Negotiation

Methods that address ethics problems between individuals, and between and within teams and organizations.

Negotiation takes 2 parties to carve some outcomes based on mutual interests. This mutual interest will be some dealing or even can be some dispute. But as in this subject I can solely contemplate dealings not disputes. A smart negotiator is one who produces a WIN-Win scenario between both parties.

Negotiation is something that may only be won by will power and confidence. Your thinking of better alternatives and understanding the limits of your negotiation can facilitate your most. Any negotiation is termed successful only when both parties win, "Winner takes all" approach isn't a better negotiating policy.

The necessity of negotiation

•          Teams are ubiquitous(everywhere). When do we need to negotiate? Used car, Ugli Orange case, Class teams

•          Levels

–        Between individuals

–        Inter-team negotiation

–        Intra-team negotiation

•          The need for ethical behavior

Negotiation Skills

Negotiation skills are requires to negotiate effective deals across a variety of contexts; including different industries, products and services. Negotiation skills are learnable, 'born negotiators' are a myth. Effective negotiation requires a variety of skills drawn from different disciplines. Negotiating skills include: communication, persuasion and influence, planning, strategising, tactics, process and systems, teamwork and many others. Since negotiation requires much face to face interaction, negotiation skills cannot be learned from a book alone. The better negotiation skills learning programs involve a great deal of role plays and feedback discussions

Negotiation Styles

The most popular way to divide the typical negotiation styles or approaches are: Competing (or Aggressive), Collaborating (or Cooperative), Avoiding, Compromise, Accommodating (Conceding). Most negotiators have one or two preferred negotiation styles. Ideal is to be able to choose to apply the most appropriate negotiation style to each type of negotiation, and to be able to switch negotiating style depending on who you are negotiating with and other important elements of your negotiation context. 

Understanding the Five Negotiation Styles

People often ask "which is the best negotiation style?" As with much management theory there is no single 'best' or 'right' approach. All five profiles of dealing with conflict are useful in different situations. Although we're capable of using all five, most of us tend to have one or two preferred negotiation conflict styles that we use unconsciously in most conflict situations. Why? Either because our preferred styles have worked for us in the past, or because of our temperament (nature) or because of our upbringing (nurture).

So if you're involved in business negotiations, which negotiation styles are likely to reward you with the biggest profit prizes? This question will be answered later in this article. First lets visit each of these important conflict profile styles.

Compete (I win - You lose)

Competitive style negotiators pursue their own needs - yes, even when this means others suffer. They often use whatever power and tactics they can muster, including their personality, position, economic threats, brand strength or size or market share. At its extreme negotiators call their behaviour aggressive or psychotic.

When to use?

When you need to act or get results quickly. Competition is critical when you are certain that something is not negotiable and immediate compliance is required.

Accommodate (I Lose - You Win)

The opposite of competing. For accommodating style negotiators, the relationship is everything. Accommodating profiles think that the route to winning people over is to give them what they want. They don't just give products and services, they are generous with information too. Accommodators are usually very well liked by their colleagues and opposite party negotiators

When to use?

When you or your company are at fault, repairing the relationship is critical, and if you have nothing else that would benefit the other side.

Avoid (I Lose - You Lose)

This is most often referred to as "passive aggressive". People who habitually use this style really dislike conflict. Rather than talk directly with you about the issue, avoid styles may instead try to take revenge without you knowing about it. The avoid style can be a typical reaction to high compete negotiators. Sellers will frequently call less often on high compete buyers (i.e. Avoiding Competitive buyers) - and may choose to invest marketing money and share their best ideas and prize promotions with non-avoid profiles.

When to use?

When the value of investing time to resolve the conflict outweighs the benefit; or if the issue under negotiation is trivial (trivial to both parties).
Sometimes there is just not enough at stake to risk a difficult conflict situation. If there is a lot of emotion in a negotiation, it's pointless pushing through and hammering it out. Better to allow people to calm down first, let the testosterone hormone leave everyone's system first so that reason and rationality can reappear. At that point an avoid style is likely the most pragmatic alternative - suggest a timeout of 15-20 minutes.
What to do when you're dragged into a negotiation unprepared? Under these circumstances, avoidance is probably the most sensible strategy. Either avoid the meeting, or avoid discussing the issues upon which you need to prepare.

Compromise (I Lose / Win Some - You Lose / Win Some)

Compromising is the style that most people think of as negotiation, but in reality compromising is usually just haggling. Compromising often involves splitting the difference, usually resulting in an end position of about half way between both party's opening positions. In the absence of a good rationale or properly exchanged concessions, half way between the two positions seems "fair". What compromising ignores however, is that the people that take the most extreme positions tend to get more of what is on offer.

When to use?

When you are pushed for time and you are dealing with someone who you trust. They also need to be clear that it would not be in their best interest for them to "win" a cheap victory. Both parties win and lose - but make sure you win the right things and lose the right things.
Meeting half way reduces strain on the relationship, but usually leaves precious gold on the table (and with the central banking cartel's gold suppression scheme losing its grip right now, every ounce of gold counts).
When you have nothing left to offer, and this is the only way to seal the deal. i.e. a lousy situation.

