Dr. Engr. Md. Sakawat Ali

E-mail: sakawat_ali@yahoo.com

Negotiation is a type of discussion used to settle disputes and reach agreements between two or more parties. Generally, a negotiation results in a compromise where each party makes a concession for the benefit of everyone involved. Negotiation is a dialogue between two or more people or parties intended to reach a beneficial outcome over one or more issues where a conflict exists with respect to at least one of these issues. Negotiation is a method by which people settle differences. It is a process by which compromise or agreement is reached while avoiding argument and dispute.

Negotiations occur frequently within the workplace and may occur between coworkers, departments or between an employee and employer. Professionals may negotiate contract terms, project timelines, compensation and more. Negotiations are both common and important, so it’s helpful to understand the types of negotiations you might encounter as well as how to improve your negotiation skills. In any disagreement, individuals understandably aim to achieve the best possible outcome for their position (or perhaps an organization they represent). However, the principles of fairness, seeking mutual benefit and maintaining a relationship are the keys to a successful outcome. Specific forms of negotiation are used in many situations: international affairs, the legal system, government, industrial disputes or domestic relationships as examples. However, general negotiation skills can be learned and applied in a wide range of activities. Negotiation skills can be of great benefit in resolving any differences that arise between you and others.

What are negotiation skills?

Negotiation skills are qualities that allow two or more parties to reach a compromise. These are often soft skills and include abilities such as communication, persuasion, planning, strategizing and cooperating. Understanding these skills is the first step to becoming a stronger negotiator.

The skills you’ll need depend on your environment, your intended outcome and the parties involved. Here are a few key negotiation skills that apply to many situations:

1. Communication: Essential communication skills include identifying nonverbal cues and expressing yourself in a way that is engaging. It is important to understand the natural flow of conversation and always ask for feedback. Active listening skills are also crucial for understanding the other party. By establishing clear communication, you can avoid misunderstandings that could prevent you from reaching a compromise.
2. Persuasion: The ability to influence others is an important skill for negotiation. It can help you define why your proposed solution is beneficial to all parties and encourage others to support your point-of-view.
3. Planning: In order to reach an agreement that benefits both parties, it is crucial you consider how the consequences will impact everyone in the long-term. Planning skills are necessary not only for the negotiation process but also for deciding how the terms will be carried out.
4. Strategizing: The best negotiators enter a discussion with at least one backup plan, but often more. Consider all possible outcomes, and be prepared for each of these scenarios.

Types of negotiation

Most negotiation outcomes will fall into one of two categories: Win-Win or Win-Lose. By understanding the different types of negotiations you may encounter, you can determine the most relevant skills for your role and work to improve them.

Here are forms of negotiation:

a) Distributive negotiations: Also called distributive bargaining, this form of negotiation occurs when there is a limited amount of resources and each party assumes if they lose something, the other party will gain something. Instead of each party attempting to come to an agreement based on their interests and needs, each party is working to get more than the other party. For example, a client may feel if a provider does not lower the price for a service, they will be paying too much, and the service provider may feel if they decrease their price, they will losing money.

b) Integrative negotiations: Often referred to as a “win-win,” an integrative negotiation occurs when everyone benefits from the agreement. In order to come to an integrative agreement, each party receives some value. The integrative negotiation process may take longer because both parties have to feel fully satisfied before coming to an agreement. For example, if a client believes a provider should reduce the cost of their service to $800, and the provider believes they maintain the cost of their service at $1000, the two parties may negotiate to a $900 service. In this case, both parties “win” $100.

c) Management negotiations: Negotiating with management can be stressful. In some cases, employees may feel uncomfortable sharing their wants and needs with someone in a more senior position. However, you’ll often encounter this sort of negotiation during the job seeking and hiring process. You may have to negotiate your salary, benefits and job duties. Each of these elements can directly impact your job satisfaction, so it’s essential to address them. Additionally, negotiating these factors gives you an opportunity to demonstrate your communication skills to your employer. You might also have to negotiate with management in your current position when re-evaluating your employment contract or requesting a raise.

d) Coworker negotiations: Depending on your job, you may have to negotiate with your coworkers. Many positions require close teamwork and without strong negotiation skills, you may face imbalances in work distribution. Negotiation skills allow coworkers to develop a plan that benefits the whole team. You may also have to negotiate when solving conflict in the workplace.

e) Vendor negotiations: Some employees manage external vendors, and their performance rating may be affected by how they negotiate. Also, the ability to reach an agreement with service providers can affect your professional relationships and general business success.

Stages of Negotiation

In order to achieve a desirable outcome, it may be useful to follow a structured approach to negotiation. For example, in a work situation a meeting may need to be arranged in which all parties involved can come together.

The process of negotiation includes the following stages:

1. Preparation
2. Discussion
3. Clarification of goals
4. Negotiate towards a Win-Win outcome
5. Agreement
6. Implementation of a course of action

There are five steps to the negotiation process, which are:

1. Preparation and planning.
2. Definition of ground rules.
3. Clarification and justification.
4. Bargaining and problem solving.
5. Closure and implementation.

