Essay: Fundamental Steps In Negotiation: Strategies, Tactics, And Pitfalls To Avoid.

Have you ever:

• Discussed with friends or family members what movie to watch?
• Discussed with a dealer what price to pay for a second-hand car?
• Asked for extra time to complete a job?
• Tried to organise a time and place for a meeting when everyone could attend?
• Asked an employer for leave at a time that suited you?

The Fundamental Steps in Negotiation Process

Q1) What do you do consider to be the fundamental steps in the negotiation process, be it resolving a conflict with a boss, peer, parent? What should one do before, during, and after the talks?

A1) There are a few fundamental steps which needs to be ensured in relation to a process of negotiation. These include

1. The first step is in relation to identifying the problem and or the primary issue in relation to it. This step will ensure that the negotiator has clear knowledge of what he would be faced with during the negotiation process.
2. The second step is to identify all the parties who are involved in the issue. Through this step the negotiator would have the knowledge about the opposite parties in the process.
3. The third step is to identify the needs and weakness of all the parties involved.
4. The fourth step is to establish a BATNA for own and analyze what is the BATNA of the other parties and ways to weaken their BATNA.
5. The fifth step consists of setting out the reservation price. In this situation it is identified that what is the final deal or price below which the negotiation would not be effective.
6. This step is followed by the establishment of a ZOPA (Zone of Possible agreement). Here it can be identified after taking into consideration the BATNA of the other party that what would be in place that in what zone the agreement is going to be formed possibly.

During the negotiation process then negotiator must indulge in both active and passive listening and respect the perspective of the other party. However, one must not deviate from the minimum acceptable terms which have been set out. It should also be the motive of the negotiator to ensure that business relationships are enhanced during the process of negotiation by also consistently referring to business needs.

After the negotiation a friendly atmosphere must be created for ensuring a fruitful relationship.

Q2) Name some tactics, strategies, tricks, tips, and reminders about what you should do during the negotiation process.

A2) A few strategies, tactics, tips, tricks, reminders about what a person must do during the negotiation process are as follows

1. Paying attention.
2. Listening to and treating others with respect.
3. Taking others seriously.
4. Being aware when presumptions are proved incorrect.
5. Not deviate from the minimum acceptable terms which have been set out.
7. Using “I” statements.
8. Summarizing the understandings and analyzing them.

Q3) What should one not do in negotiation? Are there common mistakes/pitfalls/traps to avoid?

A3) The things which a person should not do in relation to a negotiation process are as follows

1. A person should not treat the negotiation process as a warfare as provided by Steve.
2. There must be no failure on the part of the negotiator to fail to prepare for the negotiation.
3. The person who indulges in negotiation should not be afraid to offend the other party although they should not do it deliberately and be considerate about the feelings of the other parties.
4. Another issue which negotiators may face in the given situation is related to not listening to the other party. This situation will create misunderstandings in the process of negotiation and between the parties to it.
5. Not setting up or knowing the BATNA can be another mistake which the parties may make in relation to the process of negotiation. BATNA is very important for the process if negotiation.
6. A person should not treat the negotiation process as a Zero-sum game.
7. A person should not be influenced by the other party during the negotiation.

Negotiation is done mostly with the same people over and over again and treating it as an episode will ensure better results.

Q4) In your opinion, what are the benefits of considering your own and other outcomes in negotiation preparation.

A4) By considering the outcome which is desired by us as well as the outcome which is desired others in the negotiation process a person can ensure the he is able to understand the negotiation process from the perspective of the other parties as well. This will help the person to meet the expectations of the other parties in process of negotiation and ensure that the own expectations in relation to the process are also not compromised. The process ensures an effective bargaining position for the person.

Q5) A negotiator can have a certain power when he uses the right information, prepares for his negotiation, and can use his position (political or organizational) ... but are there any more? Give a brief explanation of each.

A5) Legitimate power - this is a form of power which person has legally by having a formal authority over another person. Thus, when an employer is in a negotiation with the employee it is his duty to make the employee feel that he is equal in the negotiation. On the other hand, the employee would try to find alternatives which the employer exercises authority.

Best Strategies and Tactics for Successful Negotiation

Expertise power - this power arises when a person has specific knowledge in relation to a subject area or has made advanced preparations in relation to the negotiation to stay ahead of the other party.

Manipulative or coercion power- These powers are present when a person can use their position or influence or physical coercion during the negotiation process. The power can exist because of political or organizational position.

