Negotiation
Discuss about the Humor As a Relationship-Building Tool In Online Negotiations.
Daily routines in one’s life, an individual come cross the term ‘negotiation’ whether in practical or theoretical form. The term negotiation or bargaining is commonly used in day- to-day life in every aspect of working. In simple words, it is the process where two or more are involved to settle mutually on an issue or to have a mutual agreement. Schools, vegetables vendors, grocery stores, family, supermarkets every stage experiences negotiation(Argoneto, and Renna, 2010).
“Negotiation is not a process reserved only for the skilled diplomat, top salesperson, or ardent advocate for an organized lobby; it is something that everyone does, almost daily.”(Lewicki)
The above quote was pronounced by Lewicki defining the negotiation in the wider form. Yes, the line holds true in the real life application as well. Every day from common man to the largest business organisation negotiation is applied at different levels and complexity. Whether be it a lady negotiating with the vegetable vendor or two organisations negotiating to come up with a mutual solution, the process is implemented everywhere. As per Lewicki, “Negotiation is a process which not only gets experienced by the large business organisations but also by the unskilled and family people too. This is something which is practiced daily in some or the other form.” With change in the stage of the negotiation the level changes too (Brown, and Wright, 2008). The report below is in support with above phrase detailing out the justification to the agreement to the quoted phrase. Various illustrations have been provided describing negotiation process forms and impact in different situations.
Business is the process of earning profit with fulfilling the demand generated by within the society and the market. When the business transactions are held across the borders of any country it is termed as International business. In the given content below, the different aspects of negotiations on different levels are being focused on. From day-to-day routine work to the international business tractions the simplicity till complexity will be highlighted. Negotiation is something which is simple and complex at the same time. It consists of various stages to reach out the final negotiated outcome. When individuals mutually come to an agreement they consider many alternatives to choose the appropriate outcome.
Negotiation has been the subject matter for many researchers in the recent time. Negotiation is not the process followed only by professionals, experts, and salespersons. Today, in day to day life everyone negotiate with someone in some context of daily routine tasks. Before the process of negotiation is discussed it is very important to understand that what does the term negotiation means in actual. Basic meaning of negotiation can be defined as it is the process of communication that takes place for general objectives everyone has to accomplish in their daily life (Miller, 2014). In this process the communication of different parties shows their individual opinions or thoughts to make a common understanding between parties taking parties in such communications (Elfenbein, 2014).Such general or common objectives accomplished in negotiations are mutual for their sustainability. In the process of negotiation, each party or side of the communication represent their interests in their own perspective to make influence the mutual objective influenced by their interests.
Stages of negotiation
According to Chaturvedi (2011), when two or more people or parties engaged in a communicationto find amutual solution of the issues they are facing is defined as negotiation. Although different tools like compromise and concession are used in the process, an agreement is made necessarily to be committed to the mutual decision made by the whole process of negotiation (Rolland, 2010). Sometimes at the place where negotiation does not provide any solution to the parties involved in the process states that the process is not completed yet. This indicates that negotiation is a process everlasting to the only end in the form of some result (Dwyer, 2012).
Be it a negotiation in daily life or at international platforms to deal with nuclear dealing between nations every aspect of the negotiation relays on the level of effectiveness of communication made by the nations or individuals. Considering such aspects of international level negotiation can also be defined as a pattern that is followed by the leaders of different nations to make an agreement that can fulfil the mutual objectives of the deal (Albin, 2001).
The term negotiation introduced above is for agreements made in daily life as well as at international platforms have their respective level of complexity. The aspect of international business has the complexity of much higher level that can be defined in different stages of the process. These stages of negotiation process in this aspect are defined as below (White, 2008).
Stages of negotiation are the steps followed in whole process of negotiation. Broadly negotiation has four stages of the complete process that are stated as pre-negotiation phase, settling of the conceptualization, details of the negotiation, and finally the process of follow up. In the very first step or stage of negotiation a high level preparation for the negotiation communication is to be done by the parties involved in the process (Jones, 2010). This stage is of much importance as the preparation for the negotiation communication to be made by parties is the major influencing factor of the final mutual decision made at the end of negotiation (Renna, 2014). In this phase, objectives are to be identified and then the subject matter influencing interest of their perspectives is to be analysed thoroughly (Gomes, et al. 2014). Second stage of the process that is conceptualization of negotiation develops the foundation of negotiation agreement in such a frame structure that every single issue of the agreement and even the most intricate detail is considered. In this step goals and objectives of the negotiation process are defined with a complete provision of relevant evidences and facts (Negotiations, 2017).
