatorsor employees, negotiations are key aspects of management (Matthew,2007).

Amongthe most significant negotiation in the corporate environment are theemployee employer negotiations. This negotiation plays an importantrole in human resources management. The negotiations start from thepoint where a potential employee is selected in the recruitment andselection process. In many cases the potential employee is called bya representative of the organization for an invitation to aninterview. The human resource department should be able to negotiatewith the potential employee in order to set an interview date that isappropriate for both the employee and employer. However, the mostimportant aspect of negotiation in the hiring process is the terms ofemployment. Through good negotiations, the organization is able toget the most appropriate candidate at the best terms of employment.This ensures that the organization reaps the most benefits from theposition and the employee is satisfied with the job offer. The mainaim of any organization is to make profit. The human resourcedepartment will therefore try to hire the best workers at the leastpossible salary. However, a very low offer to potential employeeswill obviously scare away the most qualified and skilled workers.Therefore, good negotiations will ensure that the organization isattractive to potential employees while offering reasonable pay inthe labor markets. For example, good negotiation can influence thepotential employee to consider non monetary benefits of selecting thejob on offer. This may include job security or the reputation orbrand name of the organization (Marks,2011).

Majority of businessorganizations in the modern business environment use the services ofvendors in the management of their supply chains. This is because itis relatively difficult to sell directly to the consumer, especiallyis the producer is dealing with fast moving consumer goods. Businessorganization will chose to concentrate on one aspect of the business,for example, production, and use venders to deliver goods to theconsumers. Thus, the relationship between the business organizationand its venders will have an influence of business success. Theperson dealing with external parties, especially vendors shouldensure that the organization reaps the maximum benefits from thebusiness. This is facilitated by successful negotiations. It isimportant to note that due to the globalization of the markets, thereare a variety of products that are available in the market.Therefore, vendors are willing to distribute products frommanufacturers who have the most competitive offers. Thus, the abilityof the organization to have a win-win agreement with its suppliersinfluences the market share of the organizations. For example,vendors will always request for a higher commission relative to whathas been quoted. Additionally, vendors like to work with reputableorganizations offering quality and world class products. A goodunderstanding of these aspects of negotiations with suppliers willensure sure that all venders would like to deal with theorganization’s products (Lavinia,2007).

At the individual level withina corporate environment, negotiation is essential in dealing withcolleagues as well as superiors. will enable anindividual look responsible and professional. This is essential incareer development and job satisfaction. Being able to negotiateavoids unnecessary conflicts and confrontation in the workplaces.Being able to negotiate with superiors enable individuals rejectresponsibilities that are not in his job descriptions. It is wrong toaccept responsibility simply because a superior want it done. Forexample, lack of negotiation will lead to one accepting to dosomething he or she can not be able to do. This will negativelyaffect his or her performance rating. Additionally, if an employeebelieves that he will not be able to complete a particular taskwithin a specified time, negotiating with his boss to adjust thedeadline is necessary. Failure to negotiate will result intodisappointments and thus poor relationship with the boss (Gavin,2007).

play an importantrole in managing conflicts in an organization. Conflicts results intonegativity and poor relations between employees. This results intoloss of productive hours and employee morale, which negativelyaffects the performance of the organization. Conflicts are mainlycause by individuals unwilling to compromise with one another orrigidity. can be used as alternatives in dealing withsome of the potential conflicts in organizations. Experts recommendthat voluntary participation and collaborative approach towardsconflict management by all stakeholders are necessary in negotiationthat is aimed at ending conflicts. Although conflicts that arerelated to conflicts between employees are more common, corporateconflicts between entities and organizations are more serious.Conflicts related to business rivalry, competition or patent andtrademark issues can attract serious legal battles. However, if thereis proper management of the conflicts through negotiations, thecostly legal processes can be avoided. Managing conflicts throughdialogue enable both aggrieved partied to protect their interestsleading to a win-win situation. between corporateentities can also result into unexpected benefits. For example,conflicts related to patents and trademark can give birth to talks oncollaboration in research and development in the future (Barbara,2006).

There is always an alternativeto a negotiated agreement. However, the outcome of a negotiation willalways be better than the alternative, if all the parties in thedispute are willing to negotiate and have a compromise. This isbecause the interests of both parties are captured in a negotiatedagreement. However, in the case of a non negotiated alternative, oneor both of the parties are likely to lose. Studies have revealed thatin majority of conflicts, both in normal lives, political contexts orcorporate environment, a negotiation channel will always provide thebest options (Bazerman, 2000). are associated with someform of commitments. These commitments are both realistic andoperations and are essential in preventing further or relatedconflicts in the future. However, in non negotiated alternatives, thelikelihood of continued conflict is very high.To attain themaximum benefits of negotiation related to conflicts, it should beplanned and executed correctly. Otherwise, poor negotiation willresult into anger, disappointments and pride which are likely tocomplicate the conflict (Shell,2014).

