Internet 1.0 INTRODUCTION Negotiation is a common word that always appears in our personal and professional lives. Business is also negotiating. From the day you start thinking about having your own company, you are negotiating every step of the way. We negotiate when we buy office furniture, or when we do a project with co-worker, or when we are dealing with customers or even business partners. You will pay a price if you do not recognise the process for negotiation. Sometimes it is easy to negotiate, but other times, when we have a great deal at stake or we are upset, the task can be intimidating or difficult.
In this paper, we are going to talk about what negotiation is, some stages, rules, strategies, etc. that can help you work and negotiate more effectively with your customer, co-workers, and boss. Also, they are also applicable to other interpersonal situations. (http://members.nbci.com/ XMCM/cooperate/neg.htm) & (http://www.findarticles.com/cf 1/m1471/n3 v20/20350497/print.jhtml) 2.0 FINDINGS 2.1 What negotiation means Negotiation is the process through which two or more parties seek an acceptable rate of exchange for items they own or control. (Meredith & Mantel, 2000, p.229) Negotiation is a field of knowledge and endeavor that focuses on gaining the favor of people from whom we want things.
(Meredith & Mantel, 2000, p.229) Negotiating is an inter-personal process. Each negotiating situation is different and influenced by each partys skills, attitudes and style. Understanding the negotiation process and the party involved with allow us to manage negotiation easier in satisfying both parties interest. Increase your salary; get you a better position; gather support for your project or department; gain approval for a budget; and improve your chance for success on the job are the reasons for negotiation. You will benefit through the process of negotiation if you success at the end. Therefore, it pays to overcome your aversion to haggling and your negotiating skills will be improved through the entire process. (http://www.findarticles.com/cf 1/m1471/n3 v20/20350497/print.jhtml) & (http://www.smartbiz.com/sbs/arts/bly60.htm) 2.2 Types of Negotiation Within Organization 2.2.1 Horizontal or In-Team Negotiations STAFF (PARTY A) STAFF (PARTY B) (http://www.lead.org/lead/training/international/u sa/1999/docs/papers/effective negotiation techniques.htm) This type of negotiation refers to negotiations within group.
Examples of this type of negotiation include assigning project responsibility, project meeting date and time, etc.) 2.2.2 Vertical Negotiations (http://www.lead.org/lead/training/international/u sa/1999/docs/papers/effective negotiation techniques.htm) This type of negotiation refers to negotiations within organization. Normally this type of negotiations occurs between Manager to Staff, Management to Manager, Staff to Customers, etc. 2.2.3 External Negotiations (http://www.lead.org/lead/training/international/u sa/1999/docs/papers/effective negotiation techniques.htm) This type of negotiation includes some external bodies such as Government, Trade Associations, etc. Company policy and Trade policy are examples of the issues to be negotiated. 2.2.4 Others Other types of negotiations include spokesperson negotiations, subcommittee negotiations, and multilateral negotiations, which are normally, occur in an informal private conference between staff.
Member 1 in Party A have an informal conversation with Member 1 in Party B is an example of informal private conference. (http://www.lead.org/lead/training/international/u sa/1999/docs/papers/effective negotiation techniques.htm) 2.3 Possible outcomes of Negotiation 2.3.1 Integrative (Win-Win) Integrative refers to a type of negotiation outcomes, which is a both sides WIN situation. Both parties cooperate in the negotiation process to maximize and distribute resources fairly to achieve mutual benefits. Integrative outcome is an ideal outcome that can maintain relationship with others for further development. (http://www.cba.neu.edu/~ewertheim/interper/negot3 .htm) 2.3.2 Distributive (Win-Lose) Distributive refers to a type of negotiation outcomes, which are one side WIN and one side LOSE. The main reason of ending up a Win-Lose situation is one persons interests oppose the others and to maximise ones own interests. The dominant strategies in this mode include manipulation, forcing, and withholding information. (http://www.cba.neu.edu/~ewertheim/interper/negot3 .htm) 2.4 Types of negotiators Negotiation is always affected by the personality of the negotiators. There are 2 main types of negotiator personality.
They are: 2.4.1 Autocratic Negotiators Autocratic Negotiators clearly understand what they want and need in the negotiation process. But very often, you will find this type of negotiators fail to negotiate effectively because they do not have the ability to listen the need of the other party to figure the big picture of the negotiation issue. (http://www.onlinewbc.org/Docs/manage/negotiating. html) 2.4.2 Accommodating Negotiators Accommodating Negotiators are more concerned about what the other party want than their own needs. Accommodating Negotiators try to avoid argue and conflict arise in the negotiation process by giving certain amount of compromise, sometimes even override their own interest. (http://www.onlinewbc.org/Docs/manage/negotiating. html) 2.4.3 Good Negotiators The project manager must be a highly skilled negotiator in order to meet the high demands of a job of a project manager. A good/highly skilled negotiator should have the personality of Accommodating Negotiators. This type of managers seems to have a better relationship with other people because they always try to understand people need. (http://www.onlinewbc.org/Docs/manage/negotiating. html) 2.5 Stages of Negotiation Stage 1 Evaluate problem and set your rules1. The highest figure: Everything you WANT to achieve.2. The lowest figure: Your bottom line.3.
The goal: A realistic fact of things that you EXPECT to achieve. Stage 2 Contact involved parties and try to understand their needs Stage 3 Analyze background information and recognize mutual needs. Stage 4 Design a detailed plan for negotiation according to mutual needs. Stage 5 Try to highlight the mutual benefits of your plan to build trust and cooperation Stage 6 Negotiation begins where other parties not agree with the plan of mutual benefits. Stage 7 Define issues and develop an agenda for use in guiding the meeting Stage 8 To find out the reasons that other parties reject the suggestion of mutual benefits and discover the further hidden interests of other parties Stage 9 Generate alternatives to deal with further hidden interests for settlement Stage 10 Assess possible options for settlement Stage 11 Options presentation for final bargaining Stage 12 Achieving formal settlement (http://www.lead.org/lead/training/international/u sa/1999/docs/papers/effective negotiation techniques.htm) 2.6 Barrier to successful negotiation 1.
Set the right tone for the negotiation A successful negotiation is form by understand each other and to achieve mutual agreement. Negotiation is a way of finding solution, rather than beating the other party. Good relationship between parties cannot be maintained of being too aggressive in the negotiation process. (http://members.nbci.com/ XMCM/cooperate/neg.htm) 2. Contest competition Lots of negotiators viewed negotiation as a contest and try to use any kind of strategies to win the contest. However, negotiation is not a contest but it is the finding of a solution to problem at which will benefit both sides to have a both parties win outcome.
You will create more difficulty down the road if you are not being considerate to win everytime. (http://members.nbci.com/ XMCM/cooperate/neg.htm) 3. Think before you respond It is normal to have feeling like anger, disappointment, frustration, etc. in the negotiation process. However, as we get more emotional, we often react without thinking and cannot solve the problem in a constructive ways. (http://www.batna.com/difficult v4.html) 4.
Failure to understand Sometimes negotiators focus too much on their own needs instead of finding solution to both parties. We could not negotiate properly if we do not understand each other properly. (http://members.nbci.com/ XMCM/cooperate/neg.htm) 5. Personal preference Sometimes negotiators tend to be more understandable to people they like than people they do not like. Effective negotiation can never achieved if negotiators only focus on personalities, not issues and problem solving. (http://members.nbci.com/ XMCM/cooperate/neg.htm) 6. Not being responsible Both parties contribute in a negot …