Collaborative Phases of Negotiation Technique
Discuss About The Formation Of Team Of Negotiation Features?
Negotiation is defined as the attempt taken by two people who are engaged into disagreement and want to reach a mutually acceptable solution for the conflict faced. In order to successfully reach to a conclusion and win over the issue, both the parties need to be understand clearly what the other party wants. Each of the party has to undertake proper preparation to change as well as compromise until both feel that their positions are acceptable.
There are five collaborative phases of the negotiation technique. These are preparation, exchanging of information, bargaining, concluding and executing.
The first phase of negotiation technique is called the preparation phase. This phase mainly determines whether the individuals are aware of the conflict. They should also know of the history that is leading to the negotiation. Knowing the people involved and becoming aware of their perceptions of the conflict expectations from the negotiations are also important. This will help each of the parties to develop a collaborative situation so that each can select their better strategy. Then each of the parties should be researching for the information, analyzing the different data. These would be followed by indentifying the interests and positions of the parties and then concentrating on the relationship that the parties want to build with each other (Kennedy 2010).
The second stage is known as the information-exchanging phase. This phase takes place when the parties begin to engage with the other side. Then they share information and addresses interests of each other – like what each of the parties need as opposed to their respective positions and what each parties ask later in the bargaining stage. There are four important critical assessments that are needed in the Exchange Stage. These are trustworthiness where each party needs to know that the others are honest and dependable. The next is competency where the information provided by the others is credible and able (Kennedy 2010). The third competency is that the parties should assess whether they can work well together. The last criterion of the assessments is the alignment of the interests where the parties should judge that whether their interests are aligned with the other parties.
The third stage is called the bargaining stage where the “give and take” takes place. All the parties should understand that success can never be taking all and giving none as this would not help to capture real values. Parties need to make as well as manage their concessions in bargaining. When the parties can successfully conduct “give and take” properly, this can increase satisfaction of both parties. This will help in developing lasting relationships and even a fruitful one. During this phase, the parties can create value and can capture value with trades. Two tools that can be used by the negotiator are Probe and Creativity. Besides, like all personal relations, emotions can result in either hindering or helping the progress. Therefore, parties should be careful in such contexts. Researchers are also of the opinion that proper communication skills are important in this phase as the parties explore option for creating values and also executing trades for capturing values (Roszowska et al. 2014). Success can only be achieved when solutions satisfy needs of everyone.
Four Types of Collective Bargaining
The next stage is concluding phase where the parties reach agreement. It is essential for finding out that the opposite parties have the capacity to follow the different things they had said and also whether they would be able to do it or not (Kennedy 2017). This is then followed by writing down the common interest and then producing a comprehensive summary of the agreement. One of the courtesy that should be maintained is that the parties should thank each other for their respective willingness to negotiate even when none of the parties had reached any agreement.
The last stage is the executing process that involves the implementation of the agreement. This stage can also be considered as the preparation phase for the next negotiations opportunity. Parties should make sure that they follow on through the promises that are made so that relationships can be strengthened and trusts are built.
Collective bargaining is the procedure where representative of workers, subordinates and employees negotiate with the employer or their representatives. They meet for discussion of the issues which are related to number of working hours, issues which are relating to wage as well as work environments and others terms of employment. Four types of collective bargaining can be observed:
One of them is the conjunctive of distributive bargaining. In this form of collective bargaining, both the parties like the employees and the employers try their best for maximizing their respective gains from the bargaining. Researchers are of the opinion that this type of bargaining is based on the victory of one over the other (Sarkar 2012). In this type, economic issues involve bonus issues, wage and many other benefits. For example, where the employee wishes to have increases bonus for his work whereas the employers try to increase the responsibilities and reduce the wages.
The next is the cooperative and the integrative bargaining. In this type of bargaining, the parties like the employee and the employer sit together and try to resolve any sort of problems that are of their common interests for reaching an amicable solution. In times of critical situations, for example like that in time of recessions, both the parties can enter into mutual agreement with respect to their term of working. An example can be provided here, the employers may agree to adopt modernized methods to increase productivity or the workers may agree for low wages on receiving other benefits (Pinet and Sanders 2012).
