Softskill Task 6 (May 14th 2017)

Question:

1. What is negotiation?
2. What are negotiation styles? Explain!
3. Explain the negotiation process!
4. What are the characteristic of negotiation?
5. Explain the positive and negative effects of negotiation!

Answer: 

1. Negotiation is a way to settle a differences. The process of negotiation is by compromise or agreement. Each sides give their own opinions then decides which one have the better opinions and reach the agreement.\
2. Negotiation styles
   Avoiding
   
   • Primarily concerned with avoiding intra-personal conflict
   • Is useful when the the stakes of a negotiated outcome are not worth the investment of time or the potential for igniting conflict
   • Characterized by sidestepping, postponing, and ignoring the issue or situation
   • Effective when avoidance of the situation or issue does not greatly affect the relationship and short term task is not important to either party
   Accommodating
   • Primarily concerned with the relationship between the parties
   • Easily gives the other side concessions in hopes of strengthening the relationship, but often gives away too much too soon
   • Tend to neglect their own needs in favor of helping the other side get what they want
   • Effective when long term relationship is important and short term task is not important
   Compromising
   • The style falling between accommodating and competing
   • Useful when time is a concern or there is a strong relationship between the parties
   • Requires concessions from both sides to find agreement
   • Does not focus on legitimate or fair standards for settlement and instead utilizes “Meet in the middle,” or “Split the difference” solutions
   Collaborating
   • Focuses on using problem solving methods to create value and discover mutually satisfactory agreements
   • Utilizes the creativity of both parties to find solutions to both sides’ interests
   • Tend to be assertive about their needs and cooperative with the other side
   • Effective when long term relationship is important and short term task is important
   
   
   
   
   
   
   Competing
   • Primarily concerned with achieving their own goals regardless of the impact on others
   • Views negotiation as a win/lose rather than a problem solving activity
   • Often utilize manipulative tactics such as attacks, threats, and other aggressive behavior to achieve their objectives
   • Effective when long term relationship is not important and short term task is important
    

3. Negotiation Process

   Planning your negotiation

   No amount of preparation is too much in approaching complex or high-stakes negotiations. Plan both your approach to the subject under negotiation, and your tone and communication style.
   In approaching the subject of your negotiations:
   • set your objectives clearly in your own mind (including your minimum acceptable outcome, your anticipated outcome and your ideal outcome)
   • determine what you'll do if the negotiation, or a particular outcome, fails
   • determine your needs, the needs of the other party and the reasons behind them
   • list, rank and value your issues (and then consider concessions you might make)
   • analyse the other party (including their objectives and the information they need)
   • conduct research and consult with colleagues and partners
   • rehearse the negotiation
   • write an agenda - discussion topics, participants, location and schedule.
   In deciding your communication style, familiarise yourself with successful negotiating strategies. Arm yourself with a calm, confident tone and a set of considered responses and strategies to the tactics you anticipate.
   Engaging with the other party during the negotiation
   • Introduce yourself and articulate the agenda. Demonstrate calm confidence.
   • Propose - make your first offer. The other party will also make proposals. You should rarely accept their first offer. Evidence suggests that people who take the first proposal are less satisfied and regret their haste.
   • Check your understanding of the other party´s proposal.
   • Remember your objectives.
   • Discuss concepts and ideas.
   • Consider appropriate compromises, then make and seek concessions.
   • Suggest alternative proposals and listen to offered suggestions.
   • Paraphrase others' suggestions to clarify and acknowledge proposals.
   • Give and take.
   Closing the negotiation
   Take a moment to revisit your objectives for the negotiation. Once you feel you are approaching an outcome that is acceptable to you:
   • look for closing signals; for example
   • fading counter-arguments
   • tired body language from the other party
   • negotiating positions converging
   • articulate agreements and concessions already made
   • make 'closing' statements; for example
   • 'That suggestion might work.'
   • 'Right. Where do I sign?'
   • get agreements in writing as soon as you can
   • follow up promptly on any commitments you have made.
   
   

     When negotiations fail

   Even with the best preparation, you may not always be able to negotiate a successful outcome. You must plan for what to do in case negotiations to fail. If you allocate time and resources to planning alternative solutions, you can avoid unnecessary stress and poor business outcomes. Having an alternative plan will help you to:
   
   • reduce your own internal pressures
   • minimise your chances of accepting an offer that is not in your best business interests
   • set realistic goals and expectations.

    

   Preparing an alternative plan It's important to remember that, when it comes to negotiating, there's always more than one positive solution for your business. Ensure you have an alternative plan.
   Consider your 'best alternative to a negotiated agreement' (also known as BATNA). Take pressure off yourself by identifying several other options or alternatives to the outcome you are seeking.
   
   1. Brainstorm all available alternatives to the process you are negotiating.
   2. Choose the most promising ideas and expand them into practicable alternatives.
   3. Keep the best alternative in reserve as a fallback.
   Take a firm and assertive stance when proposing ideas or drawing definite lines in your negotiation. Being willing to walk away is a powerful tool.
   Clearly determine the worst possible outcome you are prepared to accept in the negotiation.
   Consider mediation If negotiations are unsuccessful, be prepared to consider dispute resolution. Third-party mediation can establish a constructive environment for negotiation that requires both parties to discuss, propose and resolve issues fairly and objectively.
   
   4. Characteristics of Negotiation
   
   
   
   
   • There are a minimum of two parties present in any negotiation.
   • Both the parties have pre-determined goals which they wish to achieve.
   • There is a clash of pre-determined goals, that is, some of the pre-determined goals are not shared by both the parties.
   • There is an expectation of outcome by both the parties in any negotiation.
   • Both the parties believe the outcome of the negotiation to be satisfactory.
   • Both parties are willing to compromise, that is, modify their position.
   • The incompatibility of goals may make the modification of positions difficult.
   • The parties understand the purpose of negotiation
   
   5.  Positive and negative of negotiation
   
   
   Positive:       -       Both sides reach an agreement
   
   -          Both sides get a benefit from the negotiation
   -          Making a decision will be better between the sides which had an agreement
   
   Negative:     -       Can cause a conflict
   
   -          Reducing the level of trust between the two sides
   -          Both sides will try to provoke each other by using an ethnic or group issue.