Category: Negotiation

Pitching And Negotiation Skills

Negotiation is the process of dealing with other people. Negotiation is a process in which two or more than two parties make an agreement to achieve their business goals. In a negotiation process, both parties define their aims and find a solution for their mutual interests. Making a deal and agreeing to it can be formulised in the contract forms with all legal requirements. It is an open and vivid process in which interested parties or stakeholders try to find out the middle way which is acceptable for both parties. Competent negotiation is crucial in a business when both parties have different point of views and every party intends to take their own benefit. The best outcome is a settlement that solves disputes.

Negotiation can occur when there is more than one consequence from a situation in which two or more parties have an attention to achieve their goals, but they have not yet resolved them and don’t know what the result will be. It can happen among buyer and seller or in a diverse business communication.

Its main aim is to smooth the negotiation process and avoid or manage the conflicts by discussing the concerns with each other. It means to formally discuss with someone in order to reach an agreement. The main aim of negotiation is to find out an acceptable solution for both parties. It is a battle with each side aiming to get the best deal but not at all cost; the opposition is not likely to be a good idea, perhaps you need to deal with them in the future making sure that the other party also finds something valuable from the negotiation. So, in this way, both parties have a good chance to build a long-term relationship and sometimes it is even more important than the outcome of a single negotiation. Finally, they have a fair and straight forward method to deal or arrange business terms and conditions. It builds a good relationship with each other, establishes a long-term relationship and builds confidence to deal fairly without any concerns. Both parties can trust and respect each other and try to accommodate each other which is a necessity for the business. Both parties gain equal advantages.

Stakeholders are the people who have some interests or are affected directly or indirectly in any way during the negotiation. Stakeholders are those who can meaningfully impact or are essential for the success of an outcome. During negotiation, key stakeholders are the groups engaged in the bargaining process and then equally coming all together to a deal. Basically, they facilitate the whole negotiation process. Stakeholders are responsible for taking place the process of negotiation by communicating the necessity of participating into a contract and the possible consequences of that deal which were expecting as a negotiation result. They are people chosen to communicate on behalf of a company or firm in a negotiation process. For example, negotiation is a part of every business and it makes it possible for the companies to get more profit and expand their business. During negotiation different types of results can face the negotiators, they decide on equal benefits which is a win- win situation, win and lose situation or fail the negotiation which is lose-lose situation for both parties. In the case of ASDA business deals, they will fix their price per item, quality and time of the product distribution with their suppliers always focusing to get the best deal for their customers. In the deal, they have a time set to renew the deals, terms and conditions to breach the deals. For example, in Brexit negotiation, both parties, UK and Europe, are stakeholders and they have their own representatives. Those representatives are working hard to settle down the situation by conducting different meeting /sessions. By dialogues, they are intending to get better results ,resolve disputes and reach an agreement by providing an alternative way which is beneficial for both UK and Europe. There negotiation process is still ongoing.

Negotiation skills

Negotiation is very simple and can be seen on a daily basis. Every single individual can negotiate to achieve or fulfil their aims and objectives, but it demands some specific and concise skills which enhance the validity and credibility of that process. Good negotiation must leave a positive impact on each party convincing them with the outcome of the discussion and preparing to do business for a second time. Interpersonal skills such as good communication skills, patience, confidence, flexibility and good planning can enhance the negotiation process.

Good communication skills help the parties to negotiate effectively because convincing people only depends on your conversation. Patience gives an authority to listen carefully and calmly and to whatever they want to say. It is better to ask and discuss confidently. Clear communication and positive body language help to deal efficiently. It is better to write down all the necessary information, set a guideline for negotiation and avoid wasting time and energy. Try to succeed in the dealing process by being flexible because it is not a single person’s decision, but many people or parties are involved so it is for the sake of both parties and both want to take advantage of it. It is not possible for them to make a deal on their own terms and conditions.

Key steps of negotiation

Negotiation is not a single session process and sometimes it needs a series of sessions to get its desired outcomes. Both parties try to achieve their targets without conflicts and in case of any conflicts they try to get a middle way which is best or acceptable for both parties.

The main attention is to create the goals and preferences, and this is possible only by discussing generally instead of specifically. Making different proposals and using the answers to conclude their goals and preferred results. The main steps you need to take before any negotiation are:

• Full preparation
• Setting clear goals
• Understanding the other party’s way of working
• Time, place and information about negotiation team
• Planning and preparation

Conducting an effective business negotiation needs good planning and preparation which will help to be more specific and realistic to achieve the goals. It is important to set a time and venue before any further plans. The best way to note down all the objectives is to put them in an order by priority. Then it would be very easy to classify them as must achieve, intend to achieve and like to achieve. Gathering information as much as possible about the discussion topic or subject, increases the chances of success. It helps to understand the possible issues during negotiation and negotiators thinks about their solutions beforehand and more useful solutions can be established.

A good preparation creates a confidence between both parties. It makes easy to explain and understand each other’s point of view. It saves time and increases the success chances. Lack of preparation shows non serious behaviour and increase the chances of failure. Preparation will give an idea to achieve the exact goals and aims. Undertaking preparation before discussing will help to avoid further conflicts and unnecessarily wasting time during the meeting.

Discuss and explore options

At the beginning of the meeting it is very crucial to explore others’ needs and requirements and make an attractive opening offer. Requirements should be more realistic and specific so that the discussion will be successful because both parties contribute. If one party collaborates and the other does not, then issues will be raised. Every issue should be negotiated and dealt in a proper way. This will allow the parties to develop a good relationship between them. A friendly discussion helps to identify their needs and helps to keep things moving. Discussing the issues develop an understanding to know about both parties’ interests, visions, objectives, roles, their stakes in the negotiation. They create a friendly relationship which helps to manage the issues confidently and calmly. Discussion also helps the negotiators to evaluate the issues that can be raised by any party and make it possible to resolve them successfully. Some negotiations are very difficult and create many problems. These issues may differ from negotiation to negotiation.

Discussions provide equal opportunities for both parties so that they can present their case effectively. Developing and maintaining a good relationship can be managed through discussion. Both parties understand the value of collaboration and gain their best objectives by trusting each other. It is very important to build confidence at the first stage to make an agreement for their future deals and long term relationships, otherwise, they will not be able to work altogether.

Proposal

Both parties have an opportunity to assess the others proposal, position and suggestions as they can be made and received in negotiation. They can get advice and seek help from each other for their mutual benefit. This phase provides an opportunity to both parties to make a good impression through proposal and shows flexibility which is essential to get a great advantage in business deals. This negotiation stage provides a chance to make their goals, interests and viewpoints beforehand. They discuss from every aspects and get a clear picture to deal with each other, reduce the chances of future misunderstandings and confusions because both parties have a deep understanding regarding each other’s interests and have a chance to convince each other and have a chance to think about their behaviour and attitudes. However, it takes time but gives long term consequences.

Bargaining

This stage closely links to the aims and objectives of entering into an agreement in a negotiation process. It demands the basic strategy applied to convince and influence the other party regarding the demand placed by negotiators. For this, they need more tactical and good communication skills to clearly state the views and opinions in their favour. Having all types of information in hand it is easy to bargain.

After discussing each other’s requirements and exchanging information, it is easy to bargain, so asking more results leads to more benefits. For example, if a company wants to sell their product at £50, it is better to bargain from £80 instead of directly saying £50. In this way, negotiators can get better deals. If conflicts occur, then they need to resolve the issues by explaining their opinions very clearly instead of ending the negotiation process. Having a clear concept to make an offer instead of using “approximately” or “about” will give a lack of sincerity or commitment. If the other party makes an offer, then make sure that this offer is matching your criteria; if you have a doubt then it is better to ask for more clarification.

Bargaining in business deals or negotiations is very valuable because it reduces the risks of dominancy. Both parties consider each other’s value and importance and stay on the same pitch which shows equality and same rights in the deal.

Call a break if you need

Short break during negotiation process enhances personal abilities and negotiator have time to remind each thing and give an opportunity to look steadily, solve issues under the discussion and come back with new ideas if the negotiation is happening in a tense or complex environment.

Reach agreement

It is also called a closing phase and it provides an excellent opportunity to show or formulate in order to manage their whole activities in the earlier stages, from the planning stage to the bargaining stage. This stage provides a summary of all conducted activities or sessions in a written form. At this stage both parties close their presentation by offering their goals. They gather all data and very carefully analyse their data to get the best deal which can be helpful to an agreement with the other party. This is the basic representation of a meeting which includes not just the motivations, needs, proposals and skills of the negotiators but a diversity of marginal issues. The environment and culture in which the negotiation is taking place includes the power balance and along this, any previous history of contact, conflict or expectations. During a negotiation, many things can happen and need to get handled considering and stating your own needs. Making sure that the negotiators understand exactly what they are saying and show a quick and valuable response. After doing all the necessary formalities, they find a solution to agree or disagree with each other. Finally, both parties sign the deal/ agreement.