Important Principles for Negotiation
The third type of bargaining is the productivity bargaining. The management does this where the workers are provided incentives or bonus for the increasing of the productivity. This makes the workers encouraged and therefore they work very hard so that they can reach beyond the standards level of productivity. This helps in gaining additional benefits. Through, this type of collective bargaining both the parties enjoy benefits – one in the form of increased profits and the other in the form of increased pay (Liu and Adair 2017).
The fourth type of bargaining is called the composite bargaining. In this type of bargaining the employees, besides raising demand for the increment in the increased wages, the workers also express their concern in other issue like the recruitment, working environment, environmental issues, training requirement and many others. These are done with the intention of safeguarding their interests and protecting the dilution of powers.
The main differences between distributive bargaining and integrative bargaining are that the former type of bargaining involves zero sum negotiations. It involves the wining of one side over the other. Both the parties try to maximize their goals. The latter is a type of bargaining where it is more of a problem solving sessions (Kim, Cundiff & Choi 2015). In the latter rye, both parties try their best to reach a mutually beneficial alternative like a ‘win-win’ situation.
There are certain important facts that are very important for individuals to be aware of while negotiating. Different business stalwarts had put different principles forward over the years. Some of the best principles are thereby described in the flowing paragraphs:
- The first important principle is to develop a proper and clear knowledge about which an individual is trying to accomplish. This should mainly incorporate developing ideas about what factors would help in gaining success and how much negotiations is to be done to achieve the target.
- The next important principle is the development of a proper game plan before the negotiation sessions or meetings start. The parties should prepare themselves with the best strategies and highlight their strengths in ways that will bring out success in cracking out the best deals (Maude 2014).
- The next principle is proper studying and understanding the opposite party successfully. This would help the individuals to plan their next approach. For that, the individuals should make effort to understand the negotiating style of the lead negotiator on the other side. The individuals should also try to find out their reputations and track-records in the past negotiations not only with the individuals but also with the pothers (Fisher and Ury 2012). This would help them to understand that whether the opposing parties can be trusted to meet their negotiating table commitments.
- Another important principle is working towards a win-win situation. Mostly in cases of ongoing relationship, it becomes important for working to a win-win situation. If one of the parties feels that they were treated unfairly in the procedure of negotiation, the relationship between the two parties is usually damaged. This in turn affects future negotiations. Maintaining a good relationship is extremely important in the long run than a win-lose result that affects relationship and closes future exchanges.
- Another important principle that needs to be followed is avoiding negotiating with oneself. Once the individual makes an offer, it is important for the individual to wait for the other side to respond with a counteroffer (Johnston and Fells 2017). If the individual becomes ready to put another offer on the table before a counteroffer is made, this step would be taken as the weakness of the individual. This will make the other party exploit the individual for their advantage.
- The individual should react strongly to an untrustworthy party sitting at the negotiating table. When the opposite party is seen to take any dishonest step or conduct any untrustworthy activities, the individuals should never accept these business ethics breaches. Rather, they should abruptly protest against the dishonest practices and stand up against their activities. This would prevent any conflicts and negative feelings against each other (Phommalinh 2017).
- It should always be remembered that both the parties need to be equally present for negotiating a deal. When any of the parties feel that the negotiation will not bring out any successful results, they should not proceed with the deal.
