Negotiation Skill

Negotiation Skills

Introduction

Everybody negotiate in his or hers personal and professional lives and it is an important part of the competitive modern life. Negotiations can occur over dealing with people, business contracts, official matters, service, buying products and relationships. As James Poon (1998, p. 41) expressed that negotiation is a basic human activity. The world is like a giant negotiating table that person can negotiate many different things in different situation.

Definitions

Kozicki (1993, pp. xiii - xiv) views negotiation is a simple procedure that basically a solution of two sides sitting down to reach a mutually satisfying agreement, and sees negotiation as being the art of reaching an agreement by resolving differences through creativity. Heller (1998, cited in De Janasz, Dowd, Shneider, 2002) reviewed that negotiation involves two or more parties who each have something the other wants and attempt to reach an agreement through a process of bargaining when all parties have both shared and opposed interests. Putnam and Roloff (1992, p. 3) share this view but have further describing that each party also can block the other from attaining the goal. As to Scott (1981, p. 3) definition, the term of negotiation is a form of meeting between two parties with an objective to reach agreement in which both parties move towards an outcome which is good in both joint interest.

Negotiation Approaches

Negotiation theorists have pointed out several approaches to negotiation. Fisher, Ury and Patton (1991) not only distinguish between positional bargaining, which is competitive, and also make the distinction between soft, hard, and principled negotiation, the latter of which is based on cooperative principles, which look out for oneself as well as one's opponent.

James Poon (1998, p. 42) describing in a different manner that negotiation can be classified as distributive or integrative, in which distributive is defined as competitive win/lose bargaining, but the second type is a more productive type of negotiation. In distributive bargaining strategy, it only focuses on achieving immediate goals with little regard for building future relationship, whilst in integrative bargaining strategy, the goal is to collaborate and generate one or more creative solutions so there's a chance to both parties to achieve the primary objectives (De Janasz, Dowd, Shneider, 2002).

In principled negotiation, Fisher, Ury and Patton (1991) are aim to get agreement that is beneficial to both parties. It focused on five fundamental principles of negotiation1: 1) separate the people from the problem, 2) focus on interests, not positions, 3) invent options for mutual gain, 4) insist on objective criteria, and 5) know oneself BATNA (Best Alternative To a Negotiated Agreement).

The Phases of Negotiation Process

All negotiations are different. Simple negotiations need not require extensive negotiation process; however, when negotiations involve complex issues, negotiators shall consider using any of the negotiation process models2 recommended by various negotiation researchers.

Obstacles to Negotiation

In negotiations, removing the obstacles is the critical first step in moving toward mutual gain agreements. Sometimes people may fail to identify a good opportunity for negotiation, and use other options, such as mistrust, power struggling, reinforce prejudice and emotions, that do not allow them to manage their problems effectively (Lewicki, Saunders and Minton, 2000). Fisher, Ury and Patton (1991) identify three basic people problems3 that to the arising of obstacles to negotiation, there are 1) differences on perception among the parties, 2) emotions and 3) communication. Generally, the best way to overcome people problems is to prevent them from arising and both parties having trust, good relationship and think of each other as partners in negotiation rather than as adversaries.

Factors for Successful Negotiation

People are different and have different personality styles that must be accounted for in negotiations. The negotiation will be more successful when the negotiator able to play to the needs and desires of the person. Dawson (1995) has highlighted three critical factors to every negotiation4: 1) understanding of power, 2) information factor and 3) time element. But according to Brooks and Odiorne (1984, pp. 45 - 46), strategic planning, power skill and timing, constitute the agenda in successful negotiations5; in which, strategic planning is the key factor in shapes the dimensions, form and context of the negotiations. On the other hand, Mills (1990, pp. 177 - 179) and Scott (1981, pp. 89 - 90) has provides sixteen and eight different elements that contribute to negotiation success6 and enable two parties to negotiate towards agreement to theirs joint advantage7. As a whole, these conclude that in any negotiations, it is important to remember that both parties are working toward mutual satisfaction.

Overcoming Barriers to Negotiation

Ury (1993, pp. 11 Ð'- 136) presents a breakthrough strategy that to overcome the tactics used by the difficult negotiator and reach a settlement on mutually acceptable terms. He argues that the key is to understand why the possibility of reaching an interest-based outcome. The five steps of breakthrough negotiation8 are 1) Don't React: Go to the Balcony, 2) Don't Argue: Step to Their Side, 3) Don't Reject: Reframe, 4) Don't Push: Build Them a Golden Bridge, and 5) Don't