Introduction To Effective Negotiation Process

Negotiation refers to the process where two or more parties with different goals and needs discuss an issue to arrive at a compromise or a mutually acceptable solution. In the business world, negotiation skills are critical in both formal transactions and day to day information interactions. Chebet, Rotich and Kurgat (2015) explained that the term ‘negotiate’ is derived from the Latin infinitive ‘negotiaari’ that means ‘to trade or do business’; this verb itself was derived from another word, ‘negare’, which translates to ‘do deny’ and a noun, otium, that means ‘leisure’. In essence, the earliest businessmen would deny leisure until that deal was closed. Negotiating skills play a vital role when it comes to transactions, service delivery, terms and conditions, legal contracts, etcetera. Lewicki, Saunders, Minton, Roy and Lewicki (2011) wrote that excellent negotiations are amongst the significant drivers of business success as they help to build better relationships, deliver long-lasting, quality solutions and avoid future issues and conflicts.

In an online article published, Shonk (2019) exclaimed that people understand the importance of negotiation in business particularly when it comes to negotiating their starting salary and benefit. But, negotiating in business goes beyond personal benefit, the best negotiators in business acknowledge that there are bigger concerns. It is important to keep in mind that the nature of negotiation is two-way: give and take. An effective negotiator aims to generate a courteous and constructive interaction that will result into a win-win situation for all parties involved. When negotiating, the approach should show goodwill regardless of the difference in interests of the parties involve. The end result of a good negotiation is satisfaction from each of the parties. Mutual respect and trust are formed between the parties afterwards and thia increases the likelihood of doing business with each other again.

Negotiation by nature involves the ability to be persuading or influencing of other people. Chebet, Rotich and Kurgat (2015) added that many scholars define negotiation differently but in essence, negotiation is about getting what is wanted; it is a process that leads to an end.

In relation to this, the negotiating process involves balancing matters between the parties involved so that the negotiator not only gets what he or she wants but at the same time gets what he or she wants in the best possible way (Chebet, Rotich and Kurgat, 2015). Negotiation is more focused on the process rather than the end and because of this, organizations must pay more attention on how to get to the outcome they want whilst still not losing their sights on the goals.

It is important to keep remember that negotiation especially in business is every-changing. This generates the sense that something is always happening and there is not just method or plan to go about it (Chebet, Rotich and Kurgat, 2015). In reality, there are different elements that impact the negotiation process and these elements may range from people to the power structure. Other common factors include; the personalities involved, the setting, and the information. The concept of time also plays a big role in determining the success of negotiation in many business scenarios because different business personalities can be very critical on deadlines. In the context of making negotiations in business on an international scale, factors like professional and cultural expectations may play major roles in the effectiveness of negotiation. In a highly-globalized business world such as today, embracing cultural diversity is one of the most important drivers of successful negotiation. Shonks (2019) discussed that there are a number of problems that could arise from cultural barriers in the context of these kinds of negotiations and they include: severe misunderstandings arising from language and cultural barriers, conflicts generated by different concepts of time, accidental violation of one anothers cultural norms, etcetera. The challenge for an effective negotiator is to be able to overcome these cultural barriers in order to achieve a desired outcome.

In relation to the principles of effective negotiation, Silverman (2017) outlines seven elements: ‘knowing what you are trying to accomplish’, ‘developing a game plan even prior to the start of the negotiation’, ‘studying and understanding the other party’, ‘working towards a win-win’, ‘avoiding negotiating with oneself’, ‘reacting strongly to an untrustworthy party at the negotiating table’ and ‘remembering that it takes two to negotiate or re-negotiate a deal’. These generally encompass the whole negotiating cycle including the personalities involved. Michael (2009) added that in negotiating, preparation is vital. Knowing about the party on the other side of negotiating table in order to maximise one’s strength and the other party’s weakness. It is important to do your due diligence and research about the other party, learn about their history and tendencies. According to Michael (2009) if permissible, talk to business associates who have dealt with the party before, many negotiators develop patterns and specific styles that could be used as an advantage. Tjan (2009) refers to this as the ‘background homework’. Prior to the start of negotiation, it is critical to understand the interests and positions of the other side relative to one’s interest and position. Negotiation is a manifestation of business communication, which is why it is always two-way. Aside from knowing the interest and position of the other party, listening is also a critical skill of its own in negotiating. Harroch (2016) discussed that it is important to listen and understand the issues and point of view of the other party. The effective negotiators tend to be the one who genuinely listen to the other side and as a result come up with the appropriate responses.

Negotiation can be applied even in simple day to day activities. In the real world, negotiating is not only practiced in business but in different aspects including politics. In an article, Pon Staff (2019) cited the talks with North Korea as a real life example of negotiation. Starting in 2011, The United States of America negotiated for many months with the leader of North Korea, the drawn-out talks started in the leadership of Kim Jong-II and after he died they resumed under the new era of his son, Kim Jong-un. Fox (2013) concluded that life is a series of negotiation. On an individual application, employees negotiate their salaries and benefits with their employers all the time. Ceniza- Levine (2011) explained that both employees and employers are trying to get the best from one another. The employee wants to get the most competitive salary package possible, while employers are looking for the best way to maximize the company goals while being cost-effective. And as a result, before both parties arrive at a final salary package, they undergo a series of negotiation. But regardless, whether the (negotiation) skill is applied to business or any other disciplines, one thing is for sure, negotiation is part of everyone’s everyday lives. Its importance is unparalleled which is why people should strive to become effective negotiators.

References

1. Bakar, N.A. and Peszynski, K. 2010. Factors Influencing Negotiation in the Sourcing Process between Partners in E-Procurement: A Focus on Actors. PACIS 2010 Proceedings. 115.
2. Ceniza-Levine, C. 2011. 3 Real-Life Successful Salary Negotiations. Forbes. Viewed: July 1, 2019 < https://www.forbes.com/sites/work-in-progress/2011/11/22/3-real-life-successful-salary-negotiations/#423209603fc1>
3. Chebet, W.T., Rotich, J.K. and Kurgat, A. 2015. Negotiation Skills: Keys to Business Success in the 21st Century? European Journal of Research and Reflection in Management Sciences Vol. 3 No. 3
4. Fox, E. 2013. The Most Important Negotiation in Your Life. Harvard Business Review. Viewed July 1, 2019 < https://hbr.org/2013/09/the-most-important-negotiation>
5. Harroch, R. 2016. 15 Tactics For Successful Business Negotiations. Forbes. Viewed: July 1, 2019 from: https://www.forbes.com/sites/allbusiness/2016/09/16/15-tactics-for-successful-business-negotiations/#bd6e08325281
6. Lewicki, R.J., Saunders, D.M., Minton, J.W., Roy, J. and Lewicki, N., 2011. Essentials of negotiation. Boston, MA: McGraw-Hill/Irwin.
7. Michael, G. 2009. The Art of Negotiating, Entrepreneur Asia and Pacific. Viewed: July 1, 2019 from: https://www.entrepreneur.com/article/203168
8. Pon Staff. 2019. 10 Top Negotiation Examples. Harvard Law School. Viewed: July 1, 2019 < https://www.pon.harvard.edu/uncategorized/famous-negotiators-feature-in-top-negotiations-of-2012/>
9. Shonk, K. The Importance of Negotiation in Business and Your Career, Harvard Law School, viewed: July 1, 2019 < https://www.pon.harvard.edu/daily/business-negotiations/the-importance-of-negotiation-in-business/>
10. Shonk, K. Dealing with Cultural Barriers in Business Negotiations: How to overcome cultural barriers to communication, Harvard Law School. Viewed July 1, 2019 < https://www.pon.harvard.edu/daily/business-negotiations/dealing-with-cultural-barriers-in-business-negotiations/>
11. Silverman, S. 2017. 7 Principles of Effective Negotiation. The Business Journal. Viewed: July 1, 2019
12. Tjan, A. 2009. Four Rules for Effective Negotiations, Harvard Business Review. Viewed: July 1, 2019 < https://hbr.org/2009/07/four-rules-for-effective-negot>

The Key Factors For A Successful Negotiation

Participating in a negotiation can be a Herculean task – IF you don’t know exactly what you are expected to do. Before participating in a negotiation, you have to ascertain that all the key factors required in this activity exist. As a negotiator, you should also know how to drive a hard bargain. For successful and effective negotiations to occur between two or more parties, these key factors must be present.

Willing and effective negotiators

A negotiation cannot succeed without willing and effective participants. All significant individuals playing a primary role in the activity must be eager and truly interested in the negotiation. When the negotiators are not focused and are just going through the motions half-heartedly, most likely, the collaboration would also be haphazardly accomplished.

Freedom of expression (language comprehension)

There must be freedom of expression in which all the parties can understand each other clearly – meaning they speak the same language. Language barrier can be a humongous problem to overcome. In cases where the language is different, there must be a method devised to communicate clearly. This will enable groups to comprehend what each one is saying.

This is one of the major reasons why some countries do not always cooperate with one other because of the language barrier.

Appropriate venue

The ambiance of any event will definitely affect the process being conducted. This has been proven by various research studies undertaken by numerous organizations from all fields of endeavor. Certain studies conducted in the academe had proven that the venue is a significant part of learning.