Perception of power- The other party may perceive that there is additional power on the party of the negotiator

Ability to articulate- this is another power which help the negotiator obtain favorable result in the process of negotiation and they are able to articulate all issues effectively

Information – secret information provides a significant upper hand to the negotiator in the negotiation process as they are aware of the weakness of the other party which they are not expected to know.

Resources-  This power is in relation to the resources available to the negotiator for the purpose of negotiation. The more positive resources which the negotiator has in relation to the process the more power it has. 

Few other powers are

• Associated influence
• Habitual power
• Nuisance
• Personal power
• Ability to articulate.
• Moral power
• Rewards and sanctions
• Procedural power

Q6) What do you think makes a co-worker, or person in general, ‘difficult’ (or seem difficult)? What is really happening in these situations? Is there a different way of looking at it or not? Is perspective important?

A6) A person or a coworker may become difficult or seem difficult is totally based on my perspective. The situation of the person can only be analyzed by stepping into the shoes of the person and seeing the situation from his view point. In these situations, the person is looking difficult because we have different perspectives in relation to the situation. The problem can be addressed by looking at the situation differently from the perspective of the other person. Perspectives are important because they can totally change the view in relation to a situation and may avoid or create a dispute.

Q7) If you have ever seen late night parliament, you have probably seen ‘passive listening’. What is ‘active listening – explain and give examples

A7) Active listening is a process of listening which involves listening to the other parties in the negotiation and ensuring that listening is done very carefully through which paraphrasing and summarizing the main points of the arguments can be easily done. In active listening the person has to totally concentrate and understand what the other party has to can. An example of active listening would be letting the other person known that you are taking detailed interest in what they have to say by building trust, demonstrating concern, paraphrasing, giving verbal affirmation and asking open ended questions.

Pitfalls and Mistakes to Avoid in Negotiation

Q8) What is the process to establish the needs of all parties? How do you identifyproblem and what strategies could you use to achieve an outcome?
A8) The process for identifying the needs for all parties in a negotiation is that of problemsolving technique and specifically brainstorming. The parties can identify the problem and achieve an outcome by following a six-step process. This include defining the problem, analyzing the potential cause, identifying possible solutions, section the best solution, developing an action plain and implementing the solution and evaluating the progress.

Q9) Are there any aspects of your business policies and procedures that limit your strategies?

A9) The policies and procedures in a organization are there in place in order to ensure that the individuals bases their functions on ethical and legal principles. In the same way there are policies and procedures in place in my business which expressly prevent me to taking any step of strategy in the negotiation process which may be considered immoral, unethical or illegal.

Q10) Explain your record keeping and notification process for disputes and negotiations

A10) It is important to record all agreements in documents so that they can be referred to at the time of any dispute between the parties. Keeping records helps the negotiator to have additional information in relation to the dispute and therefore enhances their chances in the process of negotiation. In case of any dispute notification has to be provided to the other party where a negotiation has to be carried out will in advances which must consist of the matter which needs to be negotiated.

Q11) How is the negotiation or dispute finalized in your business and by whom? – explain in detail and include policies and procedures

A11) Negotiation and disputes are finalized in the business by the dispute resolution committee. According to the policy in the workplace the employees must initially try to settle the dispute between each other and if the dispute is still not resolved that they must approach their supervisors. In situation where any dispute still remains unsolved the dispute is referred to the dispute resolution committee where it is addressed and finalized through the process of mediation.

Q12) According to Hawkins and Hudson (1990) explain the three major factors that interact to produce the negotiation climate

A12) The three major factors which have been identified by Hawkins and Hudson (1990) to interact with the negotiation climate include

Benefits of Considering Own and Other Outcomes

Temporal Factor- The timing is the element in this factor. Negotiation must be initiated, issues must be introduced, tactics must be used, concessions must be made and a settlement has to be done at the right time.

Physical Factor- the setting and location where the negotiation is to be initiated has to be considered.

Emotional Factor- the behaviors and attitudes of every party to the negotiation has to be taken into consideration.

Q13) Briefly explain what is meant by ‘Negotiation philosophy and personal style’?

A13) Negotiation philosophy and personal style is made up of personal attitudes and philosophies including

1. Belief System- what a person believes to be true
2. Manner- the way in which a person behaves
3. Life experience- what has a person learnt to assume or expect
4. Cultural Background- personal way of living of the person

These factors determine the style in which the person is going to negotiate the issue based on his philosophies.

