In: Accounting
1. Negotiation is nothing but a discussion among individuals to reach to an alternative which would satisfy all. In every type of communication scenario, including during negotiations, non- verbal communication is sometimes more important than what is actually being said.Communication plays an important role in negotiation. The better the communication is the better the negotiation would be.
The dictionary defines communication as the act of transmitting or conveying information. Without being able to convey information, you would not be able to negotiate. Negotiation depends on information. Generally, the more information you can glean, the better your position to negotiate.
Job descriptions often list negotiation skills as a desirable asset for job candidates, but the ability to negotiate requires a collection of interpersonal and communication skills used together to bring a desired result. The circumstances of negotiation occur when two parties or groups of individuals disagree on the solution for a problem or the goal for a project or contract. A successful negotiation requires the two parties to come together and hammer out an agreement that is acceptable to both
In the heat of battle, where effective communication is critical, fighter pilots:
Normally, Following points will be communicated during negotiation.
Thoughts will be sensibly converted into a speech by carefully selecting relevant words.
Communication as an instrument, manifests all its advantages when it is realised in the process of negotiation. This setting puts the human being in a balance where he has to make his own decission about what it’s best for him to choose. Thus negotiation becomes the most efficient way of communication
Establishing open feedback channels allows for management to address issues as they are raised, creating a constructive negotiating climate that will help to avert protracted negotiations and possible strikes. This open climate creates a level of trust that is necessary to conduct proper negotiations.
Clearly, a lack of communication between parties leads to
breakdowns and misunderstandings. Without ongoing communication you
also risk impasse and deadlock. Open communication aids mutual
understanding, and this in turn leads to better long-term
agreements between parties.
2. Example:1
Mr. X wanted to purchase a pen for himself. He was not very convinced with the price the shopkeeper quoted and found it a little too high. X wanted him to reduce the price of the pen. Unfortunately X lagged good communication skills and whatever he spoke only confused the shopkeeper. He kept on cribbing and pleading which further irritated the shopkeeper and he refused to further entertain X.
What was Mr. X’s mistake ?
Mr. X wanted to buy the pen, but his only mistake was he did not speak in a convincing manner. Had he spoken clearly and explained the shopkeeper as to why the price of the pen should be a litter lesser than what he had quoted, the pen would have been his. In this case the negotiation was not a fruitful one as no body gained anything.
The terms and conditions is mentioned clearly for better transparency and hide anything from the second party. Corporate terminologies, professional jargons are used.
Example 2: Non verbal communication also plays an important role in an effective negotiation. Our facial expressions hand movements, posture matter a lot and must never be ignored.
Please go through the below example for a better clarity:
If you come across a person who is nervous, sweating unnecessarily and fiddling with things around, will you entertain such a person?
Obviously No.
The same happens with the other party also. If they come to know that you are nervous, they would definitely try to sit on your head and the deal would never be in your favour. Don’t express your helplessness to anyone. You might need the job badly but don’t let the other person know about it. Be very confident and show a positive attitude. Whenever you are going for a negotiation, don’t forget to carry your smile. Flash your million dollar smile but don’t laugh unnecessarily or crack silly jokes in between. Exchange greetings and compliments to break the ice.Sit straight, don’t lean on the chair and do make an eye contact with the person sitting on the other side of the table. It shows your confidence and strong will power. Don’t play with things kept on the table. Concentrate on the negotiation and don’t look here and there.
Negotiation is no rocket science. You just have to be very clear about your expectations and interests; express the same clearly, convince the other party and come to something acceptable to both. Don’t speak anything which might hurt the other person. Be very polite in your speech, involve everyone in the discussion and decide in the favour of all the participants for an effective negotiation.
Example 3: Effective communication is important in salary negotiations as well. Express your salary expectations clearly in front of the recruiter. If you want your salary to be more than what he has quoted, mention it very clearly but politely. Try your level best to convince the recruiter why you need salary hike and probably how will you justify it once you join the organization. There is nothing to be afraid of; even the organization needs talented people like you. Learn to be a bit tactful. Your style, your accent, your pronunciations are also important. Do lay emphasis on words that you feel are important. If you are not satisfied with the offer, it’s better to decline it but in a very polite way. Remember we all belong to good families and must behave like educated and cultured people.
