Introduction To Effective Negotiation Process

Negotiation refers to the process where two or more parties with different goals and needs discuss an issue to arrive at a compromise or a mutually acceptable solution. In the business world, negotiation skills are critical in both formal transactions and day to day information interactions. Chebet, Rotich and Kurgat (2015) explained that the term ‘negotiate’ is derived from the Latin infinitive ‘negotiaari’ that means ‘to trade or do business’; this verb itself was derived from another word, ‘negare’, which translates to ‘do deny’ and a noun, otium, that means ‘leisure’. In essence, the earliest businessmen would deny leisure until that deal was closed. Negotiating skills play a vital role when it comes to transactions, service delivery, terms and conditions, legal contracts, etcetera. Lewicki, Saunders, Minton, Roy and Lewicki (2011) wrote that excellent negotiations are amongst the significant drivers of business success as they help to build better relationships, deliver long-lasting, quality solutions and avoid future issues and conflicts.

In an online article published, Shonk (2019) exclaimed that people understand the importance of negotiation in business particularly when it comes to negotiating their starting salary and benefit. But, negotiating in business goes beyond personal benefit, the best negotiators in business acknowledge that there are bigger concerns. It is important to keep in mind that the nature of negotiation is two-way: give and take. An effective negotiator aims to generate a courteous and constructive interaction that will result into a win-win situation for all parties involved. When negotiating, the approach should show goodwill regardless of the difference in interests of the parties involve. The end result of a good negotiation is satisfaction from each of the parties. Mutual respect and trust are formed between the parties afterwards and thia increases the likelihood of doing business with each other again.

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Negotiation by nature involves the ability to be persuading or influencing of other people. Chebet, Rotich and Kurgat (2015) added that many scholars define negotiation differently but in essence, negotiation is about getting what is wanted; it is a process that leads to an end.

In relation to this, the negotiating process involves balancing matters between the parties involved so that the negotiator not only gets what he or she wants but at the same time gets what he or she wants in the best possible way (Chebet, Rotich and Kurgat, 2015). Negotiation is more focused on the process rather than the end and because of this, organizations must pay more attention on how to get to the outcome they want whilst still not losing their sights on the goals.

It is important to keep remember that negotiation especially in business is every-changing. This generates the sense that something is always happening and there is not just method or plan to go about it (Chebet, Rotich and Kurgat, 2015). In reality, there are different elements that impact the negotiation process and these elements may range from people to the power structure. Other common factors include; the personalities involved, the setting, and the information. The concept of time also plays a big role in determining the success of negotiation in many business scenarios because different business personalities can be very critical on deadlines. In the context of making negotiations in business on an international scale, factors like professional and cultural expectations may play major roles in the effectiveness of negotiation. In a highly-globalized business world such as today, embracing cultural diversity is one of the most important drivers of successful negotiation. Shonks (2019) discussed that there are a number of problems that could arise from cultural barriers in the context of these kinds of negotiations and they include: severe misunderstandings arising from language and cultural barriers, conflicts generated by different concepts of time, accidental violation of one anothers cultural norms, etcetera. The challenge for an effective negotiator is to be able to overcome these cultural barriers in order to achieve a desired outcome.

In relation to the principles of effective negotiation, Silverman (2017) outlines seven elements: ‘knowing what you are trying to accomplish’, ‘developing a game plan even prior to the start of the negotiation’, ‘studying and understanding the other party’, ‘working towards a win-win’, ‘avoiding negotiating with oneself’, ‘reacting strongly to an untrustworthy party at the negotiating table’ and ‘remembering that it takes two to negotiate or re-negotiate a deal’. These generally encompass the whole negotiating cycle including the personalities involved. Michael (2009) added that in negotiating, preparation is vital. Knowing about the party on the other side of negotiating table in order to maximise one’s strength and the other party’s weakness. It is important to do your due diligence and research about the other party, learn about their history and tendencies. According to Michael (2009) if permissible, talk to business associates who have dealt with the party before, many negotiators develop patterns and specific styles that could be used as an advantage. Tjan (2009) refers to this as the ‘background homework’. Prior to the start of negotiation, it is critical to understand the interests and positions of the other side relative to one’s interest and position. Negotiation is a manifestation of business communication, which is why it is always two-way. Aside from knowing the interest and position of the other party, listening is also a critical skill of its own in negotiating. Harroch (2016) discussed that it is important to listen and understand the issues and point of view of the other party. The effective negotiators tend to be the one who genuinely listen to the other side and as a result come up with the appropriate responses.

