Effective Negotiation And How To Gain It

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Negotiation is an open process through which two or more parties who are in conflict over outcomes attempt to reach agreement. It is the constructive, positive alternative to haggling or arguing; it is aimed at building an agreement rather than winning a battle.


Companies have to negotiate in various areas of organizational conflict. Negotiation is an open process through which two or more parties who are in conflict over outcomes attempt to reach agreement.

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Rejoice corporation is one of the biggest factories on the East coast. Rejoice corporation put out a demand for offer for businesses to clean and paint factory ceiling in a period of two years. Once a contractor is chosen, Rejoice Corporation begins a negotiation process as a reason to facilitate the best service and price on the huge task.

Rejoice corporation has received various offer for the factory painting job. Rejoice corporation has make a decision to enter negotiations with Njiez Paint. . Negotiation process is made up of five steps: (1) preparation and planning, (2) definition of ground rules, (3) clarification and justification, (4) bargaining and problem solving, and (5) closure and implementation

Preparation and Planning

In negotiation process preparation and planning is the first step. Before you begin negotiating, you need to do your research. What’s the nature of the conflict? What’s the history leading up to this negotiation? Who’s involved and what are their perceptions of the conflict? What do you want from the negotiation? What are your goals?

At this point, both parties will prepared and build up the information needed to have an effective negotiation. Rejoice corporation and Njiez Paint both parties require to prepare fully for the negotiation.

Information can be very powerful in negotiations and facilitate add legality to declares. Both of the companies should look into each other’s history and try to find out what the opening offer for the paint job will be. Njiez Paint needs to find out the highest sum Rejoice Corporation is ready to pay for the factory paint job; whereas Rejoice Corporation needs to find out the lowest sum Njiez Paint will take for the job.

Definition of Ground Rules

Once you’ve done your planning and developed a strategy, the next step is to begin defining with the other party the ground rules and measures of the negotiation itself. In this step, they will establish rules and procedures for the planned negotiation. Concern will be given to questions, such as: Where will it take place? Will time constraints exist, if any, will apply? To what matters will negotiation be limited? Will you pursue a definite procedure if an impasse is accomplished? During this period, the parties will also exchange their first proposals or demands.

Furthermore, both parties will find out the price that should be the starting point for the negotiation. And also, Rejoice Corporation will need to uncover the services provided by Njiez Paint which is the lowest price. Njiez Paint should agree the opening offer or the starting price of the negotiation for the job that would last for one day, if not Rejoice Corporation consider a different vendor.

Clarification and Justification

Once you’ve established your rules, the next step is clarification and justifications, the situations of both parties are talk about at length. Each part will get a chance to clarify, justify and sustain their request. It should be argumentative in this side of the negotiations, but instead, it should give the chance for each part to notify and educate each other their position. Rejoice Corporation beliefs that it would take D58, 000 for the factory job to be complete. So therefore, Rejoice Corporation provide a documentation to show Njiez Paint what the previous vendor charged.

Bargaining and Problem Solving

“Essence of the negotiation process is the actual give-and-take in trying to hash out an agreement”. (Stephen P. Robbins , Timothy A. Judge, 15 Edition). Concessions will unquestionably need to be prepared by both Rejoice Corporation and Njiez Print in the bargaining and problem solving.

Closure and Implement

“The final step in the negotiation process is formalizing the agreement you have worked out and developing any procedures required for implementing and checking It.” (Stephen P. Robbins , Timothy A. Judge, 15 Edition) This requires both Rejoice Corporation and Njiez Print on hammering out the details in a formal contract. For most cases, though, closure of the negotiation process is not anything more formal than a handshake.

Guidelines for Effective negotiation

Understand your Mission

To participate in a productive negotiating experience, you must have clear views about your aims and negotiation outcome. To figure out these, you have start by promoting a comprehensive of your portion and wide corporate mission. entering into a dialogue without comprehension heighten the danger that your endeavor will achieve a narrow set of goal's that will not really accelerate the long term price of credit of your company. By realizing where your company is headed, you can repair your objectives and negotiation way to your purpose.

Understand their Mission

Knowing how to prepare a business is very important. However, by knowing your mission and short-term goals of particular person on the other side of the table is equally significant. With the lack of understanding, your danger in participating in an inefficient dialogue at best and an offensive one at worse..The necessary knowledge and method research about the others can make a deviation between closing the deal and ending up short of your goal.

Be Authentic to build credibility and Trust

One of the main guiding principles that affect our modern negotiation is genuine. Many people involve in a dialogue without honest. While you may want to achieve the short-term, you will end up spoiling your company's and your character. You make sure that, you are straight forward person who deals in good faith, and who will ensure and provide a mechanism to improve productive, long-term business partnership. Moreover, you will able to create a career for yourself, in order to hire and retain employees who have a good character for honesty and sincerity.

Aim for a win-win.

One of your best methods in working towards a particular deal is ensuring that your counter party receives such benefits. by knowing that you have achieve a positive outcome from your partners, you realize that, you have increase the point that matter most. Once the positive outcome is done, you have lay the strong foundation for a positive working relationship.

Create a plan for Evaluation

Finally, after making a negotiation, you should able to make constructive mechanism to evaluate both parties after the deal is done. Adhering to measure the success of particular relationship is a way to stick to payment terms, and others rules.


In every dialogue and counterparty is defer, and there is no promise that your future partner will be base on reason. However, by setting up these particular guidelines in mind, you will able to prepare for your next negotiation and thereby improving from past experience concerning about your business. When you negotiate wisely you engaged both parties in discovering the real value that particular business.


  1. Five Useful Guidlines for Successful Negotiating. (n.d.). Retrieved from Supply Chain Management Rewiew: http://www.cmr.com/article/five_useful_guidelines_for successful_negotiating
  2. J., A. (2018, May 2). What is Negotiation?-The Five Steps of the Negotiation Process. Retrieved December 25, 2018, from Study.com: study.com/academy/lesson/what-is-negotiation-the-five-steps-of-the-negotiation-process.html
  3. Stephen P. Robbins , Timothy A. Judge. (15 Edition). Organizational Behaviour. New York: Pearson.
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Effective Negotiation And How To Gain It. (2021, September 24). Edubirdie. Retrieved July 23, 2024, from https://edubirdie.com/examples/effective-negotiation-and-how-to-gain-it/
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