Business reports are practical learnig task where studnts apply the theories they have been studying t real world situations.
Competitive tendering versus performance-based negotiation in Swiss public transport.
A systematic literature review of crowdsourcing research from a human resource management perspective.
Competitive Positional Based Approach
Negotiation refers to communication which is undertaken with the intention of accomplishing contract. Negotiations often take place among representative of a nation seeking treaty ratification among investors which sets the terms and condition of business operations (Buettner, 2015). Through negotiation conflicts of business can be resolved. It can rather be called a the procedure of amalgamation between different positions into one contract in a rule of unanimity. The present report mainly focuses on approaches to negotiation. Emphasis has been made on two approaches to negotiation; first is negotiation is Competitive Positional Based Approach and second is Problem Solving Interest Based Approach. Further discussion related to the assumption of each approach, risk and impact on the relationship of both the approach. In last, best approach between the two is selected in order to assess the best approach.
Negotiation usually manifests among negotiator who is skilled and performing for organisation or position. This can be compared with conciliation when there is the third party involved who listens to opinions of everyone and then tries to help out in crafting contract among parties. Moreover, it is connected to settlement comprising official procedures, both parties create an argument as to merits of their case, and after that, the mediator settles the outcome for both parties. There are various methods to division segment in order to increase understandings of the crucial components. Cohen and Kassan, (2018) asserted that negotiators who are trained could use a range of strategy from negotiation hypnosis to straightforward arrangement of demands or placing of prerequisite towards more illusory approaches like cherry picking. Threats and salami strategies might also play a role in influencing the conclusion of negotiations. Approach of New Creative is very famed negotiation fable which includes an argument over an orange. This approach is generally apparent and is easy to cut it in part, where every employee receives a fair share. When negotiators start conversing with each other and swapping detail about their interests, an enhanced solution to this trouble became general. The below-specified rules are meant for global negotiations which are supported by Hernandez and Graham adequately matches with approaches too:
- Simply allows innovative outcomes.
- Appreciates customs, particularly their own.
- Not only adjust to variation in culture but also develops them.
- Assemble intelligence and explore the terrain.
- Plans the details flow and procedure of conference too.
- Spend into private associations.
- Influence of questions. Look for information and perceptive.
- No recognition till the end.
- Utilizes technique meant for creativeness.
- Creativity keeps on continue even after negotiations.
Competitive negotiation is the approach which treats the procedure as a rivalry, i.e. to be won or lose. Other names of competitive negotiation are a distributive, positional or hard-bargaining negotiation.
The essential assumption of competitive negotiation is that it’s a “Zero Sum Game”. The people that are engaged with this consider that there is a rigid quantity to be achieving which two people together wishes and if one person gains subsequently other will lose.
Problem Solving Interest Based Approach
Effect of zero-sum negotiation is described in terms of achievers and failures (Fujita and et al. 2015). One individual will receive what they desire and sense arrogant where other will be defeated and thinks that he was be embittered.
Under competitive negotiation, the company only considers the product which is to be traded by them and production is made in a firm “What I can get” manner. A way of thinking zero-sum is to translate everything into financial terms. Thus, for example, if you are buying or selling a car, you think first in terms of its resale value. The only perceived negotiable for many competitive negotiators is the price.
The connection between employees of the firm is not very significant. Under competitive negotiation employees don’t concern about each other and also what they think about him.This generally arises in unique sales when qualification emptor is a vital rule. It is believed by the employees that if someone is showing concern about others, then they are giving their weak points which can be occupied as a gain of. This can lead to trickery where the false concern is shown, and reactions where any show of concern is perceived as likely trickery (and can lead to attempts of two-faced double-dealing) (Mezgebe and et al. 2018).
Risks that are involved in Competitive Positional Based Approach are described below:
The main strategy for the vendor under competitive negotiation is to maximize the cost, in the same way for buyers is to spend least. From both the sides, there is generally an opening tender, more frequently the vendors. If a company is a seller and creating the opening tender is not possible for the company, contradict through going while far-off from the opening tender as probable with causes.
If there is no trust between employees of the company then the mutual discussion is not possible. A key factor of this approach is aiming at the unity among employee and its partner slightly than the disparity or the wants and interest of both the concerned parties (Rojot, 2016). In order to build the trust between employees, there is five aspects truth-telling, promise to speak, common respect and to do no conscious harm and justice which are derived by Morgan. The most important plan of the company should be finding out the difficulties that employees are facing and it should be commonly approved. Next step is making other resolution. After that choosing option and also consider the emergency.
Impact on Relationship
Impact on relationship
There must be a good relation between the parties of negotiation in order to make the agreement or terms successful. If there is trust between the parties exists then the mutual discussion will be possible for a company as everyone will trust on the each other’s decision and opinion. The main aspect of this approach is to keep parties involved unite and maintaining disparity between them or the wants and interest of concerned parties (Folberg and Golann, 2016). If there is no trust according to Morgan it can be built by following five aspects truth effective, promise to speak, general respect and no harm and fairness. As per assessment of Kennedy (2017), organization’s main aim is finding the troubles or solving the grievances of employees so that they can work effectively and efficiently in the interest of the company. Then choose the best alternatives among many which will be most suitable for the company and also taking into concern emergency too.
