“Negotiation” refers to an open strategic dialogue between the parties involved in an effort to reach a mutually acceptable solution to the problem.
In order to reach an agreement, the two parties, who have different needs and goals but share some common interests, are working together. In order to come up with a solution that works for everyone, they have a discussion about the issue.
When is the time for negotiations?
Any time there are multiple possible outcomes in a business situation, where two or more parties have a shared interest, it’s important to have a strategy in place. The possible outcome has yet to be agreed upon by the parties. In addition, there are three outcomes:
- Both parties benefit from a win-win situation.
- One party wins and the other loses in a win-lose situation.
- When all of the items are shared equally, it is inefficient but equitable.
Negotiation motivates the parties to resolve their specific differences because they have a common interest.
Negotiation Process
Stage of pre-negotiation:
In this step, planning is critical, as it is intended to lay out the broad framework for undertaking negotiations. It entails:
- Goals are prioritized and ranked.
- Determine the priorities of the opposing party.
- Determine your true motivation.
- Make factual inquiries ahead of time.
- Objectives Quantification
Conceptualization:
The formulation of the likely foundation of the agreement takes place in this step. It is determined by the competitive analysis of the targets, which is usually conducted during the negotiation process.
Norms are being established:
After the issues have been conceptualized, the two parties must establish norms in an evaluative manner.
Discussion:
The negotiators must be aware of both tangible and intangible elements at this stage. Furthermore, the discussion should take a patient approach, and it should be conducted in a decent manner to avoid hurting the other party’s feelings. Any topic that isn’t relevant to the conversation should be avoided. Body dynamics are crucial in this situation.
Agreement:
It’s the final step in the negotiation process, and it’s where the agreed-upon terms and conditions are written down. Furthermore, it must be carried out in accordance with the legal procedure. The agreement expresses the agreed-upon terms in a legal, open, and comprehensive manner. It must specify the mode of operation in the event of a future dispute over any terms.
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