Top 10 Negotiation Skills You Must Learn to Succeed:

1. Analyze and cultivate your BATNA (Best Alternative To a Negotiated Agreement). In both integrative negotiation and adversarial bargaining, your best source of power is your ability and willingness to walk away and take another deal. Before arriving at the bargaining table, wise negotiators spend significant time identifying their best alternative to a negotiated agreement, or BATNA, and taking steps to improve it.
2. Negotiate the process. Don’t assume you’re both on the same page when it comes to determining when to meet, who should be present, what your agenda will be, and so on. Instead, carefully negotiate how you will negotiate in advance. Discussing such procedural issues will clear the way for much more focused talks.
3. Build rapport. Although it’s not always feasible to engage in small talk at the start of a negotiation (particularly if you’re on a tight deadline), doing so can bring real benefits, research shows. You and your counterpart may be more collaborative and likely to reach an agreement if you spend even just a few minutes trying to get to know each other. If you’re negotiating over email, even a brief introductory phone call may make a difference. This is one of the most valuable negotiation skills to master.
4. Listen actively. Once you start discussing substance, resist the common urge to think about what you’re going to say next while your counterpart is talking. Instead, listen carefully to her arguments, then paraphrase what you believe she said to check your understanding. Acknowledge any difficult feelings, like frustration, behind the message. Not only are you likely to acquire valuable information, but the other party may mimic your exemplary listening skills.
5. Ask good questions. You can gain more in integrative negotiation by asking lots of questions—ones that are likely to get helpful answers. Avoid asking “yes or no” questions and leading questions, such as “Don’t you think that’s a great idea?” Instead, craft neutral questions that encourage detailed responses, such as “Can you tell me about the challenges you’re facing this quarter?”
6. Search for smart tradeoffs. In a distributive negotiation, parties are often stuck making concessions and demands on a single issue, such as price. In integrative negotiation, you can capitalize on the presence of multiple issues to get both sides more of what they want. Specifically, try to identify issues that your counterpart cares deeply about that you value less. Then propose making a concession on that issue in exchange for a concession from her on an issue you value highly.
7. Be aware of the anchoring bias. Ample research shows that the first number mentioned in a negotiation, however arbitrary, exerts a powerful influence on the negotiation that follows. You can avoid being the next victim of the anchoring bias by making the first offer (or offers) and trying to anchor talks in your preferred direction. If the other side does anchor first, keep your aspirations and BATNA at the forefront of your mind, pausing to revisit them as needed.
8. Present multiple equivalent offers simultaneously (MESOs). Rather than making one offer at a time, consider presenting several offers at once. If your counterpart rejects all of them, ask him to tell you which one he liked best and why. Then work on your own to improve the offer, or try to brainstorm with the other party an option that pleases you both. This strategy of presenting multiple offers simultaneously decreases the odds of impasse and can promote more creative solutions.
9. Try a contingent contract. Negotiators often get stuck because they disagree about how a certain scenario will play out over time. In such cases, try proposing a contingent contract—in essence, a bet about how future events will unfold. For example, if you doubt a contractor’s claims that he can finish your home renovation project in three months, propose a contingent contract that will penalize him for late completion and/or reward him for early completion. If he truly believes his claims, he should have no problem accepting such terms.
10. Plan for the implementation stage. Another way to improve the long-term durability of your contract is to place milestones and deadlines in your contract to ensure that commitments are being met. You might also agree, in writing, to meet at regular intervals throughout the life of the contract to check in and, if necessary, renegotiate. In addition, adding a dispute-resolution clause that calls for the use of mediation or arbitration if a conflict arises can be a wise move.

Tips to improve your negotiation skills

Not all forms of negotiation are effective, and measuring success can be challenging. To evaluate your effectiveness, it is wise to identify how well your intended outcome aligns with the final agreement.

Follow these tips to improve your negotiation skills:

1. Identify the final goal
2. Practice building rapport
3. Be willing to compromise
4. Consider imposing time restrictions
5. Take the multiple offer approach
6. Exercise confidence
7. Don’t take “no” personally
8. Understand your weaknesses
9. Practice

Below are a few ways to strengthen your negotiation skills.

1) Identify the final goal: What are the minimum terms you need? How much are you willing to negotiate? It’s important you enter negotiations knowing what you want out of an agreement and how much you’re willing to compromise.

2) Practice building rapport: Successful negotiation requires you to effectively communicate not only your own goals, but also to understand the other party’s wants and needs as well. In order to reach an agreement, building rapport is essential. This can assist you in easing tension. In order to build rapport, showing respect for other parties and using active listening skills are critical.

3) Be willing to compromise: Without compromise, it can be nearly impossible to reach an agreement. By preparing ahead of time, you will already have an idea of the terms you’re willing to sacrifice as well as the ones that, if they aren’t met, you would be willing to walk away from the deal.

4) Consider imposing time restrictions: Setting a timeline on the negotiations motivates both parties to reach an agreement. If terms cannot be met in that time, the two parties can take time to reevaluate their needs and return at a later date.

5) Take the multiple offer approach: By presenting multiple offers at once, you can save time in the negotiation process and increase the likelihood that you’ll agree on at least one of your preferred outcomes. If the other party declines, you can then ask for feedback on each one and revise terms until you reach an agreement that meets everyone’s needs.

6) Exercise confidence: It can be challenging to ask for what you want. However, successful negotiation requires self-assurance. By exercising confidence in your negotiation, the other parties can be more inclined to believe in the benefits of your proposal.

7) Don’t take “no” personally: Sometimes, each party’s goals and needs are too different to reach a compromise. When this happens, evaluate the process, consider why things that did not go as planned and look for ways you may be able to improve your efforts next time.

8) Understand your weaknesses: Take time to identify your areas of weakness and focus on growing those skills. For example, you may need to improve your ability to build rapport or your power of persuasion. Understanding your weaknesses is the first step to overcoming them.

9) Practice

Key Words: Negotiation Skills