One of the most difficult and embarrassing situations a negotiator can experience is sitting at the table with colleagues who disagree openly with the other party (Allen and Burrell, 2016). The main concept which is being followed by interest-based negotiation is to materialize or obtain a better understanding between the company and the party with whom they are dealing with by building innovative choice to fulfil their interest. Through this opportunity of building good connection with other parties raises and can attain results which are useful. Jeong, (2016) asserted that criterion of justice and authenticity are utilized to create measures which are accepted by both the parties. Apart from this comprising a good substitute to the left out is evenly significant. Hence, if a company has liveable options into the incident, negotiation will be lost, to improve the confidence and skills to manipulate the party there should be a breathing room. It is to keep in mind that this approach is utilized to manipulate and exert among people, also which is not used in opposition to people. This approach starts with research which directs towards a particular procedure in order to accomplish a common useful solution. On any time, the difference can appear either into the negotiation or into research procedure too. While researching, disparities can results in an argument among the negotiation team. Apparently, it is very significant to work on these inner disparities prior to connect into inter-team negotiations.
Risks of Approaches
There are three assumptions of Problem Solving Interest Based Negotiation, and they are time, personal power and control of information.
If an employee is under pressure, then he will not perform well in negotiation. In reality, there are 80% of dispensations which are generally prepared into last 20% of the accessible time.
In an organisation, every manager has entitled to power. They also have compensation and penalty power, to decide whether an employee should be promoted or should be remunerated. People who constantly state what they signify and after building a report they truly follow it (Filippini, Koller and Masiero, 2015).
The older sayings, information are power, motionless holds right under negotiations. Generally, the side which comprises more facts will perform good advertisement and tends to run the process. This is the reason why research is important for flourishing negotiation. It is vital to identify that what another party is recommending prior to sitting down.
Risk of Approach
The main risk of this approach is estimating the possible causes of risk and stables them according to the company’s whole risk appetite. When any work or task is given to the employee, he must listen it will full concentration and if he has any query related to that work at that time only he should clear that with their superiors. If queries are not cleared on time then work will not be done. Stelmach, ?wi?tek and Schauer (2014), assessed that in order to recognize the risk of the company, same could be done by knowing how the business functions and all the phase (internal and external) which can influence the performance of employees.
Impact on Relationship
Impact of Problem Solving Interest Based Approach have a negative impact on the relationship of parties involved; if the risk that is involved under this approach is not estimated accurately, then employees will be failed in performing efficiently (Thomas, Manrodt and Eastman, 2015) . For instance, in case of an organization, employees must answer the queries that they have correlated to their task. In case they have not answered then it will create a problem for the company as well as the employees. The reason behind this is employees will think that they are not important for a company that’s why they are not cleared with their queries. To improve the relationship between employees and the management, the company must identify the risk that involved in the company.
After considering all the aspects of both the approaches it can be concluded that Problem Solving Interest Based Approach is more appropriate negotiation approach. The reason behind the same is the advantages that are offered through this approach. Problem Solving Interest Based Approach promotes creativity which is not available in case of Competitive Positional Based Approach. Through this relation between parties improves and also gives employees the opportunity of taking innovative. The main and focus of this approach are to provide justice and legitimacy. Moreover, the approach begins with the investigation which expresses a particular process to attain a general positive resolution.
The above study depicts that advantages of negotiation approach can be attained only in case the risk relating to same can be managed in an efficient manner. In case of both the approaches, the approaches require focussing mainly on risk as it has a significant impact on the relationship between the parties evolved in same. The problem-solving approach has been considered more appropriate as the parties evolved in same are provided with a chance to present an innovative approach inside them. The fact cannot be denied that success can be attained through this approach only in case mutual trust within the parties evolved exists.
Thomas, S.P., Manrodt, K.B. and Eastman, J.K., 2015. The impact of relationship history on negotiation strategy expectations: A theoretical framework. International Journal of Physical Distribution & Logistics Management, 45(8), pp.794-813.
Cohen, J.A. and Kassan, A., 2018. Being in-between: A model of cultural identity negotiation for emerging adult immigrants. Journal of counseling psychology, 65(2), p.133.
Fujita, K., Bai, Q., Ito, T., Zhang, M., Ren, F., Aydo?an, R. and Hadfi, R. eds., 2017. Modern Approaches to Agent-based Complex Automated Negotiation (Vol. 674). Springer.
Monteserin, A. and Amandi, A., 2015. Whom should I persuade during a negotiation? An approach based on social influence maximization. Decision Support Systems, 77, pp.1-20.
Mezgebe, T.T., El Haouzi, H.B., Demesure, G., Pannequin, R. and Thomas, A., 2018. A Negotiation Scenario Using an Agent-Based Modelling Approach to Deal with Dynamic Scheduling. In Service Orientation in Holonic and Multi-Agent Manufacturing (pp. 381-391). Springer, Cham.
Rojot, J., 2016. Negotiation: from theory to practice. Springer.
Folberg, J. and Golann, D., 2016. Lawyer negotiation: theory, practice, and law. Wolters Kluwer Law & Business.
Kennedy, G., 2017. Kennedy on negotiation. Routledge.
Allen, M. and Burrell, N., 2016. Distributive Negotiation Strategies. The International Encyclopedia of Interpersonal Communication.
Jeong, H.W., 2016. International negotiation: process and strategies. Cambridge University Press.
Filippini, M., Koller, M. and Masiero, G., 2015. Competitive tendering versus performance-based negotiation in Swiss public transport. Transportation Research Part A: Policy and Practice, 82, pp.158-168.
Stelmach, P., ?wi?tek, P. and Schauer, P., 2014. Communication protocol negotiation in a composite data stream processing service. In Advances in Systems Science(pp. 681-690). Springer, Cham.
Buettner, R., 2015, January. A systematic literature review of crowdsourcing research from a human resource management perspective. In System Sciences (HICSS), 2015 48th Hawaii International Conference on (pp. 4609-4618). IEEE.