Negotiation tools
Once two steps of the process are completed, next step of the process need to set out the details of negotiation. At this stage negotiation agreements are made and a detailing process of the venture needed to be completed effectively. Any issue that can influence the partnership needs to be discussed on the basis or reality that can make the agreement workable for all the parties involved in this agreement. Setting these details in a meticulous and correct manner is not that easy as it sounds. Negotiation collapses that are results of failure of negotiating parties in chalking efforts and devoting the time line have seen more often (Lewis, 2010). Once there details are made correctly the final stage of the process is following up the detailing consideration. In this step, problems are identified and at time these identified problems are considered to re-negotiate the agreement. Only after undertaking all these four stages a negotiation process ends (Negotiation, 2017).
Negotiating tools are those which are used at any stage of the negotiation process helping the process in any aspect. Such tools provide different solution at different stage. In the process of negotiation the most important requirement is of different alternatives that can be used as an effective and efficient alternative of the agreement. These alternatives are made to maximize the mutuality of all the parties involving in the negotiation. There are different tools used to find best suitable alternatives for the agreement considered in negotiation and are the factors determining the success of negotiation. Presence of different alternative is one of these factors. Major tools used to provide such alternatives are such as BATNA, and ETNA. Apart from these tolls used for the provision of different alternatives some other tools are used in this process like, Linkage theory.
In 1981, the best-selling book of the year “Getting to Yes”, written by Fisher and William, introduced the concept of BATNA for the first time. BATNA stands for Best Alternative to a Negotiation Agreement that is used as a tool for negotiationin different aspects. In international business aspects where a number of parties are involving in negotiation these tools have increased importance. This tool explains that negotiator has to know whether or not to accept the proposed negotiation. These decisions for the acceptance of the BATNA made in the negotiation they must know whether or not there is any other alternative for their negotiation best suiting the interest of their perspective. Since disputants with best BATNAs has the best outcome possibility of the negotiation, therefore improving the BATNA is very important whenever is possible to make such improvements. Such improvements in the BATNA make it able for negotiators to know when the opponent is desperate for some specific interest. Such interpretations make it easy for negotiators to make best mutual agreement (Colorado, 2005).
The concept of BATNA has been adopted by Guy Burgess and Heidi Burgess in an emphasized form that they called EATNA. EATNA stands for Estimated Alternatives to a Negotiated Agreement instead of the previous version of BAATNA i.e. Best Alternatives. This tool support the estimated alternatives that may have not been supported by the actual situation for example, every person involved in the negotiation may think like they can excel in any struggle, even after knowing that the other side is weaker or the strengths of all the parties are balanced.Since perception are all that matters at the end as if any of the disputant think that he or she has the best option, they will more likely pursue that particular option in their agenda. The consideration of EATNA leads the breakdown of negotiation in last minute more often. Negotiation agreement can be made for years or months at the end they ensure that the agreement made in the negotiation process is acceptable for all who are involved in this negotiation. At the end all the parties must have a hard look at the possible outcomes and make sure that the negotiation agreement is suitable for them in every aspect. The agreement will be finalised only if all the parties will allow the mutual agreement to be the final one otherwise anyone who has any objection for the agreement made in this process can suggest other alternatives that is estimated by the individual one. In this way a t the last minute introducing new estimated alternative comes under EATNA.
The way in which the process or the outcomes of a negotiation determined comes under the concept of linkage theory. This theory explains the linkage of negotiation outcomes with the environment suitability for the agreement (Crump, 2007). This states that even one single negotiation can have more than one outcome. There are several explanation provided for the provision of different outcomes of a single negotiation that are depended on the variables involved in the whole process (Turnbull, and Valla, 2013). Regardless the specific aspect of the negotiation, surrounding environment at the time of negotiating plays an important role in varying the alternatives for same negotiation (Turban, Liang, and Wu, 2011). This can be explained as the factors supported by the environment have the power to suspend, support, advance, or halt the negotiation process. Consideration of such aspects making a significant influence to the outcomes, the relation between environment and the negotiation can be provided with the help of this linkage theory (Maggi, 2016).
Negotiation initiation is quite difficult but the process of maintaining and bringing the negotiation to an end is way more difficult than the initiation process. These reasons, providing momentum to negotiation,get more significance and stated as the techniques of negotiation having their own utilities in the process. The process of negotiation linkage is used to understand the concept of relationship that the environment and negotiation process have between them (Colorado, 2005). The US-Chile and EU-Chile negotiation were initiated after the NAFTA or EU-Mercosure negotiation took place. Even the later one did notinitiate at their own. All these negotiations were interconnected with each other in some way that is why the sequence was followed in the manner they took place (Devereaux, Lawrence and Watkins, 2006). This evidence states that a specific surrounding can be designed or evolved through different states of the affairs they are dealing with. Such frame structure formation results in the direction to the actions or events that are likely to direct or determine the result of a negotiation process (Watkins, 1998).