Negotiation can be applied even in simple day to day activities. In the real world, negotiating is not only practiced in business but in different aspects including politics. In an article, Pon Staff (2019) cited the talks with North Korea as a real life example of negotiation. Starting in 2011, The United States of America negotiated for many months with the leader of North Korea, the drawn-out talks started in the leadership of Kim Jong-II and after he died they resumed under the new era of his son, Kim Jong-un. Fox (2013) concluded that life is a series of negotiation. On an individual application, employees negotiate their salaries and benefits with their employers all the time. Ceniza- Levine (2011) explained that both employees and employers are trying to get the best from one another. The employee wants to get the most competitive salary package possible, while employers are looking for the best way to maximize the company goals while being cost-effective. And as a result, before both parties arrive at a final salary package, they undergo a series of negotiation. But regardless, whether the (negotiation) skill is applied to business or any other disciplines, one thing is for sure, negotiation is part of everyone’s everyday lives. Its importance is unparalleled which is why people should strive to become effective negotiators.

References

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2. Ceniza-Levine, C. 2011. 3 Real-Life Successful Salary Negotiations. Forbes. Viewed: July 1, 2019 < https://www.forbes.com/sites/work-in-progress/2011/11/22/3-real-life-successful-salary-negotiations/#423209603fc1>
3. Chebet, W.T., Rotich, J.K. and Kurgat, A. 2015. Negotiation Skills: Keys to Business Success in the 21st Century? European Journal of Research and Reflection in Management Sciences Vol. 3 No. 3
4. Fox, E. 2013. The Most Important Negotiation in Your Life. Harvard Business Review. Viewed July 1, 2019 < https://hbr.org/2013/09/the-most-important-negotiation>
5. Harroch, R. 2016. 15 Tactics For Successful Business Negotiations. Forbes. Viewed: July 1, 2019 from: https://www.forbes.com/sites/allbusiness/2016/09/16/15-tactics-for-successful-business-negotiations/#bd6e08325281
6. Lewicki, R.J., Saunders, D.M., Minton, J.W., Roy, J. and Lewicki, N., 2011. Essentials of negotiation. Boston, MA: McGraw-Hill/Irwin.
7. Michael, G. 2009. The Art of Negotiating, Entrepreneur Asia and Pacific. Viewed: July 1, 2019 from: https://www.entrepreneur.com/article/203168
8. Pon Staff. 2019. 10 Top Negotiation Examples. Harvard Law School. Viewed: July 1, 2019 < https://www.pon.harvard.edu/uncategorized/famous-negotiators-feature-in-top-negotiations-of-2012/>
9. Shonk, K. The Importance of Negotiation in Business and Your Career, Harvard Law School, viewed: July 1, 2019 < https://www.pon.harvard.edu/daily/business-negotiations/the-importance-of-negotiation-in-business/>
10. Shonk, K. Dealing with Cultural Barriers in Business Negotiations: How to overcome cultural barriers to communication, Harvard Law School. Viewed July 1, 2019 < https://www.pon.harvard.edu/daily/business-negotiations/dealing-with-cultural-barriers-in-business-negotiations/>
11. Silverman, S. 2017. 7 Principles of Effective Negotiation. The Business Journal. Viewed: July 1, 2019
12. Tjan, A. 2009. Four Rules for Effective Negotiations, Harvard Business Review. Viewed: July 1, 2019 < https://hbr.org/2009/07/four-rules-for-effective-negot>