Text 18 Negotiations

Negotiations are a part of life and occur in business, non-profit organizations, and government branches, legal proceedings, among nations and in personal situations such as marriage, divorce and parenting. Broadly speaking, negotiation is an interaction of influences. In a business context, can be used for selling, purchasing, staff (e.g. contracts), borrowing (e.g. loans) and transactions, along with anything else that are applicable for a business.

Negotiation is a skill that everyone in any business environment requires. The word 'negotiation' implies ability and a willingness to vary terms in some way. To negotiate successfully, one needs to communicate with the other side effectively.

Negotiation involves two basic elements: the process and the substance. The process refers to how the parties negotiate: the context of the negotiations, the parties to the negotiations, the relationships among these parties, the communication between these parties, the tactics used by the parties, and the sequence and stages in which all of these play out. The substance, however, refers to what the parties negotiate over: the agenda, the issues, the options, and the agreement(s) reached at the end.

It is necessary to highlight strengths and the benefits of reaching a decision. It is important to be well prepared, set out objectives, think about the rewards and incentives which can be offered to the other party during the negotiations. Business negotiations should be conducted in a friendly atmosphere to reach a decision acceptable to all the parties involved.

Few simple phrases can set the right tone for the positive outcome of the negotiations. So start by using the most powerful persuasive tools: "Questions". The first behavior of top negotiators is that they ask a lot of questions. A 'question' gets information and in negotiations, information is power. The more relevant information is, the better the position is.

Another important factor is image, how others in the negotiation perceive you. There are times when you have to change your character, your mindset, and your personality when negotiating, in order to create the environment that leads to the successful outcome of the negotiation. There will be times when you'll have to be stern and there will be times when you'll have to be soft, but always try to genuinely be nice.

Be humble. No matter how much expertise you possess on a subject matter, don't be a showoff. Being a know-it-all tends to turn people off. Aim highly, but don`t underestimate the opposition.

Be compassionate. If you have the upper hand in a negotiation, don't hammer the other person to submit to more concessions, simply because you're in the 'power position.

Remain flexible throughout the negotiation in case the opposition decides to change the direction of an agreement (they may want different incentives or change their objectives).

Always use active listening skills when negotiating. Paraphrase questions, thoughts, and ideas to convey your understanding of the other person's position and perspective. Be creative, think outside the box.

Understand the value of reading body language accurately and use its covenants during the negotiation. Use your body language skills to allow them to see, feel, and hear, your desire to seek the most favorable outcome for all parties involved in the negotiation.

When you negotiate, start out by putting the other person first. See the deal from inside their shoes. Make your proposal consistent with their value. Make sure they know you're not just viewing the negotiation from your perspective, but you also understand the perspective from which they view the negotiation. Summarize frequently: this enhances understanding. Present arguments calmly, without personalization, and make sure they are logically supported.

Questions:

1. What does the term” negotiation” mean?

2. Where do the negotiations occur?

3. What are the basic elements of the negotiations?

4. What is the most powerful persuasive tool to start the negations with?

5. Why is image important in the negotiation process?

6. Why is it necessary to use active listening skills during the negotiations?

7. What atmosphere is necessary to reach a decision acceptable to all the parties involved?

8. Why is it necessary to pay attention on body language during the negotiations?

9. Why is it recommended to start out by putting the other person first?

10. What does the phrase “Aim highly, but don`t underestimate the opposition” mean?