Reviewed by Aug 27, 2020| Updated on
What is Negotiation?
Negotiation is a strategy that settles a matter in an acceptable way to all the parties. Every party tries to convince the other to agree with his or her perspective in a negotiation. All parties involved try to avoid fighting by bargaining but decide to find some form of compromise.
Negotiations involve giving and taking, ensuring that one side will always come out on top of the negotiation. Nonetheless, the other must admit it even though that concession is nominal.
It may differ between parties involved in the negotiations. These can include agreements between buyers and sellers, an employer and prospective employee or between two or more countries' governments.
How do Negotiations Work?
Negotiations include two or more parties that work together to accomplish some ultimate goal via an agreement or resolution that is appropriate to all concerned. Each side must put forward its stance, while the others will either accept the proposed conditions or counter its own position. The cycle continues until a settlement is reached between the parties.
Before a negotiation begins, participants learn as much as possible about the other party's position, including the strengths and weaknesses of that position, how to prepare to defend their positions, and any counter-arguments that the other party will likely make.
The duration of time needed to hold negotiations depends on the circumstances. Negotiations may take as little as a couple of minutes, or much longer in more complex cases. For instance, a buyer and seller can negotiate the sale of a car for minutes or hours. But, it may go on up to months or years for governments of two or more countries to negotiate the terms of a trade deal.
Key Factors Involved in Negotiations
There are some key factors to be considered for negotiation if you wish to be successful:
1. Parties involved: Who are the negotiating parties and what are their interests? What is the context of all concerned and how does their place in the discussion affect that?
2. Relationships: What is the relation between the parties and their intermediaries involved in the negotiation? How are the parties related, and what position does it play in the negotiating process?
3. Communication: How to better express the wishes of the parties involved to protect their agreements through negotiation? Which is the most efficient way of communicating the desired results and needs? How can the parties be confident that they are listened to?
4. True claims: Is what every party asks for and promises legitimate? What facts are the parties offering to support their arguments and show the validity of their demands? How are they going to guarantee that they will follow through on the negotiation results?
5. Commitment level: What is the amount of commitment needed to deliver negotiation outcome? What is at stake for each party and do the negotiators consider the effort needed to reach the outcomes negotiated?