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Negotiation in business communication

Introduction

Negotiating is an activity that all managers need dozen of time every day. The aim of negotiation is to explore a situation to find out solution that is acceptable by both parties.
Negotiation normally occurs between companies, groups or individuals because one has something the other wants and is willing to bargain to get it.

Negotiation is one of the key skills of conflict resolution or dispute resolution and is central to success because it combines communication, persuasion and resolution.

Definition

Negotiation is the process in which two or more individuals or group, having both common and conflicting goals, state and discuss proposal for specific terms of a possible agreement.

Good negotiation skills are essential for the smooth running of any business. One should be able to negotiate in many different situations to get the results that are wanted and needed every time.
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Needs

Negotiation is undoubtedly, a part of our everyday life. Some needs to negotiate. These are given below


• Deciding a date: - Deciding a date for the next meeting of our project group.

• Realistic deadline: - Agreeing on realistic project deadline.

• Strategic alliance: - Deciding on a strategic alliance with another firm.

• Work rules: - Agreeing about a change of work rules with the union.

• Work timing: - Deciding the new work timings for shop floor employees.

• Location: - choosing a new location for the office.
Basic approaches to negotiation


‘In a cooperative situation, the goals are so linked that everybody SINKS OR SWIMS’ together, while in the competitive situation, if one swims, the other most sinks.


MORTON DEUTSCH, E.L. THORNDIKE, professor and director emeritus of the international center for cooperation and conflict resolution at teachers college, Columbia University.


The two basic approaches to negotiation


1. Integrative (win-win)

2. Distributive (win-lose)


Integrative

In these negotiations, the prospects for both sides’ gains are encouraging. Win-win negotiations are characterized by open and empathetic communication. Win-win negotiations are commonly referred to as partnership agreements.


Distributive

In these negotiation, each of the parties seeks maximum gains and, therefore, seeks to impose maximum losses on the other side. This approach often produces agreements that are inherently unstable, as represented by the triangle balanced on its apex.


Mixed approach

In real life negotiations, both of these processes tend to be at work together. It needs to be emphasized that many situation contain elements of both distributive and integrative negotiating.

For example: - In negotiating a price with a customer, to same degree your interest oppose the customers but to some degree you want your interest to coincide (you want both your customer and you to satisfy)





Six basic steps to negotiation


It is now time to look at the six basic steps involved in the negotiating process. Each step, regardless of the time, it takes is required.


Once you understand the step and their purpose, you will be able to effectively meet any negotiation challenge.


These steps is given below


• Getting to know one another

Negotiating is like any other social situation that has a business purpose. It moves more smoothly when the parties take time to get to know one another.

• Statements of goals and objective

Negotiation normally flows after opening, into a general statement of goals and objective by the involved parties. The parties are just beginning to explore the needs of the other. You need to build on atmosphere of cooperation and mutual trust.

• Starting the process

A skilled negotiator will study the issues closely before negotiation begin in order to determine where the advantages lies, in so far as splitting or combining issues.

• Expression of disagreement and conflict

Once the issues have been defined, disagreement and conflict will often occur. Good negotiator never try to avoid this phrase because they realize that this process of give and take is where successful deals are made.

• Reassessment of compromise

At the some point, normally, one party will move toward compromise. The other negotiator should listen carefully to see if an attempt to compromise is being offered. The response should be carefully.

• Agreement in principle or settlement

When an agreement is reached, it will be necessary to affirm it. This normally means placing the agreed terms in writing. If possible, this should be done while the parties are together so they can agree on the language.




Guideline for successful negotiation

In the business world, you must negotiate constantly with clients, suppliers, colleagues and even supervisor. Some guide lines for successful negotiation given below.

Setup your goals

Be sure that you go into negotiations with concrete goals in mind. This can be divided into following cascade.
What is the most important goal for me.
What is actually negotiable
What are alternative
What do I want as compensation

Genuinely communicate your own strengths

Make sure that communicated, regardless of whether others have the some strengths or not today’s negotiations coaches recommended saying what you really think.

Pick the right movement

When preparing for negotiations, do not just think about which arguments to use, but think about when in the negotiation process would it be the best time to use them.

Be fair and objective

When negotiating, keep cool and do not let your emotions get the best of you. if you feel provoked or insulted by the other party, change the subject and address the negotiation climate rather than the subject matter.

Listen attentively, ask questions, repeat and summarize
In order to effectively navigate the other party through the negotiations, keep the following pointers in mind:
What would you suggest

Conclusion
Negotiation is the process where by interested parties resolve disputes, agree upon courses of action, bargain for individual or groups or attempt to craft outcomes which serve their mutual interests. Negotiation is a universal human activity and is need in every relationship that we form.

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