Negotiation Process: Theories, Impacts And Effective Strategies

Overview of negotiation process

Question:

Discuss about the Conference Encyclopedia of Interpersonal Communication.

In a company, conflict is an inevitable matter. However, when the outcome of the conflict affects the interest of the company, resolution of the same becomes necessary. Negotiation is a popular process in this case. It intends to resolve the dispute between the parties amicably and helps to come into a fruitful conclusion (Hopmann, 2014).

It is hard to point out any specific theoretical approach regarding the negotiation. However, from the mechanistic and implemented aspects, the process can be divided into certain theories such as game theory, bilateral theory and non-mathematical theory. A comparison in between any two of the theories can assist to analyse the differences of the theories critically regarding their applicability. These theories can be game theory and non-mathematical theory.

In Game theory, the approach regarding the winners and losers are taken into consideration. Therefore, it can be stated that the main objective of the negotiation process are not maintained here properly. On the other hand, in case of non-mathematical theory, an amicable solution is to be taken so that both the parties can get beneficial solution.

It has been observed that during the course of negotiation, objectives of the parties can be changed. However, in case of the Game theory such changes are not acceptable. On the contrary, non-mathematical approach accepts those changes to come into a fruitful solution (Swann & Bosson, 2016).

The Game theory oversimplifies the matter with an overview that all the parties are rational in nature. However, non-mathematical theory does not oversimplify the matter. It attempts to resolve the disputes by the help of the amicable contribution of each party.

In case of a company, conflicts over decision can be occurred at any time. If the dispute has not been solved, it can harm the interest of the company and affect the future productivity of the company. Therefore, it is important to adopt certain strategies to resolve the dispute. Negotiation is one of the popular approaches regarding the same. The process has gained its popularity due to its firm and amicable base of solution (Fleck, Volkema & Pereira, 2016).

The process has certain positive impacts over the parties and able to resolve the dispute between two conflicting areas. Process of Negotiation is not only applicable regarding the employees, but on the customers also. In case of business promotion, it is important to catch the eye of the customers. For instance, if the price of the gas (BP gas) can be fixed at the price of $9,000 instead of an average of $8,000, it can be influential for the customers. This process can be stated as the negotiation process and the impact is positive in nature.

Game theory vs non-mathematical theory

The main criteria regarding the positive negotiation process is based on the effects of relationship and the outcome of the process. An effective negotiation process helps to achieve the objectives of the debates in an amicable way. If the process of negotiation ends up with good relationship between the parties, the influence can be treated as positive (Ruwhiu et al., 2016).

In a negotiation process, if the parties reflect positive mentality and make correct alliances, the dispute can be resolved quickly. It is important to promote creativity regarding resolving process and generate amicable solution to retain the positive influence in the process.

Through the process of negotiation, disputes between the parties are attempted to be resolved. It is required that the parties disclose all the original facts regarding their proposals and problems. However, if any of the conflicting parties delivered wrong facts or tamper any document during the process, the influence of the process will be negative in nature (Ting?Toomey, 2015).

The process is based on the amicable cooperation of the parties and a reciprocal respect is needed to be shown off. It is not required that the parties are disregarding the wants of others and making bad relationship between them. This can be treated as the negative influence of the process. Negative influence can also affects the interest of the company regarding all future contracts and relationship with the customers (Korobkin, 2014).

It should be remembered that negotiation intends to resolve the dispute in amicable way. Therefore, if one of the parties gets much demonstration, the base of the process will be weakening. This may cause volatile situation and negatively influenced the process.

A negotiation process has certain positive and negative impacts that depend upon the skills and tactics adopted in certain cases. Therefore, it can be stated that effective negotiated steps should be taken into consideration and apply on cases. If any deceptive methods are  being adopted regarding the process to come into a conclusion, it may harm the interest of the party (Neuliep & Johnson, 2016). The nature of the conclusion can be detrimental if other party tampers the goals and objective of the negotiation process. The role of the negotiator decides the merits of the case and if they have displayed any partiality regarding the decision, the whole process will lose its morality. It is sometimes important to be articulate and values must be built regarding the negotiation subject. Therefore, necessary strategies are important.