Complete knowledge of what the negotiation is all about.

Participate in a negotiation – ONLY – if you have complete knowledge of what it is all about. If you don’t, and you are tasked to join the table, you have to do your own research and learn the details of what you are expected to negotiate. You can benchmark to determine the norms in that particular area.

Doing a thorough research and gleaning all the vital information can grant you more leverage and power. With knowledge comes power, and this power will allow you to gain more concessions from the other party/parties

Specified short term and long term objectives

Setting objectives for your negotiations will serve as the blueprint for your success. What is your primary goal and what are your sub-goals? The ultimate goal and the alternative goals should be clearly defined. Up to what extent are you allowed to negotiate?

Alternative choices of actions

Alternative choices/goals must be prepared so that they can be utilized whenever necessary. We call these contingency plans.

Correct attitude

This is one of the key traits that negotiators must possess. When negotiators have a positive frame of mind, this will attract good vibes and will result in genuine cooperation between the negotiating parties. Remember, one of your targets is to maintain good relationship with the other party despite differences of opinions.

Effective Negotiation And How To Gain It

Negotiation is an open process through which two or more parties who are in conflict over outcomes attempt to reach agreement. It is the constructive, positive alternative to haggling or arguing; it is aimed at building an agreement rather than winning a battle.

THE NEGOTIATION PROCESS

Companies have to negotiate in various areas of organizational conflict. Negotiation is an open process through which two or more parties who are in conflict over outcomes attempt to reach agreement.

Rejoice corporation is one of the biggest factories on the East coast. Rejoice corporation put out a demand for offer for businesses to clean and paint factory ceiling in a period of two years. Once a contractor is chosen, Rejoice Corporation begins a negotiation process as a reason to facilitate the best service and price on the huge task.

Rejoice corporation has received various offer for the factory painting job. Rejoice corporation has make a decision to enter negotiations with Njiez Paint. . Negotiation process is made up of five steps: (1) preparation and planning, (2) definition of ground rules, (3) clarification and justification, (4) bargaining and problem solving, and (5) closure and implementation

Preparation and Planning

In negotiation process preparation and planning is the first step. Before you begin negotiating, you need to do your research. What’s the nature of the conflict? What’s the history leading up to this negotiation? Who’s involved and what are their perceptions of the conflict? What do you want from the negotiation? What are your goals?

At this point, both parties will prepared and build up the information needed to have an effective negotiation. Rejoice corporation and Njiez Paint both parties require to prepare fully for the negotiation.

Information can be very powerful in negotiations and facilitate add legality to declares. Both of the companies should look into each other’s history and try to find out what the opening offer for the paint job will be. Njiez Paint needs to find out the highest sum Rejoice Corporation is ready to pay for the factory paint job; whereas Rejoice Corporation needs to find out the lowest sum Njiez Paint will take for the job.

Definition of Ground Rules

Once you’ve done your planning and developed a strategy, the next step is to begin defining with the other party the ground rules and measures of the negotiation itself. In this step, they will establish rules and procedures for the planned negotiation. Concern will be given to questions, such as: Where will it take place? Will time constraints exist, if any, will apply? To what matters will negotiation be limited? Will you pursue a definite procedure if an impasse is accomplished? During this period, the parties will also exchange their first proposals or demands.

Furthermore, both parties will find out the price that should be the starting point for the negotiation. And also, Rejoice Corporation will need to uncover the services provided by Njiez Paint which is the lowest price. Njiez Paint should agree the opening offer or the starting price of the negotiation for the job that would last for one day, if not Rejoice Corporation consider a different vendor.

Clarification and Justification

Once you’ve established your rules, the next step is clarification and justifications, the situations of both parties are talk about at length. Each part will get a chance to clarify, justify and sustain their request. It should be argumentative in this side of the negotiations, but instead, it should give the chance for each part to notify and educate each other their position. Rejoice Corporation beliefs that it would take D58, 000 for the factory job to be complete. So therefore, Rejoice Corporation provide a documentation to show Njiez Paint what the previous vendor charged.

Bargaining and Problem Solving

“Essence of the negotiation process is the actual give-and-take in trying to hash out an agreement”. (Stephen P. Robbins , Timothy A. Judge, 15 Edition). Concessions will unquestionably need to be prepared by both Rejoice Corporation and Njiez Print in the bargaining and problem solving.

Closure and Implement

“The final step in the negotiation process is formalizing the agreement you have worked out and developing any procedures required for implementing and checking It.” (Stephen P. Robbins , Timothy A. Judge, 15 Edition) This requires both Rejoice Corporation and Njiez Print on hammering out the details in a formal contract. For most cases, though, closure of the negotiation process is not anything more formal than a handshake.

Guidelines for Effective negotiation

Understand your Mission

To participate in a productive negotiating experience, you must have clear views about your aims and negotiation outcome. To figure out these, you have start by promoting a comprehensive of your portion and wide corporate mission. entering into a dialogue without comprehension heighten the danger that your endeavor will achieve a narrow set of goal’s that will not really accelerate the long term price of credit of your company. By realizing where your company is headed, you can repair your objectives and negotiation way to your purpose.

Understand their Mission

Knowing how to prepare a business is very important. However, by knowing your mission and short-term goals of particular person on the other side of the table is equally significant. With the lack of understanding, your danger in participating in an inefficient dialogue at best and an offensive one at worse..The necessary knowledge and method research about the others can make a deviation between closing the deal and ending up short of your goal.

Be Authentic to build credibility and Trust

One of the main guiding principles that affect our modern negotiation is genuine. Many people involve in a dialogue without honest. While you may want to achieve the short-term, you will end up spoiling your company’s and your character. You make sure that, you are straight forward person who deals in good faith, and who will ensure and provide a mechanism to improve productive, long-term business partnership. Moreover, you will able to create a career for yourself, in order to hire and retain employees who have a good character for honesty and sincerity.

Aim for a win-win.

One of your best methods in working towards a particular deal is ensuring that your counter party receives such benefits. by knowing that you have achieve a positive outcome from your partners, you realize that, you have increase the point that matter most. Once the positive outcome is done, you have lay the strong foundation for a positive working relationship.

Create a plan for Evaluation

Finally, after making a negotiation, you should able to make constructive mechanism to evaluate both parties after the deal is done. Adhering to measure the success of particular relationship is a way to stick to payment terms, and others rules.

Conclusion

In every dialogue and counterparty is defer, and there is no promise that your future partner will be base on reason. However, by setting up these particular guidelines in mind, you will able to prepare for your next negotiation and thereby improving from past experience concerning about your business. When you negotiate wisely you engaged both parties in discovering the real value that particular business.

Bibliography

1. Five Useful Guidlines for Successful Negotiating. (n.d.). Retrieved from Supply Chain Management Rewiew: http://www.cmr.com/article/five_useful_guidelines_for successful_negotiating
2. J., A. (2018, May 2). What is Negotiation?-The Five Steps of the Negotiation Process. Retrieved December 25, 2018, from Study.com: study.com/academy/lesson/what-is-negotiation-the-five-steps-of-the-negotiation-process.html
3. Stephen P. Robbins , Timothy A. Judge. (15 Edition). Organizational Behaviour. New York: Pearson.

Negotiation: Definition, Elements And Importance

Introduction

This essay will talk about negotiation and its importance. It will include one of the negotiation elements, Reciprocity and using a personal experience to explain how the ability to reciprocate can affect the outcomes of the negotiation.

Definition of negotiation

Negotiation is an important process and can occur in many situations in our daily lives as well. People negotiate when there are differences, as it is a process where people engage in discussions to resolve the dispute over the allocation of scarce resources.

Hence, there is conflict and competition involved and negotiating parties must try to generate corporation as there is a need to resolve their differences. The negotiating process usually involves negotiators exchanging offers and stating their positions. Hence, it consists of a sequence of offers and counter-offers.

During the negotiation process, the outcome will largely depend on the negotiators’ feelings and how they are able to add value. Negotiators can either be cooperative or competitive, or a balance of both. When the negotiation has reached an agreement, it does not necessarily mean a positive outcome as some parties might contend in a reluctant manner due to the pressure to resolve differences.

Elements of negotiation + reciprocity

There are several elements also known as the ‘DNA’ of negotiation. Research shows that the DNA represents a special unique structure in the negotiation process.

The process of negotiation is then dependent on these elements. The elements help to reach an agreement and make the negotiation work, so understanding it will help to manage the process more effectively.

The elements include reciprocity, information exchange, trust, power, ethics and outcome. These elements, especially Reciprocity, are important as they are not mutually exclusive during a negotiation process

My experience

Take for instance my 21st birthday was approaching and my parents suggested I throw a party and invite a few of my friends and family for a celebration. Turning 21 years old was a significant turning point for me as it also meant I am going to be legally an adult. To throw a big party, there were many things to prepare. Most importantly, my priority was to get a cake that was nice and big enough for everyone but still within my budget. I also had to get 50 cupcakes as a gift for guests. A bakery where I frequently visited came to my mind, keeping in mind that I only had a budget of $300.

