The sixth task is we have to answer these five questions about "Negotiation"
The Questions:
- What is negotiation?
- What are the negotiation styles? Explain!
- Explain the negotiation process!
- What are the characteristics of negotiation?
- Explain the positive and negative effects in negotiation!
The Answers:
1. What negotiation is.
According to businessdictionary.com, there are four definitions of negotiation. Those are:
- General: Bargaining (give and take) process between two or more parties (each with its own aims, needs, and viewpoints) seeking to discover a common ground and reach an agreement to settle a matter of mutual concern or resolve a conflict.
- Banking: Accepting or trading a negotiable instrument.
- Contracting: Use of any method to award a contract other than sealed bidding.
- Trading: Process by which a negotiable instrument is transferred from one party (transferor) to another (transferee) by endorsement or delivery. The transferee takes the instrument in good faith, for value, and without notice of any defect in the title of the transferor, and obtains an indefeasible title.
2. The negotiation styles.
The top 5 Negotiating Styles of Thomas and Kilmann.
- Competing (I Win - You Lose)
This style of negotiation is best described as competitive and is one of the most used styles in negotiating. Negotiators using this style are looking out for their own needs, asking themselves ‘what do I need to get from this discussion / process?’. They use a variety of tactics to get what they want and their concern for the relationship is low.
This style is most effective when results are needed quickly, or you are certain there is no room for negotiation. Good examples of this style are buying a new car or a lawyer representing their client or commodity based selling.
- Accommodating (I Lose - You Win)
This style of negotiation is all about the relationship and is the polar opposite of the Competing style. Accommodating negotiators believe that the only way to ultimately get what they want is to give everything to the other party and maybe in time they will do the same or stay. This style, is naturally, well liked by the opposite party.
Examples of this style are when a person knowingly injures another person and willingly offers to pay all medical expenses hoping the injured party does not sue.
- Compromising (I Lose / Win Some - You Win / Lose Some)
The old adage ‘pick your battles’ applies here. This style values the relationship and acknowledges that there is a loss but it is better to compromise then completely lose. A compromising style results in both parties getting more or less half of what they originally wanted. This style is common when the negotiating parties have a high level of trust between each other and are time poor. This style should not be confused with Collaborating (I win - You win).
- Collaborating (I Win - You Win)
Collaborative negotiators are innovators! They recognise that both parties have needs that must be met and take the time to find creative solutions to this common conundrum. In business, this style of negotiating is often seen as the “Holy Grail”.
Most business to business negotiators plan for this type of negotiation. Some organizations are well known for their collaborative style of negotiating where some others are known for being mercenaries in their approach.
It needs to be recognised that this style of negotiating is somewhat wonderful ideological because in reality it is high on resources and time.
An example of this style is Honda Motor Company which is known for being completely focused on a collaborative approach to working with their suppliers resulting in greater commitment and cooperation and well built cars!
- Avoiding (I Lose - You Lose)
This style can be more difficult to spot as it can go under cover for a time; it is a ‘passive aggressive style’. The user of this style is unassertive and uncooperative. They do not immediately pursue their own concerns or the other parties nor do they ever address the conflict. This style is usually a vengeful style and whilst the adopters of this style won’t address the conflict they will seek ways of retribution. This style is usually in response to a highly competitive style. The avoider will shut down communication and contact and will seemingly disappear off the radar. While this is in play, mutual resentment builds and cracks to total breakdown of the relationship may occur.
An example of this style is two co-workers who cannot agree on the delivery of a project and avoid communicating with each other but happily talk to other co-workers about it!
Belows are the characteristics of each styles:
1. 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
2. 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
3. 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
4. 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
5. 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
3. The negotiation process.
Negotiation process permeates the interactions of almost everyone in groups and organizations.
In today's loosely structures organizations, in which members work with colleagues over whom whom they have no direct authority and with whom they may not even share a common boss, negotiation skills become critical.
The five steps of negotiation process are:
- Preparation and Planning.
Before start of negotiations, one must be aware of the conflict, the history leading to the negotiation the people involvded and their perception of conflict expectations from the negotiations etc.
- Definition of Ground Rules.