Example 4:
In an interesting article about possible labor strife from the South Africa Independent Online, the title says it all: “Communicate before negotiations.” South Africa has an ongoing problem between workers and management, which has resulted in strikes and even violence. The article says this:
The protracted wage negotiations in the mining, manufacturing, steel and engineering and public sectors highlight the need for companies to implement constructive communication channels to prevent damaging effects on productivity and profitability levels.
3. Negotiation is not just about getting what you want or giving what the other party is interested in. It is about reaching a win-win situation by which you settle differences without getting into any kind of disagreements, arguments or disputes.A good negotiator is someone who aims at understanding the other person's perspective in addition to making the best efforts to achieve a successful outcome that benefits both the parties.
Following Techniques are used to improve your communication in Negotiation-
A. Do not focus on ‘winning’ everything:-
The first and the most crucial technique to ace negotiation is to remove this mental block. Do not enter the meeting room if you are still thinking about winning. Negotiation is not a competition where you have to come first. It is a way forward to build lasting relationships, especially in a professional setup. The fact that both the parties have agreed to have a discussion on a particular matter is a sign that you both want to reach mutually benefiting terms of collaboration.
Write down all the points that you want the other party to work on, and do not forget to pen down their interests and expectations, too. A quick comparison between the two will help you identify the areas of common ground and take proper actions.
B. Ask open-ended questions
A negotiator should be fluent and have impeccable communication skills. Your skills to communicate effectively should not be limited to what to say but must rather focus on how to say it. For instance, you don’t want to ask questions that will fetch you nothing more than a simple ‘yes’ or ‘no’ in response. Starting a conversation with questions like, “What are your expectations from the deal?”, or “Do you have any additional ideas in mind to make this collaboration more profitable?”, will help you gain trust as well as give space to the other person to share their interests with clarity.
C. Share information
One of the most common mistakes of negotiators is that they try to hide certain facts and figures while discussing the deal. Trust issues have always been a major reason for most failed collaborations in the past. Simply putting out the relevant information is not enough if you want to build good professional tie-ups. You need to be honest and upfront about your current standings and encourage the other to do the same. Do not show all your cards, but make sure to reveal the ones that are conducive to increase the outcome.
D. Mind the language
Using hesitant and negative language is a big no when it comes to negotiating. Using words, like ‘umm’, ‘I guess so’ and ‘you know’, reduces your power and raises questions on the credibility of your ideas. On the other hand, using negative phrases, such as ‘you’re wrong about this’, or ‘you should not say such a thing’, not only raise eyebrows but also limit a person’s understanding of the substance, making it harder for the speaker to convince the other person about their intentions. According to a study in the Journal of Applied Social Psychology, if you want to be communicate with persuasion, don't stumble, pause or use language that shows hesitation. Most importantly, do not give your listeners time to think about what you're really saying, suggests the study.
E. Use brief, but authoritative, statements
Rambling in a meeting room while others stare at you with confused looks is the last thing you want to encounter in a professional setting. Keeping your statement brief will give you the much needed pause in between the conversation and make your audience pay attention to the subject. Whatever you say, make sure you do it with a sense of authority in your conduct. On the other hand, if the other person is talking, try to keep your responses short with phrases like ‘Okay’, ‘I understand’ and ‘I get it’.
Follow these tips to become a better negotiator and close every deal successfully. Remember that you have the power to walk from a deal if it doesn't fit the bill. Your focus should be to get the best out of the each one and take calculated actions as the conversation unfolds.
F. Problem Analysis
Effective negotiators must have the skills to analyze a problem to determine the interests of each party in the negotiation. A detailed problem analysis identifies the issue, the interested parties and the outcome goals.
G. Preparation
Before entering a bargaining meeting, the skilled negotiator prepares for the meeting. Preparation includes determining goals, areas for trade and alternatives to the stated goals. In addition, negotiators study the history of the relationship between the two parties and past negotiations to find areas of agreement and common goals. Past precedents and outcomes can set the tone for current negotiations.
H. Active Listening
Negotiators have the skills to listen actively to the other party during the debate. Active listening involves the ability to read body language as well as verbal communication. It is important to listen to the other party to find areas for compromise during the meeting. Instead of spending the bulk of the time in negotiation expounding the virtues of his viewpoint, the skilled negotiator will spend more time listening to the other party.
I. Emotional Control
It is vital that a negotiator have the ability to keep his emotions in check during the negotiation. While a negotiation on contentious issues can be frustrating, allowing emotions to take control during the meeting can lead to unfavorable results.