As acknowledged before in the words of Lewicki, negotiation is the process which is not only used in the daily life but also assists in dealing in the complex negotiation of the international business. Negotiation is process but is not applied in the same way every time. With every different situation, negotiation is the implemented as per the requirement and demand of the situation (Ke, 2011). In context with the international business, the process of negotiation has to go through many different aspects to reach the final outcome. The main element that hinders the working of an organisation is the culture that exists in.
By the term culture, one means the belief and values that are followed in the surroundings. The culture acts as the base in formation of the perception of the people of an area. It is the culture that impact the working of any economy in terms of formulation and implementing the rules and regulations, strategies and policies (Kim, 2009). The business ethics and code of conduct of the organisation depends on the variation in the scenario of the external factors that makes the environment. Due to globalisations, the expansion in the outreach of the business has taken new trends in the market. It provides the opportunity to cater the different customers and expand the roots of the organisation globally creating a strong goodwill in the market. While dealing in international business, cross culture has the major influence on the working practices (Kurtzberg, Naquin, and Belkin, 2009). The blend of two cultures in order to create a trade relationship generates the situation of cross culture.
For implementing the negotiation process in international business is a complex task. The negotiators play a crucial role in the process. Before implementing the negotiation the difference between the cultures need to be thoroughly studied and analysed. It is the responsibility of the negotiator to find out the practices of the external and internal surroundings of the culture in details so that further formulation and adaptation of the negotiation can be formulated accordingly. For bridging the gap between the differences of the culture one needs to completely analyse the difference consisting of the religious, attitudes, customs, traditions and manners that are being followed so that the negotiation with other international business to go on a smoother pace. These traits help the two organisations have a mutual understanding about one another and assist in mutually to complete the process of negotiation (Li, et al, 2013). The negotiator on the basis of the analysis prepare a proper layout process as every situation demands different initiatives to be implemented while proceeding. The motive of the negotiator is to win the negotiation process between the two parties. The agreement is based on how well the analysis and the process get conveyed to the other business. If the process has positive impact, the implementations of the final actions will be in favour of the negotiator.
The concept of cross culture can be further elaborated by the following realistic illustration that exists in the process of negotiation in real life situation. The people in the United States and China have a vast cultural difference. The Chinese people have the custom of greeting another individual by bowing down whereas the US people greet other individual by shaking hands. The difference in the customs and belief can act as the hurdle that comes in the between the two different country. For establishing a good relation the negotiator with the aim of winning the process consider all the cultural factors to boost the impact and to create a path towards the success of the negotiation (Yagi, and Kleinberg, 2011).
Hence, the culture plays an essential role in the successful implementation of the negotiation process. To the negotiation process a favourable success the negotiator needs to be effective in his role. The negotiation in the international business context, not only have a huge impact on the current scenario but also have a future impact on the growth of the business. The negotiation process is targeted with expansion of the business on the present and the future aspects of the organisation. The external factors are one of those which need to be taken care of as the business operates in the external surroundings and need to fulfil the requirements of the market. In order to accomplish the target of the organisation in international market the level of negotiation need to be with accordance to the terms and conditions of the environment the organisation aims to cater (Zhang, and Zhou, 2009).
Conclusion
The term negotiation is something everyone comes across through daily. The process is used every day between individuals to settle a conflict or issue to come up with a mutual solution or outcome about the same. The content above shows the various applications of negotiation from daily routine till the international business. From the concept and background of negotiation it can be concluded that the world be on any level will practice the process to reconcile any dispute between 2 or more people. Different situation requires different implementation of negotiation as per the Lewicki. This process of fixing the dispute with mutual concern can be followed with BATNA, where the person comes down to a result by using the specific techniques and skills. It needs to be practised under the hands of a knowledgeable person to be used as one of the alternatives of the negotiation.
On the other hand negotiation theories are those alternatives tools which keep consideration of the environmental and atmospheric factors while negotiating in international business. It can be concluded that the cultural factor plays a vital role to be taken care of while dealing with different individuals to solve a conflict. With reference to the international business expanding the roots of the business with the world it is necessary to maintain the cross culture differences. The linkage theory helps the organisation to come up with the alternative as well as details out the external factors that are faced while finding the alternative in while dealing in the cross culture.
Hence, negotiation is a procedure which determines the daily working of people to solve the conflict. From being the most simple in day-to-day life to the complex process in international business it is one of those worldwide used alternative to resolve the conflict.
References
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