Positive impacts of negotiation process

The base of the process should be ethical in nature and the negotiator should not exaggerate any facts. The principle of fairness should be adopted so that a mutual benefit can be generated. An effective negotiation process is depending on the wide knowledge of the negotiator and interpersonal skills are necessary. Interpersonal skills denote verbal communication and good speaking power. It helps to reduce the scope of misunderstanding (Zartman, 2015).

It should be the objectives of the parties to come into a fruitful solution in an amicable way. Therefore, the process of negotiation should be based on the positive requirements. It should be the duty of the parties to take reasonable care of the others so that the interest of the other party could not be harmed. The main objective of negotiation should be come into an amicable solution by maintaining an effective relationship between them. There shall not be any win or lose tactics. In case of the company affairs, the process should be positively influenced (Stevens et al., 2016).

In case of an effective negotiation process, it is necessary to chalk out certain plan to ease the process. Planning can be divided into two parts- planning stage and meeting. The conflicts regarding the decisions within a company can be affected the interest of the company and therefore, the dispute should be tackled with effective negotiation process. Planning stage is the primary stage of negotiation and it is required to take effective policies in this stage. Each party is required to know about the venue of the negotiating process. Each party should present their requirements in a more acceptable way and should have the knowledge regarding the need of the other side (Menkel-Meadow & Schneider, 2014).

Meeting is the most important stage in the negotiation process. A poor planning can affect the interest of the parties. It is important to research on the topic and should have the reciprocal knowledge about the objective of the topic. Proper planning must be made regarding the information provided to the parties. Assessment regarding the concession or compromise matter is required to chalk out and knowledge regarding the nonmonetary value is necessary (Chapman et al., 2017). Tactics beneficial for the company should be adopted and a meeting agenda should be planned to specify the time limits for each participator. Plans should be adopted in case of failure of negotiation process.

There are certain processes that are helpful to undertake the negotiation process. The steps can be categorised as planning, primary rules, clarification and justification, problem solving and implementation. Planning is the first step of negotiation process. The effectiveness of negotiation is depending on the planning. The next step is the primary rules that include the venue, duration, limitations and agreement matters. Once the rules have been prescribed, it is important to narrate the objects of the parties in brief. Opportunities should be provided to each party so that they can explain and justify their statement. The problem should be resolved with analytical approaches and cooperation of each party is necessary (Clenney, Maurer & Miles, 2013). The last step regarding the negotiation is the implementation. It is a crucial point as the effectiveness of the negotiation and the relationship of the parties are depending on the valuable decision of the negotiator. It is therefore important to disclose all the relevant documents for the proper implementation and the process should be based on the principle of fairness.

Negative impacts of negotiation process

Proper listening during the negotiation is an important thing. The practical form of the listening process is taking important notes regarding the decisions. Notes should be taken regarding the decision of both the parties. It is required to write down all the perspective of the decision as a representative of the company. Notes depict the experiences in a writing form (Aykac et al., 2017).

Notes are the reflection of the practical experiences of a negotiation process. The mentality of the negotiator, the analytical power of the presiding officer, disclosing documents, steps of the negotiating process is included in these notes. Therefore, the notes are important to understand the applicability of the negotiation process in a better way and included with this assignment (Gadke, Tobin & Schneider, 2016).

Considering various negotiation methods, it has been observed that many processes and the strategies have certain loopholes. Many tactics are deceptive and manipulative in nature. Therefore, it is important to select an appropriate strategy. It is required to adopt a strategy based on the ethical principles, as the objectives of the negotiation process are to resolve a dispute amicably (Stefanidis, Banai & Richter, 2013). Therefore, cooperation of the parties is necessary.

Among many approaches, the applicability of the non-mathematical approach is quite applicable and acceptable regarding resolving a dispute. The objective of the negotiation process can better be established through this approach as it intends to resolve a problem by way of amicable cooperation and there is no concept of win-lose thing.

