In: Operations Management
1. Meaning of Negotiation (100 words)
2. Negotiation stages (200 words)
3. Advantages of Negotiation (100 words)
4. Conclusion (50 words)
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Note: Plagiarism is strictly prohibited please do not copy paste from internet please i need unique answer
Meaning of Negotiation
A negotiation can be termed as an open-ended dialogue process where the involved parties (two or more in number) want to reach an outcome to a conflict involving one or more issues. The outcome may be beneficial for one, two, or all the parties of a negotiation process. During the negotiation, the negotiating parties can compromise and optimize their utilities and also agree on certain matters related to mutual interest. Understanding the negotiation process better will help the negotiators achieve profit, establish a relationship, avoid conflict, and/or close the deals among other achievable. Negotiation is carried out in all business and other organization (internally and externally) and maybe one of the most important and commonly occurring interactions between various groups.
Stages of Negotiation
The five steps of a negotiation process are given below.
Preparation and Planning
This is the first step of the negotiation process which involves accumulation, gathering, and organization of facts and information so that an effective negotiation can be initiated. Information and data are especially useful for supporting the stand taken and to make the stances valid. It is important for the negotiatiors to learn about and evaluate aspects including the history of the concerned parties and the nature of the conflict, and to know the various perceptions of it.
Defining the Ground Rules
A planned negotiation is carried out under a set of guidelines, rules, and procedures, which are established during this phase or stage of negotiation. The concerned parties decide on the location, time, and other constraints of the negotiation process and also find out the issues that are off-limits and are not to be included in the negotiation process. Expectations and demands should be disclosed clearly. For instance, for a sale contract, both parties would like to specify the price at which they would start their negotiation.
Clarification and Justification
During this phase, each of the side and parties explain their position in-depth and also present the facts following their assessment of the situation and in support of their original stand. Parties should not argue with each other and should try to make the other party understand its position and the reason behind it, by providing maximum information. The parties may also carry out presentations for explanations, or distribute/exchange documents for providing information, facts, and figures.
Bargaining and Problem Solving
This stage may be the essence of the whole negotiation process where proper bargaining is carried out. This is a kind of “give and take” scenario where one or more parties may make some concessions to reach a possible and desirable outcome.
Closure and Implementation
After extensive bargaining and discussions, each party agrees with an agreement, which is formalized and signed during this last stage of the negotiation process. The formal contract will include the specifics and there will also be procedures for implementation of the contract and its monitoring.
Advantages of Negotiation
The negotiation process and its results/outcomes can have several advantages for many different kinds of organizations including business organizations. Some of these benefits and advantages are listed below.
Conclusion
A negotiation process provides for a systematic way of finding out solutions to all kinds of issues, including the more complex issues and problems. Companies can take advantage of the process and allocate their scarce resources wisely and effectively to gain maximum possible gains, while also having a better relationship with the other party and keeping its interest. Negotiation can produce both tangible and intangible results/gains and therefore business organizations should emphasize learning and evaluating the negotiation aspects better.