Theory and practices of negotiation Essay Example for Free

Theory and practices of negotiation Essay Definition When you hear the word negotiation, what comes first to mind? Negotiation is almost always an everyday transaction being dealt with by each and every one of us. Indeed, how often do you negotiate often, seldom, or never? Everything in life is negotiated, under all conditions, at all times: from asking your parents to bring you to the shopping malls to take out the morning garbage to driving in the express lane in rush-hour traffic, from determining what time to schedule an appointment with a client to deciding which tv show to watch with your family—to some extent, every facet of life is linked with one’s using of negotiation. Negotiation occurs whenever people exchange ideas with the intention of changing relationships or whenever they confer for agreement. Another definition expanding slightly the above meaning of negotiation is to note that negotiation is conducted neither to widen nor to breach the relationship, but to form a new or different configuration. In short, most of us are constantly involved in negotiations to one degree or another for a good part of any given day. Negotiation should be considered as a positive way of structuring the communication process. It is usually more than helpful in one’s work environment and in closing deals with new clients or prospects. Win-win negotiation skills are assets to a company especially if you will be in-charge of marketing new and pioneer products to the market. Effective negotiation helps you to resolve situations where what you want conflicts with what someone else wants. The aim of win-win negotiation is to find a solution that is acceptable to both parties, and leaves both parties feeling that theyve won, in some way, after the event. Preparing for a successful negotiation†¦ Depending on the scale of the disagreement, some preparation may be appropriate for conducting a successful negotiation. For small disagreements, excessive preparation can be counter-productive because it takes time that is better used elsewhere. It can also be seen as manipulative because, just as it strengthens your position, it can weaken the other person’s. However, if you need to resolve a major disagreement, and then make sure you prepare thoroughly. Using our free worksheet, think through the following points before you start negotiating: Goals: what do you want to get out of the negotiation? What do you think the other person wants? Trades: What do you and the other person have that you can trade? What do you each have that the other wants? What are you each comfortable giving away?   Alternatives: if you don’t reach agreement with the other person, what alternatives do you have? Are these good or bad? How much does it matter if you do not reach agreement? Does failure to reach an agreement cut you out of future opportunities? And what alternatives might the other person have? Relationships: what is the history of the relationship? Could or should this history impact the negotiation? Will there be any hidden issues that may influence the negotiation? How will you handle these? Expected outcomes: what outcome will people be expecting from this negotiation? What has the outcome been in the past, and what precedents have been set?   The consequences: what are the consequences for you of winning or losing this negotiation? What are the consequences for the other person? Power: who has what power in the relationship? Who controls resources? Who stands to lose the most if agreement isn’t reached? What power does the other person have to deliver what you hope for? †¢ Possible solutions: based on all of the considerations, what possible compromises might there be? Negotiating successfully†¦ The negotiation itself is a careful exploration of your position and the other person’s position, with the goal of finding a mutually acceptable compromise that gives you both as much of what you want as possible. Peoples positions are rarely as fundamentally opposed as they may initially appear the other person may have very different goals from the ones you expect! In an ideal situation, you will find that the other person wants what you are prepared to trade, and that you are prepared to give what the other person wants. If this is not the case and one person must give way, then it is fair for this person to try to negotiate some form of compensation for doing so – the scale of this compensation will often depend on the many of the factors we discussed above. Ultimately, both sides should feel comfortable with the final solution if the agreement is to be considered win-win. Only consider win-lose negotiation if you dont need to have an ongoing relationship with the other party as, having lost, they are unlikely to want to work with you again. Equally, you should expect that if they need to fulfill some part of a deal in which you have won, they may be uncooperative and legalistic about the way they do this.