Negotiation is a dialogue between two or more people or parties to reach the desired outcome regarding one or more issues of conflict. It is an interaction between entities who aspire to agree on matters of mutual interest
If you are an entrepreneur, you have to develop the skill of negotiation as in your day to day life, you will have apply this skill in different activities like Increase & Decrease in production, giving promotion to employees, taking important decisions related to unions and much more.
Types of Negotiations:
1.Distributive Negotiation
In this type of negotiation one poetry has to lose something and one party has to gain.
2.Integrative Negotiation
In this type, both the parties get equal benefits and also strengthens their long term relationships.
What is the Best Negotiation?
1.Which strengthens the relation of both parties
2.Which gets long-term solution rather than short term solution
3.Both parties get satisfaction and no unequal benefits
4.In which both parties can clearly put their perspective and get the best solution without conflict.
Importance of Negotiation:
Negotiation skills are important both in the workplace as well as in personal life. In the workplace, they help you achieve long-term career success, boost productivity & reduce workplace conflicts. In your personal life, they boost your creative & reasoning abilities, make it more difficult for people to take advantage of you & make you a better strategized.
How to be a Good Negotiator?
1.Be the Best Communicator
2.Be a Good Listener
3.Have Emotional Control
4.Have Situational Awareness
5.Have Self-Confidence
Process of Negotiation
1.Preparation & Planning
You should be prepared in advance when you know you will have to negotiate and have situational awareness.
A. Get Information
B. Understand the people related to negotiation
C. Decide the type of Negotiation
2.Discussion
This is a very important stage when both the parties listen to each others’ arguments, look to negotiate in their fervor, remove the differences & get to a mutually benefited result.
3.Clarity on goals
What both parties wants is decided and also disagreements are known.
4.Bargaining
Pierces of products, acquisitions etc, id decided in this stage. The goal is that both parties get equal benefit. Sometimes, the negotiation also fails.
5.Closure Stage
If negotiation is successful, then ‘agreement form’ is signed. Sometimes ‘return contract’s is also signed so no future obstacles may arise.
Case Study: Hal Gregersen
MIT lairdship center’s executive Hal Gregersen says that I see negotiation as a chance to find similarities rather than struggle. The secret of a successful negotiation is to not see negotiation as a struggle but see it as chance to find similarities between you and the other party.
Hence, see this as chance for opportunities and upgrade your skill negotiation to get best benefit for your business.
