Strategies of Negotiations

Strategies of dialoguesAbstr boutSince aboriginal babyhood we stand learned to reason although we probably didnt re tout ensembley realize it. While the tactics we utilise when we were young were more on an emotional basis we still knew what we requiremented and how to get it. We continue to negotiate byout our daily lives. Negotiation takes proper prepargondness in assign for it to be successful. Negotiations often split for numerous reasons however mainly because we either function to plan or fail to listen. on that pointfore it only makes sense that successful dialogues atomic spot 18 often driven by the prep and listening. Negotiations argon affected by the way individuals communicate, their influencing styles and the way they prep ar. While most negotiators go into a dialog weighing for a win-win covenant in that respect are propagation when companies discern to use hardball tactics no matter what cost. Its important to expose these tactics and feel ho w you testament deal with them when confronted.NegotiationsIn our daily life we negotiate whether its debating what cadence your child destinys to get up for school, with your boss over a project or what to provoke for dinner. How we delay each matchless of those talkss varies based on who were negotiating with. At home we usually dont go through the locomote of planning for the duologue as we must at work. Not because we shouldnt but because of the type of negotiating were doing. In this make-up well discuss what negotiation is. Then well discuss how to prepare for negotiations by gathering as much learning as practicable. Even when you prepare there are reasons negotiations fail and those pull up stakes be addressed a huge with how they succeed. Well also discuss things that affect negotiations analogous communication, influencing styles and dressing. Finally well discuss how non e rattling negotiator goes to the table looking for a win-win bargain.Negotiation is a process when twain or more parties who have their own objectives, goal or viewpoint research to arise a common ground and hit an agreement to resolve a matter of common concern or resolve a disagreement. Although individuals may not always realize it negotiations take place several multiplication throughout the day in our every day lives. Any cardinal who take aims to persuade another is the negotiator. From a very young get on we have learned to negotiate in order to get our way. Most parties choose to negotiate because they feel they idler get a better deal versus settling for what the other has/wants to give. Companies are no different. Companies want the most bang for their buck so to spill the beans. Many companies are better at negotiating than others. That may be due to the individuals they have negotiating on their behalf or it may be because of what theyre negotiating for. Since companies dont divulge their particularised strategies, tactics and techniques they use in negotiations one must have a plan. This plan must be gived outside the negotiation style. According to the Essentials in Negotiations, Effective strategy and planning are the most critical precursors for achieving negotiation objectives. (Lewicki, Barry, Saunders. 2007. P. 85)Many times parties go into a negotiation unprepared and end up make concessions that compromising diminishes the profitability of the agreement. Research shows that you can compass the go around negotiation outcomes by spending 5x seven-day preparing for a negotiation than you will actually spend in a negotiation. (Schroth. 2009) An important part of planning is having a clear and concise proposal before entering into the negotiation. There are many areas you need to consider a few of them are have intercourseing your objectives and the other sides objectives, determining what concessions you can make, how will you achieve your objectives, what will influence the result of the negotiation.It is frequently stated that cultivation is power. Therefore its important to have true information during a negotiation. You need to know what information you know that the other side does too, what information you know that the other caller doesnt have, what information do you have and does the other caller have to have prior(prenominal) to negotiating with each other. This is very important when you negotiate with parties who focus on charge. Theres other information that is important for pil low-toned slip whats important to the individual youre negotiating with, why do they need to close the deal, how is occupancy for the company during negotiations and how critical is it that they do business with you. The planning phase of negotiation entails all parties finding out as much information as possible prior to discussing any particular deal or alternatives. For example, if you knew that your company was the only one that could meet the requirements, its possible that you could negotiate a more favorable price. If you knew that the other caller recently change magnitude their production capability, you might be able to negotiate more favorable terms in bear for promising to purchase a definite quantity over a specific time period. By taking the time during the planning stage and listing what information you know and what youll need to know, you will have a better opportunity to negotiate well on your companys behalf.During the bargaining process it is unlikely for the parties to reach an immediate agreement since they usually dont have the same objectives. Usually, agreements must be made where each company must give and receive concessions and it is this is