The cake costs $230, it means I only have $70 left for 50 cupcakes. However, each cupcake costs $2 which means I am most likely to exceed $30 beyond my budget. In addition, the delivery fee was an extra $15 to have it delivered to my party venue. The total cost sums up to $345.

After much discussion with the owner, he agreed to provide free delivery which costs $15. He also charged me $220 for the cake instead of $230 as well as 20% discount on the 50 cupcakes that totalled to $80. Overall, he maxed out my budget of $300 but I got what I really want, plus free delivery to my party venue. After the negotiation, I realise I forgot my wallet when I wanted to make payment for my order.

Theory, analysis, reflection

Information exchange

It was an important learning process as there was exchange of information so that both parties gain an understanding of interest and true situation. This is because negotiating parties naturally assumes that their interests are opposed to each other, where this is also referred to as a fixed pie perception. Once negotiating parties understood each other’s position and interest, value was created and helps in the emergence of a solution.

In this case, as I explained my situation and reasons in asking for a discount for the cake. The bakery owner reciprocated this form of information exchange by being truthful about why he was unable to give me a big discount, but was able to ensure I was within my budget instead. We also used an integrative bargaining approach where there was also an absence of power play. The owner could have insisted on his stand by not giving me any discount but instead, he expressed support that was aimed at generating new options in order to reach a consensus.

Integrative bargaining

The art of negotiation includes an integrative bargaining strategy, where there is full information exchange to understand each other in order to effectively achieve a cooperative outcome that favours both the owner and I.

There is also a joint and open consideration of circumstances of both parties. There is a high level of trust involved where both parties believe the negotiation. This type of strategy is more likely to occur when both parties have an amicable relationship with each other, which is why the owner and I were skewed towards creating mutually beneficial solutions.

During the negotiation, there was no signs of either party adapting a firm position or any power plays. It was a very amicable negotiation process where tactics were used to create new solutions instead of forcing each other to concede and reach an agreement reluctantly. It was also an open interaction where unplanned changes occurred along the way but it eventually reached a positive outcome after both of us focused on finding a way around our problem.

Trust

Trust is also important when negotiating as it determines whether there will be a positive or negative outcome. It is hard to establish trust between negotiating parties as there is a fear of exploitation, where trust is broken. There is identification-based trust involved as although it is between a business and a customer, there was a relationship built instead of just a one-time transaction.

After we came to an agreement, I also forgot to bring my wallet so I was unable to pay on the spot. As I was a regular patron at the bakery, the owner knew my nature and hence he trusted that I would abide by my offer of paying for the order another day. He also trusted that I would stick to the agreement of helping him to promote his bakery. It was also through the good handling of the exchange of suggestions that contributed in the steady development of trust. Simply put, there was a trust on cooperation. This then made it easier to manage the process.

Reciprocity

One important element is reciprocity. Reciprocity is a basic component and a common feature of many social interactions. It involves matching or exchanging a behaviour of the same valence that the other party has performed. Apart from the pattern of exchange, what one party does tends to evoke certain obligations towards the other party.

The norm of reciprocity is usually involves an informal process of exchange in favours that does not include any specific conversations regarding the terms, and is able to influence how people reciprocate in various cultures around the world. While the element of reciprocity does not happen all the time, it occurs enough to influence the outcome as negotiating parties who mimicked each other seem to increase trust and value between them.

There are acts of reciprocity in this case and it plays a big part in this negotiation. There was a mutually exchange of reciprocity during the process and this has led to feelings of goodwill, where the owner was able to trust me regarding the late payment and the online reviews. There was also strong cooperation where this matching behaviour can be termed as ‘bonds of reciprocity’.

Role of reciprocity in negotiation process

An experiment conducted by Crott, Kayser and Lamm showed that people in an more advantageous position were more likely to be reluctant in obtaining and giving information, it also makes the opposite party suspicious. There then creates the possibility where the opposite party will reciprocate this behaviour that might lead to a negative outcome where there might not be an agreement at all. This strategy is also known as tit-for-tat, where a refusal to provide information from one party is reciprocated by the other party not giving any more information too.

As the bakery owner was very kind in providing alternatives, this beneficial act triggered my response of gratitude. It motivated me to reciprocate and I had a natural feeling of repaying the owner by doing something in return that would match his offers.

Relating to my experience, I asked for a discount for the cake and explained why i could not go over my budget. The bakery owner listen attentively without interrupting me and only proceeded to talk after I was done explaining. He then gave me some reasons why he was unable to give me such a big discount, but instead offered a small discount to ensure that it was within my budget. This act of reciprocity in exchanging information and situation in a very cooperative manner also allowed us to understand each other’s situation. I also reciprocated the fact that he did not interrupt me, which is why we both took turns to speak and express our interest in trying to reach an agreement. This can also be referred to as a tit for tat strategy because as I provided information, the bakery owner provides more information that is also useful in building trust.

If either of us were to adopt a competitive stance and only provide limited information, there will be a lack of understanding of each other’s position and interest. This will most probably lead to a poor outcome or a zero-sum game if we were not able to reach any agreement. If the process becomes competitive, there is a possibility of generating strong emotional reactions where it can affect relationships that leads to a future loss of benefits.

A questionnaire study done by Falk and Fischbacher also states that the theory of reciprocity involves a kind or unkind treatment to one party and the following outcome will be based on a behavioural reaction to that treatment. Hence, I was grateful for the owner’s kind consideration to keep my order within my budget, my behavioural action towards his kind treatment was also to do something for him, such as recommending my friends and posting a review online, to repay his kindness.

Goodwill is also shown in this process of negotiating such that because of adequate information exchange and trust, the outcome benefitted the owner and I. He maxed out my budget of $300 as he cannot lose too much profit but it was still a win-win situation because I was still able to have my party order while he still got the sales.

Conclusion

Reciprocity actually occurs on a daily basis, even without realising it. When a negotiator acts cooperatively rather than competitively whereby there is full information exchange in order to facilitate the negotiation process, the other negotiator will reciprocate this behaviour by also sharing information and interacting in a cooperative manner. This strong matching behaviour of cooperation is also considered as ‘bonds of reciprocity’. This way, the involvement of reciprocity between the parties also established a basis of trust, which led to a win-win situation. In this case, I managed to have a nice birthday cake (figure 1) within my budget and the bakery owners was still able to earn a profit instead of having a zero-sum game. In conclusion, reciprocity does have an effect on the negotiation process.

Negotiation: Planning, Concerns And Types

Planning in Negotiation

Negotiation is an evolving process where two or more parties, individuals or organizations are dependent on each other’s conditions to reach and achieve their independent goals and desired outcomes. (Lewicki, Saunders & Barry 2015; Thompson, Wang & Gunia 2010) Since negotiation is indeed an evolving process and a strategy and choice in itself, planning in a negotiation is most crucial due to the outlining and insight of issues, constraints and needs and priorities of your party, and identification of interests and your party’s ultimate goals is made clear. (Lewicki, Saunders & Barry 2015; Smelzter, Manship & Rossetti 2003) All these conditions and points need to be considered before you start negotiating so you know the direction you are headed for and for what you are aiming for. Planning is the linkage between stating your needs, desires and priorities before the execution of your negotiation. (Lewicki, Saunders & Barry 2015) Planning for negotiation can be attained by following the 12-point checklist, which reflect that goals need to be discussed and prioritised to produce particular, palpable and assessable objectives. (Lewicki, Saunders & Barry 2015; Cox 2012) In planning we choose a type of strategy in which we approach the negotiation, which becomes reflective of the direction reflecting our constraints of our particular desired outcomes. ( Lewicki, Saunders & Berry 2015) In negotiation planning, the dual concerns model identifies for us four different approaches through which we can achieve our desired outcomes, which is determined by the importance each party places on two defining aspects; one being the importance the party places on the relational aspect of the negotiation and two, the importance the party places on the outcome and desired goal in the negation process. (Lewicki, Saunders & Berry 2015; Ury 2012) The four different approaches the model identifies and explains is the collaborative strategy; which takes an integrative approach to the overall negation and places an overlapping importance over the desired outcome than the relationship with fellow negotiators, while the competitive approach takes a distributive approach. (Ury 2013) The accommodating approach places more value into its desired outcome also however, it accommodates its outcome in the need to prioritise the relational component of the negotiation. Lastly the avoidance strategy is simply a pathway where negotiation is almost non-existent and is not required to achieve the outcome in your goals. (Savage, Blair & Sorenson 1989; Ury 2013) An alternative to this model to planning is the five P- words of negotiation preparation, (Ury 2013) which reiterate the important concepts in construction for negotiations. (Ury 2013) Negotiators must have clear goals, and perceptions of their party’s needs, desires and constraints and identify and implement a suitable strategy to greater the chances to achieve your goals with less to lose or least difficulty because of the clarity you have going into the ground of negotiating. (Ury 2013) Without clear direction in negotiation, you are self-setting up for lack of targets, intention and knowledge of your own party’s capabilities. (Lewicki, Saunders & Berry 2015) The risk of unsuccessful negotiation or over commitment in some cases, is bigger when you enter negotiation grounds without proper recognition of priorities and constraints. (Lewicki, Saunders & Berry 2015)

Needs, Priorities, Concerns and Constraints

The parties involved in this negotiation include me, as the personal secretary of Mrs Amelia Austin and the Sales agent acting on behalf of the owner of the Bentley, Mr Soles. Both I and the sales agent have our independent needs, priorities, resources and constraints through which we must consider each move of our negotiation upon to ensure we meet our objectives in the best possible way. My needs are inclusive of the Bentley purchase at the lowest price possible as this is the main interest of Mrs Austin being the buyer in this case scenario. Mr Soles being the Seller, would want value for his long-term owned Bentley and that is his main motive and desired outcome. The research which I and Mrs Amelia conducted resulted in the following:

• A competition car style, the Rolls Royce series currently standing between $ 8000 – $150000
• A new Rolls Royce can be purchased between $ 45000 and $ 50000
• There is a transportation fee of getting the car shipped from Britain to Texas, USA which would cost between 2000 – 3000 dollars on top of car purchase price.

