Negotiation in Business Communication Skills

Negotiation in Business Communication Skills!

1.  What is negotiation? 

            2. What are the negotiation styles? Explain? 

            3. Explain the negotiation process!

4. What are the characteristic of negotiation?
5.  Explain the positive and negative effect in negotiation!

Answers:

1      1. Negotiation is a discussion between two or  more people who are trying to work out a solution to their problem.

  2. There are some negotiation styles:

a. Avoiding

• Primarily concerned with avoiding intra-personal conflict
• Is useful when the the stakes of a negotiated outcome are not worth the investment of time or the potential for igniting conflict
• Characterized by sidestepping, postponing, and ignoring the issue or situation
• Effective when avoidance of the situation or issue does not greatly affect the relationship and short term task is not important to either party

b. Accommodating

• Primarily concerned with the relationship between the parties
• Easily gives the other side concessions in hopes of strengthening the relationship, but often gives away too much too soon
• Tend to neglect their own needs in favor of helping the other side get what they want
• Effective when long term relationship is important and short term task is not important

c. Compromising

• The style falling between accommodating and competing
• Useful when time is a concern or there is a strong relationship between the parties
• Requires concessions from both sides to find agreement
• Does not focus on legitimate or fair standards for settlement and instead utilizes “Meet in the middle,” or “Split the difference” solutions

d. Collaborating

• Focuses on using problem solving methods to create value and discover mutually satisfactory agreements
• Utilizes the creativity of both parties to find solutions to both sides’ interests
• Tend to be assertive about their needs and cooperative with the other side
• Effective when long term relationship is important and short term task is important

e. Competing

• Primarily concerned with achieving their own goals regardless of the impact on others
• Views negotiation as a win/lose rather than a problem solving activity
• Often utilize manipulative tactics such as attacks, threats, and other aggressive behavior to achieve their objectives
• Effective when long term relationship is not important and short term task is important

3    3. There are some negotiation process:

a. Planning your negotiation

• set your objectives clearly in your own mind (including your minimum acceptable outcome, your anticipated outcome and your ideal outcome)
• determine what you'll do if the negotiation, or a particular outcome, fails
• determine your needs, the needs of the other party and the reasons behind them
• list, rank and value your issues (and then consider concessions you might make)
• analyse the other party (including their objectives and the information they need)
• conduct research and consult with colleagues and partners
• rehearse the negotiation
• write an agenda - discussion topics, participants, location and schedule.

 
b. Engaging with the other party during the negotiation

• Introduce yourself and articulate the agenda. Demonstrate calm confidence.
• Propose - make your first offer. The other party will also make proposals. You should rarely accept their first offer. Evidence suggests that people who take the first proposal are less satisfied and regret their haste.
• Check your understanding of the other party´s proposal.
• Remember your objectives.
• Discuss concepts and ideas.
• Consider appropriate compromises, then make and seek concessions.
• Suggest alternative proposals and listen to offered suggestions.
• Paraphrase others' suggestions to clarify and acknowledge proposals.
• Give and take.

c. Closing the negotiation

• look for closing signals; for example
• fading counter-arguments
• tired body language from the other party
• negotiating positions converging
• articulate agreements and concessions already made
• make 'closing' statements; for example
• 'That suggestion might work.'
• 'Right. Where do I sign?'
• get agreements in writing as soon as you can
• follow up promptly on any commitments you have made.

 4. There are some characteristics of negotiation:

a.       There are a minimum of two parties present in any negotiation.

b.      Both the parties have pre-determined goals which they wish to achieve.

c.       There is a clash of pre-determined goals, that is, some of the pre-determined goals are not shared by both the parties

d.      There is an expectation of outcome by both the parties in any negotiation.

e.       Both the parties believe the outcome of the negotiation to be satisfactory.

f.       Both parties are willing to compromise, that is, modify their position.

g.      The incompatibility of goals may make the modification of positions difficult.

h.      The parties understand the purpose of negotiation

5.      a. Positive Affect in Negotiation

Even before the negotiation process starts, people in a positive mood have more confidence and higher tendencies to plan to use a cooperative strategy. During the negotiation, negotiators who are in a positive mood tend to enjoy the interaction more, show less contentious behavior, use less aggressive tactics and more cooperative strategies. This in turn increases the likelihood that parties will reach their instrumental goals and enhance the ability to find integrative gains. Indeed, compared with negotiators with negative or natural affectivity, negotiators with positive affectivity reached more agreements and tended to honor those agreements more. Those favorable outcomes are due to better decision making processes, such as flexible thinking, creative problem solving, respect for others' perspectives, willingness to take risks and higher confidence. Post negotiation positive affect has beneficial consequences as well.

 

b. Negative Affect in Negotiation

                   Negative affect has detrimental effects on various stages in the negotiation process. us negative emotions affect negotiation outcomes, by far the most researched is anger. Angry negotiators plan to use more competitive strategies and to cooperate less, even before the negotiation starts. These competitive strategies are related to reduced joint outcomes. During negotiations, anger disrupts the process by reducing the level of trust, clouding parties' judgment, narrowing parties' focus of attention and changing their central goal from reaching agreement to retaliating against the other side. Angry negotiators pay less attention to opponent's interests and are less accurate in judging their interests, thus achieve lower joint gains.