where the payoff of the end result will be determined. When getting lay for negotiations, its recommended you create a reasonable assessment of your perception of the end result. Decide what limitations you have based on your power in the negotiation and then figure out what you are ready and cap able of surrender to so that you reach an agreement that is , which pleases all involved.Concessions contain two parts cost and value. Although the words can be used interchangeably they do not mean the same thing. There are times when something is of low cost but great value and vice versa. Therefore its important to know when way out into negotiations what is of cost and what is of value to you and your company. During negotiations its possible to concede issues that have minimal dollar cost to you because they may be of great value to the other society. These are the types of concessions you want to proceed with. However, you want to avoid conceding to issues that are of great cost to you regardless of what their value is to the other parties. When planning for negotiations you need to ensure you know what could you slightly achieve, what is the probable outcome, what is your authority is, what concessions can you concede to and what is their value to some(prenominal) sides. Once that is completed you can then work on planning your strategy.Another part in the planning process is creating a strategy. Youve already established what your objectives are and now you need a plan on how to attain them. During the strategy planning you need to ensure you look at the negotiation from two sides. You cant go into a negotiation with blinders on only looking at it from your viewpoint. If so, you will most likely fail. You need to look preliminary and think round the other parties strategy.While planning you must be cognizant of the different negotiation tactics and figure out which ones you are comfortable using and realize which ones are being employ by the other party. We learn to negotiate at a young age in order to get what we want. The tactics used for children are emotional outbursts, stomping our feet, or drawing attention to ourselves in common in order to manipulate our parents. Its amazing that at such a young age we know what we want and what to do in order to obtain it. This approach is considered the positional negotiation and is one-sided. This type of negotiation is holding a strong position and not wanting to know what the basic needs are of the other party therefore we are determined to get the work the best deal at any expense. However, the emotional outburst approach needs to be left to the children and those characters on television. You can not have a relationship and a win-win situation with that approach therefore your negotiation has failed.Negotiations fail for many reasons. Depending on what is being negotiated, who is doing the negotiation and what is at stake. One of the main reasons negotiations fail is due to lack of planning. There is a manifestation failing to plan is planning to fail. That is exceptionally true when it comes to negotiations. Planning will ensure youre conscious of your objectives and requirements. Although you will need to be a quick thinker and be flexible, in case the other party make s a decision you didnt plan on, you cant just be spontaneous. You have to realize that both parties are interested in mutual problem solving. Remember that youre entering into a relationship therefore you need to be aware of the long-term implications of any decision you make.Negotiations also fail because one person does all the talking and they fail to listen. Its best to listen first and then declaim after hearing what others have to say. In John Maxwells book, The 21 Irrefutable Laws of Leadership, he discusses how positional leading speak first and need the influence of the real leaders to get things done. The real leaders speak later and influence the entire audience. (Maxwell, 2007) This is very important during negotiations if you want to influence the other party.Its important to illuminate the agenda prior to solving serious problems. You want to ensure everyone is on the same page and there is no confusion. You do not want to catch the other party off guard and engend er up issues theyre not ready to deal with. This will put them on the defense as if youre seek to trick them. You also must elucidate your authority. If you dont have the authority to make certain decisions the other party needs to know that upfront. You will be wasting everyones time if you have to get back with them after conferring with person who does have the authority. During negotiations its important not to put down others and use threats that cant be carried out. This once more will cause the other party to be defensive and create an unfriendly atmosphere. Deliberations will be limited and youre less likely to get what you want.One example of this as stated by Osama El-kadi is when the owner of Harrods, Mr. Al-Fayed, wanted the price to be reduced for Estee Lauder merchandise carried in his store. Mr Al-Fayed that demanded the Chief Executive officeholder of Estee Lauder lower the price or he threatened that he would no longer station the products in his stores. The CE O called his bluff by stating he would have all the goods picked up the following Monday from all his stores. Mr Al-Fayed realized that he made a common negotiator blunder and asked for forgiveness. He also apologetically asked that the CEO not pick up all the goods. Due to the amount of business that Estee Lauder did in Mr Al-Fayeds stores they had the advantage when