Mrs Amelia’s priorities and constraints include acquiring the car for as little as possible and no more than $ 23000 for purchasing the car. A constraint to consider from the Seller’s perspective is that this car is a 50-year-old owned luxury car, and it could have sentimental value that could be the seller’s priority over other factors. Another constraint could be the price conflict, Ms Austin and Mr Soles could be pushing from two opposite ends in terms of the cost of the purchase product and this is where strong bargaining skills would be required on my part to stand a chance with the agent. In a field analysis of this negotiation and planning, the actors regarding the cost and conflicting priority regarding the cost is definitely a constraint that could change the entire situation and result in no successful negotiation.

Integrative VS Distributive

Integrative bargaining involves a situation where the negotiation is ‘not mutually exclusive’, meaning that no party loses, it’s a win-win situation. In this approach to negotiating, players or parties are subject to freedom and openness and no vulnerability due to the relational motive present. (Lewicki, Saunders & Berry 2015) This negotiation type on the dual concerns model reflects a collaborative strategy to negotiation which places an emphasis on the long-term relationship between the parties and their dependence on each other above the current present desires at hand. (Lewicki, Saunders & Berry 2015) This approach is one that looks at a broader perspective and the utility maximisation of the integrative relationship. (Tanner & Stokli 2014) The distributive approach is quite the opposite, the distributive approach to negotiation blocks out all external factors influencing decision or agreement and focuses on the pressing issue at hand, treating it as a singular opportunity. (Lewicki, Saunders & Berry 2015) This strategy requires a lot of the negotiator’s characteristics in order to effectively and most successfully bargain for self-contentment and reach the goal you are after; hence this approach is completely competitive in nature. (Lewicki, Saunders & Berry 2015) Distributive negotiating prides itself as a process which strives to accomplish the maximum benefit of the situation. (Tanner & Stokli 2014) It is however researched that due to this model’s narrower path, users of this approach are prone to change their approach mid-way, into a collaborative or even an accommodating agreement. (Tanner and Stokli 2014)

In this scenario, I was given constraints under which I could only see that displaying and going into the negotiation completely focused was the beneficial way to achieve my goal of acquiring a purchase agreement for the Bentley for less than 23000 dollars I had chosen to come into the negotiation grounds with a distributive and competitive approach strategy. I kept asking to the point questions to avoid straying away from the major details and focused very little on the external and relational factors that were influencing the desired outcome of Mr soles’ salesperson. (Kimmel, Pruitt, Magenau, Konar-Goldband & Carnevale 1980; Lewicki, Saunders & Berry 2015) After knowledge of the high expectation of $50 000 for the Bentley, I switched to an accommodating and collaborative strategy with my bargaining, and communicated taking into account Mr Soles’ sentimental value he has for this car alongside the research I did in my planning of the asking prices for brand new Rolls Royce series. I made it a point that if Mr Soles wants to get rid of this car, $27 000- inclusive shipping delivery charges – was the best price he was going to get due to competing prices for brand new rolls Royce’s, of which some are less than the asking price of Mr Soles’. Although my collaborative approach seemed genuine, with genuine facts and points put forward I individually was still goal driven. Hence, I believe that in buying a car that a distributive strategy and approach, by possessing and displaying characteristics such as resistance to high quantity conversation and using only close-ended questions would be most effective to get what you want. (Kimmel, Pruitt, Magenau, Konar-Goldband & Carnevale 1980; Lewicki, Saunders & Berry 2015)

Reflection

Yes, overall in the negotiation I was happy with the traits and tactics I used to help achieve my final goal, which included self-conscious, competitive and impartial motivation. (Kimmel, Pruitt, Magenau, Konar-Goldband & Carnevale 1980) I would have liked to have incorporated a less intensified distributive approach overall and accounted for the relational importance for general future possibilities, however that was not in my control, as my constraints were those set by Mrs Austin. (Kimmel, Pruitt, Magenau, Konar-Goldband & Carnevale 1980; Lewicki, Saunders & Berry 2015)

Negotiation As The Manipulation In Business And Social Life

Negotiation is the process of discussing the issues with different perceptions between two parties to reach the mutual agreement. Negotiation happens in the daily life of Human Being. It may be hard to believe but most of the time, People sometimes negotiate about what to eat, where to go, what to do and so on. Negotiation is a very sensitive skill where many people can lack it, but it is possible that anyone can be a skilled negotiator. It requires planning to become a competent negotiator. Firstly, you must know what your mission and other’s party mission as well. You must search for the places of agreement. You must know how to be negotiated, look for substitutes solution. And at last, have the agreement and close if negotiation is successful. According to Wroe Alderson 1957, who is marketing theorists define negotiation as the growing process of selling effort ( ….). It has shown to attempt that seller who is better negotiator tend to do better deals than others. The idea of this thesis is to provide a personal experience event of how you negotiate with someone that happens in your life. Also, it will help how to be a good negotiator by providing information and addressing issues.

Talking about real-life negotiation situations from my experience, I used to work at Malashree Motors Pvt. Ltd in Nepal. My position was as a salesperson. Negotiation plays a vital role in my job role and is unavoidable because I must deal with the customer daily to do my job. It is necessary to understand working as a salesperson, negotiation does not always happen while selling the product. Especially, here we are talking about negotiation and define the experiences and situation from your life event, so I am focusing on Negotiation. Malashree Motors is operated by TVS and this company sells bikes, auto-rickshaw and many more. TVS is an Indian company operating in Nepal also. My role was to sell bikes to the customer. For me, Salesperson was quite challenging because you have pressure to do your job properly by selling more bikes and attracting many buyers as possible. Everyone wants to buy things which have better quality and affordable price. In my sales experience, when someone wants to buy bikes, they would always ask for prices and after their features. In Nepal, now also many people prefer actual information from people rather than doing online research. That is why being a seller you should have all the information for customer’s questions.

Let’s dig into the now negotiation part. If you are a seller, it is obvious you want to sell at higher prices and if you are a buyer, you want to buy at lower prices as possible. In my past practices in selling, many buyers come with mind makeup and they know what they want. But there would be some customers who were in a dilemma to buy bikes from which brand. As a salesperson, I always used to talk about bike features, their warranty and servicing bike. When doing sales, with your brand it is better to do a comparison with another brand. My very fresh event I remember while selling the bike was when there was a mega sale program conducted by TVS that happen in Chitwan, Nepal. During that time, the company would launch a new version of bikes with new models. It used to be very busy. People used to come to our stall to know about new brand bikes. It was our opportunity to grab many consumers as much as possible. So, the result of this program was good for both parties.

Talking about my position as a salesperson, my responsibility was to define about features of bikes in the showroom. When the purchaser comes to the store, the first thing is to greet them. Being in my role, I should provide good customer service. As being buyers, they are keener to know about the price of the product. I believe when doing sales business, negotiation works better when you are doing the comparison with other products. Therefore, I should have knowledge about other company brands. For instance, when the buyer was not satisfied with our price, we used to provide them a better discount from the actual price than another bikes company. We also used to give bike servicing charge free for 6 months while other brands used to give just 4 months. In addition, Customer satisfaction is a very important part of doing business negotiation. If you are polite, providing better customer care, they will be happy. If they are happy, our business is happy. While negotiating with a buyer, you should be able to deal with different types of people and know your role.

The important point to become a better negotiator is do not negotiate without having your research on the market, bike products and many more. Because buyers before coming to the market to buy, they may have done some online research and search price value for the bike. So, you cannot fool the buyer by providing a false report. Always try to be consistent and real. If you are doing better business or dealing with the customer and if they are happy, with this behaviour you can attract other many customers in your store. Before doing dealing, the pre-negotiation planning process can outcome positive results. As per Peterson and Lucas 20001, for the buyer-seller negotiation, there should be four stages pre-negotiation outline. They are Insight gathering, definition, procedure development, and preparation. Before the negotiation, collection data, handling, examining and assessing accessible information related to the other party and related natural factors. After that defining and analyzing what is your goal and objectives and arranging the parameters for each issue to be arranged. Then, planning strategy development and at last preparing including verbal correspondence, masterminding or making materials and taking care of strategic concerns. (3…..)