One the planning and strategy are developed, one has to begin defining the ground rules and procedures with the other party over the negotiation itself that will do the negotiation. Where will it take plae? What time constraints, if any will apply? To what issues will negotiations be limited? Will there be a specific procedure to follow in an impasse is reached? During this phase, the parties will also exchange their initial proposals or demands.
- Clarifiation and Justification.
When intial positions have been exchanged both the parties will explain amplify, clarify, bolster, and justify their original demands. This need not be confrontational. Rather it is an opportunity for educating and informating each other on the issues why they are important and how each arrived at their initial demands. This is the point where one party might want to provide the other party with any documentation that helps support its position.
- Bargaining and Problem Solving.
The essence of the negotiation process is the actual give and take in trying to hash out an agreement, a proper bargain. It is here where concessions will undoubtedly need to be made by both parties.
- Closure and Implementation.
The final step in the negotiation process is formalization the agreement that has been worked out and developing and procedures that are necessary for implementation and monitoring.
For major negotiations -- this will require hammering out the specifics in a formal contract.
Negotiation Process has five stages. In all steps of a negotiation process, the involved parties bargain at a systematic way to decide how to allocate resources and maintain each other's interest.
4. The characteristics of negotiation.
There are certain characteristics of the negotiation process. These are:
- 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
Here is the top 10 list. There are definitely others that are valuable, but without these 10 essential characteristics, the negotiation game will be much more difficult to master.
1. Leave little to chance.
Win/Win negotiators know this: everything that can go wrong just might. Negotiation is a dynamic process with numerous moving parts, all of which are negotiable. They expect the unexpected and prepare accordingly:
Who am I negotiating with? Why are we negotiating? Where is the best place for the negotiation to take place? What is the timeframe for the negotiation? How will I manage the negotiation? What are the key issues and outside influencing factors? Do I understand them? What is my BATNA? My settlement range (MAR and LAR)? Opening offer or counter offer? What are the independent standards (i.e. price comparables, appraisals, surveys or other professional opinions) to support my opening offer or counter offer? Concession strategy? Do I have a prioritized list of potential concessions and trade-offs? How do I make this a win/win negotiation? How do I deal with a win/lose counterpart? How do I break a potential deadlock?
This gives you a good idea of the planning involved in a successful negotiation. Win/Win negotiators know this kind of serious preparation does not guarantee a winning negotiation – but they also know that without it, they’re heading for certain failure. William Ury.
2. Be patient, persistent and creative.
Advantage always goes to the patient negotiator who persistently pursues
During a negotiation, patience means not being rushed into a decision because the other party is looking for a resolution. Chester L. Karrass.
3. Listen, listen and then listen some more.
The most successful/effective negotiators spend far more time listening and asking questions than they do talking. Gathering information and then thoroughly understanding that information takes precedence over sharing information. Once you fully comprehend your counterpart’s frame of reference, it’s easier to know what to share and how to share it in order to build trust and move the negotiation forward.
Standard techniques of good listening are to pay close attention to what is said, to ask the other party to spell out carefully and clearly exactly what they mean, and to request that ideas be repeated if there is any ambiguity or uncertainty. Roger Fisher.
4. Show empathy.
Successful/Effective negotiators understand that in order to manage conflicting points of view and achieve a win/win result, you must provide your counterpart with convincing reasons to exchange their ideas for the ones you suggest. Your counterpart will be much more receptive and your rationale much more convincing if he/she is confident that you understand and that you are sensitive to his/her point of view, interests (needs/priorities) and position. Empathy builds rapport, encourages information sharing, establishes mutual respect and moves the negotiation forward in a positive direction. Deepak Malhotra.
