Question

1.) Determine the stakeholders in the organizational negotiation process, as well as factors that may influence stakeholder decision making.

2.) Analyze the impact of ethics and culture in organizational negotiations.

Answer 1

Negotiation Process:- Negotiation is an open process wherein the 2 parties involved, communicate in order to find an achievable acceptable solution to a any contract/request. This is basically a process wherein 2 parties reach mutually agreed agreement so that contract can be settled & business can be made which is beneficiary for both of them. This process leads to a better outcome, implying a win-win situation. In general language this can termed as Bargaining.

Stakeholders in Organizational Negotiation Process:-

1. Procurer of the buyer Organization:- This is the main stakeholder in negotiation process as, they are the one who requires/ is in need to the product/services offered by the supplier. They would be the one who will make the final decision after receiving multiples quotes/proposals from different suppliers. The procurement team will analyze all the information in detailed manner & then will pick the one who is best suitable for current task & also could be a better supplier with growing business in future.
2. Vendor:- Supplier or vendor is the party who is responsible for offering the product/ services to the buyer as per defined agreement/ contract. These answer to the Request for quotations/ request for proposals by providing best suitable quotations/ proposals to buyers/ customers.

Factors that influence the decision making in negotiation process:-

1. Pricing:- As this is a process wherein best of all is to selected, pricing will play a major factor in selections. Buyer although will look all the aspects prior selecting a vendor, but foremost the pricing will play it’s part. For Buyers, they should keep any eye on pricing while closing the deal. Always check what are the goods/services being offered in the pricing quoted. It could be a possibility that a vendor has quoted cheapest pricing but few items are missing as from the quotation, wherein there is another quote which has been marked up a little higher on pricing but has offered entire package along with 24X7 service assistance. For vendor, they should always think of being competitive in market making sure that there is no loss which is incurred due to this transaction. All quotations & proposals needs to be checked prior submitting to customers. Any wrong information on pricing can lead to loss of business.
2. Legal Aspects:- Post agreeing on quotations & pricing, 2 parties must check the T&C’s of the opposite party & the legal policy must be in place. Legal aspect is of utmost importance factor as non-adherence to any of these would lead to legal action against the opposing party. Agreement should be properly check & reviewed prior signing the deal/contract between the 2 parties from legal departments of both the firms,
3. Services offered:- For buyers, the kind & type of services offered to the customer will play a vital role. This would strengthened the decision in favor of the selected vendor. Whenever we buy any product, we always check what would be the services that we would be offered during & post-delivery of the product, & this helps us in making a better decision for future as well.
   For vendors, the more frequent & better services would be offered by them in terms of customer attending, queries resolution, post delivery services, the more would be the chances of them being getting selected.
4. Knowledge:- Knowledge is required for the stakeholders, the buyers & the vendors. Whenever an RFQ is being circulated, buyers must have knowledge as to what needs to be procured, what are the deadlines, what is the budget, what are the services needed, what is the quantity, in general the scope of the project.

Vendors must have in-depth knowledge as to what should be offered to customers that would fulfill the need & requirement as mentioned in the RFQ. What is inside the scope of the organization & what cannot be achieved, although any alternative solution can be offered in case there is not perfect match to the RFQ. In order to provide better solutions, vendor must have knowledge about products/ services to be offered.

1. Attitude & interpersonal Skills:- These are the factors that both the parties should keep in mind while negotiation. Whether or not deal is being finalized, attitude & conduct should always be maintained while negotiating by both the parties. This is not an platform wherein individual achievements & hence any person’s behavior should be calmed & non-defensive. This goes equally for both the stakeholders.
2. Quality check:- Quality is another major factor that would be taken into account by the stakeholders. For buyers, quality would always the thing they cannot compromise on. For vendors, they are bound to provide best quality for offered products & services as this would lead a direct impact on future business & customer retention.

Impact of ethics & culture in negotiations:-
1> Stronger Relationships:- A good & proper, ethics & culture surely will help in negotiating. These talk more about the values of the organization & the way they would behave in future business aspects.

2> Proper Decision Making:- Negotiation would obviously lay an structured approach towards wining any proposal. These factors will trigger proper decision to be made which would be beneficiary for both the parties.

3>Eliminating misunderstandings:- Negotiation is a structured process wherein all the parties come together & discuss the agenda. If conducted in ethical & cultural manner this would eliminate the risks of misunderstandings.

4>Dealing with difficult situations:- Ethical & cultural values would always help in dealing with difficult & argumentative situations. If these values are intact then negotiation process can be carried in peaceful manner.