The base of the negotiation process should be depended on the principle of fairness. The outcome of the same is depending on relation between the parties and result or the decision. If it is possible to get an acceptable way regarding the dispute and impartial solution, it could be regarded as the good or positive point of the negotiation process (Bala, Vij & Mukhopadhyay, 2015).

If any wrong step has been taken to resolve the company related dispute, it should be avoided in the next time to maintain the objectivity of the process. Attempt should be taken for the establishment of justice and deceptive methods are to be avoided.

The main duty of the representative of the company is to represent the company in all matters and they are taking important role in the negotiation process. Therefore, the effectiveness of the process is much depended on the performance of the acts of the representatives (Korobkin, 2014). It is, therefore recommended that they should not take part in any deceptive process and they should maintain the principle of fairness at all the possible level.

Reference:

Aykac, T., Aykac, T., Wilken, R., Wilken, R., Jacob, F., Jacob, F., ... & Prime, N. (2017). Why teams achieve higher negotiation profits than individuals: The mediating role of deceptive tactics. Journal of Business & Industrial Marketing, 32(4), 567-579.

Bala, M. I., Vij, S., & Mukhopadhyay, D. (2015). Automated negotiation with behaviour prediction. International Journal of Internet Protocol Technology, 9(1), 44-50.

Chapman, E., Chapman, E., Miles, E. W., Miles, E. W., Maurer, T., & Maurer, T. (2017). A proposed model for effective negotiation skill development. Journal of Management Development, 36(7), 940-958.

Clenney, E. F., Maurer, T. J., & Miles, E. W. (2013, January). Becoming a Negotiator: A Proposed Negotiation Skill Development Complexity Model. In Academy of Management Proceedings (Vol. 2013, No. 1, p. 11509). Academy of Management.

Fleck, D., Volkema, R. J., & Pereira, S. (2016). Dancing on the slippery slope: The effects of appropriate versus inappropriate competitive tactics on negotiation process and outcome. Group Decision and Negotiation, 25(5), 873-899.

Gadke, D. L., Tobin, R. M., & Schneider, W. J. (2016). Agreeableness, Conflict Resolution Tactics, and School Behavior in Second Graders. Journal of Individual Differences.

Hopmann, P. T. (2014). 2 The verification debate and its effects on the negotiation process. Banning the Bang or the Bomb?: Negotiating the Nuclear Test Ban Regime, 32.

Korobkin, R. (2014). Negotiation: Theory and strategy. Wolters Kluwer Law & Business.

Menkel-Meadow, C. J., & Schneider, A. K. (2014). Negotiation: Processes for Problem Solving. Wolters Kluwer Law & Business.

Neuliep, J. W., & Johnson, M. (2016). A cross-cultural comparison of Ecuadorian and United States face, facework, and conflict styles during interpersonal conflict: An application of face-negotiation theory. Journal of International and Intercultural Communication, 9(1), 1-19.

Ruwhiu, D., Ruwhiu, D., Carter, L., & Carter, L. (2016). Negotiating “meaningful participation” for Indigenous peoples in the context of mining. Corporate Governance, 16(4), 641-654.

Stefanidis, A., Banai, M., & Richter, U. H. (2013). Employee attitudes toward questionable negotiation tactics: Empirical evidence from Peru. The International Journal of Human Resource Management, 24(4), 826-852.

Stevens, C. A., de Weerd, H., Cnossen, F., & Taatgen, N. A. (2016). A metacognitive agent for training negotiation skills. In Proceedings of the 14th International Conference on Cognitive Modeling (ICCM 2016).

Swann Jr, W. B., & Bosson, J. K. (2016). IDENTITY NEGOTIATION IN SOCIAL INTERACTION. Interpersonal and Intrapersonal Expectancies, 96.

Ting?Toomey, S. (2015). Identity negotiation theory. The International Encyclopedia of Interpersonal Communication.

Zartman, I. W. (2015). Negotiation Theory and the Intifadat. International Negotiation, 20(1), 109-128.