5. Be sensitive to nonverbal cues.
Not only are successful/effective negotiators sensitive to nonverbal cues, they can also read the ones that actually matter. Experienced negotiators are really good at sending nonverbal cues meant to disguise information, and in some cases, outright deceive their counterparts. Win/Win negotiators focus on two nonverbal sources that are difficult (not impossible) for inexperienced negotiators to control: the eyes and the voice. Believe it or not, people’s eyes and voice can provide valuable nonverbal information about both the relationship and the emotional state of the parties in a negotiation. When messages delivered verbally conflict with messages delivered nonverbally from the eyes and voice, experienced negotiators tend to attribute more credibility to the nonverbal messages. Ralph Waldo Emerson
6. Don’t take things personally.
When you feel angry, frustrated, embarrassed, defensive or just plain upset because of the effects your counterpart’s beliefs, attitudes or behaviors are having on you in a negotiation, it’s extremely difficult to respond intelligently and calmly. If you react emotionally, the consequences tend not to be in your best interests and usually make a bad situation worse – not better. Through Mental Sublimation, successful/effective negotiators have learned to detach themselves emotionally by accepting the fact that the beliefs, attitudes and behaviors of their counterparts do not belong to them. Deepak Chopra
7. Be an innovative and creative problem-solver.
Negotiations are competitive. And so they should be. If a win/win solution is to be found, this spirited rivalry calls for a cooperative attitude capable of joint problem solving and compromise. When successful/effective negotiators find themselves faced head-on with problematic issues that impede the movement towards a mutually acceptable conclusion, they suggest the following joint problem solving approach.
What makes many negotiations seemingly impossible to resolve? It’s often a fear of scarcity, and the idea that there must be a winner and a loser. The alternative: find a way to expand the pie, so that there’s more for everyone. William Ury
8. Stay flexible.
Negotiation is movement. It is an exercise in flexibility. The opening offer or counter offer is never the final mutually acceptable solution. Yes, all generalizations are false (including this one)! Experienced negotiators go through the habitual ritual of developing:
Successful/Effective negotiators show their flexibility by proposing creative ways to satisfy the interests of both sides at the lowest cost to one another. A win/win solution within the respective settlement range is the focus. As the negotiation unfolds, you must be both flexible and adaptable in order to effectively tolerate conflict and stress.
Flexibility is an important trait in negotiations; it’s the key to compromise, which in turn is key in reaching concessions and conclusions. Chester L. Karrass
9. Learn from your mistakes.
As you strive to be a successful/effective negotiator, no matter what stage of development you are in currently – newbie, absolute pro, or somewhere in the middle – there will be times when your intuition, intellect, self-control or self-discipline fails you. When that happens, you make mistakes that can find you doing or saying things that are not in your best interests…
It happens to all of us. Those who learn the error of their ways quickly and move on become successful/effective negotiators. Those who don’t, make the biggest mistake of all.
My mistakes, I find, are my best teachers. A negotiator needs to learn. A mistake is only temporary; the failure to learn is permanent. William Ury
10. Adopt a Results with Relationship approach.
From the get-go, a successful/effective negotiator’s approach is to achieve win/win results – a mutually acceptable solution that satisfies the interests (needs/priorities) of both parties with, not at the expense of, the relationship. They avoid confrontation, intimidation, blaming, constantly interrupting, talking over top of the other, putting others on the defensive or threatening their self-esteem. They focus on clarifying and satisfying another’s interests (needs/priorities) rather than debating each other’s positions. They remain calm, cool and collected throughout. Their continuing movement is towards a fair and mutually acceptable solution.
Three characteristics that distinguish good negotiators: the ability to put oneself in the other’s shoes, the ability to assert one’s interests without attacking the other, and creativity in inventing solutions for mutual gain. William Ury
5. The positive and negative effects in negotiation.
Negotiation undoubtedly plays important role to run a particular business. The positive effects of doing negotiation are we can develop our program in partnership with new business partners; sharing various ideas through each perspective is necessary to enrich our knowledge, and also our particular program can be easily facilitated because both parties are satisfied. But, this activity has tendency to generate arguments or disagreements between two related companies, and sometimes a company will inflict the others financially.
Group task made by:
- Carissa Puspa Kirana (12614281)
- Diah Sukmarani (12614963)
- Meliani Wahyuli (1C614815)
- Mufti Angelia Turang (16614875)
- Syahadati Giza Nugroho (1A614572)
Lecturer: Sunarti Desrieny Tambunan S.Pd., M.Hum.
Sources:
http://www.businessdictionary.
http://www.managersdoor.com/topic/top-5-have-you-got-a-style-negotiating-style/
https://viaconflict.wordpress.com/2012/12/16/five-negotiation-styles/
https://www.
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