Negotiation is the basic for any deal in an organization may it be government, non-government, private organization, legal proceedings even in the personal life situations like marriage.
When a commitment has to be done so as to get maximum profit by both the parties so negotiation comes in picture at this point of time.
It can be done to resolve any conflict or to strike any deal with the party. Negotiations can also be done by a third party for the two parties actually involved in the process.
So, negotiation is the process of communication again and again on a particular issue and reaching to a decision with mutual conscience, after this, a joint agreement takes place.
Various skills are needed for effective negotiation those are communication skill, convincing power, sales, assertiveness and one should have good conflict resolution capability as many times negotiation process leads to conflict.
After reaching to a particular decision both the parties should be in WIN-WIN feeling which can make the negotiation decision fruitful.
Parties involved in the negotiation can be 2 or more than two with some common interest in the subject of negotiation.
In the beginning of negotiation process every party wants to change the decision of the other party according to their convenience but with due course of time, if none of the party gets convinced with the other parties then it usually gets converted into conflict.
So, before entering into the negotiation process one should be very clear with their objective and priorities. One should be well prepared and should know all the aspects and possibilities clearly. But should also have listening capability and convincing capability.
Negotiation can be taken under these headings :
Process[/b]: It describes the actual context of negotiation, different parties involved in the process
Behavior[/b] : The background of the parties, they are totally unknown for each other or known. This changes the behavior of the people. If they are comfortable
Substance[/b] : It gives the details about the basic topic on which the parties negotiate, what they want out of negotiation, their agenda etc.
Negotiation also comprises of strategy, process, tools and tactics.
Negotiation is a process so it has to be done sequentially.
1)First the two parties should understand their own strength and the strength they can gat by joining to the opposite party. Then only negotiation process should be started.
2) Then the objectives should be defined as what is the basis for doing the negotiation. One should know the aim for doing the negotiation and the limits till which one can adjust.
3) One should understand the other party’s plans and what their further steps.
4) Time is also one of the important constraints for what will be the result of the negotiation. So, the style of negotiation and the time and situation should be kept in mind before starting the process.
5) Then the agenda should be prepared for what to say and how to say. By doing this, there is least probability for forgetting anything which can be important for the deal.
6) Now, the case should be presented very effectively so that the other party should understand the importance of the case and the strengths they can get from it.
7) Agreement has to be made with full confidence on the other party. If there is some matter of doubt, one should postpone the agreement and first get details about the company.
8) Once the agreement is done, implementation comes to picture. It is a form of feedback as in case of communication.
9) If any problem arrives during the working it should be handled properly and one should also have courage to accept the mistake if it is done by them.
Style : It is very important that after the negotiation process all the parties involved in the process should feel satisfied and feel that they have obtained the maximum benefit out of the process. This helps in keeping the good relationship afterwards (for future).
One most important aspect which has to be kept in mind during the negotiation process is to control emotions. It does not mean that emotion of the parties should be totally neglected but it should be kept in mind with a limit. Total deal should not be based on emotions. If the emotional aspects of the parties are not me then they will feel unsatisfied and relationship will become temporary.
Negotiating successfully…
If after negotiation both the parties feel that they found a goal which is mutually acceptable compromise which will give the output as much as they want, then negotiation is successful.
Sometimes in ideal situation it happens that both the parties are so humble that the other person wants what you are prepared to trade and you are prepared to give what other person wants. But, this is a rare situation as for business we want others should accept what we want.
But in any case it is not fair that one should only negotiate with the perspective of making the other person to accept what they wanted no compensation from their own side. Ultimately both sides should feel comfortable with the solution if the agreement has to be considered as win-win.
But, in business if we do not need any ongoing relationship with the other party, we can consider to have Win-Lose situation, if they lose they will be unlikely to work with you again.
Obstacles to Negotiation[/b]
The biggest obstacle for negotiation is conflict. Sometimes people fail to negotiate because they won’t be able to identify the opportunity for negotiation or they identify the opportunity but being poor bargainer they lack good negotiating skills or may be don’t understand the process fully.
Sometimes, it happens that parties often are unknown to each other or talk to each other. In such cases mostly its very difficult process. But, if we want the process of negotiation to be successful, both the parties should participate. This gives rise to conflicts.
But, we should assume that other side is willing to compromise before starting the negotiation process. If the parties keep suspicion and mistrust then the can’t do the process properly. It becomes very difficult to make concessions. This mistrust gives rise to emotional conflicts and frustration. So negotiators should understand the opposite party’s perspective properly.
Finally, the people involved in the negotiation process should be “right”, that is , positive attitude. This increases the probability that the process will be successful. First, all of the interested and affected parties must be represented. Second, negotiators must truly represent and have the trust of those they are representing. If a party is left out of the process, they may become angry and argue that their interests have not been taken into account. Agreements can be successfully implemented only if the relevant parties and interests have been represented in the negotiations.