Negotiation Process

What is Negotiation?

Introduction:

Negotiation means a discussion intended to produce an agreement. It is a decision-making practice among interdependent parties who do not share indistinguishable preferences. Through negotiation, the parties will decide what each will give & take in their relationship.

Definitions:

“Negotiation is a process in which two or more people or groups share their and interests concerns to reach an agreement of shared profit."

OR

“It is a face-to-face decision-making process between parties concerning a specific issue.”

IMPORTANCE OF NEGOTIATION:

Negotiation is the best formal process in which parties attempt to find a mutually agreeable solution to a conflict situation. As well as the professional business situation. It helps the parties to preserve and improve the relationship among others. Therefore it ends up on a win-win resolution. Negotiation reduces the stress and frustration of both parties.

“You often get not what you deserve, but what you negotiate."

FIVE STAGES OF NEGOTIATION

When negotiation involves significant or complex issues you should consider using the five stages process model. Negotiating consists of five stages as follows; 

1.    Preparation & Planning:

The first and most crucial stage is preparation & planning. We must keep in mind the following steps:

  I.    Clarify what you want & why:

Be clear about what you want and why. Gather data to support your position. Learn and practice the basics of negotiating well in advance.

II.    BATNA:

BATNA stands for the Best alternative to a negotiated agreement. Always decide your BATNA prepare to enter any negotiation. BATNA tells you when to accept and when to reject an agreement. When a proposal is better than your BATNA accept it otherwise reject it.

III.    Develop a frame:

Before going into the negotiation room, write out a list of questions that you need to ask. Frame your interests shared with the other party.

IV.    Create a script:

Writing down your answer and information for each element and bringing that with you will prove to be invaluable.

2.    Defining the Ground Rules:

In this stage, the following points should be kept in mind.

  I.    Set an agenda:

Decide where the meeting will be held and offer a possible agenda for how the time will be allocated and for which issue.

 II.    Agree on objective criteria:

The task at this point is to faintly agree to evaluate the different options based on objective criteria rather than on personal preferences.

III.    Agree on what to do if an agreement is not reached:

When an agreement is not reached at a mutually acceptable solution, the ground should jointly decide to suspend the negotiation.

3.    Clarifying and Justifying Your Case:

In this stage, parties should be kept in mind the following points.

  I.    Clarify your interest:

When you share your interest and expectations, you set the stage for the other party to be similarly open about their desires and reasons behind negotiation. Doing so also allows them to become fully engaged in this process.

The few verbal tactics described below will facilitate this negotiation stage

Ø   Use a form to make your case influential.

Ø   Use questions to understand others' interests.

Ø   Share significant information that supports your case.

4.    Bargaining and problem solving:

In the fourth stage, both parties are actively and positively involved in working toward a solution. At this stage both parties kept in mind the following points;

  I.    Focus on Benefits, not Problems:

During a negotiation, it would be wise, not to take anything personally. If you focus on problems, you will be able to see opportunities.

II.    Concentrating on Interests, Not Positions:

By concentrating on interest rather than positions, the parties may see that they are not as opposed as they thought at the Initial stage. It will reduce conflicts.

III.    Open-Mindedness:

To resolve conflicts, the parties must remain open-minded. Positively look forward to generating creative ideas to solve the issues.

IV.    Win-win Attitude:

Creative options for mutual gain by adopting a win-win attitude In case of complex conflicts. Win-win attitudes mean no more discussion by both parties.

V.    Objective Criteria:

When Interests are directly opposed, the parties should use objective criteria to resolve. Their differences or select options form using principles.

5.    Closure & Execution:

In this final stage, the terms of the agreement that has been validated. Unfortunately, many oversee and pay no heed to this step thinking that once an agreement is reached, it will be implemented automatically. This step can lead to errors in the future. The only way to ensure that both parties know what they're agreeing to take specific steps:

• Discuss document what you agreed on. 
• Scrutinize the key points to avoid misunderstanding. 
• Unfold clearly all terms of the agreement. Discuss Issues that the parties hedged on. 
• Transform all work in written form. 
• Review the written agreement before signing to certify clarity and pledge to what was negotiated.

By following these five steps and advice enclosed therein, the possibility of arriving at an agreement will be increased that meets the needs of all parties involved in the negotiation.

Concluding

From the above discussion we come to know that by following the above steps, you can organize yourself for conflicts negotiation. The more prepared you are, while negotiating, the greater are the chances that you will get what you deserve and bargain for.