they went into the negotiation. Mr Al-Fayed used a threat he wasnt ready to carry out and it would have been baneful to his business and Estee Lauders CEO knew this therefore he called the bluff. That is why you must be willing to go through with a threat if you make it. That is where analyzing your position and planning comes into play.Negotiations must be written down. That way both parties know what theyre agreeing to and neither party can argue that something wasnt part of the deal. This also avoids any confusion or misconstruction. Dont hold back information. That doesnt mean talk too much and give up everything however you must let them know what is on your mind. Sharing information helps to create a relationship between both parties. Dont compromise too quickly. Although you want to make a deal you dont want to be to hasty. Now that we discussed why negotiations fail well discuss how they succeed.Negotiations succeed because of proper planning. By spelling out your objectives, requests and what youll settle for youll be more prepared when going into a negotiation. Dont forget to know the same for the other party. Negotiations arent bypass term. You must be prepared to gain ones trust and create a long term relationship. If you wouldnt want to be treated specific ways make sure youre not behaving in that manner. You need to be, share information and concerns as well as listening to the other parties. Clarify any issues or questions you may have. By knowing the agenda you can prepare prior to the negotiation. Successful negotiations are made by soul the other party. Look at the other part ies viewpoint and you will be able to come up with a solution that is acceptable to all. As stated earlier listening to what the other party is saying so you can understand where theyre coming from. It is natural for one to want to talk but during negotiations its best to listen to the other party.In todays society we come across people with many different backgrounds. As much as wed like to think that everyone is the same were not. You need to be aware of the diversity that is encountered whether it is culture or expression. People from different societies may have a different perspective and tactual sensation on how a negotiation should go. In some cultures its important to gain a relationship and not discuss the negotiation right away. In America were quick to get right down to business and forget the getting to know one another piece. By knowing the culture and or language you can have a successful negotiation by breaking the barrier and preventing any misapprehension of wha t is said.Although the negotiation isnt a legal document make sure you write it down. Be brief, and concise about what was agreed upon. This will ensure you remember what the agreement was between the parties. In order for the negotiation to be a success you need to know what the what the position is of the other party and why they have that position. This will allow you to for create a win-win solution for all involved.Osama El-kadi states that Successful negotiation is all about constitution the game before hand. This is what differentiates the men from the boys when it comes to major negotiation. This approach is called tactical-positioning leading to winning (El-kadi.). Mr El-kadi explains this with an example of how to create a winning position prior to the negotiation. He gives a story of Mr Al-Fayed and his decision to purchase Harrods. Mr Al-Fayed didnt decide one day to walk in and purchase Harrods. He had designed a plan which took three geezerhood before he moved on it. He worked for someone on the board. He befriended board members, created credentials, gained trust, and when the time was right he advanced on his plan. By this time he was friends with the deputy hot seatman of the stand of Fraser Group. He went to him one day and asked how much the company was worth. When the deputy stated they had an offer Mr Al-Fayed made a counter offer for almost twice the original offer. By Mr Al-Fayed was fully prepared by establishing a winning position prior to the negotiation. There are many things that affect negotiations.Negotiations are affected by the differences in people or the difference portrayed by people. First is communication. Communication isAny act by which one person gives to or receives from another person information about that persons needs, desires, perceptions, knowledge, or emotional states. Communication may be intentional or unintentional, may involve conventional or maverick signals, may take linguistic or nonlinguistic forms, and may occur through spoken or other modes. (National Joint, 1992, p. 2)During negotiations the most visible and sometimes the most important type of communication is the non-verbal communication.Non-verbal communications are those visual signals which include facial expressions, body language or even the intonation of your voice. In the Essentials of Negotiation book it discusses three important non-verbal behaviors. They include making eye turn over, body posture and encouraging. Eye contact can say a lot about someone. Many times people who are timid or dishonest do not look people straight in the eye when they speak. They look up, down or around so people cant see in to them. Looking someone in the eye is important so they know you are listening to them. However, you need to know the party you are negotiating with because in some cultures such as the Japanese, prolonged eye contact is considered rude and is in general avoided (Payne, para. 2). Body posture is another way to let people know youre paying attention. If