J. Verbal Communication
Negotiators must have the ability to communicate clearly and effectively to the other side during the negotiation. Misunderstandings can occur if the negotiator does not state his case clearly. During a bargaining meeting, an effective negotiator must have the skills to state his desired outcome as well as his reasoning.
K. Collaboration and Teamwork
Negotiation is not necessarily a one side against another arrangement. Effective negotiators must have the skills to work together as a team and foster a collaborative atmosphere during negotiations. Those involved in a negotiation on both sides of the issue must work together to reach an agreeable solution.
L. Problem Solving
Individuals with negotiation skills have the ability to seek a variety of solutions to problems. Instead of focusing on his ultimate goal for the negotiation, the individual with skills can focus on solving the problem, which may be a breakdown in communication, to benefit both sides of the issue.
M. Decision Making Ability
Leaders with negotiation skills have the ability to act decisively during a negotiation. It may be necessary during a bargaining arrangement to agree to a compromise quickly to end a stalemate.
N. Interpersonal Skills
Effective negotiators have the interpersonal skills to maintain a good working relationship with those involved in the negotiation. Negotiators with patience and the ability to persuade others without using manipulation can maintain a positive atmosphere during a difficult negotiation.
O. Ethics and Reliability
Ethical standards and reliability in an effective negotiator promote a trusting environment for negotiations. Both sides in a negotiation must trust that the other party will follow through on promises and agreements. A negotiator must have the skills to execute on his promises after bargaining ends.
4. Examples for special communication considerations at the close of negotiation
Example 1
That certainly was the case with Dr Taylor (not the individual's real name), a graduating oncology fellow who, after a two-hour interview, accepted an offer for a job with no health insurance and poor pay. Commenting on the situation as she was leaving the group after a year, she says, “It didn't occur to me to ask questions.” Another physician, hired soon after Taylor, got paid more and received a better benefits package, even though she worked fewer hours. Why? “She negotiated for all of that,” Taylor says.
Many candidates make the mistake of thinking that the terms of a job offer are being dictated, Craver says. “But most employers start with a lower offer and respect people who ask to negotiate.” His advice? “Just ask, very politely, ‘Is this negotiable?’”
Example 2:
Negotiating is something that can be learned—something for which there are resources,” says oncologist Dean Gesme, MD (Minneapolis, Minnesota), who has been involved in many negotiations throughout his 25-year career. “Most physicians feel they are so bright that they are afraid to look into things they don't know about. They're a bit ashamed and easily cowed in those areas. Either they ignore it and hope it goes away, or they try to put on a show that they know what they are doing when they don't.”
Although physicians may not think about interactions with patients as negotiations, principles of negotiating are in play and are important in communicating with patients. “Our recommendation many times is just our opinion,” Gesme comments. “We need to be sensitive that we are putting it in the perspective of how patients are looking at their problem, as well as what their current situation is.”
Example 3:
Remember that in most circumstances, you are negotiating a relationship, not a transaction. For example, when you are negotiating an employment contract to join a group practice, you are not just trying to get the best deal for yourself; you also want the best deal for the group, which will soon be your group.
Example 4
As Craver points out, most of the basic principles of negotiation were learned before kindergarten. Be polite. Be honest. Be considerate.
“Skilled bargainers do not behave badly,” Craver says. “If you come to me and begin negatively I will look for a reason to tell you ‘no.’ But if you are professional and personable, I will feel guilty if I say ‘no.’” Craver uses the term “negotiating emotional intelligence” to refer to the overall interpersonal skills needed to be successful in negotiations—self-awareness, ability to adapt, ability to empathize. And he likens it to physician-patient relations. “Where you have somebody with a nicer bedside manner—doctors with good relationships with patients are likely to have long-term relationships.”
Gesme stresses that honesty is paramount. “Whether negotiating with a potential employer or a patient, honesty and integrity have to be first and foremost,” he notes. “You will always lose if you've been dishonest. Nobody wants to bargain when you're not bargaining in good faith. It takes too much time, too many resources, too much energy.”
Timing is important. Just as a child knows not to ask for a treat in the middle of a quarrel between mom and dad, don't initiate a negotiation during a difficult time for the other party. Even when negotiations are under way, correct timing remains important. For example, you shouldn't bring up salary and other compensation details prematurely when seeking a new position. Craver advises, “Wait until you have an offer. If they ask what you expect as salary before stating a figure, the best response is ‘What is your normal amount?’”