Collaborate (I Win - You Win)

Most people confuse "Win/Win" or the collaboration style with the compromising style. This is most definitely not the case. "Win/Win" is about making sure both parties have their needs met, and as much mutual value as can be created is created. "Win/Win" negotiators usually evolve through the other profiles, they grow into a collaborative negotiation style. This means collaborative profile negotiators can more easily revert to one or two of the other styles when pushed or when the situation calls for it. Collaborative profile negotiators are adamant that their needs must be met - and they acknowledge that the other party has needs that must be met too.
Tragically, too many account managers are overly accommodating and compromising. Resulting in competitive style buyers claiming more than their fair share. When these same competitive style buyers come up against skilled collaborative style negotiators, the competitive styles blunt coercion methods don't get rewarded with concessions.
Too many buyers are stretched and under tremendous time pressure, so temptation to compromise rather than invest time in collaborating wins out.

Often referred to as 'expanding the pie', collaborative negotiators are willing to invest more time and energy in finding innovative solutions, feeling secure in the fact that there will be more value to share out later on.

When to use?

Under most circumstances collaboration is the primary style you should use for most goals in business to business negotiations.

As mentioned briefly in the Compete section: if a relationship is important to you, and if your market reputation is important, if the other side needs to perform and not just exchange a standard product for cash, high risk (e.g. new market or new product or both), if there is a large amount of money at stake, then you are best advised to think about all the ways in which you can build a more trusting collaborative working relationship.

If you need to understand the feelings and deeper interests or motivations of all negotiators, then collaboration is your best path.

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Seven C's of Effective Communication

There are 7 C’s of effective communication which are applicable to both written as well as oral communication. These are as follows:

1. Completeness - The communication must be complete. It should convey all facts required by the audience. The sender of the message must take into consideration the receiver’s mind set and convey the message accordingly. A complete communication has following features:
• Complete communication develops and enhances reputation of an organization.
• Moreover, they are cost saving as no crucial information is missing and no additional cost is incurred in conveying extra message if the communication is complete.
• A complete communication always gives additional information wherever required. It leaves no questions in the mind of receiver.
• Complete communication helps in better decision-making by the audience/readers/receivers of message as they get all desired and crucial information.

It persuades the audience.

2. Conciseness - Conciseness means wordiness, i.e, communicating what you want to convey in least possible words without forgoing the other C’s of communication. Conciseness is a necessity for effective communication. Concise communication has following features:
• It is both time-saving as well as cost-saving.
• It underlines and highlights the main message as it avoids using excessive and needless words.
• Concise communication provides short and essential message in limited words to the audience.
• Concise message is more appealing and comprehensible to the audience.
• Concise message is non-repetitive in nature.
3. Consideration - Consideration implies “stepping into the shoes of others”. Effective communication must take the audience into consideration, i.e, the audience’s view points, background, mind-set, education level, etc. Make an attempt to envisage your audience, their requirements, emotions as well as problems. Ensure that the self-respect of the audience is maintained and their emotions are not at harm. Modify your words in message to suit the audience’s needs while making your message complete. Features of considerate communication are as follows:
• Emphasize on “you” approach.
• Empathize with the audience and exhibit interest in the audience. This will stimulate a positive reaction from the audience.
• Show optimism towards your audience. Emphasize on “what is possible” rather than “what is impossible”. Lay stress on positive words such as jovial, committed, thanks, warm, healthy, help, etc.
4. Clarity - Clarity implies emphasizing on a specific message or goal at a time, rather than trying to achieve too much at once. Clarity in communication has following features:
• It makes understanding easier.
• Complete clarity of thoughts and ideas enhances the meaning of message.
• Clear message makes use of exact, appropriate and concrete words.
5. Concreteness - Concrete communication implies being particular and clear rather than fuzzy and general. Concreteness strengthens the confidence. Concrete message has following features:
• It is supported with specific facts and figures.
• It makes use of words that are clear and that build the reputation.
• Concrete messages are not misinterpreted.
6. Courtesy - Courtesy in message implies the message should show the sender’s expression as well as should respect the receiver. The sender of the message should be sincerely polite, judicious, reflective and enthusiastic. Courteous message has following features:
• Courtesy implies taking into consideration both viewpoints as well as feelings of the receiver of the message.
• Courteous message is positive and focused at the audience.
• It makes use of terms showing respect for the receiver of message.
• It is not at all biased.
7. Correctness - Correctness in communication implies that there are no grammatical errors in communication. Correct communication has following features:
• The message is exact, correct and well-timed.
• If the communication is correct, it boosts up the confidence level.
• Correct message has greater impact on the audience/ readers.
• It checks for the precision and accurateness of facts and figures used in the message.
• It makes use of appropriate and correct language in the message.

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