I want to describe the event of one customer which was very challenging for me. It was a really good experience. My day was going well. During my work time, one customer came to our store. I approached him and introduce myself. Then, he told me that he wanted to buy a bike but was not sure which one. He seems very confused. I asked him which type of bike are you after. He describes me and I show him a bike that he said. I describe the motorcycle model, its features, advantages, services and many things. He was still unsure. I asked him what his budget was to buy a bike. As mentioned before, a buyer wants to buy things at less price and that is okay because he or she is just trying to save some money. Our showroom sells news bike only, so the price of the bike is fixed and applicable. I could not help him to fix the rate for the bike and what I can do is give a discount rate and other services that can benefit and help him to save money. I offered him a bike under his budget. He wanted to have test rides. He was excited finally. After the test ride, I again remind him of the price of the bike. Now, he started to negotiate with me. There was a target set for me to sell these 100 motorcycles each month and once I achieved that I will be rewarded. Thus, I was giving my full effort to this guy to buy the bike. I was really open to my negotiation because I had a target to follow. He told me that he wanted that bike, but the price was not reasonable. So, I again remind him of the advantage of the bike and describe him it is worth it what he is getting for the money and adds the benefits of the warranty, full servicing for 6 months and anything that emphasize the value of the bike. I told him I want to help you, but I just cannot lower the price for you and not for others. It is already fixed according to the market price. Sometimes, building urgency to the buyer saying that there are so many other interested parties and this bike model is so popular that it is going to be occasional even though it may be not accurate. If there will be a fault in your engine, we will look after it and provide five years warranty. That means if some problems detect, servicing is done with free of costs.

Followed by this, to be a good seller you should have patience and be a good listener because all these efforts we are doing are to satisfy customers. That’s why I was giving him time to talk and discuss things that he was not satisfied with. In the process of negotiation, we have two styles, i.e., distributive bargaining style and integrative bargaining style (4..). The Integrative bargaining style means it analyses both underlying problems and objectives that are vital to both parties whereas the distributive bargaining style is to exchange the information or resources between two parties with no understanding to reach mutual goals. I think the integrative approach is suitable for our company because if the buyer is happy with our services, it has a high chance the buyer wants to deal in the future. It is not possible to reach the end of the agreement right after. Therefore, it might take time and it is your time to agree with customers by providing enough knowledge. At the time, there are many customers who always bargain about value. So, it is necessary to know to negotiate with the buyer about the value and quality of your company. After some discussion, he was finally agreed and our negotiation end on a mutually agreeable situation and everyone was in a good position. It was a win-win challenge because he was satisfied with our service and product and I had sold our bike and done my duty. The deal closed and both parties end on a satisfactory conclusion to negotiation. After our deal, I knew he visited our store just to check and compare our bikes brands. He already had a plan of buying another bike brand. But because we had a good offer and deals, he was happier to go with our plan. This explains that having the right skills and strategy, a salesperson can change negotiations to the path they wish to take.

The tactics of the company by giving a target for the staff to sell their product within a given period was a good initiative. So, we were giving our full efforts and working hard. Every time, your topmost priority should be to know the client’s demands and needs. You should be able to demonstrate customer satisfaction with your products, services, skills and financially. To become a good negotiator, you need to have better selling skills. Also, you need to determine where do you want to be and determine your goals clearly.

Negotiators can be either succeed or fail. It is all about the skills and tactics that define ways of fulfilling the objective. I think the more you negotiated, the more you become better and learn more. Having the right mindset will help to become comfortable to follow the process. At the beginning of my job, I used to get nervous all the time. It was my first job. To eradicate the nervousness and fear, there is no way and no magic to becoming better on the First day. It will take times and after you will be working more, you will get through it. Talking about my good point, I have always worked hard and used my selling and negotiation skills to sell company products. I used to have knowledge about the current market price and how they are competing in the market. As information is power during negotiation, you should always be prepared to have information that other party does not have, having information other party does not have to make you prior while negotiating.

It is now clear that negotiation is the most important tool for everyone doing business for the development and activities to foster its ideas and knowledge. Selling and negotiation are the key components for the seller to help them to develop their business. People who are good negotiators can help them to adjust well to their new work, are good at balancing family-work relations and can be promoted quicker. ( 5…). Our company used to always provide us training when a new product is launched so in that way we are updated with new information. It is all about proper planning, having clear objectives and be prepared when doing the negotiation. Being a negotiator, you should be ready to gain other party beliefs and maintain a long-term relationship. Always ready to ask the question if confused. Also, look out for the other party concepts and clarify issues if any and work for the solution. As stated before, listening during negotiation will help to have an idea what other party is discussing so in that way you will have knowledge about what they want and where they come from.

In conclusion, from our early years, we are always doing negotiation to manipulate our family, friends, and others to get what we wanted. It is necessary for every field. You must be prepared and be ready to grab all the information that is needed before negotiation It is important to be specific about the purpose of the negotiation and must be clear. It is possible that your plan might not work so already be ready with an alternative idea. In the business field, you should try to be honest with another party. Do not try to manipulate with false information. Always have a positive mindset and be confident with the second party. You should attempt to discover the ideas and interests of another party as well. Try not to settle on something which would not be possible for the second party.

Negotiations: Approaches To Solving A Problem

Negotiation is an operation that involves bargaining with someone having goals, requirements, and viewpoints different than yours. There are different approaches to solving a problem, depending on the situation, and the level reached. These include rational and emotional aspects and psychological factors such as how comfortable parties involved feel about the conflict or how they perceive or misperceive each other. Parties must look into how important or unimportant the problem is to meet their needs and the other parties’ needs. Looking into such perspectives will result in how parties approach the conflict: competitive, collaborative, compromising, avoiding, or accommodative. It is, therefore, essential that parties concerned have the will to settle differences, discover common ground, and reach a consensus.

One of the many scenarios that require excellent negotiation skills is when asking for a pay raise. As a sales representative, I recently wanted to negotiate an increase in my salary as I had progressively done an excellent job in increasing company sales. Negotiation as a sales representative is a necessary skill that helps to deal with customers daily. Asking for a raise, however, was a different challenge, and I had to be strategic about it. My pay was much less when I started working as I had little experience and education which i got with time. I got a diploma in sales backed up by my good sales report and expertise.

The first and most important approach to negotiation is planning and preparation. Preparing in advance helps to think about the deal you want to make and make amendments to your strategy to suit the particular situation. It helps to organize and accumulate information necessary to have an effective negotiation. As much as company sales had improved, we were rarely making profits considering the previous management, which led the company into debts. The current management was trying to cut costs as much as possible so asking for a raise would not be that easy. I had to research the history of the company with sales representatives. My experience and qualifications, and my good sales report which was progressive and promising enough were important information. This information gave validity to my claims as well as confidence in negotiating with my boss.

After planning and preparation, my boss and I had to set ground rules on how the negotiation would take place. Setting ground rules involved agreeing on factors such as where the talk would take place. My boss and I decided to have it in his office in his free time so that there would be minimal time constraints and distractions. I expressed my demands but faced with some objection, especially on the issue of the company trying to cut costs. Once we both showed our positions, we explained and clarified our demands and decisions. The process was without confrontations or threats as that would have taken a different approach leading to a negative outcome. We both told our situations, an important part that helps the other party understand how you arrived at making such demands.

Bargaining is also an essential aspect in a negotiation strategy. I come up with an amount higher than the pay I wanted but not too exaggerated as I knew that it is usually scarce that we settle on the initial amount. My boss, on the other hand, explained the situation of the company and agreed that I would need a raise although what I had demanded would not be possible at the time. We then came to a consensus, and I decided to a salary that was much less than what I had expected, so i had to compromise. The negotiation was, however, open to the near future with the company making profits and my sales increasing. We then came to the closing of the agreement with my boss taking the necessary procedure to implement our agreement.

As observed, negotiation is a skill that is important and useful in our day-to-day personal life, relationships- both personal and professional. It helps to build links to foster goodwill despite the difference in interests. It also helps to deliver long-lasting and quality solutions instead of short-term solutions. With negotiation, parties can make concessions that may be of little importance to the party but mean a lot to the other. Also, it helps to avoid future conflicts and problems as involved parties will be equally satisfied with no barriers to communication in the future. Conflicts may result in positive and negative outcomes, but they must be managed rather than suppressed or let to escalate out of control.

