The negotiation process

But let us never fear to negotiate. Kennedy If you sit down and analyse your negotiation preparation,certain patterns should begin to appear.

The negotiation process

Negotiation involves examining the facts of a situation, exposing the both the common and opposing interests of the The negotiation process involved, and bargaining to resolve as many issues as possible. Negotiation takes place every day in nearly every facet of life—from national governments negotiating border disputes, to companies negotiating work agreements with labor unions, to real estate agents negotiating the sale of property, to former spouses negotiating the terms of a divorce.

Small business owners are likely to face negotiations on a daily basis when dealing with customers, suppliers, employees, investors, creditors, government agencies, and even family members.

Many companies train members of their The negotiation process forces in negotiation techniques, and many others hire professional negotiators to represent them in business dealings. Good negotiation requires advance preparation, a knowledge of negotiating techniques, and practice. Regardless of the type of negotiation, experts recommend entering into it with a cooperative rather than a competitive attitude.

They stress that the point of negotiating is to reach agreement rather than to achieve victory. Negotiating Agreement without Giving In. It should be efficient. And it should improve or at least not damage the relationship between the parties.

In his book Fundamentals of Negotiating, Gerard I. Nierenberg outlined a number of steps toward adequately preparing for a negotiation. The first step is to "do your homework" about the other side. In nearly every negotiation, this will entail research to uncover their underlying motivations.

The Eight-Stage Negotiation Process

In negotiating a business property lease, for example, it may be useful to find out the cost to the landlord of keeping the building vacant. It is important that the objectives remain relatively fluid, however, so as not to hinder the negotiation.

Another element of preparing for a negotiation involves deciding whether to use an individual or a team as your representative. This decision needs to be considered separately for every negotiation, and will always depend to some extent on what the other side is doing.

A negotiating team offers a number of potential advantages. For example, it enables a small business to involve people with different areas of expertise in order to avoid misstatements of fact.

Teams can also play into negotiating strategies and help gain concessions through consultation among team members. However, it is important to note that bringing extra people can be harmful to a negotiation when they do not have a distinct function.

Using a single negotiator also offers some advantages. The next step in preparing for a negotiation involves choosing a chief negotiator.

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Ideally, this person should have experience and training in negotiations, as well as a strong background in the area of the problem to be negotiated. Another important element of negotiation is selecting the meeting site. For a small business, holding the meeting on its own premises may provide a psychological advantage, plus will save on travel time and expense.

It may also be helpful in enabling the negotiators to obtain approval from managers or use their own facilities to check facts and find additional information as needed. It may also play into negotiating strategy by enabling the negotiators to temporarily withhold information by claiming a need to speak to higher level people or gather more information.

A third alternative for a meeting site is a neutral location. Whatever site is chosen, it should be large enough to accommodate all parties and feature a telephone, comfortable chairs, visual aids, and available refreshments.

Separate the people from the problem. The idea should be for both sides to work together to attack a problem, rather than attacking each other. To achieve this goal, it is necessary to overcome emotional responses and set aside egos. Focus on interests rather than positions.

The natural tendency in many negotiations—for example, dickering over the price to be paid for an antique—is for both sides to state a position and then move toward middle ground. Generate a variety of options before deciding what to do.

Instead, Fisher and Ury suggest developing a wide range of possible solutions as part of the negotiating process.

Negotiating Tip

These possible solutions should attempt to advance shared interests and reconcile differences. Base the result on objective criteria. No one will be happy with the result of a negotiation if they feel that they have been taken advantage of. The solution is to find and apply some fair standard to the problem in order to guarantee a mutually beneficial result.

In his book, Nierenberg offered a number of other tips and strategies that may be effective in promoting successful negotiations.When you apply the phases of negotiation effectively, you'll more consistently be rewarded with out-sized results.

Feb 11,  · Here are ten things that will not help you in a salary negotiation -- don't say any of them! Companies have to negotiate in numerous areas of organizational conflict. Negotiation is an open process for two parties to find an acceptable solution to a complicated conflict.

The negotiation process

Negotiation is an open process for two parties to find an acceptable solution to a complicated conflict. There are some specific conditions .

Negotiation is a method by which people settle differences. It is a process by which compromise or agreement is reached while avoiding argument and dispute. EVALUATION. The first step to the successful sale of an insurance agency is an objective evaluation of its strengths and weaknesses by a competent professional specializing in .

Tips for Negotiating With an Insurance Company |