NEGOTIATIONS

I Will Teach You To Be Rich

What is Negotiation?

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.

In any disagreement, individuals understandably aim to achieve the best possible outcome for their position (or perhaps an organisation they represent). However, the principles of fairness, seeking mutual benefit and maintaining a relationship are the keys to a successful outcome.

Types of Negotiation

* Distributive negotiation

Distributive negotiation is also sometimes called positional or hard-bargaining negotiation and attempts to distribute a "fixed pie" of benefits. Distributive negotiation operates under zero-sum conditions and implies that any gain one party makes is at the expense of the other and vice versa. For this reason, distributive negotiation is also sometimes called win-lose because of the assumption that one person's gain is another person's loss. Distributive negotiation examples include haggling prices on an open market, including the negotiation of the price of a car or a home.

* Integrative negotiation

Integrative negotiation is also called interest-based, merit-based, or principled negotiation. It is a set of techniques that attempts to improve the quality and likelihood of negotiated agreement by taking advantage of the fact that different parties often value various outcomes differently. While distributive negotiation assumes there is a fixed amount of value (a "fixed pie") to be divided between the parties, integrative negotiation attempts to create value in the course of the negotiation ("expand the pie") by either "compensating" loss of one item with gains from another ("trade-offs" or logrolling), or by constructing or re-framing the issues of the conflict in such a way that both parties benefit ("win-win" negotiation)

* Stages in the Negotiation Process

However, negotiators need not sacrifice effective negotiation in favor of a positive relationship between parties. Rather than conceding, each side can appreciate that the other has emotions and motivations of their own and use this to their advantage in discussing the issue. In fact, perspective-taking can help move parties toward a more integrative solution. Fisher et al. illustrate a few techniques that effectively improve perspective-taking in their book Getting to Yes, and through the following, negotiators can separate people from the problem itself.

• Put yourself in their shoes – People tend to search for information that confirms his or her own beliefs and often ignore information that contradicts prior beliefs. In order to negotiate effectively, it is important to empathize with the other party's point of view. One should be open to other views and attempt to approach an issue from the perspective of the other.

• Discuss each other's perceptions – A more direct approach to understanding the other party is to explicitly discuss each other's perceptions. Each individual should openly and honestly share his or her perceptions without assigning blame or judgement to the other.

• Find opportunities to act inconsistently with his or her views – It is possible that the other party has prior perceptions and expectations about the other side. The other side can act in a way that directly contradicts those preconceptions, which can effectively send a message that the party is interested in an integrative negotiation.

• Face-saving – This approach refers to justifying a stance based on one's previously expressed principles and values in a negotiation. This approach to an issue is less arbitrary, and thus, it is more understandable from the opposing party's perspective.

Additionally, negotiators can use certain communication techniques to build a stronger relationship and develop more meaningful negotiation solution.

• Active listening – Listening is more than just hearing what the other side is saying. Active listening involves paying close attention to what is being said verbally and non-verbally. It involves periodically seeking further clarification from the person. By asking the person exactly what they mean, they may realize you are not simply walking through a routine, but rather take them seriously.

• Speak for a purpose – Too much information can be as harmful as too little. Before stating an important point, determine exactly what you wish you communicate to the other party. Determine the exact purpose that this shared information will serve.

* Integrated negotiation

Integrated negotiation is a strategic approach to influence that maximizes value in any single negotiation through the astute linking and sequencing of other negotiations and decisions related to one's operating activities.

This approach in complex settings is best executed by mapping out all potentially relevant negotiations, conflicts and operating decisions in order to integrate helpful connections among them, while minimizing any potentially harmful connections (see examples below).

Integrated negotiation is not to be confused with integrative negotiation, a different concept (as outlined above) related to a non-zero-sum approach to creating value in negotiations.

* Bad faith

When a party pretends to negotiate, but secretly has no intention of compromising, the party is considered negotiating in bad faith. Bad faith is a concept in negotiation theory whereby parties pretend to reason to reach settlement, but have no intention to do so, for example, one political party may pretend to negotiate, with no intention to compromise, for political effect.

Bad faith negotiations are often used in political science and political psychology to refer to negotiating strategies in which there is no real intention to reach compromise, or a model of information processing.

Preparation for negotiation

If you want to start negotiations in a winning position, then you need to prepare like a tiger. That means you must pay attention to 7 crucial areas.

1. Check whether you are in a negotiating situation

A negotiating situation exists when you are in any communication or problem-solving situation with others that can work out to your advantage. If there is no advantage to you, then don't negotiate; you'll only lose.

2. Clarify your aims

Your overriding aim in any negotiation is to achieve the objectives you and your constituents have set. There are other aims, such as getting a good deal and improving your relationship with the other side. But getting what you want is tops. Always keep this aim firmly in your sights and don't stop until you get it.

3. Gather information

Once you know you're in a negotiating situation, you need to gather information about the other side's offer and use it to refine your own. Many negotiations come unstuck simply because one side or the other doesn't listen, or check, or take the time to clarify exactly what the other side are offering, or indeed what they themselves are offering. This means that throughout a negotiation you should do tons of listening, clarifying and checking. And when it comes your turn to put over your case, you should use every skill you can muster to make sure they understand.

4. Negotiate with your own side

It is rare to go into a negotiation only representing yourself. Usually you negotiate as a representative of others, your constituents. Part of your preparation for negotiations has to be spent getting the best mandate from your constituents. Aim to get the support you need; the trust you need; the resources you need; the understanding you need; and the freedom you need.

5. Get a BATNA

A BATNA is your Best Alternative To a Negotiated Agreement and is the only certain way to be successful in negotiations. By preparing for negotiations with one party by sounding out an alternative deal with another party, you get walkaway power. It means that, even if the alternative isn't quite what you want, you are still prepared to go there, if need be.

6. Prepare the setting

There are five questions to ask yourself when preparing the setting for a negotiation. They are: Who? (i.e. who is to take part and do what?); Where? (i.e. our place or theirs?); When? (i.e. what is the time scale?); Why? (i.e. what are we negotiating about?); and How? (i.e. how are we to present our case?).

7. Prepare yourself mentally

The right attitude towards negotiations is the principal difference between successful and unsuccessful negotiators. Getting into the right frame of mind before you begin should be part of your preparation plan.

• aim to be tough, business-like, alert and unyielding
• don't feel you owe them anything - don't be a bowl-beggar
• don't put yourself above or below them
• stay relaxed and unhurried
• don't reveal your feelings at any point.

There is no guarantee that good preparation will lead to success in negotiations. But the chances are that poor preparation will lead to failure. Don't take that risk. Pull out all the stops to get a head start and you won't regret it.

source :

- https://www.skillsyouneed.com/ips/negotiation.html diakses pada 21/7/2018 jam 16:19

- https://en.wikipedia.org/wiki/Negotiation#Types diakses pada 21/7/2018 jam 16:55 WIB

- https://www.businessknowhow.com/growth/negotiations.htm diakses pada 21/7/2018 jam 17:04 WIB