Effective negotiationskills and Strategiesfor claiming value

The creation and claim ofvalue is one of the most important aspects of negotiations. They formthe fundamental aspects of a strategy employed by negotiators toensure that their interests in the negotiation are protected.Claiming the value in a negotiation entails all attempts by thenegotiator to get the best outcome from the process. The negotiatorcan opt for a cooperative or competitive approach. Since bothapproached have strengths as well as shortcomings, more experiencednegotiators prefer a hybrid approach, where they use both cooperativeand competitive approaches at the same time. A competitive approachto creating and claiming of value will compellingly persuade theother party in the negotiations to accept your proposal. This enablesthe negotiator to assert his power in the negotiations. An example ofa competitive approach technique is threatening or attempting to walkout of the negotiation room. This will lead to a failure of thenegotiations due to mistrust and negative emotions. However, there iscreates an opportunity of claiming value in the negotiations in orderto have a favorable. On the other hand, a cooperative approach willgive negotiator less opportunities of claiming value since it isdependent on interest based bargaining. Therefore, the choice ofapproach is determined by the available alternatives which can eitherbe favorable or unfavorable (Shell, 2006). There are four skills thatare necessary for a negotiator to effectively claim value.

Prepare and set goals:Successful negotiators take their time to plan their essentialposition in the negotiation table. The generally acceptablebargaining some model involves three essential stages, namelyinitial, target and resistance. To be successful in the negotiation,it is important to think about the three important aspect of thebargaining process. During preparation, the negotiator shouldconsider all alternative approaches that can be used to attain thedesired objectives in the negotiations. This will require a carefulanalysis and testing of the assumptions and realities of thesituation. It is also essential to do some research on the otherparty. This will enable the negotiator have an idea about theinterests and objectives in the negotiations. Brainstorming withother interested individuals, for example colleagues or seniors, isalso essential in order to have a broader picture before getting intothe negotiation room.

Know your BATNA: In any negotiation, a negotiator will always give an offer to theother party. To effectively be able to claim value in the process,the negotiator should be able to gauge the whether the offer isfavorable or unfavorable. This will require the negotiator to haveinformation on the alternatives that he is likely to achieve forexample, by rejecting the offer or negotiating with another party.This is referred to as “the best alternative negotiated agreement”.BATNA enables an effective negotiator to rate his power in theprocess. It also gives an idea of the impacts of walking away fromthe negotiation table. A negotiator with more and attractivealternatives will have more power in the negotiations and thus willbe able to claim more value. On the other hand, if the alternativesare limited, the powers are also limited since walking away will bemore costly. For example, in a business negotiation, if there aremore people willing to negotiate about a particular product orservice, the negotiator will have a relatively higher BATNA. Arejection of the offer in the current negotiation will be lesscostly. However, it is important to note that overestimating theBATNA in a negotiation will have a negative outcome.

Manage time:Deadlines are very essential in negotiations. A negotiator is able toclaim more value if the other party is under relatively more timepressure. This is because in majority of the cases, consensus isreached closer to the deadline. For example, a negotiator whobelieves he has power in the negotiation may give the other party an“exploding offer” with a very short deadline to make a decision.Examples of time limited offers include discounted sales offers andjob opportunities. This ability of the negotiator to manage time wellenables him to claim more value by ensuring that the other party hasno opportunity to reconsider his BATNA.

Manage first offers andconcessions”:Effective negotiators are able to claim more values by ensuring thatthey make the first offer. This is because the first offer willcreate a position from which other negotiations will be based. Thenegotiations will be adjusted depending on the first offer. Thenegotiator should also seek to have concessions in order to ensurethat the negotiations are in good faith, stress the importance of thenegotiating terms and move the negotiation closer to an agreement.

References

Barbara, A. (2006). Conflictmanagement: a practical guide to developing negotiation strategies,Upper Saddle River, NJ: Pearson Prentice Hall.

Bazerman, M. H. (2000)&quotNegotiation&quot. AnnualReview of Psychology,51, 279–314.

Gavin, K. (2007). Strategicnegotiation: an opportunity for change,Burlington, VT: Ashgate Pub. Co.

Lavinia, H. (2007).Negotiation:strategies for mutual gain,Newbury Park: Sage.

Marks, M. (2011). &quotWhoAsks and Who Receives in Salary Negotiation&quot. Journalof Organizational Behavior 32:371.

Matthew , P. (2007).Principles ofnegotiation: strategies, tactics, techniques to reach agreements,[Irvine]: Entrepreneur Press.

Ronald M. &amp Mark A.(2008). The Power ofNice: How to Negotiate So Everyone Wins – Especially You!ISBN 0-471-08072-1, John Wiley &amp Sons, Inc.

Shell, R.G. (2006). Bargainingfor advantage. NewYork, NY: Penguin Books.

Shell, G. R. (2014).Bargaining foradvantage: negotiation strategies for reasonable people.New York: Penguin Books.

Trotschel, H. (2011).&quotPerspective taking as a means to overcome motivational barriersin negotiations: When putting oneself in the opponents shoes helps towalk towards agreements&quot. Journalof personality and social psychology101: 771–790.