Q14) Explain what is meant by, and the difference between, “Principled Negotiation is similar in focus to the Win-Win approach”

A14) Principled Negotiation is similar in focus to the Win-Win approach as a major role is played by the idea of fairness. Principles negotiation is also known as an interest-based approach.  The approach is based on the interests and needs of the parties in the negotiation and also incorporates a particular purpose for being able to reach a mutual agreement. In this approach people are separated from the problem, focus is placed on interest, variety of possibility is generated and wants the results to be based on objective standards. In win-win approach on the other hand the primary notion is in relation to assuring positive outcomes to both the parties.

Q15) How are risks and contingency strategies developed and actioned at your workplace?

A15) In my work place risks and contingency strategies developed and actioned by following a few steps which are as follows:

1. The first step is risk forecasting in which the level and quantity of the risk which is faced by the business is identified. This is done by composite risk index formula which states risk is equal to the cost of an event multiplied by probability of the event.
2. The second step is risk evaluation in which it is decided what to do with the risk which may be faced by the business.
3. The third step is the creation of a contingency plan which is in place to address the situation if its takes place
4. The forth step is to evaluate the effectiveness of the plan and analyzing how efficient it is towards addressing the issue

Q16) How will we know that we have made an effective decision when we reach the end of the negotiation?

A16) When I have reached the end of the decision I would know that I have made an effective decision by analyzing the decision in the light of the targets which I had set for myself before the negotiation initiated. The more the decision is towards my maximum target the more effective it is for me. If the decision is below what I would have accepted that it is not effective at all.

Q17) What policies and procedures are in your workplace to identify risk and disputes, and the finalisation of any disputes requiring action?

A17) In my work place in order identify a risk or a dispute there is a mechanism of risk forecasting through which risk are measured based on the probability of their occurrence. The techniques which are used include root cause analysis, Surverys, Interviews, brainstorming and SWOT.  This is also done by composite risk index formula which states risk is equal to the cost of an event multiplied by probability of the event

Different Powers in Negotiation and Their Role

Q18) Give a detailed explanation of the personality profiling paradigm- include the Myers Briggs and the DISC systems in your answer.

A18) Personality profiling paradigm is a kind of testing which is carried out for the purpose of analyzing the personality of a person. The result is the type of behavior which a person is able to sustain for a longer period of time. People are considered as complex as well as adaptable. The DISC quantifies the qualities or attributes of the person such as how the person is going to respond to challenges, comply with policy and procedures, what is the preferred pace of the person and how the person will influence others. On the other hand, Myers-Briggs Type Indicator has developed four traits of personality where each has opposite’s ends to the continuum including Sensing (S) vs. Intuition (I), Thinking (T) vs. Feeling (F) and Extraversion (E) vs. Introversion (I). MBTI is a highly valuable and respected instrument. Both MBTI and DISC are used alongside to identify different aspects of a person’s personality. The Myers Briggs and DISC test helps to identify the personality or character of the person who takes the test. The Myers–Briggs Type Indicator is considered as an introspective self-report questionnaire which has the purpose of depicting differing preferences psychological in nature in relation to the way which the world around them is perceived by the people in relation to decision making. The test is based on a conceptual theory proposed by Carl Jung in which the experience of humans is speculated in relation to their surrounding environment through the use of four primary psychological functions of thinking, feeling, intuition and sensation.

Q19) Your client Patricia, has purchased a new unit and you inserted a condition in the contract that the old fence that was falling over had to be replaced at their expense, so she could let her little dog out to play in the backyard. It is two days before settlement and the fence has fallen completely since you inspected last. What do you do?

A19) In the given situation I would ensure that the fencing is done properly before the possession is handed over the client. Or else I may withhold the amount for the contract which would be required for the fencing from the seller. In these situations, the contract should be made in a way were such risks had to be identified and a contingency plan for such risks must be set out. Another thing which can be done in relation to the situation is that the settlement may be postponed till the fencing is properly completed.

Q20) Your client Jack has called and is very angry he has just received an invoice from council for “…unpaid rates.” from the settlement/purchase you executed for him last year.……what do you do?

A20) In the given situation where Jack is very angry in relation to a receipt of an invoice from council with respect to unpaid rates arising out of the settlement/purchase executed by me last year I firstly need to sympathetic to him for the hardship which has been caused to him. I then need to investigate into the matter and let him know as soon as possible what has gone wrong and what is going to be the future course of action in relation to the issue. I am only responsible for the situation as it was my duty to ensure that all work is completed according to the wants of my client but such work has not been completed and there is a missing agreement depicting the settlement