The Arts of Negotiation

Negotiations make part of everyday interaction. Negotiations exist among friends, coworkers, customers, spouses, governments, professions, and departments. There has been substantial contribution to negotiation knowledge and skill development within the last 20 years. Most negotiation insights focus on attaining mutual gain and knowing the alternative to a mutual agreement. However, Negotiations sometimes fail. The failure to plan strategically and tactically may trigger emphasis, de-emphasis or delay. A negotiator who undermines the extent of research required for a successful negotiation is likely to fail. Again, the failure to set realistic goals and objectives attracts negative anchors. Apart from negotiations that do not materialize to an amicable agreement or an alternative cause, failure may result from a bad negotiator. Dominick Misino talks on what makes a bad negotiator. A negotiator who hates rejection denies that negativity is not always personal. Bad negotiators are likely to think that a wrongdoer is angry at them leading to faulty decisions. Misino tells that it is important to let the person vent as it pays off incredibly. In this sequence, you are likely to learn of the guy’s problem and give a knowledgeable solution. Precisely, negotiators should avoid a soft or defensive perspective while negotiating.

Active negotiations are implemented in four strategies; competition, accommodation, destruction, and collaboration. Depending on the situation, the end goal should determine the methodology adopted within any negotiation. Dominick Misino enlightens on negotiations that need collaboration, a win/win situation. While it is without intents of letting a wrongdoer walk scot-free, a negotiator wishes to resolve any crisis without destruction of life or property. Ideally, this collaboration is a win for both counterparts. This strategy intends to build trust between the participants, and possibly a mutual relationship, from which negotiators can resolve a crisis without harm. Misino states that getting a collaborative base necessitates respect, sincerity and reliability. Often, negotiations may involve extremely nasty people who require tact to defuse the situation. A polite standpoint is also crucial in solving a crisis negotiation. While it is frustrating to deal with persons that you dislike, a negotiator should always focus on the end goal of getting hostages out alive. Applied common sense also resonates well with crisis negotiation. For instance, asking a person if they want to tell the truth invokes their need to share personal information or requests. A negotiator may, therefore, get information that informs the direction to proceed with the negotiation. Furthermore, negotiations are a series of small agreements that a successful high-stakes negotiator need to learn to implement over time.

The dynamics of negotiations are also strongly influenced by whether they are intercultural or cross-cultural. This is because cross-cultural negotiations are often more difficult and challenging because they entail dealing with different if not competing ideologies, goals, values and worldviews. Research, in fact, indicates that greater levels of negotiation success are attained in inter-cultural than in cross-cultural communication. Misino underscores the reality of competing perspectives by suggesting the significantly different background of the criminal. Most criminals are not book-learned which creates a gap in the negotiation process. However, just like people from other cultures, criminals have their own strengths that we may lack such as being street smart. They can thrive and survive in environments that we would otherwise fail. Therefore, just like with people from other cultures, it is important to show during negotiations that the other side has its own dignity while trying to understand the nuances of their culture or situation.

Analyzing the other party is also one of the more important steps in the negotiation process. This can be achieved by looking at their resources, their needs, and desires, their reputation or their objectives. Through this analysis, one is able to formulate their position and develop the best alternative to what is negotiated. In fact, negotiating position is adjusted based on the perceived strengths and weaknesses of the other party. Misino also reinforces the necessity of knowing the relative position of the negotiating partner. In hostage negotiation, critical information is gotten through a variety of means such as mirroring. This entails exchanges characterized by repetitive statements and questions meant to make the criminal reveal as much information as possible. While the same tactic may not be suitable for business negotiations, the necessity of probing to find more information remains.

An interesting negotiation experience was with parents some few years ago before I acquired my driving license. I was interested in attending boxing coaching classes in a recently opened community center two times a week. My parents, though not on-board to the idea, lacked the time to drive to the center some 15 miles away owing to household and work commitments. After a period of meditation, I approached my father with the proposition that I will be maintaining a high GPA in school with receiving grades not less than an 80% in all my assignments. In return, he would commit the saved time to drive me to the center. Seeing the value proposition, and of course, given the desire to do better at school, he agreed to the offer. Just a few weeks into the deal, proving to my father that I could keep my promise. This process of give and give has often characterized our relationship since.

My Whole Negotiation Journey: Personal Experience Essay

Introduction

This paper reflects on my whole negotiation journey including planning efforts in preparation, strategy development and execution of the negotiation. Following this, I have incorporated the reflection of the exhibited behaviour (self and counter-part), strengths, weaknesses, qualities, what I resonated with and surprises I experienced throughout the negotiations. Furthermore, I have reflected on analysis of how my performance aligned with my original vision, my experiences and learnings, key lessons from the class material and exercises. Thereafter, I have presented the important outcomes that I achieved, key learnings and takeaways.

Reflection on Expectation, Preparation, Strategy, Dynamics and Behaviour

Being meticulously prepared for the discussions is the foremost thing that came across my mind and expected the same from my counterparts. I systematically evaluated and recognized the business needs of my counterparts in order to prepare myself for a successful discussion. I realized that devoting time is important in comprehending expectations from each other creates a platform where things get more negotiable and in reaping best benefits out the final deal. While entering negotiations, my foremost expectation was to build up trust, prior to addressing their needs and concerns. I expected to capture and capitalise on the opportunities that lead to essential outcomes. So, I preferred to give my counterparts a platform to establish clear alignment from the very start and present an opportunity to create a relationship bridge. As anticipated, several times the expectations of the other party were not evident and therefore, I had to draw out their formal and informal needs. I knew I would encounter demands that were not reasonable or unacceptable.

Apart from listing my reservation points in detail, my strategy was to pen down all potential questions to determine suitable starting asks in order to drive the discussion in my favour.

Sometimes, I felt that my counterparts had not given much thought about what they exactly needed. I could also sense that that my they were keeping some important information hidden and that led to some trust issues. I did not always expect to know hidden agendas and therefore, stayed attentive to ensure that the expectations I had agreed on did not alter at my expense. Listening thoughtfully helped to frame appropriate replies and ask reasonable questions. Analysing and understanding the key issues as well as their expectations helped me to refrain from making wrong assumptions and inappropriate decisions.

During individual and group negotiations, I put in my best effort to go through the team’s and individual expectations and it helped everyone to be in alignment before commencing the negotiation. In most cases I ensured to get the knowledge of any similar deals accomplished in the past, applicable terms and conditions, relevant agreements and offerings of the final deals.

When it comes to strategy and dynamics, I believe there are few fundamental principles that must be adhered with. I prepared myself by considerately understanding the dynamic forces involved in the deal and focusing on the underlying facts such as which party has more control in the discussion, who would be benefitted more through the transaction, potential alternatives and constraints for both parties. Negotiating in a positive tone is influential and results in progress.

At all times, I confirmed to create the informal version of the contract because it helped me to get an idea about how the deal should be planned and think of critical issues and hence could start the negotiation with my preferred terms. However, I knew that there were certain conditions that my counterpart would never agree with and so, never began the negotiations with those terms and maintained the sense of balance. I was certain about what would be bull’s eye or walk away price.

Considering behaviour, we all certainly have specific set of traits. Some characteristics come to us unsurprisingly, while for others we must put in efforts. Sometimes I felt I had the required familiarity and experience to steer the negotiation process, whereas I also realised that I lacked the necessary mastery with skillset, strategies and tactics to attains equally acceptable results. There are certain treasured skills and without these crucial characteristics, the game is always hard to master. Being persevering and patient was the key to my success, as I took the advantage of these innate qualities to create win-win resolutions.

Few of my counterparts were impatient and made costly mistakes as impatience did not bring potential results for them. I invested some additional time to come across better solutions and avoided hasty decisions under pressure. Negotiations is highly intricate process and that is why I effectively maintained my emotional control. Progress was not always evident, but few of my counterparts played well by being creative and presenting innovative solutions. In most of the cases, I thought clearly under pressure and used my judgement and intelligence to resolve ambiguous issues.

Similarly, my counterparts were aware of the information and considered a variety of options. I ensured to pay attention to underlying details, listened very carefully to find out the areas for further negotiations. Listening effectively played a crucial role in assembling critical information and framing additional questions. After that, I was able to grasp hold of the situation and it became easier to understand what kind of data to put on table, when to present specific information and when to refrain from presenting extra information.

Numerous times, I reflected back to other party’s thoughts in the form of questions to confirm their positions and my understanding. I knew I could never reap positive outcomes if I did not have a strong understanding of the situations and demands of the opposite side.

Indeed, I also realised that I naturally tried to be thoughtful of the needs and sensitive to the emotions of others. My team members and counterparts respected my behaviour and were more receptive to my viewpoints. Empathy successfully led to shape reputation, trust, respect and steered the discussions in right way.

In many cases, eyes and voice provided several nonverbal hints about the emotional condition and I tried to make most out of the unspoken messages. Although I still feel that I could have done better and hence would want to improve these skills. Another area of improvement would be not to take issues or comments personally. Even though it did not reflect in my actions that I felt embarrassed or uncomfortable during certain instances, occasionally it became tough to remain tranquil. This skill is not easy to master as psychology has influential impact on performance, but I have confidence that with practise and experience, it can be honed.