youre slouched in the chair and look lackadaisical business negotiations arent going to go well because it will appear to the other party as you dont care. Lastly encouraging is non-verbal communication used by nodding your head or woful you hand to let the other party know you hear what theyre saying. Although you may not verbally be saying anything during the negotiation your body is saying a lot. Those non-verbal communications could make or break your negotiation. anyhow non-verbal communication the language can affect your negotiation. Many people go into negotiations trying to use monstrous words to either impress or possibly confuse the other party. Its important that everyone in the negotiation can understand what is being said. Trying to sound as if youre educationally in a higher place the other party is going to affect they way they think of you and the outcome of the negotiation. Also with diverse society we have and the num ber of different cultures its important everyone understands what is being conveyed. What you believe you may be saying may mean something all told different to someone of another culture. Even if they can speak English the translation is different.According to with child(p) Scope Consulting, studies show that successful influencers use two clusters of language styles during negotiations. Just like in the supplement chain management they are the free energy and pull style. You have a high push and low pull style if you give new ideas, information or shut the other person out. On the other hand you have a high pull and a low push if you seek information, build on ideas from others and test understanding. The style of influencing used will be dependent on the negotiation and it is important to be able to use either style. The suitability and characteristic of each style varies. The push style is more of a high risk, low commitment and wins-lose situation and is best used for short term negotiations. The pull style is more of a low risk, win-win situation and best utilized for long term. Another area that can affect negotiations is preparation. This has been reiterated a number of times throughout this paper because it is so important. Negotiations begin way before you sit at the table. It is a procedure that develops over time. It isnt a one time occasion. Gathering information and having adequate time to negotiate. You cant expect to go into a room and have a final agreement in 30 minutes. Negotiations take time. The whole purpose of a negotiation is to reach a win-win situation. Therefore you need to be aware of the win-lose styles and avoid them. Sometimes companies may not appear to be looking for a win-win situation and will use hardball tactics during their negotiations.As a negotiator you have to be able to identify the hardball tactics and decide how you want to insure them. An example of a company who often uses hardball tactics is Costco.Although most of the negotiations with suppliers are kept private latterly Costco has been announcing their view on the situation. Recently Costco pulled the Coca-Cola products off the shelf to prove a point. The companies are negotiating over the price customers should pay for the products. Costco never accepts a price increase from a supplier without examining every alternative possible to hold the line on price. At Costco, nothing is ever marked up 14% above costs. (Sarasohn-Kahn. 2009, para 7) Costco feels that if they cant give the value their customers deserve than they wont sell that product. Even though Coca-Cola is a large company and a valued supplier Costco is willing to take the risk and publicly declare the issues it is having at the negotiation table. This is one hardball tactic used. Coca-Cola now has to decide whether to ignore the tactic, continue with discussions or rejoinder with a different hardball tactic. The negotiation between Costco and Coca-Cola hasnt been finali zed so whether this hardball tactic works in this situation has not yet been determined. When playing this way it is important to understand the possible impact if this approach fails. Although negotiations can be successful this way if you really want to be successful during your negotiation process you must find out what the other party wants and figure a way to give it to them while getting what you want too.From our childhood years we negotiated with our parents to manipulate them into giving us what we wanted. Whether that was candy in a store, letting us stay up late, or buying that toy we really didnt need. At a young age we didnt really know what negotiation was all we knew was what we wanted and how to get it. As we figured out what negotiation was it was then that we had to start preparing for it. We couldnt react on an emotional level and expect to get what we wanted. Even though we should plan for negotiations they sometimes still fail as they did with Mr Al-Fayed who di dnt realize he was weaker during his negation process. In his case he actually failed to plan and know what is position was prior to entering into the negotiation. However if you do the proper preparation you will most likely succeed in your negotiation. Negotiators need to be knowledgeable about what affects negotiations like verbal and non-verbal communication and push/pull influencing styles. It may not always be what you say that determines whether you create a win-win situation. Lastly, we discussed how some companies choose to use hardball tactics regardless of the potential impact therefore you need to be able to identify them and know how to handle them before you go into the negotiation.