Negotiation: A Process That Involves Interaction Of Influences

In business, win-win negotiation is often employed. This is characterized by attaining a certain arrangement where both parties can benefit. Win-win negotiation is also referred to as integrative negotiation.

Negotiation is oftentimes seen in marketing and sales where it is regarded as a prelude before any possible transaction takes place. Salesmen most likely experience negotiation in the price offer with prospects. Although it may be more advantageous on the part of the salesmen to distribute his products directly to their customers upon the latter’s willingness to buy without any adjustment on the price, there are customers that wanted to interact with the salesmen about different matters concerning the latter’s offers prior to making a purchase. The salesmen have to make thorough preparation before approaching prospects that are likely to make inquiries and certain moves before deciding to make the final transaction.

Preparation is an important component in negotiation. A haphazard dealing and interaction could probably lead to a compromise that both parties do not want to take. It is also likely for a negotiator less prepared to take the negotiation and just relying on instinct and stored knowledge to fail and be uncomfortable with the arrangement while the other negotiator applauded with pleasure from attaining the expected outcome of the negotiation. This situation is called distributive negotiation. One party wins while the other party loses.

In a business context, negotiation can be applied not only in selling. Purchaser can negotiate with suppliers when it comes to pricing of raw materials and supplies. Employees can negotiate with employers on matters concerning the workforce’ safety and security, pay, and for the improvement of employer-employee relationship. Borrowers can make a negotiation with the lender with regards to interest rate, terms and debt relief. There are several transactions in business that need the interaction of influences, ideas and other matters before reaching an agreement. Although it is likely to for distributive negotiation to occur, both parties in business normally want to make a win-win agreement and solution.

Why is there is a need to negotiate?

Simply, both parties want to influence the other party while keeping in mind the goal of the arrangement. A party may have one or several members. When there are several members, there occurs a collective decision with a common position. A compromise may occur in every negotiation particularly in the settlement of dispute or issues.

There are fundamental elements involved in negotiation. They are: process, behavior and substance.

The outcome of the negotiation is determined by its process. This denotes the ways and means of the negotiation. There are parties involved. Each party may use the same or different tactics on the sequences and stages of the negotiation. The parties normally deal with the context of the negotiation.

Communication is a very significant component of negotiation. This can have effects on the behaviors of the parties. There are different styles of communication where parties can make negotiation. It is possible to negotiate over the telephone, with the use of the Internet and teleconference aside from the traditional confrontational approach.

The substance of the negotiation refers to the thing or things that parties negotiate over. It may be the issue, option, interest or the agenda.

An agreement is normally seen as the ultimate part of the negotiation. The agreement may be favorable or less favorable to one of the two parties or both.

There may be positive affect or negative affect of emotions during the course of the negotiation. Positive emotion can facilitate the possibility of reaching an agreement while negative emotions can lead to intense conflict and even irrational behavior. It is likely for a negotiation to break down when negative emotions prevail.

Negotiation is not only limited to business. Things that require an agreement over certain issues may need the process of negotiation.

By Bjornson Bernales


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