As I plan to enhance my skills and advance my knowledge base, in near future I will pay more attention to my insights and intelligence. Mistakes are inevitable part of any journey, but then again using mistakes can be a stepping stone towards learning. I will keep in mind that not everything is negotiable and hence, concentrate more on issues rather than situations. I intend to become an effective negotiator and would continue to learn from my slip-ups. Additionally, if required and if the situations allow, I will also increase the level of my flexibility in relevant circumstances.

Strengths and Weaknesses.

In my opinion we all approach negotiations with a very different perspective. To be efficacious in this mind game, we must acquire certain characteristics and behaviours. One of the major strengths of negotiators is ability to persuade and leave a lasting impact. Only a strong negotiator has the capacity to turn down the deal graciously and still continue to have a healthy relationship with the counterpart. It is important to understand that negotiation table is not a battlefield where you must negate opinion of others.

A strong negotiator sets high but achievable goals and leaves no stone unturned in resolving problems by suggesting alternative solutions. They posses the ability to differentiate between crucial and less important factors and begin bargaining at the right time with right strategy. I believe I have the ability to communicate resourcefully, proceed logically and take positive initiatives during interactions. Both parties should make profit and one party’s gain in not other one’s loss. I don’t believe in looking up for disagreements and therefore focus on bridging up the existing gaps for coming to consensus. Preparing a clear strategy helped to understand the whole structure and prevented from making wrong offers.

Strength can also be measured by whether folks would happily want to discuss further or some other deals. If someone leaves the door thinking of never meeting again, it was probably not a good impression and sills need to be honed up.

Interestingly, during this whole journey of thought-provoking discussion, I came across few weaknesses. Negotiating can be rough, especially when it comes to asking others what they really want in terms of prices and circumstances. I found out that sometimes it was challenging for me to resolve certain situations since there was a feeling of confrontation. It made me uncomfortable and could not come up the best offers.

I certainly want to overcome this emotion and avoid making mistakes. Understanding that avoiding conflictions questions would not solve the problems and in turn lead to harm all the efforts, would help me to overcome this emotional barrier. If I focus on the outcome and take remarks as a part of the discussion and not personally, I can definitely improve my area of weakness. The more I avoid taking things personally, the greater is the chance of reaching a favourable outcome.

I came across few great negotiators who exhibited excellent characteristics during debates. The foremost quality that I admired most was confidence. They were never discourteous or egotistical. Moreover, they handled everything with confidence, evaluated their actions and decisions and unlocked a platform for win-win agreement. Despite few slipups, they emitted positivity and had unwavering commitment.

Great negotiators never underestimate the power of active listening skills. I realised that counterparts will provide all the information if you ask accurate questions at the right time and listen prudently to the answers. While I was sharing my viewpoints, other members listened sensibly and did not interrupt the flow of the conversation. That way we were able to share valuable information and come up to common conclusions. I personally believe that listening respectfully to other is one of the most important attributes of negotiations.

Patience is another important factor that is found in great negotiators. Having patience is an asset that can result in additional benefits. Some of my counterparts did not rush to come to final remarks. Instead they made the best possible use of time to gather further data and benefited through this skill. I believe if impatient person can push himself out of the comfort zone, then he can reap better benefits out of discussions. analysis of how your performance is aligned with your original vision

In comparison to what I mention in my vision statement previously, I behaved differently in couple of situations. I realised that negotiation process was not as easy as I though it would be. As I scored highest on accommodating and compromising style and lowest on competing style, it was clearly reflected in the weekly negotiations. But after few negotiations, I observed the change in my behaviour as it was heavily focused on collaborative style.

During the discussions, everyone was gratified with the conclusions and I negotiated humbly. Adapting to collaborative style helped me to resolve situations in most efficient way and led to optimum results for everyone involved. While it is time and energy consuming, collaborative style helped to abate negative feelings and shape mutual trust. I also realised that it was not easy for me to stay calm during negotiations and a few times I took things personally which made me feel embarrassed. The only best part about these situations was I was able to reflect positive body language and no one else realised my uneasiness.

Initially I never thought that certain factors can affect me and therefore I believe I need to work on my thought process and I ma sure I can sort it out with practise. So, there are couple of areas of improvement and these do not align with what I mentioned ion my vision report. This is because reality is certainly different form imaginations. I imagine that few things could be done easily but in reality, it is not always the case. However, I am so glad to come across these differences as these will provide me insights about myself and help me to improve and become a even better negotiator. reflecting upon and analyzing your experiences and learning, record key lessons from the class material and exercises:

As taught in class, before entering negotiation I always had few questions in my mind such as where I should start, what would be potential opening stance, should my attitude be competitive or moderate, should any concessions be made, etc. In the process of establishing a firm platform for effective negotiations, I tried to incorporate various lessons from class and personal experiences. I had my first negotiation with Jessica, and it was pretty smooth as we both had the same intention of landing into win-win situation. I liked how Jessica constantly reflected positive attitude and maintained clear communication.

Thereafter, I negotiated with Azra twice. During in person negotiation, I felt that she was respectful and tactful but somehow was in rush to wrap up the discussion and did not give much thought about the questions I asked her. I wanted to get into the details and further explore the option for coming to successful but, we did not have a deal. As taught in class, dilemma of truth and honesty played its role very well several times. I still believe the outcome would have been different, if more time were invested. I also did virtual negotiation with Azra, even before I began the task, I had some uncertainty regarding the trust I could put in and rapport I could build.

During negotiations, I kept in mind the concepts concerning the key factors involved in implementing various strategies. Is was not easy to discover counterpart’s resistance points and influencing the same. So, I used to the strategies of modifying the perception of the counter part and made the costs appear much higher than actually were and outcomes less attractive. Personal information was not straightforwardly available, and initially I did not ask many questions. I believe if I were to do the same negotiation in person, I would have been more comfortable. The time period was stretched due to slow responses.

Although we had a deal, my satisfaction level was not optimum because I felt that negotiation process was in complete due to lack of non-verbal cues and facial expressions. I realised that just by merely seeing the person helps to figure out lot of information.

During MAPO, I tried to apply what I had learnt. I had to analyse the situation to understand what would be beneficial and therefore, had to choose whether making the cost of obtaining goals appear higher or making demands and positions appear more or less attractive to the other party. If I were to do this negotiation individually, I would have acted differently. My approach was more collaborative as I wanted to come to a win-win situation for both parties.

Additionally, I focused more on listening to the arguments of the counterparty and observed the non-verbal cues. We had detailed discussion within the group in order to come to a consensus. When it comes to behaviour, I felt Deanna and Michael were very straightforward in their replies, but Nichole and Jenna were always warm. Sometimes I felt left out in the group due to difference of opinions. I learnt that its is important to maintain the emotional calm and not reflect any uneasiness.

In my discussions with Ryan and Areej, I explored the concepts of value claiming and value creation as it was mentioned in class to be immensely important concepts. Ryan was very collaborative, and we had a good discussion. He exhibited confidence and strong knowledge base. I learnt from him how we cannot let ourselves appear weak if we are unsure of certain factors. After this I got the opportunity to negotiate with Areej. We both had a clear understanding of our priorities and therefore coming to deal was easy. I learnt that clarity of information is key to successful negotiations.

Key learnings and takeaways

Looking back at the negotiations, I learnt “Prior Preparation Prevents Poor Performance”

In the upcoming time, I will try to incorporate the key learnings in my professional dealings. After all, world is highly competitive and there are plenty of options for folks and therefore, establishing a respectable connection was always one of the primary goals in the discussions. I will go through the company websites to extract as much information as possible and reviewed the related articles. To know the background of the person, I will walk through the LinkedIn profiles and do some web search. Additionally, I believe I need to watchful of my thinking process, particularly when deducing what is and what is not negotiable. Having a preconceived notion that something is non-negotiable and therefore, is not worth asking for, can be damaging. I need to look at the discussion table through a more focussed lens, where the platform can provide countless opportunities and mutually valuable alternate resolutions. Functional roles for group members provides accountability and multilateral shared responsibility among the team (Benne, 1948).

I also realized that I did not ask too much in certain situations due to the fear of denial or loss of bid. The only way to deal with this fear is to understand that rejection is not the end of everything and thus, ask more questions, make your reasoning more substantial to get a green signal.

Looking back at the negotiations, I believe I was well prepared in understanding the reservation points, source of power, BATNA and who should make the first offer along with tactics and strategies. Research has revealed that preparation for negotiations helps to ensure a highly developed approach, develops individual confidence and as a result a more successful negotiation (Cronin-Harris, 2004). Sometimes I felt it was easier to deal with numbers by using excel sheet. I learnt that not all negotiations are mean to have a positive deal. The sense of satisfaction does not parallel with the great outcome. I need to be more agile and adjust to the circumstances because it is not always possible to predict every possible scenario. I believe it is immensely mostly tried to organize different parameters involved in discussion. It is important to talk about the desired goal but you have a create a platform for reaching that goal. So even the tiniest details can set up a good conversation mode and therefore should not be neglected. Sometimes not reaching an agreement is not bad. Compromise is not always good. The issue of ethics and legality and how to leverage power can be challenging. In some cases, it is your benefit to come to an agreement to avoid hassle such as taking up the matter to court.