What is Negotiation

NEGOTIATION

What is Negotiation

The Use of Power Negotiation:
A person, who has power, particularly over the allocation and use of resources, must be willing and able to use that power to make decisions and take action. If they refuse, or are unable to do this, conflict will arise because processes that are essential to the running of the workplace do not take place. Don’t depend solely on your workplace power source or your personal power, develop strategies that achieve results. Use your communication skills to present your ideas without producing conflict.
Five-step approach to negotiation
Negotiating is a process in which two or more people (or parties) with common or conflict interests decide on a specific issue or business transaction. This may at times produce win-win, win-lose-lose-win or lose-lose outcome. The five-step approach is more suited to a situation where the issue is more important than the relationship: for example, it is appropriate for purchasing a car but not for resolving crises with your partner. These five stages of the negotiation process are shows in figure

Plan for Negotiation

Careful and thoughtful planning is essential before you negotiate. First, create a set of clear objectives to steer you towards the results you want. Prepared objectives allow you to progress through the five stages of negotiation. Think about how your objective can be achieved.
Gather information that helps you:
• Give the other party relevant information
• Make sure that this information is accurate and objective
• Develop and maintain good relationships with the other party
• Consider the other party’s point of view.
• Organize all the relevant information as this provides the ideal starting-point for your discussion. Plan your approach and the sequence of issues you wish to raise.
• Assess the other party’s objectives.
• Identify links and common ground. Anticipate the party’s probable response to each of your issues, and prepare answers.

Discuss-Negotiation

Set the communication climate by exchanging greetings; it aims to establish trust and confidence.  By being sociable you are able to establish a tension-free atmosphere.  Review proceedings leading up to the meeting.  Iron out any differences in ‘facts’ before you start to negotiate.  Confirm both parties’ broad objectives and feelings.  Listen carefully. Identify areas of agreement and try to establish some rapport with the other party.  Your intention is to establish common ground before moving into areas of difference.

Propose-Negotiation

Define the issues and specify in detail what you wish to resolve. Link issues to the other party’s objectives and focus on interests rather than position. Detail with one issue at a time.  Try to keep to the point and avoid generalizing. Paraphrase their message to check that you understand it correctly. Summarize the content, ideas and feelings being communicated.

Negotiate the Issue-Negotiation

Start by asking for what you want, but accept that your goals may have to be modified or compromised.  Communicate your intention with the other party to produce a solution that is satisfactory to both. Remember the phrase: ‘if… then….’ separates the people from the issue.  Try to generate as many options as possible – this gives both parties room to negotiate a solution.  Throughout the discussion keep summarizing the points to confirm understanding, particularly when complex issues are involved. Take the time to confirm what you have negotiated so far. Unless agreement is fully understood by both parties, the settlement may not last.

Confirm-Negotiation

Once the agreement is concluded, confirm that each party is committed to it.   The five-step approach to negotiation will help you negotiate more effectively.  Good negotiation strategies enable you to solve the problem in such a way that both parties win. Clearly state your needs and goals as you negotiate and listen to those expressed by the other party.  Allow each party to evaluate the other’s needs and goals and the areas of common interest. People who negotiate honestly treat one another as equals. Another approach to negotiating is principled bargaining.  
1. It should be a wise agreement, if possible.
2. It should be efficient.