Sales negotiation is the procedure where the parties agree the terms of the deal and becomes a part of the selling continuum. The negotiations are very important to begin only when there is a genuine commitment from the person who is buying and a seller who is providing a conditional sale (Tinney 2015). Important negotiations skills are always important to be developed properly by the salesperson who is trying his best to engage effectively in a negotiating deal. The first skill is to define the concessions that the salesperson is willing to accept in advance. Often, it is seen that in the heat of the moment, often sales person provide statements like “30% discount” or “additional six months of support” which might not be possible to provide according to company norms. Therefore, it becomes extremely important for the sales person to define clearly the limits on the price discounts, add-ons and freebies before negotiating and selling the products or services. This will ensure that the sales member and the consumers come to a mutually beneficial agreement helping in maintaining trustworthy relationship. The second important principle that the salesperson should follow is that the prospect should go first in the negotiation deal. When the salesperson presents the terms of the deal, it is important for the prospect to start the negotiation and begin the conversation (Holden and Thompson 2018). In many cases, it is seen that the sales member often gets tempted to provide a discount or even an adjustment in order to be more accommodating even when before the prospects states anything. This ensures better success rate and better profit margin. On negotiating sales, it is important to listen first and then speak out concern. The third important point is that during sales negotiation, the sales-member should never give a range like “providing a discount from 15% to 25%”. This is because a prospect will never settle for fewer discounts and this in turn makes it implied to the prospect that the sales price is flexible. This also destroys trust (Geiger 2017). Therefore the word “between” should always be avoided. Another very important aspect that should be maintained in a sales negotiation is not to put anything in written process until the entire negotiation and conversation had completed. Often, it is seen that negotiations swing fort and back and again around. Often, many ideas are proposed out of which, some are accepted and some are shot down. The sales members should be wise and not revise the contract until the entire ales negotiation has ended and all the parties have verbally agreed to the different terms. Another important point that the salesperson should also remember is that they should never make mistakes like negotiating with the wrong person without contacting the decision maker. In many cases, sales person talk with the women of the house who ultimately decides that husbands would be finalizing the deal. This means when the talks would began again with the decision maker; the later will start at the already discounted price in the first meeting. This will result in poor outcome of the seller but will be highly advantageous for the prospect. Another important principle for sales negotiation is that the sales person should get something in return for the different sorts of concessions they are providing. It must be always remembered that often-healthy salesperson-customer relationships are developed from mutual respect and trust. The sales person should not accept all demands of the prospect without claiming advantageous benefits for themselves (Fleming and Hawes 2017). They should try to conduct negotiation in ways that would result in win-win for both the parties. Salespersons and clients should be based on equal footing which ultimately lays the groundwork for mutually beneficial relationship.
Negotiation Skills for Salespersons
Negotiation can be defined as the procedure by which people successfully settles the differences faced by them. It is a process by which the engaged parties wither compromise or comes to an agreement at the same time of avoiding argument and dispute. Principles of benefits, maintaining a healthy and trustworthy relationship and seeking mutual benefits are some of the keys that lead to successful outcomes. Individuals who are engaged in the negotiation are called the negotiators. Researchers are of the opinion that in order to be a successful negotiator, it is important for them to be charming and open-minded. He has to properly articulate and use his experiences in a proper manner to conduct negotiations effectively (Schneider and Honeyman 2006). At the same time, negotiators need to have perseverance that ultimately helps them to be on the winning side of the deals or to negotiate properly in deals with win-win solutions. They need to have patience as well as assertiveness. Flexibility and developing insight helping to understand the opposite side will help in striking a proper relationship with the opposing parties that might be fruitful in the future. They must also have the clear ideas about the points they need to establish and therefore should be persuasive and should know what they want. Researchers are therefore of the opinion that the experts should have proper preparation and planning skills and have the knowledge of the subject that is being negotiated. They should also have proper listening skills and the ability to think clearly and rapidly even when they are under pressures as well as under certainty. They should have proper integrity, patience, ability to persuade other individuals, judgment and general intelligence and decisiveness. They should consider all options, be aware of the procedures as well as the styles of the other persons and be flexible in different situations (Leucke and Patterson 2008).
Effective negotiation has a number of important features. It helps in analyzing problems by determining the interests of each party included in the negotiations techniques. A proper negotiation helps a problem to be analyzed in details so that the issue can be properly identified. A negotiation should have proper preparation where the parties would have properly identified the goals as well as realized the areas for trade and alternatives for the stated goals. However, the negotiators should always avoid being provoked emotionally as that might affect effective outcomes (Orheian 2014). Effective negotiations help in better relationship building. It also helps in delivering lasting and quality solutions. It should not give poor short-term solutions, as they do not satisfy the needs of either party. Effective negotiation also helps in avoiding future conflicts and problems (Rada Florina 2017).
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